Blue Lagoon Resources Inc. (CSE: BLLG) (OTCQB: BLAGF) (FSE: 7BL) continues to advance underground production at its 100%-owned Dome Mountain Gold & Silver Project as its milling partner, Nicola Mining Inc. begins to shift its milling focus exclusively to the Company’s high-grade gold & silver mineralized material.

With no further third-party processing obligations, Nicola will now be dedicating its milling capacity to material delivered from Dome Mountain. This transition provides a more streamlined processing path as Blue Lagoon continues to advance underground operations and delivers mineralized material under its existing long-term milling agreement.

As previously reported, Blue Lagoon has already received a payment of nearly $1 million for its initial 1,000 tonnes delivered to Nicola in December and is continuing to build its stockpile, reflecting increasing underground output following the recent opening of multiple active mining faces. In addition to the initial 1,000 tonnes, the Company expects that by the end of this week approximately 1,500 additional tonnes of high-grade mineralized material will have been delivered to Nicola, bringing the total material shipped to approximately 2,500 tonnes.

Trucks being loaded at the Dome Mountain Gold & Silver Mine with mineralized material destined for Nicola Mining

These operational advances are occurring against a strengthening gold and silver price environment, with spot gold prices recently surpassing US$5,500 per ounce and silver trading over US$115 per ounce. While the Company remains focused on disciplined execution and operational consistency, management believes the current gold and silver price backdrop enhances the leverage of near-term production as Dome Mountain continues to ramp up.

Dome Mountain Mineralized Material currently stockpiled at Nicola

“Our focus remains on executing safely and consistently underground while maintaining a predictable delivery cadence to our milling partner,” said Rana Vig, President and CEO of Blue Lagoon Resources. “Having already been paid for our first Dome Mountain mineralized material, we are now building inventory in advance of scheduled milling as we continue to scale operations. This steady progress positions the Company well as gold and silver prices continue to soar.”

Blue Lagoon will continue to provide updates as underground development advances, additional material is delivered for processing, and production activities progress at Dome Mountain.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources Inc. is a Canadian-based, well-funded, growth-oriented mining company producing from its 100% owned Dome Mountain Gold Mine near Smithers, 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 is processed under a long-term milling agreement with Nicola Mining. 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 on its extensive property.

With a strong commitment to sustainability, community, and First Nation engagement, Blue Lagoon’s objective is to be 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.