Headwater Gold Inc. announced acquisition of the Lodestar epithermal gold-silver located in the Aurora Mining District, Nevada United States. Headwater has acquired the Lodestar project in the Aurora district through claim staking and an option to acquire a 100% interest in pre-existing claims from a private party. The Property is located immediately adjacent tojuxtaposes the past producing high-grade Aurora mine, owned by Hecla Mining Company.

The Property represents a new 100% owned exploration opportunity located approximately 10 kilometres north of the Company's Spring Peak project, where it has recently made two new high-grade discoveries. Silica sinter exposures and other high-level epithermal alteration features on the Property are geologically analogous to the Spring Peak project and suggest the potential for preserved high-grade epithermal veins at depth. Headwater plans to complete geologic mapping, soil sampling and CSAMT geophysical surveys concurrent with planned work at its Spring Peak project to define high-priority drill targets on the Property.

The Lodestar project is located in the Aurora Mining District of west-central Nevada and adjoins Hecla's past-producing Aurora mine complex, where existing infrastructure includes a 350 ton per day mill, currently on care and maintenance, several production water wells and high- voltage three-phase power. The Property is also located immediately north of the Company's Spring Peak project, where Headwater has recently announced the new Disco and Opal Ridge high-grade discoveries. These high-grade vein discoveries and Hecla's 2022 exploration drilling at Aurora, suggest good potential for additional high-grade discovery exists at Lodestar.

Historic exploration at the Property focused on surface rock chip sampling of the prominent silicified ridgeline at the core of the Property, sampling of a short historic adit and several shallow Reverse Circulation holes in this immediate area. RC drilling completed on the Property by Echo Bay Exploration and Borealis Exploration in the 1980's consisted of four shallow drill holes immediately adjacent to the silicified ridgeline, designed to test for a near-surface bulk-tonnage type deposit. Headwater has obtained assays but not exact collar and survey information for these historic holes, the deepest of which reached a maximum total depth of 91.44 metres and contained a 10.67 m interval of 0.291 g/t Au.

The Company views the anomalous gold observed in the historic drilling, above the interpreted epithermal boiling zone to be a positive indication for precious metal bearing structural feeders at depth, which remain untested. The most prominent alteration feature on the Lodestar land package is the strongly silicified and brecciated ridgeline capped by silica sinter, which is exposed as a window through young post- mineral lava flows that form shallow cover across most of the claim block. The northern part of the ridgeline contains a thick accumulation of silica sinter that is similar in character to sinter exposed above the Disco Zone at the Company's Spring Peak project (see news release dated March 2, 2023).

Silica sinter at Lodestar is often laminated with low-amplitude algal mats containing reed casts and palisade textures and locally contains interpreted geyserite textures. These diagnostic sinter textures and the thickness of sinter accumulation imply a prolonged period of energetic hydrothermal activity localized in the project area. Immediately south of the sinter, the silicified ridgeline is a resistant silicified breccia body which is steeply inclined to the west.

This breccia contains large, angular, rotated clasts of silicified rhyolite as well as opaline and chalcedonic silica veins and vein fragments imply a high-energy hydrothermal origin of brecciation. In most places, the breccia is strongly silicified and oxidized and both the breccia body and overlying sinter are cut by abundant cross-cutting banded chalcedonic veins. Headwater geologists interpret these features to represent a hydrothermal vent breccia exposed along a steep west-dipping structural zone that disappears under shallow, young volcanic cover to the north and south and remains untested below the projected boiling zone at depth.

Historic rock chip samples along the exposed extent of the silicified ridgeline contained anomalous gold, silver, and epithermal pathfinder element values. A historic rock chip sample of silicified breccia collected along the southern portion of the ridgeline returned 261 ppb Au and 430 ppb Ag, and another grab sample of breccia with cross-cutting banded chalcedonic veins returned 150 ppb Au and 530 ppb Ag. Channel samples collected in a historic adit into the southern portion of the ridgeline encountered increasing gold values toward the interpreted feeder structure, where the sampling ended in values between 50 ppb Au and 100 ppb Au.

The thick exposure of silica-sinter and silicified breccia with highly anomalous Hg-As-Mo-Sb epithermal pathfinder element geochemistry, both cut by banded chalcedonic veins, suggest the core of the Lodestar property is comprised of the upper-levels of a fully preserved epithermal system. The alteration style and intensity, sinter characteristics and existing rock geochemistry of the system all share numerous encouraging similarities with the Company's adjacent Spring Peak project. Historic RC drilling on the Property was also completed in a similar fashion to the Company's Spring Peak project; shallow holes failed to test for potential high-grade mineralization at depth.

Based on analogous characteristics to the Company's Disco Zone target area at Spring Peak, Headwater geologists have defined a clear target area approximately 150 m below the sinter exposure, which would immediately test potential high-grade veins associated with the interpreted feeder structure. The Lodestar project consists of 121 unpatented mining claims staked by Headwater Gold and 12 unpatented mining claims acquired from a private prospector. By making an initial cash payment of $20,000 and escalating annual payments, Headwater retains a 30-year option to purchase an undivided 100% interest in the Vendor Claims for a one time payment of $1,500,000 subject to a 3% NSR royalty, of which an initial 1% can per purchased at any time for $1,000,000 and an additional 1% for $2,000,000 resulting in a post-buydown 1% NSR.