Blue Lagoon Resources Receives Second $1.4 Million Payment as Dome Mountain Processing Begins

Blue Lagoon Resources Inc. has received a second advance payment of approximately CAD $1.4 million from its milling partner, Nicola Mining, for 1,000 tonnes of stockpiled mineralized material from the Company's 100%-owned Dome Mountain Gold and Silver Project. To date, approximately 3,700 tonnes of Dome Mountain mineralized material have been delivered to the mill site and are currently stockpiled pending processing, with the Company having previously received an advance payment for another 1,000 tonnes. These advances are subject to final reconciliation following milling and settlement.

Processing of the Dome material was originally expected to occur earlier this month, but to ensure the highest operational standards and recoveries, Nicola conducted comprehensive plant cleanup and maintenance along with component replacements at their mill facility. Now that these operational improvements are complete, Dome Mountain mineralized material is being processed at the mill. Peter Espig, President & CEO of Nicola Mining Inc., commented that they value their relationship with Blue Lagoon and are excited to start this next chapter in their strategic partnership with the commencement of processing Dome Mountain mineralized material.

Rana Vig, President and CEO of Blue Lagoon Resources, stated that this is a meaningful milestone for the company, with advance payments of this scale reflecting growing confidence in Dome Mountain as a reliable production asset. The company is executing on its strategy of advancing production, shipping material, and building momentum. As processing continues, they expect this to mark the next phase of consistent operational cash flow and continued growth for the company. The advance payments provide working capital to support ongoing underground development and production activities as the Company advances Dome Mountain.

The Company will provide updates as milling progresses and will report final reconciled grades and recoveries once processing is completed. 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. Beginning in H2 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.

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. View the original release on www.newmediawire.com.