Helio acquires strategic licence adjacent to the SMP Gold Project, Tanzania



    VANCOUVER, Oct. 16 /CNW/ - Helio Resource Corp. ("Helio" or the
"Company") (TSX-V: HRC) is pleased to report that it has signed a binding
Letter of Intent with Thorntree Minerals Limited, a private Tanzanian mining
company, whereby Helio can earn a 100% interest, subject to a 2% Royalty, in
the 34km(2) Saza West licence, located immediately west of Helio's SMP Gold
Project in the Lupa Goldfields, SW Tanzania.

    
    Highlights of the transaction include the following:

    -   Helio now controls all of the main areas of the former "New Saza
        Mine" which produced 270,000 ounces of gold at an average grade of
        7.5g/t Au between 1939 - 1956;

    -   The SMP Gold Project now covers 34km of strike length of the Saza
        Shear Zone, the main known gold bearing structure in the region;

    -   Previous work conducted by AngloGold Ashanti in the late 1990s
        (including soil sampling, trenching and RAB drilling) has identified
        numerous drill-ready targets;

    -   There are no minimum annual exploration expenditures under this
        agreement.

    -   Helio has the option to reduce the royalty from 2% to 1% by paying
        Thorntree C$1,000,000 in cash prior to commencement of production,
        and has the first right of refusal on the remaining royalty.

    A map of the new project configuration is presented in the link below:
    http://www.helioresource.com/i/pdf/2008-10-16_NRM1.pdf

    To vest its interest, Helio must make optional share and cash payments to
Thorntree totalling C$25,000 and 1,025,000 shares over a 4 year period, as
follows:

    -------------------------------------------------------------------------
                    Timing                           Cash         Shares
    -------------------------------------------------------------------------
     Successful Completion of Due Diligence(*)     C$25,000       150,000
    -------------------------------------------------------------------------
                1st Anniversary                                   125,000
    -------------------------------------------------------------------------
                2nd Anniversary                                   125,000
    -------------------------------------------------------------------------
                3rd Anniversary                                   125,000
    -------------------------------------------------------------------------
                4th Anniversary                                   500,000
    -------------------------------------------------------------------------
                     TOTAL                         C$25,000     1,025,000
    -------------------------------------------------------------------------
    (*) - The due diligence period expires November 10, 2008.


    ABOUT THE SMP GOLD PROJECT
    --------------------------
    

    Helio, through its 100% owned subsidiary BAFEX Tanzania Ltd., can earn a
100% interest in five contiguous licences, which cover a 34km strike length of
the Saza Shear Zone and numerous prospective cross-cutting structures (see
news releases dated December 19, 2005 and September 11, 2006). The project
covers the New Saza Gold Mine, which operated between 1939 - 1956, producing
approximately 270,000 ounces of gold at an average grade of 7.5g/t Au.
    Since June 2006, the Company has drill-tested eleven targets, nine of
which are hosted by the Saza Shear Zone. All eleven targets have intersected
bedrock-hosted gold mineralisation, the most advanced being the Kenge Target,
which has returned up to 22.0m grading 6.9g/t gold in the Main Zone (Company
press release dated May 23, 2007). The thickest mineralised intercept at Kenge
is from the Mbenge Zone (48.7m @ 2.1g/t Au - Company press release dated
September 8, 2008). The thickest mineralised intercept to date at the SMP was
drilled at the Porcupine target (52.2m grading 3.3g/t Au - Company press
release dated July 21, 2008).
    The Company has also received excellent metallurgical results from the
SMP project, where recoveries of up to 96% were achieved by conventional
processes at the Kenge target (Company press release August 11, 2008).
    Helio's main focus is the development of the SMP Gold Project in
Tanzania. As part of its strategic approach to project development, Helio has
optioned 9 of its Namibian licences to Desert Minerals (UK) Ltd. and continues
to pursue joint venture partners for its other projects in Namibia.
    For additional information, please contact Richard Williams or Irene
Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or
irene@helioresource.com.

    
                     ON BEHALF OF THE BOARD OF DIRECTORS

           "Richard D. Williams"                 "Chris MacKenzie"
         Richard D. Williams, P.Geo        Christopher J. MacKenzie, C.Geol.
                  CEO                                   COO

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

    %SEDAR: 00012999E




For further information:

For further information: Richard Williams or Irene Dorsman at (604)
638-8007 or by e-mail to richard@helioresource.com or irene@helioresource.com


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