Vancouver, British Columbia - TheNewswire - July 24, 2025: Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announce that drill permitting has advanced through the formal public scoping phase on Headwater’s Lodestar project, located in western Nevada. Project scoping marks a significant step toward securing final drilling approval following the submission of a Plan of Operations to undertake a proposed 3,500-metre drill program. The Lodestar project is being explored in partnership with Newmont Corporation (“Newmont”) (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) through an earn-in agreement announced on May 9, 2023.

Highlights:

• Scoping Phase Completed: The U.S. Forest Service has concluded the scoping phase of the environmental review process, paving the way for a final decision on the Plan of Operations. Project approval is anticipated by early fall 2025. 

• Drill Program Currently Planned to Commence in Q4: Following final project approval, the Company expects to commence its planned drill program, fully funded through the $2M minimum expenditure commitment by Newmont. The program is expected to consist of up to 3,500 metres across 10 to 15 holes. 

• Zodiac Target is High Priority: The geology of the Zodiac target, including thick silica sinter, indicates near complete preservation of an epithermal system analogous to the geological setting of the Disco Zone discovered by Headwater on the Spring Peak project, approximately 10 km south of Lodestar. The Zodiac target is the highest priority untested target within Headwater’s greater Lodestar/Spring Peak project area. 

Caleb Stroup, President and CEO of the Company, states: “We are thrilled to see the Lodestar project progress through the formal scoping stage, bringing us closer to a maiden drill program on the high-priority Zodiac target. Final public scoping is the concluding stage of the Federal permitting process and sets the stage for currently anticipated drilling in Q4 2025.  Every effort has been made to refine our exploration plans to ensure responsible and efficient development and it is great to see the project moving ahead. We remain confident in the geological potential for Lodestar to host high-grade epithermal vein systems, building on the success of our nearby Spring Peak project. Our partnership with Newmont continues to provide significant value, funding this exciting exploration while minimizing dilution for our shareholders.”

2025 Lodestar Currently Planned Drilling

Following project approval of the Lodestar Plan of Operations, the 2025 drill program is currently expected to consist of up to 3,500 metres across 10 to 15 holes. The primary objective is to test for high-grade veins in steeply dipping feeder structures beneath the Zodiac sinter target, a prominent silicified and brecciated ridgeline capped by a thick accumulation of silica sinter. The Zodiac target features laminated silica sinter with palisade textures, algal mats, and geyserite, suggesting potential prolonged hydrothermal activity and high-level preservation of the system. Headwater believes the system has potential for high-grade veins at depth. The Lodestar sinter is similar in character and size to the sinter overlying the Disco Zone at Headwater’s Spring Peak project where high-grade epithermal veins were discovered at approximately 150 m depth. The Lodestar program is designed to leverage Headwater’s successful exploration model from Spring Peak, utilizing geophysical and geochemical data to target high-grade epithermal veins within the interpreted boiling zone approximately 150 m below surface. Additional scout holes will test under-cover geophysical targets adjacent to the Zodiac target, beneath a thin veneer of post-mineral basalt, to explore for blind mineralization.

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Figure 1:  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 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 350 ton per day mill, 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 significant exploration potential 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 preparation of a Pre-Feasibility Study within a designated time frame.

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.

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.

For more information about Headwater, please visit the Company's website at www.headwatergold.com.

Promotional Activity Disclosure

In accordance with CSE Policy 7, the Company announces that it has arranged for two service providers to conduct Promotional Activities on behalf of the Company.

The Company has arranged for Resource Stock Digest to conduct an interview with the Company and produce its own content for publishing on its website at https://resourcestockdigest.com and distribution through its email list on July 24, 2025. The principals of Resource Stock Digest are Gerardo Del Real and Nicholas Hodge of 2051 Gattis School Rd, Ste. 540 PMB 176, Round Rock, TX 78664, email address editor@resourcestockdigest.com and telephone number 1-844-334-4700. Messrs. Del Real and Hodge are arm’s length to the Company. Resource Stock Digest will receive total compensation of a cash payment of US$7,500.00 for the Promotional Activity. The compensation does not include options to purchase securities of the Company.

The Company has arranged for Jefferson Financial, Inc. to disseminate a sponsored promotional report through its email list on July 29, 2025. The principal of Jefferson Financial, Inc. is Brien Lundin of 111 Veterans Memorial Blvd., Suite 1555, Metairie, LA 70005, email address admin@jeffersoncompanies.com and telephone number 1-800-648-8411. Mr. Lundin is arm’s length to the Company. Jefferson Financial, Inc. will receive total compensation of a cash payment of US$7,000.00 for the Promotional Activity. The compensation does not include options to purchase securities of the Company.

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:

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.

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.

Qualified Person

The technical information contained in this news release has been reviewed and approved by Scott Close, P.Geo (158157), an independent “Qualified Person” (“QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

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, anticipated content, commencement, and cost of exploration programs in respect of the Company's projects and mineral properties, completion and timing of the Equity Transaction and the intended use of proceeds therefrom, the anticipated acceptance of the CSE of the Earn-In Agreements and the Equity Transaction, Newcrest’s anticipated funding of the Minimum Commitment 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, delays in obtaining governmental and regulatory approvals (including of the Canadian Securities Exchange) for the Earn-In Agreements and the Equity Transaction, the risk that the Equity Transaction will not be completed or on the anticipated timetable, the risk that Newcrest will not elect to obtain any additional interest in the 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.