Vancouver, British Columbia, October 2, 2025 – TheNewswire - Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announce it has received approval for the Lodestar Plan of Operations from the U.S. Forest Service and is authorized to commence drilling activities. Mobilization of earth work equipment to site will begin immediately in preparation for an inaugural up to 3,500 metre drill program. The Lodestar project is located in the Walker Lane mineral belt in western Nevada and is being explored in partnership with Newmont Corporation (“Newmont”) (NYSE: NEM, ASX: NEM, PNGX: NEM) through an earn-in agreement announced on May 9, 2023.

Highlights:

• Drill Permit Approved: The U.S. Forest Service has approved the Lodestar Plan of Operations and authorized the commencement of drilling, allowing work to start immediately. 

• Mobilization Underway: Earth work and core drilling contractors have been notified to commence mobilization to site. 

• Fully Funded Program:The planned drill program is fully funded through a US$2M minimum expenditure commitment by Newmont. The program is expected to consist of up to 3,500 metres, comprising of 10 to 15 holes. 

• Priority Zodiac Target: Initial drilling will test beneath the prominent silica sinter ridge at the Zodiac target, currently interpreted as the preserved paleosurface of an epithermal system which shows evidence of a dynamic hydrothermal activity which the Company considers significant. 

Caleb Stroup, President and CEO of the Company, states: “We are very pleased to have this much-anticipated permit in place, providing permission to commence drilling at Lodestar. The upcoming program is particularly exciting, as it will be the first-ever test of what we consider to be a very high-priority untested high-grade vein target. The project exhibits all the hallmarks of a robust and well-preserved epithermal system, with extensive silica sinter development and strong alteration features exposed at surface, yet the underlying feeder structures remain completely untested by drilling. We believe this presents a rare opportunity to make a new discovery in one of Nevada’s most prospective epithermal gold districts, and we are eager to get drills turning and begin unlocking this potential for our shareholders.”

 

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Figure 1:  A) Looking southeast at the Zodiac target sinter and silica ribs forming a resistant ridge; B) Alternating laminated, palisades, and clotted silica sinter textures; and C) Cross-cutting banded quartz veins in silicified rhyolite.

About the Lodestar Project

The Lodestar project is located in the Aurora Mining District in the Walker Lane belt, west-central Nevada, approximately 10 km north of Headwater’s Spring Peak project and adjacent to Hecla Mining Company’s past-producing Aurora mine complex, which hosts existing infrastructure including a 600 ton per day mill, several production water wells and high-voltage three-phase power. The project features a prominent silicified and brecciated ridgeline capped by a silica sinter, similar to the sinter overlying the Disco Zone at Spring Peak, where Headwater intersected high-grade gold mineralization, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m. Historic shallow drilling at Lodestar encountered anomalous gold but did not test deeper feeder structures, leaving exploration potential largely untested. Headwater holds an option to acquire a 100% undivided interest in the Lodestar project from a private vendor, subject to retained royalties and Newmont’s option to acquire up to 75% of the project following certain expenditures and delivery of a Pre-Feasibility Study within a designated time frame.

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Figure 2:  Map of the Headwater Spring Peak and Lodestar land positions within the Aurora trend showing area of the Spring Peak 2024 drill program. [1]Vikre and others (2015); [2]Borealis Mine 43-101 dated February 16, 2024; [3]Long and others (1998).

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 Newmont 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

References:

 

Vikre, P.G., John, D.A., du Bray, E.A., and Fleck, R.J., 2015, Gold-silver mining districts, alteration zones, and paleolandforms in the Miocene Bodie Hills volcanic field, California and Nevada: U.S. Geological Survey Scientific Investigations Report 2015–5012, 160 p.

Borealis Mining Company Limited, 2024, NI 43-101 Technical Report, Project Status Report Borealis Mine Nevada USA: Prepared by Douglas Reid. Effective Date: October 10, 2023; Report Date: February 16, 2024.

Long, K.R., DeYoung, J.H., and Ludington, S.D., 1998, Database of significant deposits of gold, silver, copper, lead, and zinc in the United States: U.S. Geological Survey Open-File Report 98-206 A, B, 33 p.

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’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 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.