First-Pass Drill Program At Mahogany Gold Project In Oregon

VANCOUVER – Headwater Gold Inc. reported assay results from the first-pass diamond core drill program on its 100% owned Mahogany gold project. Highlights include: 1) First-pass scout drilling, totaling 810 meters in five holes, intersected multiple zones of anomalous gold mineralization. 2) Hole MH21-02 intersected 1.47 grams per tonne (“g/t”) gold over 12.3 meters, including 4.05 g/t gold over 3.84 meters, with the highest individual sample grading 9.37 g/t gold over 0.73 meters. 3) Mineralization encountered in MH21-02 remains open along strike to the northwest. 4) Core orientation analysis and analytical results indicate northwest- and northeast-trending structures appear to be the predominant mineralized features, pointing to additional yet to be tested targets on the property. 5) Drill results from Headwater Gold’s 100% owned Katey Project, located 30 km northwest of Mahogany, are pending (see news release dated December 9, 2021) with results expected within approximately two to four weeks.

Caleb Stroup, President and CEO, said, “The initial drill results from Mahogany clearly demonstrate the presence of a structurally controlled epithermal gold system with the potential for high grades. As is common with many epithermal vein systems, initial drilling appears to indicate a complex structural control to the system with oriented core data implying that the Main Ridge Fault zone is less important as a feeder than more enigmatic northeast- and northwest-trending structures. This updated geological interpretation opens the door to a number of new targets on the property, including the extension of the mineralization encountered in MH21-02 which remains open to the northwest. The Company is currently planning a ground-based geophysical program to better understand the structural controls to the system and future targets will be prioritized in the context of the full Headwater exploration portfolio as they develop. Mahogany, which was staked on open ground, is a good example of our ability to generate new 100% owned projects on claim-free, open ground.”