Headwater Gold starts drilling at TJ project

Executive Summary

• Headwater Gold Inc. has commenced a 1,500-metre core drilling program at its TJ Project in northeastern Nevada, testing high-grade epithermal vein targets identified during 2024 scout drilling.
• The program is fully financed by OceanaGold Corp. under an earn-in agreement announced on October 15, 2025, which includes a $1-million minimum expenditure commitment by OceanaGold.
• Drilling will focus on two primary targets: the East Sinter fault (testing down-dip projections and inferred boiling horizons at 150-300m depth) and the Jackpot fault (testing geometry and alteration nature at high elevations).

Key Details

• Drilling Scope: Approximately 1,500 metres of core drilling planned, consisting of four to six holes.
• Financing Structure: Fully financed by OceanaGold Corp. via an option and earn-in transaction. OceanaGold has a $1-million (U.S.) minimum expenditure commitment on the TJ project.
• East Sinter Fault Target:
  • Focuses on the down-dip projection of the major west-dipping structural zone hosting widespread epithermal alteration and silica sinter.
  • Targets the inferred boiling horizon at depths of 150 to 300 metres below surface along a >1 km mapped strike extent.
  • Plan includes a three-hole drill fan beneath the silica sinter cap, followed by stepout holes 250 m north and south to test for continuation of the mineralized structure.
  • Historic Context: 2024 RC drill hole TJ24-04 intercepted 123.44 m grading 0.150 g/t Au, including 0.741 g/t Au over 1.52 m. Thin chalcedonic quartz veins correspond with highest-grade samples.
• Jackpot Fault Target:
  • Bounding the western margin of known silicification and veining; characterized by a >2 km long break in CSAMT resistivity.
  • Initial testing will occur at relatively high elevations to determine geometry and alteration nature.
  • If successful, existing cased hole TJ24-04 will be re-entered to test the Jackpot fault at depth.
• Project Status: Headwater holds an option to acquire 100% interest subject to retained royalties. OceanaGold has an option to acquire up to 65% following certain expenditures and a prefeasibility study.
• Technical Review: Information reviewed by Dr. Gregory Dering, PGeo, Vice-President of Exploration.

Notable Quotes

• Caleb Stroup, President and CEO: "We are extremely pleased to be launching the first drill program under our recently announced partnership with OceanaGold. Their team brings deep technical experience in low-sulphidation epithermal systems and we're excited to collaborate as we advance the TJ project. This marks the start of what we expect to be a productive and discovery-driven exploration partnership across multiple projects in northern Nevada. With OceanaGold's support, we can now systematically test the high-quality vein targets we've defined at TJ and move one step closer to realizing the district-scale potential we see in this system."