Mr. Caleb Stroup reports

HEADWATER GOLD ANNOUNCES ADDITIONAL HIGH-GRADE GOLD DRILL RESULTS FROM THE SPRING PEAK PROJECT, NEVADA

Headwater Gold Inc. has released final assay results from its 2023 Spring Peak drilling program. Drilling at Spring Peak was fully financed by a subsidiary of Newmont Corp. pursuant to the earn-in agreements announced on Aug. 16, 2022.

Highlights:

• Drilling at the Disco zone has identified high-grade gold mineralization along the 400-metre drilled strike extent of the zone, with multiple intercepts in excess of 10 grams per tonne gold. Mineralization remains open to the northeast, southwest, at depth and up dip toward surface.
• Drill hole SP23-32 intercepted 39.81 m grading 1.93 g/t Au, including 4.60 g/t Au over 11.43 m, and drill hole SP23-31 intercepted 40.08 m grading 1.51 g/t Au, including 4.55 g/t Au over 9.76 m.
• Stepout drill hole SP23-37, completed on the Pioneer target area approximately 400 m to the northeast along strike of the main Disco zone, intersected four assay intervals grading over one g/t Au within a 59 m wide structural zone that hosts widespread low-grade gold and elevated pathfinder element mineralization.
• New surface sampling from the Pioneer target area has returned gold values up to 3.61 g/t Au in epithermal vein grab samples, prioritizing this area for future follow-up.
• All drill holes from the 2023 program are now reported.
• Discussions with earn-in partner Newmont are continuing to finalize the 2024 work program for Spring Peak.

Caleb Stroup, president and chief executive officer of the company, stated: "We are very excited to announce the final assays from our 2023 exploration program at Spring Peak. This project continues to deliver positive results and further validates our exploration model. With these latest assays, we have demonstrated that the drilled strike extent of the Disco zone is mineralized, with various epithermal veins assaying in excess of 10 g/t Au over greater than 400 metres of strike and remaining open in both directions. Mineralization also extends to greater than 350 metres vertical depth with no geochemical or textural indications that we are approaching the bottom of the epithermal boiling zone, implying further exploration potential at depth. Drill hole SP23-32 intercepted 4.60 g/t Au over 11.43 metres within a broader zone of 1.93 g/t Au over 39.81 metres, which is one of the better intersections in the Disco zone to date, demonstrating additional up-dip potential from approximately 180 metres vertical depth potentially all the way to surface. The company is also very pleased to have successfully achieved our objective of further defining and expanding the footprint of mineralization at the Disco zone while also advancing exploration in new targets, demonstrating the potential for future discoveries within the broader project area."

2023 Spring Peak drill program

Headwater completed a multirig drill program totalling 8,475 metres at Spring Peak in 2023. The primary objective of the drill program was to further define and expand the Disco zone both along strike and down dip. The Disco zone was discovered by Headwater in 2022 by drilling beneath a thick accumulation of unmineralized silica sinter at surface and hosts a series of mineralized epithermal veins at depth within a property-scale fault zone referred to as the Bear fault.

Previous Headwater drilling at the Disco zone intercepted multiple, discrete epithermal veins with textures indicative of boiling, including ginguro banding, silica replacement of lattice-bladed calcite and vein sediments. The highest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13, which intersected two separate veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m. The highest individual assay from SP22-13 returned 69.6 g/t Au over 0.34 m within a broader zone of 2.73 g/t Au over 34.72 m. The 2023 drill program targeted the same elevation horizon as the previous drilling along the trend of the Bear fault, between 150 and 400 m below a zone of silica sinter exposed at surface.

Disco zone

Drill holes SP23-31 and SP23-32 were stepouts along strike from 2022 drill holes in the Disco zone and intercepted a series of epithermal veins and vein breccias in the target structure. SP23-32 intercepted 39.81 m grading 1.93 g/t Au, including 4.60 g/t Au over 11.43 m (see attached table). Within this zone there was a higher-grade core grading 9.44 g/t Au over 3.66 m. The highest individual assay returned 15 g/t Au over 0.77 m. Drill hole SP23-32 extends the elevation of known high-grade gold mineralization up dip to approximately 180 m below the sinter. SP23-31 intercepted the target zone approximately 50 m down dip of SP23-32 and assayed 1.51 g/t Au over 40.08 m, including 4.55 g/t Au over 9.76 m. This zone also contained a higher-grade core grading 9.17 g/t Au over 3.51 m. The highest individual assay returned 17.60 g/t Au over 0.76 m.

Drill hole SP23-35, located at the southwestern limit of the Disco zone as defined by current drilling, was designed as a down-dip offset of SP23-24. SP23-35 intercepted 1.76 g/t Au over 2.60 m, including 12.90 g/t Au over 0.31 m. Drill hole SP23-34, defining the northeast extent of the current drill pattern, intersected a narrow, high-grade interval that assayed 10.90 g/t Au over 0.55 m. The widespread presence of gold grades in excess of 10 g/t Au along the drilled extent of the Disco zone and to vertical depths greater than 350 m demonstrates the importance of the Bear fault structure as a fluid conduit and highlights further potential for high-grade mineralization in all directions. Initial drilling also suggests that the vein thickness variations observed along the trend of the Disco zone are likely attributable to local variability in the geometry of the Bear fault zone, resulting in localized constricting zones with adjacent dilational zones where veining is thickest. Structural modelling of the zone is currently under way to enhance the company's ability to predict the location and elevation of these dilational zones and target them for future drilling.

Other target areas

Multiple drill holes in the 2023 program intersected a new shallow zone of mineralization in the hangingwall of the Disco zone. Drill hole SP23-17 intercepted 27.44 m grading 0.95 g/t Au (see news release dated Oct. 32, 2023), and drill hole SP23-40 intercepted one g/t Au over 9.91 m (this release). Headwater geologists interpret these intercepts as evidence for a previously unrecognized hangingwall structure or splay to the Disco zone, potentially representing the upper portions of a parallel mineralized zone which is largely untested at depth.

Stepout drill hole SP23-37 was completed approximately 400 m northeast of the main Disco zone on the Pioneer target and encountered 58.98 m of anomalous gold grading 0.16 g/t Au from 377.95 m to 436.93 m. Mineralization is associated with sulphide-rich, silica-cemented breccias and narrow quartz veins in the hangingwall of the main Bear fault structure. SP23-37 intersected the Bear fault approximately 350 m below surface. New surface sampling from the Pioneer target returned up to 3.61 g/t Au in rock chip samples of veins with quartz-after-calcite and other epithermal vein textures. These initial results from the Pioneer target indicate widespread fluid flow along the Bear fault and open up further potential along strike to the northeast.

Drill hole SP23-29, located approximately 900 m west of the Disco zone, confirmed the presence of high-grade mineralization on the Opal Ridge target. SP23-39 was designed as a follow-up to scout reverse circulation hole SP22-14, which intersected 16.4 g/t Au over 1.52 m within a broader interval of 2.73 g/t Au over 10.67 m (see news release dated March 2, 2023). Diamond core hole SP23-29 encountered a broad interval of variably mineralized, centimetre-scale epithermal veins hosted in strongly illite-altered granite with a maximum grade of 7.24 g/t Au over 0.61 m. The mineralization encountered in SP22-14 and SP23-29 occurs between 100 m and 120 m below surface. Continued follow-up drilling to test the depth extent of this mineralized zone is currently being planned by the company.

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 of experienced geologists with diverse capital markets, junior and major mining company backgrounds. The company is systematically drill testing several projects in Nevada and Idaho, and in August, 2022, and May, 2023, announced significant transactions with Newmont where it acquired a 9.9-per-cent strategic equity interest in the company and entered into earn-in agreements on several of Headwater's projects.

Headwater is part of NewQuest Capital Group, which is a discovery-driven investment enterprise that builds value through the incubation and financing of mineral projects and companies.

We seek Safe Harbor.