Mr. Caleb Stroup reports

HEADWATER GOLD GRANTS STOCK OPTIONS

Headwater Gold Inc. has granted 1,075,000 incentive stock options to directors, officers, employees and consultants of the company. Each option is exercisable to purchase one common share of the company at a price of 18 cents for a five-year term and vests immediately. The options are subject to the acceptance of the Canadian Securities Exchange.