Nicola begins receiving mill feed from Blue Lagoon

Executive Summary

• Blue Lagoon Resources Inc. has commenced transporting high-grade gold and silver mill feed to Nicola Mining Inc.'s mill near Merritt, B.C., marking a significant operational milestone for Blue Lagoon.
• This development follows a previously announced long-term partnership and a $2.0-million non-dilutive line of credit provided by Nicola Mining to augment Blue Lagoon's balance sheet.
• Nicola Mining highlighted Blue Lagoon's transition of the Dome Mountain mine from a project to a producing mine and noted Blue Lagoon's receipt of the PDAC 2026 Sustainability Award.

Key Details

• Operational Milestone: Blue Lagoon Resources Inc. began transporting high-grade gold and silver mill feed to Nicola Mining Inc.'s facility.
• Location: Nicola Mining's mill is located near Merritt, British Columbia.
• Financial Support: Nicola Mining committed to providing a non-dilutive $2.0-million line of credit to Blue Lagoon Resources Inc.
• Strategic Context: The transport commencement validates a long-term partnership previously announced between the two entities.
• Project Status: Blue Lagoon is transitioning the Dome Mountain gold mine from a project stage to a producing mine.
• Recognition: Blue Lagoon was named the recipient of the PDAC 2026 Sustainability Award.
• Nicola Mining Portfolio Updates:
  • Nicola will release an annual letter to shareholders soon, detailing 2026 plans.
  • The letter will include operational insights into milling expansion, the Treasure Mountain project, the Dominion Creek gold project, and the New Craigmont project.
  • Nicola is reviewing the reopening of its Treasure Mountain silver mine.
  • Nicola is scheduled to commence production at its Dominion Creek gold project in 2026.
• Company Profile (Nicola Mining):
  • Operates a fully permitted mill capable of processing gold and silver mill feed via gravity and flotation processes.
  • Owns 100% of the New Craigmont project (high-grade copper, >10,800 hectares, adjacent to Highland Valley Copper).
  • Owns 100% of the Treasure Mountain property (30 mineral claims/lease, >2,200 hectares).
  • Listed on the TSX Venture Exchange and Frankfurt Stock Exchange.

Notable Quotes

• Peter Espig, CEO of Nicola Mining: "We are extremely pleased to see Blue Lagoon achieve this significant milestone as it morphs Dome Mountain gold mine from a project to a producing mine. The two also embrace a shared commitment to sustainability and environmental commitment, as highlighted by Blue Lagoon being the recipient of PDAC's 2026 Sustainability Award. Nicola's ability to process materials from multiple sites throughout the province of British Columbia, including its Treasure Mountain silver mine and Dominion Creek gold project, highlights our position as a project facilitator of gold and silver projects throughout the province."