Blue Lagoon Resources Continues to Advance Production at Dome Mountain Mine

Vancouver, British Columbia — January 5, 2026 — Leads & Copy — Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) is continuing to progress toward consistent mine production and regular deliveries of mineralized material to its milling partner, Nicola Mining Inc.

Dome Mountain has resumed production activity following the holiday break, with increased production expected due to new operational measures. The mine anticipates achieving consistent production of approximately 100 tonnes per day by the end of the month, which will position the Company to progress toward its fully permitted production level of 150 tonnes per day.

The early stages of ramping up underground mining at Dome Mountain experienced timing delays, as outlined in the Company’s President’s Update of November 10, 2025. Operational constraints typical of starting and commissioning an underground mine were encountered, but the team has identified and addressed these issues.

Underground mining operations are expected to increase with the introduction of a second production shift, enhancing productivity and operational efficiency. Consistent production of 100 tonnes per day is expected by month-end, positioning the Company to progress toward its next planned production level of 150 tonnes per day in the coming months.

The Company is constructing a fire assay laboratory facility, expected to be fully operational by month-end. It will be capable of processing a minimum of 40 samples per day, allowing the mine to receive rapid and timely assay results for grade-control and operational decision making.

Underground surveying capabilities have been strengthened with the addition of a LiDAR unit, improving accuracy, efficiency, and mine planning. Ongoing staff training and certification programs continue to support safe, compliant, and efficient operations.

In December, the Company shipped approximately 1,300 tonnes of mineralized material to its toll milling partner, Nicola Mining Inc., and received its first payment related to the sale of approximately 1,000 tonnes (see press release of Dec 30, 2025). The remaining 300 tonnes delivered to Nicola remain to be processed and settled.

Approximately 150 tonnes of mineralized material is stockpiled at Dome Mountain and ready for shipment, with trucking expected to commence this week. These shipments support continued processing activities and the establishment of a regular production and delivery cycle that underpins the Company’s transition toward consistent revenue generation.

The Company also reports that several senior employees are being issued an aggregate of 116,884 common shares, subject to approval by the Canadian Securities Exchange.

Additionally, the Company received a $500,000 unsecured, interest-free loan from its President to bridge short-term working capital requirements prior to the receipt of initial production revenues. The loan is due on December 19, 2026, or payable earlier at the option of the Company. Pursuant to the loan agreement, the Company will issue an aggregate of 151,515 bonus common shares to the lender, at a price of $0.66 per share. The lender is a related party to the Company and the loan constitutes a ‘related party transaction’ pursuant to Multilateral Instrument 61-101.

Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is a Canadian-based mining company producing from its 100% owned Dome Mountain Gold Mine near Smithers, British Columbia. In February 2025, Blue Lagoon achieved a major milestone with the granting of a full mining permit and has since commenced underground mining operations. Mineralized material from Dome Mountain is processed under a long-term toll milling agreement with Nicola Mining. Beginning in H1 2026, the Company plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base.

Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: rana@bllg.ca

Source: Blue Lagoon Resources Inc.