Blue Lagoon Resources Reports Strong Gold Recovery and Concentrate Production from Dome Mountain Material

Blue Lagoon Resources Inc. has received an operational update from its milling partner, Nicola Mining Inc., regarding the processing of mineralized material from the Dome Mountain underground mine. To date, Nicola has processed approximately 2,954 dry tonnes of Dome Mountain high-grade mineralized material at its milling facility in Merritt, B.C. The material had a weighted average feed grade of 9.7 grams per tonne gold and approximately 35.6 grams per tonne silver.

This processing has yielded over 210 dry tonnes of gold and silver flotation concentrate, which is bagged and readied for sale and shipment to Ocean Partners. The operation has achieved an excellent gold recovery rate of 93.4% in Nicola's flotation mill. Of the 210 dry tonnes of concentrate produced, 188 tonnes are physically bagged, with approximately 22 tonnes currently held in circuit stock tanks as in-process inventory.

As of March 17, 2026, an estimated 1,828 tonnes of unprocessed mineralized material remains on stockpiles at the Nicola facility, which will yield additional concentrate as milling continues. The mill has recently commissioned its second concentrate filter, and a second concentrate thickener is expected to be operational shortly, which will improve concentrate handling capacity and plant operating time. Rana Vig, President and CEO of Blue Lagoon Resources, stated the company is encouraged by the consistent production results and excellent gold recovery, noting that with nearly 3,000 tonnes processed, they continue to build cash flow.

The remaining stockpile at the mill, along with continuing trucking from Dome Mountain, ensures production will continue in the coming weeks. The scientific and technical data in the release was approved by Ted VanderWart, P.Geo., a qualified person as defined in NI 43-101. All tonnage and grade figures were provided to Blue Lagoon by Nicola Mining Inc., and concentrate assays were completed at Base Met Labs, an accredited metallurgical testing facility in Kamloops, B.C. The company's production decision at Dome Mountain is based on existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource, rather than a feasibility study of mineral reserves demonstrating economic and technical viability.