Blue Lagoon Resources' Dome Mountain Mine Achieves Production Milestone

Vancouver, British Columbia — April 17, 2026 — Leads & Copy — Blue Lagoon Resources Inc. has achieved consistent underground production of 100 tonnes per day at its Dome Mountain gold and silver mine near Smithers, B.C.

The company (CSE:BLLG; OTCQB:BLAGF; FSE:7BL) announced the milestone, a key near-term target, along with other operational updates. Blue Lagoon had outlined the target in its January operational update.

To increase production, the company has engaged a second mining contractor, doubling the underground production crew from two to four shifts. Blue Lagoon will also deploy additional mobile equipment to the mine site. The increased crew capacity and equipment will enable the company to advance toward the 150 tonnes per day target in the coming weeks as multiple working spaces are now open across the mine.

Blue Lagoon has completed three sales of Dome Mountain gold and silver concentrates to Ocean Partners U.K. Ltd., for a total of approximately US$4.1 million. Nicola Mining, the Company’s milling partner, has processed additional quantities of mineralized material that are awaiting delivery and final settlement. Further sales of concentrates will be announced in due course.

Approximately 2,000 tonnes of mineralized material is currently stockpiled at the mine site and the Nicola mill site, with regular trucking shipments to Nicola ongoing.

The company has also built a local fire assay laboratory near Smithers, which is now fully operational. The lab is accelerating the turnaround of grade-control assays, directly supporting mine planning and operational decision-making at Dome Mountain. The lab will also conduct mill production and settlement assays for Dome Mountain material processed at Nicola, a function previously performed externally. This brings a meaningful improvement to the speed and efficiency of the reconciliation and invoicing process and is expected to materially reduce the time between milling and final settlement with Ocean Partners going forward.

Blue Lagoon has made additional hires across operations as the company continues to grow its operational team in line with the expanding scope of underground activities.

Planning is underway for an exploration drill program at Dome Mountain, expected to commence in late Q3 2026 and funded from internally generated cash flow. The drilling campaign is intended to include both infill drilling and a work program targeting new areas along Dome Mountain's largely unexplored 18-kilometre strike length.

To ensure the site can support ongoing production with an expanded workforce alongside an active drill program, a site infrastructure upgrade plan is being scoped and will be advanced in the coming months.

The company also announced the grant of an aggregate of 3,850,000 stock options to certain directors, officers, employees and consultants of the company pursuant to its omnibus equity incentive plan. The options are exercisable at a price of $0.77 per share and will expire five years from the date of issuance. The grant is subject to approval by the Canadian Securities Exchange.

Additionally, the company received a $500,000 unsecured, interest-free bridge loan from its President & CEO to support short-term working capital requirements while awaiting concentrates settlement. During the start-up phase of mining operations, the cash settlement cycle from mining through to final payment by Ocean Partners was significantly extended beyond typical timelines. This insider loan serves to bridge this transitional period, with no similar requirement anticipated going forward. The interest free loan is due on March 20, 2027, or may be paid earlier at the company's option.

Pursuant to the loan agreement, the company will issue an aggregate of 129,870 bonus common shares and 129,870 warrants to the lender, at a price of $0.77 per share, for a period of two years, being the market price at the time the loan agreement was entered into. The lender is a related party to the company and the loan constitutes a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the formal valuation requirements contained in Section 5.5(b) of MI 61-101 and the minority shareholder approval requirements contained in Section 5.7(1)(b) of MI 61-101.

Source: Blue Lagoon Resources Inc.