Mr. Rana Vig reports

BLUE LAGOON RESOURCES OFFICIALLY OPENS DOME MOUNTAIN GOLD MINE IN BRITISH COLUMBIA

Blue Lagoon Resources Inc. has opened its wholly owned Dome Mountain gold mine project, that recently received its mining permit -- making it one of only nine mining permits granted in British Columbia in the past decade -- and one of just a few high-grade, road-accessible gold projects to reach production-ready status in recent years.

The celebration, held on July 9, 2025, brought together over 100 guests from across Canada and abroad -- including attendees from Germany, South Carolina, Denver, Montana and Toronto -- to mark this significant milestone for the company and the region.

Dignitaries in attendance included the Mayor of Smithers, Gladys Atrill; MLA Sharon Hartwell (Bulkley Valley-Stikine); and MP Ellis Ross (Skeena-Bulkley Valley). Also present were various representatives from the Ministry of Mines and Critical Minerals and other provincial agencies. Minister of Mining and Critical Minerals Jagrup Brar was unable to attend in person due to his participation in the annual Conference of Mines Ministers of Canada, held in Prince Edward Island. However, he shared a recorded message acknowledging the importance of the project, which was played during the event. Minister Brar is scheduled to visit and tour the Dome Mountain site later this month.

In a powerful display of cultural heritage and support, 18 hereditary chiefs and guardians from the Lake Babine Nation (LBN) joined hereditary chief and council member Fabian Michell for the opening ceremony, which featured a traditional drum ceremony representing songs from all four LBN clans: Bear, Beaver, Frog and Caribou.

"We were deeply honoured to stand alongside the Lake Babine Nation, whose presence and participation made this day truly meaningful," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "This is more than just the opening of a gold mine -- it's a moment that reflects years of hard work, resilience and respectful collaboration."

During the two-day event, guests had the opportunity to take underground tours as well as visit the recently completed, state-of-the-art water treatment plant -- a key environmental safeguard for the project. The facility has the capacity to treat over six times the current needs at Dome Mountain, ensuring long-term environmental resilience as production scales.

With the mine officially open, preproduction work will begin next week, setting up Dome Mountain to begin mining and transition to near-term cash flow once the Moving Bed biofilm reactor (MBBR) system is commissioned -- expected in about four weeks. The two-stage water-treatment facility features a functioning high-density sludge (HDS) circuit and the MBBR circuit, which uses microbes to remove blasting-related ammonia and nitrates. The MBBR's biological ramp-up phase typically takes approximately four weeks. Mining will commence immediately upon the completion of this phase.

"As a geologist, this is a proud moment in my career," said Bill Cronk, chief geologist and project manager at Blue Lagoon Resources. "To see a project go from exploration to production -- and to be part of that transformation -- is something most geologists only dream of. This team made it happen and I'm very proud of that."

The event also welcomed strategic investors and partners, including Dr. Quinton Hennigh, technical adviser to Crescat Capital, and Peter Espig, chief executive officer of Nicola Mining, with whom Blue Lagoon has a long-term toll milling agreement.

"Dome Mountain represents what's possible when entrepreneurial determination meets responsible mining practices," said Peter Espig, chief executive officer of Nicola Mining. "We're proud to support Blue Lagoon in bringing this project to life, and to be part of a partnership grounded in trust, transparency and technical excellence."

Throughout the event, Blue Lagoon's highly experienced technical team was on site to answer questions and provide detailed explanations of the mining methods and techniques planned for Dome Mountain. This included Steve Cutler of Roughstock Mining, an accomplished underground mining consultant with decades of experience who has worked on a wide range of underground gold projects across North America. Also present was Peter Bojtos, a professional mining engineer with global experience who has been directly involved in the opening or reopening of 19 mines over the course of his career -- making Dome Mountain his 20th. Mr. Bojtos is a current director of Avino Silver & Gold Mines Ltd. (formerly chairman) and a technical adviser on the Dome Mountain gold project.

With preproduction work beginning next week, Blue Lagoon Resources is now positioned to become one of British Columbia's next producing high-grade gold mines.

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-per-cent-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.

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