Mr. Rana Vig reports

BLUE LAGOON STARTS DRILLING AT DOME MOUNTAIN GOLD MINE

Blue Lagoon Resources Inc. has commenced drilling as part of the company's previously announced 10,000-metre phase 1 exploration program at its 100-per-cent-owned Dome Mountain gold mine near Smithers, B.C.

The drill program is designed to test a number of high-priority exploration targets across the broader 22,000-hectare Dome Mountain property while also advancing opportunities to expand the existing mineral resource. The program forms the first phase of a multiyear exploration strategy intended to systematically evaluate the significant exploration potential surrounding the company's producing Dome Mountain gold mine.

"With drilling now under way, we are beginning the next important phase of our growth strategy at Dome Mountain," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "While our focus remains firmly on achieving steady state gold production, we believe the extensive land package surrounding the mine provides us with a significant opportunity to grow the resource base and potentially make new discoveries. We look forward to keeping shareholders updated as the program progresses."

Full details regarding the phase 1 drill program, including the principal targets and supporting geological information, are contained in the company's Sept. 8, 2026, news release. The previously announced program includes both regional exploration targets and drilling intended to support future resource expansion.

Technical information in this news release was approved by Ted VanderWart, PGeo, a senior geologist with Blue Lagoon Resources and a qualified person under National Instrument 43-101.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based, well-funded, growth-oriented mining company that has commenced production at its 100-per-cent-owned Dome Mountain gold mine near Smithers, B.C. Led by a team with deep mining and finance experience, the company operates in one of the world's most attractive mining jurisdictions.

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 subsequently commenced underground mining operations. Mineralized material from Dome Mountain is processed under a long-term milling agreement with Nicola Mining. During the second half of 2026, the company plans to continue reinvesting internally generated cash flow into near-mine and regional exploration to further expand its resource base across its extensive property.

With a strong commitment to sustainability, community and first nation engagement, Blue Lagoon's objective is to be a profitable, cash-flowing gold producer while creating lasting value for shareholders and stakeholders alike.

The company has not based 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.

We seek Safe Harbor.