Mr. Rana Vig reports

BLUE LAGOON RECORDS ITS FIRST FINALIZED GOLD AND SILVER PRODUCTION FROM DOME MOUNTAIN

Blue Lagoon Resources Inc. is continuing gold and silver production and mineral processing from its 100-per-cent-owned Dome Mountain gold and silver mine near Smithers, B.C.

Mining and milling update:

• From mid-November, 2025, through Sept. 30, 2026, Blue Lagoon transported 21,400 tonnes of mineralized material from Dome Mountain to Nicola Mining Inc.'s milling facility near Merritt, B.C. Approximately 17,400 tonnes have been processed to date, with a further 4,000 tonnes currently at the mill site awaiting processing. Additional mineralized material shipments continue and are continuing weekly.
• Processing of Dome Mountain material commenced in February, 2026. During the initial milling campaign, which also included lower-grade development material, 5,002 dry metric tonnes (DMT) were processed at Nicola's 150-tonne-per day facility. This material, prior to processing, contained an estimated 1,200 ounces of gold at approximately 7.0 grams of gold per tonne.
• Final production from this material amounted to 341.6 DMT of concentrate. Final assay and settlement results from the company's offtake partner, Ocean Partners Holdings Ltd., confirm that this concentrate contained 992 ounces of gold and 4,181 ounces of silver.
• The benefits of the mine development are clearly reflected as mill-feed grades over the following months have increased to approximately 8.0 to 10.0 grams per tonne gold. In addition, higher mill feed grades have increased gold recovery, which is currently averaging approximately 92 per cent.
• The concentrates have also generally contained approximately four ounces of silver for every ounce of gold.
• Following the initial production described above, subsequent milling campaigns have produced and shipped approximately 875 DMT of additional concentrate through Sept. 30, 2026. Final assay and settlement results for this concentrate remain outstanding, and, accordingly, the gold and silver ounces attributable to this material are not included in the 992 ounces of gold and 4,181 ounces of silver reported above.

Approximately $16.5-million received

To date, Blue Lagoon has received approximately $16.5-million in payments related to gold and silver concentrate shipments from Dome Mountain material. These payments represent approximately 85 per cent of the provisional value of the applicable concentrate shipments. The remaining balance is payable following receipt of final assays and completion of the settlement process.

"Operationally, the important development is that Dome Mountain is now functioning through the full production cycle -- from underground mining and trucking through milling, concentrate production and sale," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "At the same time, we continue to invest in underground development to provide additional working areas and greater operating flexibility."

Provisional payments are subject to adjustment on final settlement for final weights, assays and metal prices and may result in amounts payable to or by the company. Amounts received are unaudited, gross of operating and other costs, and not an indication of profitability.

Dome Mountain operations continue

Mining and underground development continue at Dome Mountain, with material being transported to Nicola for continuing milling and processing.

Blue Lagoon will continue to provide updates as additional concentrate lots receive final and binding assays and as further operational and exploration milestones are achieved.

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 Instrument4 3-101.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based, well-financed, 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 (see technical report dated Jan. 31, 2022, on SEDAR+). The company understands that there is increased uncertainty and consequently a higher risk of economic and technical failure, when production is undertaken in advance of a feasibility study.

We seek Safe Harbor.