Blue Lagoon Resources Achieves First Revenue from Dome Mountain Gold and Silver Sale

Blue Lagoon Resources Inc. has announced its first sale of gold and silver to Ocean Partners UK Limited from mineralized material delivered to milling partner Nicola Mining Inc. for processing. The company expects to receive C$970,000 in connection with this initial delivery, representing its first sale related to production from Dome Mountain. This payment represents an advance on the first shipment of approximately 1,000 tonnes of mineralized material delivered to Nicola, as processing has not yet occurred due to scheduled mill maintenance. Final settlement is expected following processing and is subject to customary adjustments, including final assays and prevailing metal prices at the time of settlement.

Following a brief Christmas holiday break, underground development, production and shipments of mineralized material are expected to resume in the first week of January. Further disclosure regarding the grades of the initial shipment will be provided following processing of the material by Nicola. The company views this milestone as a significant inflection point, marking Blue Lagoon's transition from a pre-revenue to a revenue-generating mining company, joining a select group of junior mining companies that have successfully advanced from development into production and sale of gold and silver.

"This sale marks a significant milestone for Blue Lagoon," said Rana Vig, President & CEO. "The company is now focused on continued execution as we advance on development and production activities, increase throughput, and work toward consistent, steady-state operations," he added. The company also announces that it has granted an aggregate of 3,000,000 restricted share units and 200,000 stock options to certain directors, officers, management and consultants of the company pursuant to the company's omnibus equity incentive plan. The RSUs and Options vest immediately upon grant. The stock options are exercisable at a price of $0.66 per share and will expire five years from the date of issuance. The grant of the RSUs and Options is subject to approval by the Canadian Securities Exchange.

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 will be 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. 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.