Mr. Rana Vig reports

BLUE LAGOON ANNOUNCES COMPLETION OF PRIVATE PLACEMENT

Blue Lagoon Resources Inc. has closed a non-brokered private placement offering of 3,571,429 common shares of the company at a price of 14 cents per share for gross proceeds of $500,000.

Proceeds of the private placement are expected to be used for the company's Dome Mountain gold project, as well as general working capital purposes.

The securities issued in connection with the private placement will be subject to a four-month hold period ending on Dec. 29, 2023, in accordance with securities laws and the policies of the Canadian Securities Exchange, as applicable.

One director of the company participated in the private placement in the amount of $13,242. The transaction with the director, who is an insider of the company, constitutes a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on the exemptions under Section 5.5(a) and Section 5.7(1)(a) from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the common shares issued to the related party and the consideration paid by the related party under the private placement do not exceed 25 per cent of the company's market capitalization as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related-party transaction at least 21 days before the closing of the private placement as the details of the participation by the related party of the company were not settled until shortly prior to closing of the private placement.

We seek Safe Harbor.