Blue Lagoon Resources Inc. (CSE: BLLG) (OTCQB: BLAGF) (FSE: 7BL) is pleased to announce a major milestone in its transition to production at the Dome Mountain Gold Project, located near Smithers, British Columbia.

The Company has received its first delivery of blasting material on site, and completed its first underground blast, officially starting active mining operations. This marks the official commencement of mining activities at Dome Mountain, one of only nine mining projects in British Columbia to receive a mining permit since 2015.

“Today is a historic day for Blue Lagoon and all of our stakeholders,” said Rana Vig, President & CEO of Blue Lagoon Resources. “With the arrival of our first blasting material, and the successful completion of our first underground blast, mining at Dome Mountain has officially begun. This milestone is the culmination of years of hard work by our team, our partners, and the local communities, and it positions us to generate near-term cash flow while continuing to explore Dome Mountain’s district-scale potential, all without further dilution.”

Underground development and blasting will initially focus on accessing high-grade zones previously defined by drilling and sampling. In the coming days and weeks, mined material will be transported to Nicola Mining Inc. under the Company’s toll milling agreement, ensuring a quick and efficient path to gold concentrate sales and near-term cash flow.

This step follows the recent commissioning of Dome Mountain’s state-of-the-art Water Treatment Plant, built to meet all regulatory discharge standards and capable of treating up to 400 liters per minute – more than six times the current required capacity. Together, these recent achievements underscore Blue Lagoon’s readiness as it responsibly advances Dome Mountain into gold production.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian based publicly listed mining company 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 a safe and secure opening of the Dome Mountain Gold Mine and starting 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.