Blue Lagoon Extends Milling Agreement with Nicola Mining to 10 Years, Securing Long-Term Processing of Dome Mountain Mineralized Material

Executive Summary

• Blue Lagoon Resources signed an amended and restated Mining and Milling Partnership agreement with Nicola Mining, extending the toll‑milling arrangement to a 10‑year term and securing priority mill capacity for the Dome Mountain Gold Project.
• The agreement builds on Nicola’s prior $2 million unsecured line of credit and supports Blue Lagoon’s transition from development to production, targeting first gold sales in Q4 2025.
• Blue Lagoon granted 3.5 million stock options to consultants and advisors (exercise price $0.57, five‑year term, immediate vesting).

Key Details

• Agreement Term: Extended to a ten‑year period, providing long‑term processing solution for Dome Mountain mineralized material.
• Mill Operator: Nicola Mining operates a fully permitted state‑of‑the‑art mill and is an equity shareholder of Blue Lagoon.
• Prior Financing: Relies on Nicola’s $2 million unsecured line of credit announced 23 June 2025.
• Project Milestones Supporting the Agreement:
• Commissioning of Dome Mountain water treatment plant.
• Commencement of underground blasting and mining operations.
• Production Outlook: First gold sales from processed concentrate targeted for Q4 2025; cash‑flow generation expected without dilution to shareholders.
• Option Grant: 3,500,000 options issued to consultants/advisors; exercise price $0.57 per share; five‑year expiry; vesting effective immediately.

Notable Quotes

• “Securing this long-term agreement with Nicola is a critical step in our transition from development to production… all without Company’s dilution.” – Rana Vig, President & CEO, Blue Lagoon Resources
• “Our $2 million line of credit … together with today’s milling agreement extension, further demonstrates Nicola’s confidence in Blue Lagoon.” – Peter Espig, CEO, Nicola Mining