Helio Announces Closing of Final Tranche of Non-Brokered Private Placement

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES./

TSX-V Trading Symbol: HRC
Toll Free: [phone]
E-mail: [email protected]
Website: www.helioresource.com

VANCOUVER, May 16, 2013 /CNW/ - Helio Resource Corp. (TSXV: HRC) ("Helio" or the "Company") is pleased to announce the successful completion of the $1.75 million non-brokered private placement announced on April 22, 2013. The first tranche of funds ($1,400,000) was received and announced on May 9, 2013. The balance of the financing ($350,000 / 5,000,000 Units) has now been received and the securities have been issued.

In total, Helio has issued 25,000,000 Units of the Company in this Private Placement. Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant of the Company (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at a price of $0.14 for a period of two years from closing. All securities issued in connection with this private placement are subject to a four-month plus one day hold period. The hold period for the securities issued in this final tranche will expire on September 16, 2013 and the warrants will expire on May 15, 2015.

As a result of this closing, the Company has 135,602,959 shares issued and outstanding.

No commissions have been or shall be paid in connection with this financing.

Use of Proceeds

The proceeds from the private placement will be used for the advancement of the resource at Helio's 238km² SMP Gold Project in the Lupa Goldfields of South West Tanzania, and for general corporate working capital purposes.

These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams" Richard D. Williams, P.Geo  CEO

"Chris MacKenzie" Christopher J. MacKenzie, C.Geol. COO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE: Helio Resource Corp.

For additional information, please contact Richard Williams or Irene Dorsman at [phone] or by e-mail to [email protected] or [email protected].