Blue Lagoon Resources Completes Second Sale of $1.4 Million of Dome Mountain Mineralized Material - Milling Now Underway

Executive Summary

• Blue Lagoon Resources received a second advance payment of approximately CAD $1.4 million from milling partner Nicola Mining for an additional 1,000 tonnes of stockpiled Dome Mountain mineralized material.
• A total of ~3,700 tonnes of material have now been delivered to the mill and are awaiting processing; processing has commenced following plant upgrades at Nicola’s facility.
• The advance payments provide working‑capital support for ongoing underground development and signal growing confidence in Dome Mountain as a future cash‑flowing gold and silver production asset.

Key Details

• Advance Payments:
• First payment covered 1,000 tonnes (amount not disclosed).
• Second payment of ~CAD $1.4 million covers an additional 1,000 tonnes.

• Payments are subject to final reconciliation after milling and settlement.

• Material Delivered: Approximately 3,700 tonnes of Dome Mountain mineralized material have been delivered to Nicola Mining’s mill site and are currently stockpiled pending processing.

• Processing Status:

• Processing was delayed to allow comprehensive plant cleanup, maintenance, and component replacements at the Nicola mill.

• After completion of these upgrades, material is now being processed at the primary crusher.

• Strategic Significance (CEO Comments):

• Peter Espig (Nicola Mining) highlighted the partnership and expectation of consistent gold and silver production.

• Rana Vig (Blue Lagoon) described the advance as a “meaningful milestone,” indicating confidence in Dome Mountain’s reliability and anticipating operational cash flow growth.

• Use of Proceeds: The advance payments will be used as working capital to support ongoing underground development, production activities, and further advancement of the Dome Mountain project.

• Future Updates: Blue Lagoon will provide updates on milling progress and will report final reconciled grades and recoveries once processing is completed.

Notable Quotes

“We value our relationship with Blue Lagoon and are excited to start this next chapter in our strategic partnership… we look forward to supporting their transition into consistent gold and silver production.” – Peter Espig, President & CEO, Nicola Mining Inc.

“Advance payments of this scale reflect growing confidence in Dome Mountain as a reliable production asset… we expect this to mark the next phase of consistent operational cash flow and continued growth for the company.” – Rana Vig, President and CEO, Blue Lagoon Resources.