Headwater Gold Identifies Meridian Zone and Plans Follow-Up Geophysics at Lodestar Project, Nevada

(TheNewswire)

Vancouver, British Columbia, May 6,2026 – TheNewswire- Headwater Gold Inc. (CSE: HWG) (OTCQX: HWAUF)(the “Company” or “Headwater”) is pleased to announce resultsfrom the 2025-2026 drill program at its Lodestar project, located inthe Aurora Mining District of Nevada. The program was fully funded byNewmont Corporation (“Newmont”) (NYSE: NEM, ASX: NEM, PNGX: NEM)pursuant to the earn-in agreement announced May 9, 2023.

The program identified a new alteration zone (the“Meridian Zone”), now the primary focus for follow-upexploration.

Highlights:

• Meridian Zone identified:Reverse circulation (“RC”) drillingintersected an approximately 600 metre by 700 metre zone of pervasiveillite-pyrite alteration with anomalous gold, arsenic and mercurygeochemistry interpreted to be open in multiple directions and atdepth. 

• Emerging vectors to system core:Alteration intensity and geochemistry areinterpreted to increase systematically to the east with multiple holesending in strongly altered rock at the limits of drilling. 

• Follow-up geophysics planned:A 12.6 line-kilometre induced polarization (IP)survey is planned to further define the system and prioritizepotential drill targets. 

• Zodiac Fault tested: Core drilling intersected the targeted structure but did notencounter significant precious metal mineralization or alteration atdepth, indicating the Zodiac Fault does not represent the primaryfeeder to the sinter system. 

• Permitted for immediate follow-up:A drill permit covering the Meridian Zone is inplace, allowing for efficient advancement to a potential next phase ofdrilling. 

Caleb Stroup, President and CEO of the Company, states:“The 2025–2026 drillprogram at Lodestar significantly improved our understanding of thesystem and identified the Meridian Zone, a large and previouslyunrecognized area of hydrothermal alteration. Our geologists interpretthe Meridian Zone alteration as similar in character to the alterationassociated with the nearby Borealis deposits, located approximately 6kilometres to the northeast along trend and largely covered betweenthe two areas. While drilling on the Zodiac Fault confirmed it doesnot represent the primary feeder to the sinter system, the RC programdefined a clear vector, with alteration intensity, temperature, andgeochemistry strengthening to the east. The scale of this alterationsystem, combined with the fact that multiple holes ended in stronglyaltered rock, suggests the core of the system remains untested. With apermit already in place, we are moving directly to IP geophysics todefine the next phase of potential drilling.”

2025-2026 Lodestar DrillProgram:

Headwater completed approximately 2,950 metres ofdrilling in four core holes and RC holes between October 2025 andFebruary 2026. With completion of this program, Newmont has satisfiedthe Minimum Commitment component of Stage 1 under the earn-inagreement and is advancing toward completion of Stage 1, which wouldrequire additional investment of approximately US$8,000,000.

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Figure 1. District Map of theAurora-Borealis epithermal gold trend and the Headwater Gold propertywith total horizonal gradient gravity map.  

Zodiac FaultDrilling

Core drilling targeted the Zodiac Fault, anorthwest-striking structure exposed over approximately 550 metres atsurface and associated with silica sinter and hydrothermal breccia(see news release dated October 14, 2025). All core holes intersectedthe Zodiac Fault as modelled; however, geochemical anomalism observedat surface diminished rapidly with depth along the fault, and onlyweakly anomalous precious metal values were encountered. The ZodiacFault does not appear to represent the primary feeder to the sintersystem.

MeridianZone

RC drilling northeast of the Zodiac Fault identifiedthe Meridian Zone, a previously unrecognized 600 metre by 700 metrezone of pervasive illite-pyrite-silica alteration hosted in Miocenevolcanic rocks. The alteration zone is shallowly covered by pedimentgravel and post-mineral volcanic rocks and was intersected in all RCholes, locally beginning as shallow as 30 metres below surface. TheMeridian Zone alteration assemblage is consistent with that observedat the nearby Borealis deposits, located approximately 6 kilometres tothe northeast along the same structural trend (Figure 1).

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Figure 2.  Plan map of the Lodestardrill area with alteration zonation (projected to surface) of thenewly-identified Meridian zone.

The zone is characterized by strong illite-pyritealteration with local silicification and quartz veining, anomalousgold associated with elevated arsenic and mercury values, and asystematic increase in alteration intensity andtemperature proxies toward the east, with increasing pyrite abundanceand improving geochemistry along this trend.

Multiple holes ended in strongly altered rock at thelimits of drilling, and the Meridian Zone remains open to the north,south, and east, and at depth. These results indicate that drilling todate has not tested the core of the hydrothermal system, with the mostprospective portion interpreted to lie to the east of current drillcoverage.

One additional RC hole tested a geophysical lineamentapproximately 1.5 kilometres south of the Zodiac Fault (the SouthernCross Target) and intersected weak hydrothermal alteration in apreviously unrecognized dacitic volcanic unit beneath young basaltcover, with no significant results.

Planned IPGeophysical Survey

The RC drilling results from the Meridian Zone indicatethat the most prospective portion of the alteration system lies to theeast and at depth, beneath post-mineral volcanic cover. IP geophysicsare an effective tool for imaging the sulfide-bearing core of anepithermal system at depth and for defining the structuralarchitecture that controls fluid flow and mineralization. A 12.6line-kilometre IP survey is currently planned across the Meridian Zoneand surrounding area to test the eastern and depth extensions of thesystem and to seek to generate drill targets. With a permit already inplace, the Company is positioned to potentially move directly todrilling once targets have been defined.

About the Lodestar Project:

The Lodestar project is located in the Aurora MiningDistrict in the Walker Lane belt of west-central Nevada, approximately10 km north of Headwater’s Spring Peak Project. The project isadjacent to Hecla Mining Company’s past-producing Aurora minecomplex, which hosts existing infrastructure including a 600 ton perday mill, production water wells, and high-voltage three-phase power.The district is currently seeing renewed exploration activity, withHecla advancing its fully permitted Polaris exploration programfollowing recent permitting approvals. In addition, Borealis MiningCompany has recently advanced plans to restart mining at the nearbyBorealis mine following approval of modifications to its Plan ofOperations.

Lodestar hosts a silicified and brecciated ridgelinecapped by silica sinter, similar to the sinter at Spring Peak, whereHeadwater has intersected high-grade gold mineralization, including15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m (see newsrelease dated January 9, 2023). Headwater holds an option to acquire a100% undivided interest in the project from a private vendor, subjectto retained royalties and Newmont’s option to acquire up to 75% ofthe project following certain expenditures and delivery of aPre-Feasibility Study within a designated time frame.

About Headwater Gold:

Headwater Gold Inc. (CSE: HWG, OTCQX: HWAUF) is atechnically driven mineral exploration company focused on exploringfor and discovering high-grade precious metal deposits in the WesternUSA. Headwater is actively exploring one of the world's mostwell-endowed, mining-friendly jurisdictions, with a goal of makingworld-class precious metal discoveries. The Company has a largeportfolio of epithermal vein exploration projects and a technical teamwith diverse experience in capital markets and major mining companies.Headwater is systematically drill-testing several projects in Nevadaand has strategic earn-in agreements with OceanaGold Corporation on its TJ, Jake Creek, and Hot Creek projects,Newmont Corporation on its Spring Peak and Lodestar projects, andCenterra Gold Inc. on its Crane Creek project in Idaho. In August 2022and September 2024, Newmont and Centerra acquired strategic equityinterests in the Company, further strengthening Headwater'sexploration capabilities.

For more information about Headwater, please visit theCompany's website at www.headwatergold.com.

Headwater is part of the NewQuest Capital Group, adiscovery-driven investment enterprise that builds value through theincubation and financing of mineral projects and companies. Furtherinformation about NewQuest is available atwww.nqcapitalgroup.com.

On Behalf of the Board of Directors

Caleb Stroup

President and CEO

+1 (775) 409-3197

cstroup@headwatergold.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@headwatergold.com

Figure 1 References:

1Vikre,P.G., John, D.A., du Bray, E.A., and Fleck, R.J., 2015, Gold-silvermining districts, alteration zones, and paleolandforms in the MioceneBodie Hills volcanic field, California and Nevada: U.S. GeologicalSurvey Scientific Investigations Report 2015–5012, 160 p.

2BorealisMining Company Limited, 2024, NI 43-101 Technical Report, ProjectStatus Report Borealis Mine Nevada USA: Prepared by Douglas Reid.Effective Date: October 10, 2023; Report Date: February 16,2024.

Quality Assurance - QualityControl

PQ-size drill core was generally drilled in the upperportion of the diamond core holes and HQ-size at depth.  All core waslogged, cut in half, sampled at specific intervals and sent forlaboratory analysis.  RC drilling was conducted with combination ofpneumatic hammer and tricone rock bits depending on ground conditions.RC drilling was sampled on 1.5 metre intervals throughout the lengthof each drill hole.  All drill samples were transported to ALS USAInc. in Reno, Nevada (ISO/IEC Accreditation # 17025) for samplepreparation and gold analysis. Gold was assayed by 30-gram fire assaywith Inductively Coupled Plasma with Atomic Emission Spectroscopyfinish (ICP-AES; ALS method Au-ICP21). Control samples comprisingcertified reference and blank materials were systematically insertedinto the sample stream and analyzed as part of the Company’s qualityassurance and quality control protocol.

Qualified Person

The technical information contained in this newsrelease has been reviewed and approved by Dr. Stephanie Grocke, P.Geo.(EGBC License #58217), an independent “Qualified Person”(“QP”) as defined in National Instrument 43-101 – Standards ofDisclosure for Mineral Projects.

Dr. Grocke has verified the data disclosed in this newsrelease, including a review of the sampling, analytical, and test dataunderlying the information. Verification included a review of theQA/QC samples (standards, blanks, and duplicates) inserted into thesample stream. No material issues were identified during thisreview.

Forward-LookingStatements: This news releaseincludes certain forward-looking statements and forward-lookinginformation (collectively, “forward-looking statements”) withinthe meaning of applicable Canadian securities legislation. Allstatements, other than statements of historical fact, included hereinincluding, without limitation, statements regarding plannedgeophysical surveys and follow-up drilling at the Lodestar Project,Newmont's anticipated continued funding of the earn-in project,and the anticipated business plans and timing of future activities ofthe Company, are forward-looking statements. Although the Companybelieves that such statements are reasonable, it can give no assurancethat such expectations will prove to be correct. Often, but notalways, forward-looking information can be identified by words such as“pro forma”, “plans”, “expects”, “may”, “should”,“budget”, “scheduled”, “estimates”, “forecasts”,“intends”, “anticipates”, “believes”, “potential” orvariations of such words including negative variations thereof, andphrases that refer to certain actions, events or results that may,could, would, might or will occur or be taken or achieved.Forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of the Company to differ materially fromany future results, performance or achievements expressed or impliedby the forward-looking statements. Such risks and other factorsinclude, among others, risks related to the anticipated business plansand timing of future activities of the Company, the ability of theCompany to obtain sufficient financing to fund its business activitiesand plans, the risk that Newmont will not elect to continue withadditional exploration beyond the Minimum Commitment, the ability ofthe Company to obtain required permits, changes in laws, regulationsand policies affecting mining operations, currency fluctuations, titledisputes or claims, environmental issues and liabilities, as well asthose factors discussed under the heading “Risk Factors” in theCompany's filings with the Canadian Securities Authorities,copies of which can be found under the Company's profile on theSEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to placeundue reliance on forward-looking statements. The Company undertakesno obligation to update any of the forward-looking statements, exceptas otherwise required by law.

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