Headwater Gold Commences Drilling at TJ Project, Nevada

(TheNewswire)

Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of drilling on the TJ project, located in northeastern Nevada. The program is expected to total approximately 1,500 metres of core drilling, fully funded through an earn-in agreement with OceanaGold Corporation (TSX: OGC OTCQX: OCANF ) ("OceanaGold") announced on October 15, 2025

Highlights:

• Approximately 1,500 metres of core drilling planned: The drill program is planned to consist of 4 to 6 holes and test multiple epithermal vein targets.

• Fully Funded Program: The drill program is fully funded by OceanaGold through an option and earn-in transaction announced October 15, 2025 that includes a US $1M 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 scout drilling program. The 2024 program identified widespread silicification and epithermal veining as well as broad intervals of anomalous gold mineralization in the hanging wall of the East Sinter fault. We interpret 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 datasets will be tested along the main structural corridor.

Caleb Stroup, President and CEO 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-sulfidation 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."

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2025 TJ Drill Program

The 2025 drill program is expected to consist of 1,500 m of core drilling to test two target areas (Figures 1 and 2):

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 January 16, 2025 ), revealed broad intervals of silicification, veining, and anomalous gold mineralization in the hanging wall of the East Sinter fault. For example, RC drillhole TJ24-04 intercepted 123.44 m grading 0.150 g/t 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 > 1 km mapped strike extent of the East Sinter fault (Figure 1). Following completion of a three-hole drill fan beneath the silica sinter cap (Figure 2), step-out holes 250 m to the north and south are planned to test for continuation of the mineralized structure at favorable depths.

Jackpot Fault Target: The Jackpot fault bounds the western margin of known silicification and veining in the hanging wall of the East Sinter fault (Figure 1). The Jackpot fault is characterized by a major, >2 km-long break in CSAMT resistivity (Figure 2) 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 January 16, 2025 ).  The follow-up 2025 core drilling program is underway and will test prospective epithermal structures at depth that were identified during the 2024 program.

Headwater holds an option to acquire a 100% undivided interest in the TJ project, subject to retained royalties and subject to OceanaGold's option to acquire up to 65% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated time frame.

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Figure 2: Interpreted geologic cross section through A-A' with Headwater drillholes showing anomalous Au-Ag intercepts (continuous zones of assays greater than 50 ppb Au), generalized geology and silica alteration, conceptual vein targets, and planned drillholes (top image); and generalized geology and silica alteration with CSAMT geophysics apparent resistivity profile (bottom image).

About Headwater Gold

Headwater Gold Inc. (CSE: HWG, OTCQB: HWAUF) is a technically-driven mineral exploration company focused on exploring for and discovering high-grade precious metal deposits in the Western USA.  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 Corporation 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.

For more information about Headwater, please visit the Company's website at www.headwatergold.com .

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.  Further information about NewQuest can be found on the company website at www.nqcapitalgroup.com .

On Behalf of the Board of Directors

Caleb Stroup

President and CEO

+1 (775) 409-3197

cstroup@headwatergold.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@headwatergold.com

Qualified Person

The technical information contained in this news release has been reviewed and approved by Dr. Gregory Dering, P.Geo (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.

References

Forward-Looking Statements:

This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them, Newmont and OceanaGold's anticipated funding of the earn-in projects and the timing thereof, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward-looking information can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company's exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the risk that Newmont or OceanaGold will not elect to obtain any additional prognostic interest in the earn-in projects in excess of the minimum commitment, the ability of the Company to obtain the required permits, changes in laws, regulations and policies affecting mining operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading "Risk Factors" in the Company's prospectus dated May 26, 2021 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.

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