Headwater Gold Inc. provided an exploration update on the Midas North project located in Elko County, Nevada. Headwater's Midas North exploration program is fully funded during the earn-in phase by Newcrest Mining Limited (Newcrest), pursuant to the earn-in agreement announced on August 16, 2022. Midas North Geophysical Surveys: The results of the geophysical surveys confirm the utility of using magnetics, radiometrics, gravity and CSAMT resistivity, together with geology, to generate high-quality drill targets at Midas North below the broad area of favourable epithermal alteration outcropping at surface.

The 2022 geophysical programs consisted of: A controlled-source audio-frequency magnetotelluric (‘CSAMT') resistivity survey totalling 36.3 line-kilometres (‘line-km') on eight parallel 400 metre (‘m') spaced profiles; Helicopter airborne magnetic and radiometric surveys totalling 357 line-km completed at 100 m spacing totalling 32.5 km2; and, A ground gravity survey consisting of 767 stations on a 200 m grid to 400 m grid regionally, with a total survey footprint of 114 km2. Geophysical Targets Areas: Headwater has identified multiple drill targets by analyzing the multi-parameter geophysical data described above. The principal targets contain geophysical and geological characteristics indicating potential to host kilometre-scale feeder zones at depths of 200m to 400m below the outcropping mapped sinters and other high-level hot-spring-type alteration mapped at surface.

Big Opal Sinter Target: NNW-striking sub-vertical resistivity break beneath outcropping vent facies sinter deposits with interpreted mafic sill at depth. Strong geological similarities to Hecla's recent Green Racer Sinter vein discovery on the adjacent Midas Mine complex. Big Opal Fault Target: Kilometre-scale NNW-striking resistivity break at the margin of a large resistivity high (Big Opal Resistor) interpreted as a thick water table silica blanket.

Big Opal Resistor Target: High-angle resistivity break beneath the Big Opal Resistor. Jo Belle Fault Target: District-scale fault associated with kilometre-scale, strongly resistive CSAMT feature (Nevada Grande Resistor). The stratigraphic offset and fault orientation are considered geologically comparable to the high-grade Colorado Grande vein in the main Midas district.

Strong illite-adularia alteration is interpreted from a NNW- trending radiometric high (potassium channel) along the fault trace. Nevada Grande Resistor: Large resistor with approximately 2 kilometres of strike extent in the hanging wall of the Jo Belle fault interpreted to potentially represent a second locus of fluid flux and vein formation separate from the Big Opal structural corridor. CSAMT Survey The CSAMT data collected by the Company has proven particularly effective for mapping the subsurface geometries of interpreted silica alteration beneath areas of high-level silica and steam- heated clay alteration, interpreted to represent the upper portion of a completely preserved epithermal system.

Multiple high-angle resistivity breaks occur adjacent to and beneath shallow, tabular resistive bodies, each with over 2 kilometres of strike length. Airborne Radiometric Survey Radiometric survey results and potassium data in particular show discrete linear radiometric highs which may represent corridors of illite-adularia alteration that are subparallel to the feeder structures interpreted from the CSAMT data. The potassium data additionally reveal a broad, spatially continuous low coincident with the principal area of strong surface alteration potentially attributable to a broad zone of argillic alteration.

Airborne Magnetic Survey Strong contrasts in magnetic response reveal numerous NNW-trending linear magnetic lows, as well as a broad magnetic high in the Big Opal area. The linear magnetic low features are consistent with magnetite-destructive alteration of the host volcanic rocks along structural corridors which potentially focused geothermal fluids. Several discrete magnetic highs elsewhere on the property correspond with outcropping mafic sills.

The large, low-amplitude magnetic high is interpreted by Headwater as a possible buried mafic intrusion, analogous in character to the sill-dike complexes spatially and temporally associated with high-grade vein deposits elsewhere in northern Nevada, such as Midas, Hollister, Fire Creek and Mule Canyon. Gravity Survey: The core of the property is characterized by a broad gravity low which suggests a possible zone of pervasive argillic alteration in the surrounding volcanic host rock. The gravity low broadly overlaps with the footprint of a radiometric low and encompasses the areas of highest intensity alteration mapped at surface.

The NNW elongation of the gravity low is consistent with property- wide structural trends detected by other geophysical surveys and surface mapping.