Oh, those are nasty threads for sure, Carl.
Perhaps some possibility for recovery. Did you not mention you had some spare exhaust nuts?
I might suggest using small jewelers files to attempt a partial clean up of the boogered threads close to the exhaust opening. Next, apply some valve grinding/lapping compound onto the stub threads and a touch on the threads of a good exhaust nut. See where we're going with this?
Gently work the exhaust nut onto the stub and make small small back and forth rotations. Maybe remove the nut and reapply fresh compound all around. There appears to be enough good threads remaining on the stub to secure the exhaust header in place.
This technique has been done before. Often, a new pair of header nuts must be factored into the repair costs. It certainly worked on one of my R65s. The header nut should spin freely the length of the threaded stub.
Good luck, Carl. Keep us in the info loop.
Monte "If it ain't broke yet, we can fix that."