Blue Lagoon Marks One-Year Anniversary of Mining Permit Receipt as Gold & Silver Price Outlook Strengthens and Operational Milestones Accelerate

Executive Summary

• Blue Lagoon Resources marks the one‑year anniversary of receiving its mining permit for the Dome Mountain Gold & Silver Project and reports that underground production is now underway.
• The company has completed key infrastructure (wastewater treatment), scaled its workforce, begun underground mining, and received its first production payment of approximately $1 million under a 10‑year milling agreement with Nicola Mining.
• Blue Lagoon was awarded the 2026 PDAC Sustainability Award for its Indigenous partnership model, highlighting strong community support that reduces permitting risk as gold and silver prices are forecast to rise sharply.

Key Details

• Permit Milestone: Received full mining permit in February 2025 – one of only nine permits issued in BC over the past decade.
• Operational Progress:
• Completed year‑round wastewater treatment system.
• Expanded mining workforce amid tight labor market.
• Initiated underground mining and development of multiple active faces.
• Began weekly delivery of mineralized material to Nicola Mining under a 10‑year milling contract.
• Financial Milestone: First production payment received – roughly $1 million, confirming near‑term cash‑flow model.
• Sustainability Recognition: Selected for the 2026 PDAC Sustainability Award; nomination by Lake Babine First Nation (LBN) chief.
• Indigenous Relations: Ongoing engagement with LBN, embedding Indigenous values in planning, operations, and workforce development; cited as a strategic advantage reducing permitting risk.
• Market Outlook: Analysts’ median 2026 gold price forecast of US$4,746.50/oz (highest since 2012); Goldman Sachs forecasts US$5,400/oz – supporting higher revenue potential.
• Strategic Positioning: With permitting risk removed and underground access established, Dome Mountain is positioned to benefit from a strengthening gold/silver price environment.

Notable Quotes

“Being one of only nine projects permitted in British Columbia over the last ten years is meaningful – but what matters most is what you do next. In just one year, we’ve moved Dome Mountain from a newly permitted project to an operating mine, at a time when the fundamentals for gold continue to strengthen materially.” – Rana Vig, President & CEO

Materiality Assessment: Material – Positive (operational start‑up, cash‑flow generation, and favorable market outlook constitute material positive information).