Blue Lagoon Attains Commercial Production at Dome Mountain; Ocean Partners Invests C$3M

Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) has officially achieved commercial production at its 100% owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, and simultaneously announced a C$3 million strategic equity investment from its offtake partner, Ocean Partners Holdings Ltd.

Commercial production was declared after the company maintained underground mining rates exceeding an average of 100 tonnes per day for more than 30 consecutive days, surpassing the industry threshold of 90 tonnes per day, which represents 60% of the permitted annual throughput of 55,000 tonnes. This milestone transitions Blue Lagoon from a development-stage company to a producing gold miner.

“This is a defining milestone for Blue Lagoon,” said Rana Vig, President and CEO. “Achieving commercial production at Dome Mountain is the culmination of years of persistence, technical work, permitting success, and strong collaboration with our industry partners and the Lake Babine Nation.”

Ocean Partners will invest C$3 million at C$0.90 per common share, matching the closing market price on May 15, 2026, with no warrants attached. The investment aligns the interests of Ocean Partners, Blue Lagoon, and milling partner Nicola Mining Inc., which already holds an equity stake and provides a C$2 million undrawn line of credit.

Blue Lagoon maintains a strong treasury, generates ongoing cash flow from gold and silver concentrate sales, and holds approximately C$2.5 million in in-the-money warrants. The company is focused on ramping up to a consistent production rate of 150 tonnes per day.

Operationally, underground mining continues steadily with two crews working concurrently. Additional equipment has arrived to boost productivity, and regular shipments are being made to Nicola Mining’s Merritt Mill under the toll milling agreement. The water treatment facility is performing well, and the site remains in full environmental compliance. Infrastructure upgrades are underway to support an expanded crew and prepare for drilling crews expected in Q3 2026.

“Equally significant is Ocean Partners’ decision to become an equity shareholder through a substantial investment at market price with no warrant incentive,” Vig added. “We believe this speaks volumes about their confidence in the Dome Mountain project.”

Dome Mountain is among a small number of newly permitted mining projects in British Columbia to successfully transition into active production in recent years. The company has not based its production decision on a feasibility study, noting increased uncertainty and higher risk of failure when production is undertaken in advance of such a study.

For further information, contact Rana Vig at 604-218-4766 or [email protected].