Mr. Caleb Stroup reports

HEADWATER GOLD COMMENCES DRILLING AT TJ PROJECT, NEVADA

Headwater Gold Inc. has commenced drilling on the TJ project, located in northeastern Nevada. The program is expected to total approximately 1,500 metres of core drilling, fully financed through an earn-in agreement with OceanaGold Corp. announced on Oct. 15, 2025.

Highlights:

• Approximately 1,500 metres of core drilling planned: The drill program is planned to consist of four to six holes and test multiple epithermal vein targets.
• Fully financed program: The drill program is fully financed by OceanaGold through an option and earn-in transaction announced Oct. 15, 2025, that includes a $1-million (U.S.) minimum expenditure commitment by OceanaGold on the TJ project.
• Priority focus on the East Sinter fault target: Test high-grade epithermal vein targets identified by Headwater's 2024 RC (reverse circulation) scout drilling program. The 2024 program identified widespread silicification and epithermal veining as well as broad intervals of anomalous gold mineralization in the hangingwall of the East Sinter fault. The company interprets that initial drilling did not penetrate sufficient depths to test for potential high-grade veins.
• Additional drilling to target major structures in the core of the alteration cell: Structural targets supported by CSAMT resistivity, geology and surface geochemical data sets will be tested along the main structural corridor.

Caleb Stroup, president and chief executive officer of the company, states: "We are extremely pleased to be launching the first drill program under our recently announced partnership with OceanaGold. Their team brings deep technical experience in low-sulphidation epithermal systems and we're excited to collaborate as we advance the TJ project. This marks the start of what we expect to be a productive and discovery-driven exploration partnership across multiple projects in northern Nevada. With OceanaGold's support, we can now systematically test the high-quality vein targets we've defined at TJ and move one step closer to realizing the district-scale potential we see in this system."

2025 TJ drill program

The 2025 drill program is expected to consist of 1,500 m of core drilling to test two target areas.

East Sinter fault target: Drilling will target the down-dip projection of the East Sinter fault, a major west-dipping structural zone that hosts widespread epithermal alteration capped by a thick silica sinter. The initial reverse circulation (RC) drill test, completed by Headwater in 2024 (see news release dated Jan. 16, 2025), revealed broad intervals of silicification, veining and anomalous gold mineralization in the hangingwall of the East Sinter fault. For example, RC drill hole TJ24-04 intercepted 123.44 m grading 0.150 gram per tonne Au including 0.741 g/t Au over 1.52 m. Thin chalcedonic quartz veins correspond with the highest-grade samples and have distinctive epithermal vein textures, which together with anomalous epithermal pathfinder element zonation suggest good potential for fault-hosted feeder veins deeper in the system. The 2025 drill program will target the inferred boiling horizon at depths of 150 to 300 m below surface, along the greater than one kilometre mapped strike extent of the East Sinter fault. Following completion of a three-hole drill fan beneath the silica sinter cap, stepout holes 250 m to the north and south are planned to test for continuation of the mineralized structure at favourable depths.

Jackpot fault target: The Jackpot fault bounds the western margin of known silicification and veining in the hangingwall of the East Sinter fault. The Jackpot fault is characterized by a major greater than two km long break in CSAMT resistivity that may represent either a splay or roughly parallel structure to the East Sinter fault. Historic RC drilling encountered difficult conditions in the Jackpot fault zone and failed to fully test the structure but returned anomalous gold mineralization. The 2025 drill program will first test the fault at relatively high elevations to determine the geometry and nature of alteration localized along the structure. If successful, an existing cased hole (TJ24-04) can be re-entered to effectively test the Jackpot fault at depth.

About the TJ project

The TJ project is located on BLM land in a relatively underexplored area of northeastern Nevada, approximately 25 km southeast of the town of Jackpot. The project area contains indications of a fully preserved epithermal system, including a thick and laterally extensive accumulation of silica sinter. Epithermal alteration is localized along a series of steeply inclined faults that bound a graben filled with Miocene-age sedimentary rocks.

Limited historic exploration on the property included shallow RC drilling that confirmed the presence of a broad zone of high-level epithermal alteration. In 2024, Headwater completed an initial round of scout drilling which confirmed the project has potential for high-grade epithermal vein-style mineralization at depth (see news release dated Jan. 16, 2025). The follow-up 2025 core drilling program is under way and will test prospective epithermal structures at depth that were identified during the 2024 program.

Headwater holds an option to acquire a 100-per-cent undivided interest in the TJ project, subject to retained royalties and subject to OceanaGold's option to acquire up to 65 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 OceanaGold on its TJ, Jake Creek and Hot Creek projects, as well as Newmont Corp. on its Spring Peak and Lodestar projects. In August, 2022, and September, 2024, Newmont and Centerra Gold Inc. acquired strategic equity interests in the company, further strengthening Headwater's exploration capabilities.

Qualified person

The technical information contained in this news release has been reviewed and approved by Dr. Gregory Dering, PGeo (AIPG CPG-12298), a qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Dr. Dering is not independent by reason of being the company's vice-president of exploration.

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