Headwater Gold Inc. announced the remainder of the assay results from the Spring Peak exploration drilling program completed by the Company in fourth quarter of 2022. Highlights: Ten holes were completed in multiple target areas. Four of the ten holes intercepted epithermal veins containing individual assays greater than 15 grams per tonne gold ("g/t Au").

Seven of the ten holes intercepted intervals greater than 1 g/t Au. Drilling at the Disco Zone has confirmed the presence of multiple high-grade epithermal veins within a broader mineralized envelope. Mineralization remains open at depth and along strike; o Drill hole SP22-11 intercepted 43.7 g/t Au over 0.63 metres ("m") within a broader interval of 40.63 m grading 1.86 g/t Au;; o Drill hole SP 22-12 intercepted 23.5 g/t Au over 0.,33 m within a broader interval of 42.61 m grading 0.94 g/t Au;.

Drill hole SP22-13 (previously announced) intercepted 34.72 m grading 2.73 g/t Au, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2". A new high-grade epithermal vein has been discovered located approximately 900 m west of the Disco Zone in the Opal Ridge target area. Reverse circulation ("RC") scout hole SP22-14 intercepted 16.4 g/t Au over 1.52 m within a broader interval of 10.67 m grading 2.73 g-t Au;.

A large multi-rig drill program at Spring Peak is currently being designed and expected to begin in second quarter of 2023. This program will include drilling the Disco Zone along strike and down dip as well as following up on the Opal Ridge discovery with oriented drill core; and Additional claim staking has also been completed resulting in an approximately 30% increase in the Spring Peak project land position, covering several newly identified areas the Company considers prospective for epithermal veins. 2022 Spring Peak Drill Program: The Company utilized a combination of diamond core and RC drilling at Spring Peak to complete 3,173 metres of drilling prior to the winter shut-down.

The program consisted of 993 metres of core drilling, 1,076 metres of RC pre-collars and 1,104 metres of RC exploration drilling. The Disco Zone was the highest priority target of the program and was intersected with oriented diamond core in four holes designed to test for high-grade veins. The Disco Zone occupies the footwall margin of a broad, northeast-striking fault zone that is oriented similarly to vein trends at the adjacent past-producing Aurora mine complex.

The four holes that intersected the target structure were drilled on a single fence with mineralization open down-dip and along strike. Within the Disco Zone, holes SP22-07, SP22-11, SP22-12 and SP22-13 intersected multiple discrete veins with textures indicative of boiling, including ginguro banding, silica replacement of lattice-bladed calcite and vein sediments. With the exception of SP22-07, all of these holes intersected veins grading over 15 g/t Au.

SP22-07 also intercepted abundant epithermal quartz veins. Headwater geologists believe the lack of high-grade gold in this hole is attributable to the shallow depth at which it penetrated the target structure, and represents lower-grade mineralization above the boiling zone, which is the target zone within an epithermal system typically associated with high-grade precious metals. The high-grade veins in holes SP22-11, SP22-12, and SP22-13 occur within a broader mineralized envelope which contains additional veins and breccia intervals characterized by fine-grained silica-sulfide flooding and argillic alteration.

Vein thicknesses and grade both appear to increase with depth. The opaque, fine-grained character of silica within the veins, along with the absence of coarse crystalline quartz textures, implies that drilling may not have reached the base of the boiling horizon, with good potential for extending mineralization at depth. Diamond drill hole SP22-11 is a core twin of RC hole SP21-03, which was the initial Headwater discovery hole at Spring Peak.

SP21-03 intercepted 38.1 m of 1.0 g/t Au but did not contain any individual samples over 5 g/t Au. Twin core hole SP22-11 intersected 43.7 g/t Au over a drilled thickness of 0.58 m within a brecciated vein interval, indicating that while RC drilling is a useful early-stage exploration tool, the potential exists for under-representing narrow high-grade structures. Drill hole SP22-10 is also located in the Disco Zone target area, approximately 150 metres northeast along strike of the primary drill fence.

This hole was an RC pre-collar drilled to a depth of 201.17 m but inclement weather precluded the completion of the hole through the target zone with core. Although this hole did not penetrate the target structure as modelled, it did intersect 0.53 g/t Au over 36.58 m near the bottom of the pre-collar, indicating that Disco Zone mineralization persists to the northeast along strike, presenting a logical starting point for follow- up core drilling in the coming field season. An additional five drill holes tested a variety of targets elsewhere on the property.

All holes encountered epithermal alteration and veining including RC scout hole SP22-14 which intersected a new high-grade vein at the Opal Ridge target which assayed 16.4 g/t Au over a drilled thickness of 1.52 m, within a broader zone of 2.70 g/t Au over 10.67 m. Banded quartz vein material with fine-grained sulfide stringers was observed within this interval. The Company believes this intersection represents a new high-grade vein discovery on the project. The target vein system at Opal Ridge remains open along strike and down dip.