Headwater Gold completes drill programs at Lodestar, TJ

Executive Summary

• Headwater Gold Inc. has completed drilling campaigns at its Lodestar and TJ projects in Nevada, with all samples submitted for laboratory analysis and final assay results expected in the coming weeks.
• At the Lodestar project, approximately 2,950 metres were drilled across nine holes (four core, five reverse circulation), successfully intersecting the modeled structural target and pervasive hydrothermal alteration in the Zodiac Sinter area.
• At the TJ project, approximately 1,350 metres of core drilling were completed in five holes, confirming the scale and continuity of epithermal veining and breccias along the East Sinter fault system before being suspended by winter weather.

Key Details

• Lodestar Project Drilling:
  • Total footage: Approximately 2,950 metres.
  • Hole count: Four core holes and five reverse circulation (RC) holes.
  • Target: Zodiac Sinter target area.
  • Results: All holes intersected the modeled structural target or adjacent pervasive hydrothermal alteration.
  • Exploration Details: RC drilling confirmed a 600-metre-by-700-metre zone of pervasive illite-pyrite-silica epithermal alteration within Miocene volcanic rocks, extending north and east from the Zodiac fault zone.
  • Alteration Characteristics: The alteration zone is open to north, south, and east, with intersections as shallow as 30 metres from surface.
• TJ Project Drilling:
  • Total footage: Approximately 1,350 metres of core drilling.
  • Hole count: Five holes.
  • Status: Drilling suspended due to inclement winter weather; one hole paused prior to reaching target depth and cased for future re-entry.
  • Target: East Sinter fault system.
  • Results: All holes encountered hydrothermal breccias and veining within pervasive epithermal alteration.
  • Structural Findings: The East Sinter fault was intersected in three of four designed holes. Thick intervals of epithermal veining, fault gouge, and silicified fault breccias were encountered.
  • Breccia Body: A silicified hydrothermal breccia body up to 60 metres thick was intercepted in the hangingwall of all holes directed at the East Sinter fault, coinciding with the highest epithermal veining intensity.
  • System Extent: The system extends over at least the greater-than-500-metre-long tested extent and remains open along strike.
• Financing and Agreements:
  • Lodestar drilling was 100% financed by Newmont Corp. through an earn-in agreement announced May 9, 2023.
  • TJ drilling was 100% financed by OceanaGold Corp. pursuant to an earn-in agreement announced October 15, 2025.
• Project Context:
  • Lodestar is located in the Aurora mining district, adjacent to Hecla Mining Company's past-producing Aurora mine complex. Headwater holds an option to acquire 100% interest, subject to Newmont's option to acquire up to 75% after certain expenditures and a prefeasibility study.
  • TJ is located on Bureau of Land Management land in northeastern Nevada. Headwater holds an option to acquire 100% interest, subject to OceanaGold's option to acquire up to 65% after certain expenditures and a prefeasibility study.

Notable Quotes

• "We are pleased to have successfully completed both the Lodestar and TJ drill programs which began in Q4 2025. At Lodestar, we intersected the targeted structures and associated hydrothermal alteration and at TJ we confirmed the scale and continuity of epithermal veining along the East Sinter fault system. While assays are pending, the geological observations from both programs are encouraging. We look forward to receiving and interpreting the analytical results and will outline follow-up plans once the full data set has been evaluated." — Caleb Stroup, President and CEO