Mr. Caleb Stroup reports

HEADWATER GOLD PLANS DRILL PROGRAM AT WHISKEY PROJECT, NEVADA

Headwater Gold Inc. has received drill permits and is planning an initial drill program at its Whiskey project in Nevada.

The program is anticipated to consist of approximately 1,500 metres (m) of drilling in four to five holes, utilizing a reverse circulation (RC) drill rig to test multiple high-priority target areas identified through the integration of geological mapping, geophysics, surface geochemistry and reanalysis of historical drilling data.

Highlights:

• Strategic location: The Whiskey project is positioned in the heart of the Walker Lane gold belt, 20 kilometres east of the Borealis mine and the company's Spring Peak project.
• 1,500-metre drill program planned: The planned program consists of four to five holes designed to test multiple high-priority targets across the property. Drilling permits have been received, and drilling is expected to commence in late October, 2026.
• Historical drilling supports follow-up: Historical shallow drilling at the East Rye and West Rye targets intersected broad zones of epithermal gold mineralization, including 59.7 m grading 0.85 gram per tonne Au (RS-6) and 10.7 m grading 0.52 g/t Au (W-83-5).
• High-grade gold surface mineralization: Recent rock chip sampling by Headwater returned gold grades of 19.2 g/t Au, 18.5 g/t Au and 14.6 g/t Au from the High proof target with no known drilling completed in the area.

Caleb Stroup, president and chief executive officer of the company, states: "We are excited to begin drilling at Whiskey, where encouraging historical drill results and high-grade surface mineralization point to an attractive exploration opportunity. The previously reported intercepts warrant modern validation before we can confidently assess their significance. Whiskey is a strong candidate for a Headwater-funded program because a modest investment in initial scout holes can materially advance our understanding of the mineralization and the project's potential. If successful, this initial program could open up a much larger district-scale opportunity to follow known mineralization and test prospective areas identified through our surface work and geophysical surveys that have seen no previous drilling."

2026 Whiskey drill program

The initial drill program at Whiskey is focused on testing for gold mineralization at multiple high-priority targets across the property.

The Rye East drilling will test rhyolite-hosted epithermal mineralization along a series of rhyolite domes which intruded through Miocene andesite flows. The 2026 drill program aims to validate the historical drill intercept of 0.85 g/t Au over 57.93 m from 48.77 m downhole in drill hole RS-6, which reportedly ended in mineralization and test the continuation of mineralization at depth.

The Rye West drilling will test structurally controlled epithermal mineralization adjacent to a broad zone of silicification near rhyolite intrusions and breccias in the western part of the project. Planned angled scout holes will test the interpreted structural zone and follow up on historical vertical drill hole W-83-5, which returned 0.52 g/t Au over 10.7 m from 33.53 m downhole and 0.57 g/t Au over 4.6 m. Historical drill logs describe alunite and celadonite associated with the strongest gold mineralization. The initial drilling will seek to validate these reported alteration minerals and assess their relationship to gold mineralization.

The High proof target comprises north-northwest-striking, high-angle structures hosted in basement granite with high-grade Au and elevated W (tungsten), Pb (lead), Mo (molybdenum) and Ag (silver) in rock chip sampling. This target has geologic and geochemical similarities to reduced intrusion-related gold deposits, of which there are multiple similar deposits in the region. The 2026 drilling will test across the structural fabric, as well as at depth, to test intersections or coalescing structures for a possible intrusion cupola (a small, dome-shaped upward protrusion).

About the Whiskey project

Headwater consolidated the Whiskey project through two exploration lease and option to purchase agreements with separate private arm's-length vendors, securing the right to acquire 100-per-cent interests in pre-existing project claims. Each agreement provides for an initial payment of $4,000 (U.S.) and, beginning on the third anniversary, annual minimum payments of $10,000 (U.S.). Annual payments increase by $5,000 (U.S.) per year until $30,000 (U.S.) is payable on the seventh and each succeeding anniversary over a 20-year term. These minimum payments may be credited toward the purchase price of $1.5-million (U.S.) under each agreement should the company elect to exercise its option to purchase a 100-per-cent interest in the vendor claims. The vendor claims under each agreement are subject to a 2.0-per-cent net smelter return (NSR) royalty, of which the company may purchase 1.5 per cent of the NSR royalty for $2-million (U.S.) reducing the royalty to 0.5 per cent.

Headwater has also located an additional 134 100-per-cent-owned unpatented mining claims contiguous to the vendor claims, consolidating the district. In total, Headwater has 206 unpatented mining claims representing the Whiskey project.

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

Corporation on its TJ, Jake Creek and Hot Creek projects, Newmont Corp. on its Spring Peak, Lodestar and Jupiter projects, and Centerra Gold Inc. on its Crane Creek project in Idaho. In August, 2022, and September, 2024, Newmont and Centerra 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 Joshua Carron (SME Reg No. 042931540), a qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Carron is not independent, as he is the company's vice-president, exploration.

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