Mr. Rana Vig reports

BLUE LAGOON ADDS SECOND UNDERGROUND SHIFT AS DOME MOUNTAIN MOVES INTO HIGHER-THROUGHPUT PHASE

Blue Lagoon Resources Inc. is continuing to strengthen its underground gold-mining operation as it advances toward achieving its production targets. Now that the initial underground development has opened up enough working spaces, the addition of a second underground production shift this week is expected to increase output across multiple active mining faces, supported by the arrival of additional underground equipment last week. This will accelerate both production and development activities.

Shipments of mineralized material to the company's toll milling partner continue, with six trucks scheduled to leave this week. Shipment volumes are expected to double starting next week as underground mining rates increase. By month-end, additional mining faces are expected to come on-line, further supporting a steady and repeatable production and delivery cadence.

As part of its continuing focus on operational efficiency and disciplined mine planning, the company recently engaged mining consultant Tom Rannelli of TK Mining and Construction, who was on site last week to work closely with the site team to optimize development and enhance underground productivity.

"As we move into a higher-throughput phase of operations, we are bringing in experienced underground specialists to help refine mine planning and execution," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "These orderly steps are already translating into increased productivity across multiple faces and are positioning Dome Mountain for a consistent and sustainable production profile."

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based, well-funded, growth-oriented mining company producing from its 100-per-centowned Dome Mountain gold mine near Smithers, B.C. 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 toll 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.

We seek Safe Harbor.