Headwater Gold Inc. announced assay results from the maiden drill program at its Midas North project, Nevada. Drilling was fully funded by a subsidiary of Newmont Corporation pursuant to the option and earn-in agreement (the "Earn-In Agreement") announced on August 16, 2022. The Company utilized a combination of diamond core and reverse circulation ("RC") drilling at Midas North to complete nine wide spaced drill holes totaling 4,202 metres.

Drilling intersected epithermal veining and alteration in multiple target areas. This maiden drill program consisted of drill holes designed to test the large epithermal alteration cell on the property and a variety of targets generated from initial geologic and geophysical work. The primary objective of the program was to perform a first-pass evaluation of six discrete target areas at multiple elevations to assess the strength of epithermal alteration at depth and ultimately guide future drilling on the property toward the most favourable structures.

Drilling confirmed the presence of widespread epithermal alteration and identified anomalous precious metals at depth in multiple areas. Geologic logging has resulted in a much-improved understanding of the subsurface stratigraphy and identified the presence of the Esmeralda, Elko Prince and June Belle formations at depth, which are favourable hosts of mineralization at the past-producing Midas Mine to the south. In addition, a number of prospective structures identified through geologic mapping and geophysical analysis were intercepted as predicted from geologic modeling.

Scout RC drill hole MN23-02 was drilled below an outcropping zone of opaline silica and sinter with fossilized geyser vents, within the Big Opal fault corridor. This drill hole intersected 47.0 g/t silver over 9.14 m from 371.86 m to 381.00 m in a structurally controlled high-resistivity feature underlying the silica sinter exposure. The mineralized interval consists of quartz-calcite-sulfide veining hosted in a gabbroic sill, which typically acts as a poor host for mineralization within the Midas district.

This intercept represents the most significant precious metal anomaly identified on the property to date and highlights the potential for epithermal vein-style gold mineralization within more favourable host units laterally along strike or at depth. Drill hole MN23-04, located approximately 1 kilometre south of hole MN23-02 along the Big Opal fault corridor intersected a 3-metre-wide fault zone hosting a quartz vein with quartz-after-calcite lattice textures. Lattice-bladed and weakly banded quartz veining is consistent with epithermal boiling as the product of a high-energy geothermal system and implies potential for mineralized feeder structures deeper into the boiling zone at depth or laterally along strike.

This vein returned highly anomalous pathfinder geochemistry with weakly anomalous gold and silver values. The significant strike length between low-grade mineralization encountered in hole MN23-02 to the northwest and epithermal veining in hole MN23-04 to the southeast indicate over a kilometre of prospective and untested strike extent along the Big Opal fault corridor, as corroborated by anomalous surface and drill hole pathfinder element geochemistry across the area. The westernmost scout RC drill hole, MN23-06, targeted the district-scale Jo Belle fault and intersected 0.51 g/t Au over 1.52 metres from 225.55 m to 227.08 m within the fault zone This low-grade precious metal intercept, along with highly anomalous mercury and arsenic values across a broad interval of MN23-06, suggests alteration is strongly fault-controlled.

More drilling is required to adequately test this structurally controlled alteration along strike across the western portion of the property. The 2023 drill program at Midas North also demonstrated the utility of controlled-source audio- frequency magnetotelluric ("CSAMT") resistivity geophysical interpretation for target generation at the property. Geologic mapping and modeling efforts are limited by relatively poor preservation of outcrop exposures and a pervasive silica altered alteration cap.

Interpretation of CSAMT has assisted with mapping of large-scale structures and prospective high-resistivity features at depth. Nearly all the 2023 drill holes which encountered fault zones and associated epithermal pathfinder element geochemistry were predicted by the geophysics, demonstrating the efficacy of this approach at the project. Stratigraphic and structural controls from the broadly spaced drill holes will provide significantly improved constraints for the Company's evolving geologic model and will greatly aid future exploration.

Headwater geologists believe the fault-hosted epithermal alteration and veining encountered in multiple drill holes suggest the potential for high-grade mineralization within the refined target areas remains.