Mr. Caleb Stroup reports

HEADWATER GOLD COMMENCES DRILLING AT SPRING PEAK PROJECT, NEVADA

Headwater Gold Inc. has commenced drilling at the Spring Peak project in Nevada. The program is designed to follow up on Headwater's 2022 drill results which discovered high-grade epithermal veins in two distinct target areas (see Headwater news release dated March 2, 2023).

Highlights

• Spring Peak is located in the Walker Lane belt of Nevada, immediately south of Hecla Mining Company's past-producing Aurora mine.
• Up to approximately 11,500 metres of drilling is currently planned, utilizing three drill rigs and a combination of reverse circulation (RC) and core drilling.
• The drill program is currently fully financed by a subsidiary of Newcrest Mining Ltd. pursuant to the option and earn-in transaction announced Aug. 16, 2022.
• The goals of the drill program are to:
  • Offset high-grade epithermal veins discovered in Headwater's 2022 drilling at the Disco zone which intercepted 34.72 metres grading 2.73 grams per tonne gold (g/t Au), including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m (see Headwater new release dated Jan. 9, 2023).
  • Systematically test an approximately 500 m strike segment of the Disco zone.
  • Follow up drilling at the newly discovered Opal Ridge zone below shallow high-grade mineralization encountered in RC drill hole SP22-14 (see Headwater news release dated March 2, 2023).
  • Test multiple new high-priority target areas with RC scout drill holes.

Caleb Stroup, the president and chief executive officer of the company, states: "In a busy year of drilling for Headwater, the Spring Peak drill program stands out as an extremely exciting opportunity to advance a new discovery to the next phase. Since acquiring the project in 2021, we have been systematically vectoring into the high-grade portions of this epithermal alteration cell, culminating in the high-grade vein discoveries announced earlier this year. We now believe we have a solid understanding of the geology at depth and with this drill program will attempt to systematically offset known high-grade mineralization along strike and down dip and begin evaluating the scale of this new discovery."

2023 drill program

The 2023 drill program is expected to consist of up to 11,500 m over approximately 30 to 35 holes utilizing two diamond core rigs and one RC rig.

Disco zone

The Disco zone is a mineralized fault corridor which hosts a series of high-grade epithermal veins at depth discovered by Headwater in 2022 drilling beneath a thick accumulation of silica sinter at surface.

The primary objective of the 2023 drill program is to further define and expand the Disco zone along strike and down dip at approximate 50-metre increments.

The four holes that targeted the Disco zone in 2022 were drilled on a single fence and intercepted multiple discrete veins with textures indicative of boiling, including ginguro banding, silica replacement of lattice-bladed calcite and vein sediments. Mineralization remains open down dip and along strike. The highest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13 which intersected two individual veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m, respectively. The highest individual assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a broader zone which assayed 2.73 g/t Au over 34.72 m. For more information see Headwater news releases dated Jan. 9, 2023, and March 2, 2023. The 2023 drill program will target the same elevation horizon, between 150 m and 400 m below the silica sinter exposed at surface.

Opal Ridge

Several diamond core holes have also been designed to test the potential of the newly discovered Opal Ridge zone at depth below relatively shallow high-grade mineralization encountered in RC drill hole SP22-14 (see Headwater new release dated March 2, 2023).

RC scout hole SP22-14 intersected a new high-grade vein at the Opal Ridge target which assayed 16.4 g/t Au over a drilled thickness of 1.52 m, within a broader zone of 2.70 g/t Au over 10.67 m. Banded quartz vein material with fine-grained sulphide stringers was observed within this interval. Several follow-up core holes have been designed to offset this intercept down dip and along strike.

Scout drilling

In addition to the Disco zone and Opal Ridge areas, Headwater has planned additional scout drill holes to test multiple new targets which the company has identified. The development of these targets was informed by a combination of surface geologic mapping, reinterpretation of historical data, and hyperspectral alteration studies and analysis of oriented core data collected in the 2022 drill campaign. Oriented core from throughout the property has consistently shown a dominant northeast trend to vein orientations. The company intends to test several structural targets parallel to this orientation, including the Colloform Canyon target which contains a strong soil pathfinder anomaly and historic rock samples of banded vein float assaying up to 3.47 g/t Au.

About the Spring Peak project

The Spring Peak project is located in the Aurora mining district of west-central Nevada, approximately 50 kilometres southwest of the town of Hawthorne. The project adjoins Hecla Mining Company's past-producing Aurora mine complex, where existing infrastructure includes a 350-ton-per-day mill, several production water wells and high-voltage three-phase power.

Headwater holds an option to acquire a 100-per-cent undivided interest in the Spring Peak project from Orogen Royalties, subject to retained royalties and subject to Newcrest's option to acquire up to 75 per cent of the project following certain expenditures and preparation of a prefeasibility study within a designated time frame.

About Headwater Gold Inc.

Headwater Gold is a technically driven mineral exploration company focused on the exploration and discovery of high-grade precious metal deposits in the Western United States. Headwater is aggressively exploring one of the most well-endowed and mining-friendly jurisdictions in the world with a goal of making world-class precious metal discoveries. Headwater has a large portfolio of epithermal vein exploration projects and a technical team comprising experienced geologists with diverse capital markets, junior company and major mining company experience. The company is systematically drill testing several projects in Nevada, Idaho and Oregon and in August, 2022, and May, 2023, announced transactions with Newcrest Mining where Newcrest acquired a 9.9-per-cent strategic equity interest in the company and entered into several option and earn-in agreements on Headwater's projects.

We seek Safe Harbor.