Blue Lagoon Resources Inc. (CSE: BLLG) (OTCQB: BLAGF) (FSE: 7BL) is pleased to provide an update on its Dome Mountain Gold Project, where the Company is nearing final commissioning of its Moving Bed Biofilm Reactor (MBBR) water treatment system – the final step required before commencing blasting.

The Company expects the MBBR to be fully activated within the next 7 to 10 days, at which point the water treatment plant will be fully commissioned and blasting can begin. In the meantime, underground preparation work is scheduled to start this week to ensure the operation is fully ready for the start of mining.

Underground Work To Commence This Week

Work beginning this week includes:

• Establishing emergency egress exit points – ensuring all ladders are secure and viable.
• Bolt testing – testing approximately 10% of bolting as per the Ground Control Management Plan.
• Re-establishing the ventilation system – moving and wiring underground fans and ventilation ducts.
• Clearing and fortifying underground magazine storageunits and purchasing explosives.
• Moving small waste piles to improve efficiency once blasting begins.
• Cleaning the underground sump.
• Drilling at the rollover to establish the first exposed ore face.

Once the MBBR system is commissioned (expected in the next 7 to 10 days), drilling and blasting will begin immediately at both the rollover and in the incline (development work).

“We are now extremely close to begin mining,” said Rana Vig, President & CEO of Blue Lagoon Resources. “The MBBR commissioning at Dome Mountain is the last remaining step before blasting can commence, and our crews are already underground preparing for operations. We expect to transition quickly into production and near-term cash flow once the system is online.”

To further strengthen its operational readiness, Blue Lagoon has added two experienced professionals to its team:

Michael Kendall – Underground Mine Supervisor

Mr. Kendall brings more than three decades of hands-on underground mining experience, with a proven track record of leading safe, efficient, and high-performing crews across some of Canada’s most notable operations, including Eskay Creek, Rice Lake, Myra Falls, Red Chris, and Minto.

• Former Underground Mine Manager at Fortis Mining and Underground Supervisor at Barminco (Red Chris).
• Extensive experience in mine planning, development, and production management, including recommissioning and optimization of underground operations.
• Recognized Mine Rescue Captain, with multiple provincial championships and decades of safety leadership.

Mr. Kendall’s deep operational knowledge and safety-first approach will be instrumental as Dome Mountain transitions from development into steady-state production.

Dr. Francis Salifu – Environmental Manager

The Company has also appointed an Environmental Manager, a seasoned professional with over 15 years of progressive experience in mining-sector environmental management, including more than five years in senior supervisory roles.

• PhD in Environmental Science.
• Expertise in ML/ARD mitigation, water quality and water balance modeling, and biochemical reactor (BCR) systems.
• Formerly with Conuma Resources, PwC, and the Alberta Energy Regulator, where they developed integrated environmental management programs and improved site compliance by more than 60%.
• Skilled in stakeholder engagement with regulators, consultants, and Indigenous communities, with a strong focus on sustainability and continuous improvement.

This appointment underscores Blue Lagoon’s commitment to the highest standards of environmental compliance and responsible mining as production begins.

“As we prepare for mining and near-term cash flow, building the right team is critical,” said Rana Vig, President & CEO of Blue Lagoon Resources. “Michael’s extensive underground experience and Francis’s proven leadership in sustainability both strengthen our operational readiness. These hires reinforce our commitment to safety, environmental stewardship, and efficient execution at Dome Mountain

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian based publicly listed mining company (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) focused on building shareholder value through the aggressive development of its 100% owned Dome Mountain Gold project. The Company is run by professionals with significant finance and mining experience and operates within a prime mining jurisdiction in British Columbia, Canada. With the granting of a full mining permit, a key milestone achieved in February 2025 – one of only nine such permits issued in British Columbia since 2015 – Blue Lagoon is now focused on last preparatory activities and tasks related to the safe and secure opening of the Dome Mountain Gold Mine, targeting Q3 2025 as the start of gold production. The Company’s primary objective has always been to become a cash-flowing mining company, to ultimately deliver tangible monetary value to shareholders, state, and local communities.

The Company is not basing its production decision at Dome Mountain on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource.  The Company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study.

For further information, please contact:

Rana Vig

President and CEO

Telephone: 604-218-4766

Email: rana@bllg.ca