Blue Lagoon receives $1.4-million from Nicola Mining

Executive Summary

• Blue Lagoon Resources has received a second advance payment of approximately $1.4 million from milling partner Nicola Mining Inc. for 1,000 tonnes of stockpiled mineralized material from its Dome Mountain project.
• Processing of the mineralized material has officially commenced at the Nicola Mining mill following necessary plant cleanup and maintenance to ensure optimal recoveries.
• To date, approximately 3,700 tonnes of mineralized material have been delivered to the mill site, with the advance payments providing working capital for continued underground development and production activities.

Key Details

• Advance Payment: Blue Lagoon received a second advance payment of ~$1.4 million from Nicola Mining Inc.
• Material Quantity: The payment covers 1,000 tonnes of stockpiled mineralized material.
• Total Stockpiled: Approximately 3,700 tonnes of Dome Mountain mineralized material have been delivered to the mill site and are pending processing.
• Previous Payments: The company had previously received an advance payment for an initial 1,000 tonnes.
• Reconciliation: All advance payments are subject to final reconciliation following milling and settlement.
• Operational Status: Processing began after Nicola Mining completed comprehensive plant cleanup, maintenance, and component replacements to ensure high operational standards and recoveries.
• Use of Proceeds: The advance payments provide working capital to support continuing underground development and production activities at Dome Mountain.
• Future Reporting: The company will report final reconciled grades and recoveries once processing is completed.
• Project Context: Blue Lagoon operates the 100%-owned Dome Mountain gold and silver project near Smithers, B.C., under a long-term milling agreement with Nicola Mining. The company received a full mining permit in February 2025 and has commenced underground mining operations.

Notable Quotes

• Peter Espig, President and CEO of Nicola Mining: "We value our relationship with Blue Lagoon and are excited to start this next chapter in our strategic partnership with the commencement of processing Dome Mountain mineralized material. Blue Lagoon has demonstrated strong operational execution in advancing Dome Mountain to this stage, and we look forward to supporting their transition into consistent gold and silver production."
• Rana Vig, President and CEO of Blue Lagoon Resources: "This is a meaningful milestone for Blue Lagoon. Advance payments of this scale reflect growing confidence in Dome Mountain as a reliable production asset. We are executing on our strategy: advancing production, shipping material and building momentum. As processing continues, we expect this to mark the next phase of consistent operational cash flow and continued growth for the company."