Proposed 2023 Exploration Activities On Newcrest Funded Earn-In Projects

VANCOUVER - Headwater Gold Inc. announced anticipated 2023 exploration activities for projects under earn-in agreements (with Newcrest Mining Limited. Exploration activities on earn-in projects in 2023 expected to include: Spring Peak – up to 11,500 metres of drilling, geophysics, additional geologic mapping, and environmental baseline studies; Midas North – up to 3,500 metres of drilling; Mahogany – up to 2,000 metres of drilling; and Lodestar - Geological targeting, geophysical surveying and drill permitting. Drilling is estimated to commence in late June 2023. As the current operator, Headwater is entitled to earn a 10% management fee on earn-in exploration expenditures, and upon completion of the above work programs, Headwater estimates that Newcrest will have satisfied the minimum spending commitments for the Spring Peak, Midas North, and Mahogany Agreements but will not yet have met the spending threshold required to earn an initial 51% interest in any of the projects.

Caleb Stroup, President and CEO, said, “We are extremely pleased to announce the anticipated exploration activities across our earn-in projects funded by Newcrest this year. We believe the magnitude of these exploration programs further demonstrates the confidence placed in our team and the quality of our assets. This drill season marks an exciting phase in the Company’s evolution, as we aggressively scale-up drilling activities and advance our mission of adding value through exploration.  Newcrest’s 2023 funding will enable a considerably larger program at the Spring Peak project, focused on expanding the two discoveries made in 2022.   Including previously announced drill plans at our 100% owned Katey project, we anticipate this year to see over 20,000 metres of drilling completed on Headwater projects.  Our partnership with Newcrest offers shareholders a rare opportunity to gain exposure to a substantial amount of partner-funded greenfields exploration in a tier-one jurisdiction, in addition to pure upside from our 100% owned and operated exploration projects, while minimizing dilution at the corporate level.”