Mr. Rana Vig reports

BLUE LAGOON 2023 PHASE 1 DRILLING RESULTS - DM-23-289 ADDS 350 METERS OF STRIKE LENGTH TO BOULDER VEIN

Blue Lagoon Resources Inc. has released final results from the 2023 phase I drilling program on its year-round, road-accessible Dome Mountain gold project, located a short 50-minute drive from Smithers, B.C.

A total of 2,909 metres of NQ diamond drilling were completed in 10 drill holes during the phase 1 2023 campaign. Two of the 10 holes were abandoned due to technical issues well before target depth and subsequently redrilled. The first of these 10 holes was focused on undercutting and following up on a significant intersection discovered during the 2022 drill program in drill hole DM-22-273 (see press release Jan. 16, 2023). This intersection consisted of a wide zone of mineralized breccia and quartz-carbonate sulphide veining was intersected grading 5.49 grams per tonne gold, 80.9 g/t silver and 1.21 per cent copper over 16.55 metres (291.45 to 308 m), including 11.02 g/t Au, 115.8 g/t Ag and 2.31 per cent Cu over 5.65 metres (202.35 to 308 m). This intersection was interpreted to represent the eastern extension of the Boulder Main vein.

Follow-up drilling this year set up on the same drill pad as hole DM-22-273 and targeted strike and dip extents at approximately 50-metre centres.

The down-dip expression of the mineralization in drill hole DM-22-273 appears to be a narrow semi-massive sulphide bearing quartz vein (the Boulder vein) in drill hole DM-23-285A. Precious metal grades here are 44.20 g/t Au, 136 g/t Ag and 0.52 per cent Cu over 0.42 metre. Farther down hole, a broader, but lower-grade zone returned 1.80 g/t Au and 8.4 g/t Ag over eight metres, including 4.25 g/t Au and 18.7 g/t Ag over 2.74 metres. Lower copper concentrations in this zone suggest it is not related to mineralization in DM-22-273 but may represent a zone of previously unrecognized mineralization in this structurally complex area.

Drilling on strike to the west, drill holes DM-23-286 and DM-23-287 intersected the mineralized Boulder vein grading 6.02 g/t Au and 83.7 g/t Ag over one metre and 15.20 g/t Au and 31.4 g/t Ag over 1.55 metres, respectively.

To the east, drill hole DM-23-288 did intersect a zone of veining approximately 56 metres east at a similar depth as in hole DM-22-273, although the breccia was not developed in this location. Gold and silver grades were only weakly anomalous with a best of 1.48 g/t Au and 18.1 g/t Ag over 0.52 metre. Below this, two samples returned strong silver (and copper) values with concentrations of 97.2 g/t Ag (0.371 per cent Cu) and 233 g/t Ag (1.640 per cent Cu). These are related to narrow disseminated zones of a dark grey sulphide, identified as tennantite based on geochemistry. These zones are rather unique as compared with typical vein character and mineralogy of the Boulder vein. Narrow tennantite veining was noted in the intersection in drill hole 273. Drill hole DM-23-289 drilled to undercut DM-23-238 intersected a deformed quartz-carbonate sulphide vein which returned 1.4 metres running 10.35 g/t Au, 38.9 g/t Ag and 0.108 Cu per cent (including 25.10 g/t Au and 93 g/t Ag over 0.56 metre). This intercept in the Boulder vein is significant as it confirms 350 metres of additional strike length along the Boulder vein east of the current resource model. Drill hole DM-23-290A, drilled to intersect the structure another 50 metres east, cut a narrow quartz-carbonate sulphide vein grading 7.64 g/t Au and 30.6 g/t Ag over 0.34 metre.

Drill hole DM-23-291 was planned to test an interpreted area of the Boulder Main vein that was not included in the current vein model. A vein was intersected in historical drill hole D89-05 which graded 6.89 g/t Au and 41.6 g/t Ag within altered host rocks. Additional less than five g/t Au mineralization was selectively sampled within the alteration zone. Sampling of DM-23-291 only returned spotty low-grade precious metal values within the expected zone. At depth, a better mineralized vein was encountered returning 3.52 g/t Au and 57.3 g/t Ag over three metres. It is unclear whether this vein represented the Boulder footwall vein or may possibly be part of the Boulder East structures.

Though there is insufficient infill drilling at this time, it is reasonable to assume, based on drilling, that the strike length and down-dip extent of the Boulder vein resource could be doubled by infill drilling. The current resource (news release Feb. 3, 2022) discloses a mineral resource of 45,000 ounces Au and 250,000 ounces Ag in the measured category, 173,000 oz Au and 876,000 oz Ag in the indicated category, and 16,000 oz Au and 71,000 oz Ag in the inferred category.

Quality assurance and quality control

Core selected for sampling was cut in half with a core saw with one-half bagged for shipping. Strict chain-of-custody storing and shipping protocol were maintained. All core preparation and analyses were completed by Activation Laboratories Ltd. located in Kamloops, B.C. Core was crushed, split and pulverized with 250 grams passing 200 mesh. Each sample was analyzed for gold by fire assay with inductively coupled plasma optical emission spectroscopy finish (Act Labs code 1A2-ICP) and for multielements by four-acid total digestion ICP with OES finish (Act Labs code 1F2). Any gold overlimits (greater than 30 parts per million Au) were analyzed by gravimetric fire assay (Act Labs code 1A3). Standards and blanks were inserted by company staff. The drilling and sampling program was managed and supervised by company personnel and under the direction of Ted Vanderwart, PGeo.

The scientific and technical disclosure in this news release was approved by William Cronk, PGeo, a qualified person as defined in National Instrument 43-101 and a consultant to the company.

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