Mr. Rana Vig reports

BLUE LAGOON ANNOUNCES COMMISSIONING OF MBBR WATER TREATMENT SYSTEM AND START OF UNDERGROUND OPERATIONS AT DOME MOUNTAIN

The moving bed biofilm reactor (MBBR) system at Blue Lagoon Resources Inc.'s Dome Mountain water treatment plant is now ready for commissioning.

Designed to meet all regulatory discharge standards, the plant was developed in close collaboration with Soren Jensen, the company's principal environmental consultant from SRK Consulting. Mr. Jensen, who holds a master's degree in chemical engineering, has more than 20 years of experience designing, commissioning and operating mine water treatment systems, including similar facilities at underground gold mines in Northern Canada. His expertise ensures that the Dome Mountain system is engineered to treat mine water efficiently, in full compliance with permit conditions and in alignment with Blue Lagoon's commitment to environmental stewardship.

The MBBR system is part of Dome Mountain's state-of-the-art water treatment plant, which is designed to treat up to 400 litres per minute (L/minute). Current mine water output is approximately 20 to 40 L/min, ensuring ample capacity as operations scale. This robust infrastructure underscores Blue Lagoon's commitment to environmental stewardship while supporting safe and efficient underground development.

Mining to commence Sept. 24, 2025

Underground mining operations are scheduled to commence on Sept. 24, 2025, beginning with development work. The company expects to achieve a steady ramp up to 100 tonnes per day (tpd) within four weeks and 150 tpd within 12 weeks. By that point the company expects to have five to six working faces exposed, providing strong operational flexibility. Importantly, all mine waste will remain underground, further aligning with the company's environmental and regulatory commitments.

To enhance operational readiness and safety, Blue Lagoon has signed a mutual aid agreement with New Gold Inc., reinforcing its collaborative approach and ensuring rapid access to additional emergency support if ever required.

The company's underground program will be led by Mike McCartin, a seasoned underground mining geologist who will oversee daily operations and training of mine staff. Complementing this, a senior mining engineer from Roughstock Mining Services will establish mining protocols, standard operating procedures (SOPs) and underground surveying requirements, ensuring industry best practices are embedded from day 1.

"As we commission the MBBR system and prepare to send our crews underground to commence operations, Blue Lagoon is entering a transformational phase," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "With a fully permitted project, the right infrastructure and a strong technical team, we are well positioned to generate near-term cash flow, while minimizing risk and maximizing efficiency. Dome Mountain is rare in British Columbia, one of only nine projects permitted since 2015, and we are proud to be advancing it responsibly, with safety and environmental care at the forefront."

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.

We seek Safe Harbor.