Blue Lagoon Resources Inc. (CSE: BLLG) (OTCQB: BLAGF) (FSE: 7BL) is pleased to announce that underground mining has entered its second week at the Company’s fully permitted Dome  Mountain Gold Project near Smithers, British Columbia, amid one of the strongest gold price environments on record.

Last week’s start of underground operations marked the beginning of Blue Lagoon’s transition from development to production – a milestone occurring at an opportune time as gold prices reach fresh record highs and worldwide investor interest in precious metals accelerates.

“Timing in the mining business is everything,” said Rana Vig, President & CEO of Blue Lagoon Resources. “With underground mining now underway and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment. Our strategy has always been to move Dome Mountain into production efficiently and responsibly – and today, those efforts are aligning with market conditions.”

In the coming weeks, mined mineralized material will be transported under the Company’s milling agreement with Nicola Mining Inc., providing a fully permitted and capital-efficient path to gold concentrate sales once shipments begin. The agreement was recently extended to a 10-year term, further strengthening the long-term partnership between the two companies (see news release September 29, 2025).

MARKET BACKDROP

As reported by Reuters on October 8, 2025 (“Gold set to extend record-breaking run on global anxieties,” by Polina Devitt), spot gold broke above US$4,000/oz as analysts cited persistent geopolitical and economic risks, continued central-bank purchases, and robust investor demand – factors they say leave little to halt gold’s record-breaking run into 2026, with other precious metals also benefiting from the momentum.*

“This is a favourable environment, and while we don’t control the gold price, we can control

readiness and execution,” added Mr. Vig. “Our goal is to translate this backdrop into efficient operations and disciplined progress toward cash flow thereby increasing shareholder value without further dilution.”

*Gold set to extend record-breaking run on global anxieties, by Polina Devitt

About Blue Lagoon Resources Inc.

Blue Lagoon Resources Inc. is a Canadian-based,  well-funded, growth-oriented mining company focused on advancing its 100% owned Dome Mountain Gold Project in British Columbia. Led by a team with deep mining and finance experience, the Company operates in one of the world’s most attractive mining jurisdictions.

In February 2025, Blue Lagoon achieved a major milestone with the granting of a full mining

permit – one of only nine issued in British Columbia since 2015 – and has since commenced underground mining operations. Mineralized material from Dome Mountain will be processed under a long-term toll milling agreement with Nicola Mining, with first gold sales targeted for Q4 2025. Beginning in H1 2026, the Company plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base.

With a strong commitment to sustainability, community, and First Nation engagement, Blue Lagoon’s objective is to become a profitable, cash-flowing gold producer while creating lasting value for shareholders and stakeholders alike.

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.