Headwater Gold Inc. announced initial assay results from the ongoing 2023 Spring Peak exploration drilling program which is fully funded by Newcrest Mining Limited as part of an exploration agreement announced on August 16, 2022. Spring Peak is located in the Walker Lane belt of Nevada, immediately south of Hecla Mining Company's past producing Aurora Mine;. Recent drilling has extended mineralization at the Disco Zone target, intercepting high-grade epithermal veins in an approximately 70 metre step-out from previous drilling.

Drill hole SP23-17 intercepted 13.0 grams per tonne gold ("g/t Au") over 1.21 metres ("m") and 9.0 g/t Au over 3.11 m within a broader interval of 20.46 m grading 2.59 g/t Au in the Disco Zone target;. Mineralization remains open at depth and along strike and ongoing drilling continues to intersect epithermal veins in the target zone;. Assays from the initial four holes of the program are presented here, with the remainder of the assays pending; and.

A multi-rig drill program is still underway at Spring Peak with 22 holes completed to date and assays pending for 18 holes. The primary objective of the 2023 drill program is to further define and expand the Disco Zone along strike and down dip at 50 to 100 metre increments. The Disco Zone is a mineralized corridor which hosts a series of high-grade epithermal vein at depth discovered by Headwater in 2022 by drilling beneath a thick accumulation of silica sinter at surface.

Earlier Headwater's drilling at the Disco Zone intercepted multiple discrete veins with textures indicative of boiling, including ginguro banding, silica replacement of lattice-bladed calcite and vein sediments. The highest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13 which intersected two individual veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.,01 m. The higher individual assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a broader zone which assayed 2.73 g/t Au over 34.72 m. The 2023 drill program is targeting the same elevation horizon as the previous drilling between 150 m and 400 m below an extensive zone of silica sinter exposed at surface. Drill hole SP23- 17 was the first core hole of the 2023 program and successfully extended the mineralization encountered in SP22-13.

SP23-17 intercepted 13.,0 g/t Au over 1.21 m and 9.0 g/T Au over 3.11 m in a broader interval of 20. 46 m grading 2.59 g-t Au. Mineralization in drill hole SP23-17 consists of banded quartz-calcite veins with quartz-after-bladed calcite, vein sediments, and silica cemented breccias.

Initial interpretations suggest this may be due to a localized inflection in the Bear Fault plane resulting in a constricting segment of the zone. The Spring Peak project is located in the Aurora Mining District of west-central Nevada, approximately 50 km southwest of the town of Hawthorne. The project adjoins Hecla Mining Company's recent past-producing Aurora Mine complex, where existing infrastructure includes a 350 ton per day mill, several production water wells and high-voltage three-phase power.

Headwater holds an option to acquire a 100% undivided interest in the Spring Peak project from Orogen Royalties, a multi-rig drill program is currently underway at Spring Peak with 22 hole completed to date and assays ongoing at Spring Peak with 22 holes complete to date and assays pending For 18 holes.