Mr. Rana Vig reports

BLUE LAGOON FILES ANNUAL FINANCIAL STATEMENTS AND PROVIDES COMMENT ON TEMPORARY CEASE TRADE ORDER

Blue Lagoon Resources Inc. has completed and filed its audited annual consolidated financial statements for the year ended March 31, 2026, together with the related management discussion and analysis and officer certifications. The filings are available under the company's profile on SEDAR+.

The company has been advised that, notwithstanding the completion of the required filings, the British Columbia Securities Commission (BCSC) issued a failure-to-file cease trade order because the filings were not completed by the prescribed filing deadline. As a result, trading in the company's securities on the Canadian Securities Exchange is expected to be temporarily suspended.

As all required annual filings have now been completed, the company expects the BCSC to issue an order revoking the cease trade order, with trading expected to resume on Aug. 7, 2026.

The company was unable to complete the filings by the prescribed deadline because this year's audit was substantially more complex than in prior years. During the fiscal year, Blue Lagoon transitioned from an exploration-and-development-stage company into an operating gold producer. As a result, the audit included several areas that had not previously formed part of the company's financial reporting, including revenue recognition, production inventory, mine operating costs, and the accounting treatment of mine development and production assets.

The expanded audit work coincided with the company's transition to a new audit firm. This required extensive first-year audit procedures, additional documentation review and co-ordination, which collectively took considerably more time than originally anticipated.

The company emphasizes that the filing delay was administrative and audit related and was not caused by an interruption to mine activities or any issue affecting the continuation of operations at the Dome Mountain gold mine. Operations at Dome Mountain continued throughout the audit and filing process and are continuing.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based, well-financed, growth-oriented mining company that achieved commercial production at its 100-per-cent-owned 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 milling agreement with Nicola Mining. During the second half of 2026, the company plans to continue reinvesting 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 has not based 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 are increased uncertainty and consequently a higher risk of failure when production is undertaken in advance of a feasibility study.

We seek Safe Harbor.