Helio Resource Corp.

Helio Resource Corp.

January 16, 2006 15:30 ET

Helio to Raise up to $2,000,000 by Way of a Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2006) -


Helio Resource Corp. ("Helio" or the "Company") (TSX VENTURE:HRC) is pleased to announce that it has engaged Quest Securities Corporation to act as Agent for a Private Placement of up to 4,000,000 Units of the Company at a price of $0.50 per Unit for gross proceeds of up to $2,000,000. The Private Placement is open to residents of British Columbia, Alberta, Ontario and any other qualifying international jurisdictions. Each Unit will be comprised of one common share and one share purchase warrant. One share purchase warrant will entitle the holder to purchase one common share of the Company at a price of $0.75 per share for a period of two years from the closing of the Private Placement.

If, after the statutory four-month hold-period following the closing of the Private Placement, the common shares of the Company trade at a price of $0.90 or greater for a period of 20 consecutive trading days, the Company shall be entitled to provide notice to the warrant holders that the warrants shall expire 30 days after providing such notice.

In consideration for the Agent's services, the Company has agreed to pay a cash commission of 7% on the gross proceeds of the Offering. In addition, the Agent will be granted Agent's Warrants entitling the Agent to purchase that number of common shares that is equal to 7% of the number of Units issued under the Offering at a price of $0.50 per share. The Company is also responsible for paying all reasonable costs incurred, to a maximum of $25,000, by the Agent in connection with the Offering.

The proceeds of the Offering will be used by Helio for general working capital and corporate purposes. The Offering is subject to TSX Venture Exchange (the "Exchange") approval.

Helio Resource Corp., based in Windhoek, Namibia, is one of Southern Africa's leading exploration companies and specializes in innovative new-project generation. Helio is actively exploring 11 prospective gold, copper and diamond properties in Namibia, Botswana and Tanzania. As part of its strategic approach to project development, Helio has forged partnerships with firms such as Teck Cominco, Indicator Minerals, Yale Resources, Boulder Mining and Springbok Resources to advance a number of its projects.


Richard D. Williams, P.Geo, President

"This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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