Headwater Gold Inc. reported initial assay results from the core completion of drill hole SP22-13 from its Spring Peak project, located in Nevada, USA. The completion of the 2022 drill campaign at Spring Peak was announced on December 7, 2022. Drill hole SP22-13 intersected two individual veins which assayed 15.92 grams per tonne gold (æg/t AuÆ) over 2.38 metres (æmÆ) and 10.43 g/t Au over 2.01 m respectively.

The higher individual assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a broader zone which assayed 2.73 g/t Au over 34.72 m; Initial assays confirm the presence of high-grade gold in banded epithermal veins in the Disco Zone which was discovered by Headwater scout drilling in November 2021; These results are the first and only batch of assays received to date from Headwater's 2022 Spring Peak drill program. Results from the remainder of the 2022 program, which totalled 3,173 m, are expected in First Quarter 2023; The Spring Peak drill program was 100% funded by Newcrest Mining Limited (æNewcrestÆ) pursuant to the earn-in agreements announced on August 16, 2022; and A more extensive follow-up drilling program to define the lateral and down dip extents of the vein system is currently being planned. The Company utilized a combination of core and RC drilling at Spring Peak to complete 3,173 metres of drilling prior to the winter shut-down.

The program consisted of 993 metres of core drilling, 1,076 metres of RC pre-collars and 1,104 metres of RC exploration drilling. The Disco Zone was the higher priority target of the program and was intersected with oriented diamond core in all four holes designed to test for high-grade veins. The four holes that intersected the Disco Zone were drilled on a single fence with mineralization open up-dip, down- dip and along strike.

The Disco Zone occupies the footwall margin of a broad, northeast-striking fault zone that is oriented similarly to vein trends at the adjacent past producing Aurora mine complex. An additional six drill holes tested a variety of targets at depths greater than 150 metres elsewhere on the property. All holes encountered epithermal alteration and veining, confirming that the epithermal system extends beneath silica alteration mapped at surface over a large area of the property.

Assays from these new targets tested in 2022 remain outstanding. Within the Disco Zone, hole SP22-13 intersected two discrete high-grade veins with textures indicative of boiling, including ginguro banding, silica replacement of lattice-bladed calcite and vein sediments. The high-grade veins are within a broader mineralized interval which contains additional veins and breccia intervals characterized by fine-grained silica-sulfide flooding and argillic alteration.

The opaque, fine-grained character of silica within the veins, along with the absence of coarse crystalline quartz textures, indicates that drilling may not have reached the base of the boiling horizon which is the epithermal zone typically associated with high-grade precious metals.