Mr. Caleb Stroup reports

HEADWATER GOLD IDENTIFIES OUTCROPPING HIGH-GRADE VEINS AT ITS NEW DOUG TARGET ON THE SPRING PEAK PROPERTY, NEVADA

Headwater Gold Inc. has identifies outcropping high-grade epithermal veins at the newly identified Doug target, part of its expanding Spring Peak project located in Nevada. Exploration at Spring Peak is fully financed through an earn-in agreement with Newmont Corp. announced on Aug. 16, 2022. The newly recognized veins at the Doug target were found through a recently completed surface exploration program.

The Doug target lies approximately nine kilometres (km) north of the high-grade Disco zone and is situated along the trend of the Bear fault, a regionally significant structure which also hosts the Disco zone mineralization to the south (see news releases dated Jan. 9, 2023, and Feb. 7, 2025). The Bear fault projects under thin postmineral cover to the north from Disco to a small erosional window at Doug where prospective host rocks are again exposed. The occurrence of gold-bearing veins at surface in this area highlights the broader potential of the covered portions of the trend.

Highlights:

• New high-grade veins at Doug target: outcropping epithermal quartz veins have been sampled at the Doug target area, returning exceptional gold grades including 21.8 grams per tonne Au (gold), 9.52 g/t Au and 7.82 g/t Au;
• Bear fault corridor emerging as a district-scale structure: the Bear fault hosts Headwater's high-grade Disco zone nine kilometres to the south of Doug and remains open and untested by drilling under shallow cover between the two target areas;
• Preserved epithermal system: vein textures and geochemistry at Doug indicate a high-level position within an epithermal system, suggesting potential for a preserved high-grade vein target at depth.

Caleb Stroup, president and chief executive officer of Headwater, comments: "The newly identified outcropping epithermal quartz veins with high-grade gold values at the Doug target provide a compelling indication of the scale and preservation of the mineral system along the Bear fault corridor within the expanded Spring Peak project. This sampling marks the first confirmation of in situ epithermal veins at the Doug target, following previously reported widespread mineralized vein float along the northern extension of the Bear fault corridor. The Bear fault corridor hosts our high-grade Disco zone discovery and is interpreted as a district-scale structure that extends beneath cover for several kilometres before day-lighting in a limited area at Doug. The high-grade gold values sampled here reinforce our view that this corridor and the entire area between the Aurora and Borealis mines, has the potential to host multiple significant mineralized zones. Headwater now controls over 12 km of strike extent in this well renowned epithermal district and looks forward to advancing these targets along with our partner Newmont to further uncover the full potential of the Spring Peak project."

Rock sampling program at the Doug target

Recent rock chip sampling has confirmed the presence of epithermal quartz veins in outcrop for the first time at the Doug target. Rock chip geochemistry is reported in the attached table. The outcropping veins consist of stockwork vein arrays that exhibit classic high-level epithermal textures, including bladed and banded quartz and are strongly anomalous in arsenic, antimony and mercury -- geochemical indicators consistent with the upper parts of an epithermal system. The implication is that much of the underlying hydrothermal system could be intact, with organized high-grade vein zones potentially preserved at depth. Representative vein and wall rock material was selected from individual veins up to two centimetres wide within a network of cross cutting veinlets hosted in a hornblende andesite exposed over an area of approximately 30 metres.

Vein stockworks are significant exploration vectors in epithermal systems where these dense networks of mineralized veins can develop in fractured host rock peripheral to wider and more continuous quartz lode veins. The vein outcrop lies within a small erosional window where mineralized rocks are exposed beneath younger, postmineral volcanic rocks.

While individual orientations vary, the veins generally form a northeast trend that is broadly parallel to the dominant structural trend throughout the district. Geological mapping is under way to better understand the relationship between the stockwork zone and major mineralized structures in the district, including both the Bear fault and Aurora mine vein corridor.

About the Bear fault and the Bodie-Aurora-Borealis trend

The Bear fault is a major extensional structure believed to be a primary control on epithermal mineralization at the Spring Peak project. At the Disco zone, Headwater drilling intercepted 34.72 metres grading 2.73 g/t Au within the Bear fault structure. The newly identified Doug target demonstrates that this structure potentially persists well to the north where it continues to be gold bearing.

The broader Bodie-Aurora-Borealis trend has produced over four million ounces of gold from multiple high-grade systems. Much of the trend is covered by thin Miocene basalt, and the recent land consolidation provides Headwater with the opportunity to explore systematically for additional mineralized windows like Doug.

District expansion and next steps

The discovery at Doug coincided with a major expansion of Headwater's land position through the staking of 509 new mining claims. This brings the combined Spring Peak-Lodestar land position to over 15 km of continuous strike length along the Bodie-Aurora-Borealis trend. This corridor includes several past-producing mines, such as Aurora (1.9 million ounces Au), Borealis (800,000 oz Au) and Bodie (1.5 Moz Au), and has seen little modern exploration under postmineral cover.

Headwater recently completed a suite of geophysical surveys at Spring Peak and Lodestar, including gravity, CSAMT, airborne magnetics and radiometrics. The results are currently being interpreted and will guide follow-up target definition. A systematic program of geological mapping and geochemical sampling is also under way.

About the Spring Peak project

The Spring Peak project is located in the Aurora mining district in the Walker Lane belt, west-central Nevada, approximately 50 km 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. Recent drilling at the Disco zone has confirmed the presence of high-grade gold mineralization, including significant intersections such as 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m within a broader zone of 2.73 g/t Au over 34.72 m. 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 Newmont'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 exploring for and discovering high-grade precious metal deposits in the Western United States. Headwater is actively exploring one of the world's most well-endowed, mining-friendly jurisdictions, with a goal of making world-class precious metal discoveries. The company has a large portfolio of epithermal vein exploration projects and a technical team with diverse experience in capital markets and major mining companies. Headwater is systematically drill testing several projects in Nevada and has strategic earn-in agreements with Newmont on its Spring Peak and Lodestar projects. In August, 2022, May, 2023, and September, 2024, Newmont and Centerra Gold Inc. acquired strategic equity interests in the company, further strengthening Headwater's exploration capabilities.

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

Qualified person

The technical information contained in this news release has been reviewed and approved by Scott Close, PGeo (158157), an independent qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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