Blue Lagoon Reaches 100 Tonnes Per Day Milestone, Doubles Production Crew with Second Mining Contractor and Advances Toward 150 Tonnes Per Day

(TheNewswire)

April 17, 2026 – TheNewswire - Vancouver,British Columbia – Blue Lagoon ResourcesInc. (the “Company”)  (CSE:BLLG; OTCQB:BLAGF; FSE:7BL) is pleased to provide an operational update from its100-per-cent-owned Dome Mountain gold and silver mine near Smithers,B.C., reporting a series of significant operational and organizationalmilestones as the ramp-up toward steady-state productioncontinues.

Production reaches 100 tonnes perday

Dome Mountain has achieved consistent undergroundproduction of 100 tonnes per day, a key near-term target outlined inBlue Lagoon's January operational update (see news releaseJanuary 5, 2026). This milestone reflects the resolution ofearly-stage commissioning constraints and the subsequent establishmentof consistent underground production cycles.

The Company has engaged a second mining contractor,doubling the underground production crew from two to four shifts, andwill be deploying additional mobile equipment to the mine site. Withmultiple working spaces now open across the mine, the increased crewcapacity and equipment will enable the Company to advance toward the150 tonnes per day target in the coming weeks.

Milling and revenue update

To date, Blue Lagoon has completed three sales of DomeMountain gold and silver concentrates to Ocean Partners U.K. Ltd., fora total sum of approximately US$4.1 million. Additional quantities ofmineralized material have been processed by the Company’s millingpartner, Nicola Mining, and are awaiting delivery and finalsettlement. Further sales of concentrates will be announced in duecourse.

Approximately 2,000 tonnes of mineralized material iscurrently stockpiled at the mine site and the Nicola mill site, withregular trucking shipments to Nicola ongoing.

Assay laboratory is nowoperational

The Company has also built a local fire assaylaboratory near the town of Smithers, which is now fully operational.The lab is accelerating the turnaround of grade-control assays,directly supporting mine planning and operational decision-making atDome Mountain. In addition, the lab will now conduct mill productionand settlement assays for Dome Mountain material processed at Nicola,a function previously performed externally. This brings a meaningfulimprovement to the speed and efficiency of the reconciliation andinvoicing process and is expected to materially reduce the timebetween milling and final settlement with Ocean Partners goingforward.

Blue Lagoon Reaches 100 Tonnes PerDay Milestone, Doubles Production Crew with Second Mining Contractor and Advances Toward 150Tonnes Per Day

Samples being loaded into the furnace at the Company's newly

commissioned fire assay laboratorynear Smithers, B.C.

Team expansion and planningahead

Blue Lagoon has made a number of additional hiresacross operations as the Company continues to grow its operationalteam in line with the expanding scope of underground activities.Planning is underway for an exploration drill program at DomeMountain, expected to commence in late Q3 2026 and funded frominternally generated cash flow. The drilling campaign is intended toinclude both infill drilling and a work program targeting new areasalong Dome Mountain's largely unexplored 18-kilometre strikelength.

To ensure the site can support ongoing production withan expanded workforce alongside an active drill program, a siteinfrastructure upgrade plan is being scoped and will be advanced inthe coming months.

The Company also announces the grant of an aggregate of3,850,000 stock options to certain directors, officers, employees andconsultants of the Company pursuant to its omnibus equity incentiveplan. The options are exercisable at a price of $0.77 per share andwill expire five years from the date of issuance. The grant is subjectto approval by the Canadian Securities Exchange.

Additionally, the Company received a $500,000unsecured, interest-free bridge loan from its President & CEO tosupport short-term working capital requirements while awaitingconcentrates settlement. During the start-upphase of mining operations, the cash settlement cycle from miningthrough to final payment by Ocean Partners was significantly extendedbeyond typical timelines. This insider loan serves to bridge thistransitional period, with no similar requirement anticipated goingforward.

The interest free loan is due on March 20, 2027, or maybe paid earlier at the Company's option. Pursuant to the loanagreement, the Company will issue an aggregate of 129,870 bonus commonshares and 129,870 warrants to the lender, at a price of $0.77 pershare, for a period of two years, being the market price at the timethe loan agreement was entered into. The lender is a related party tothe Company and the loan constitutes a related party transactionpursuant to Multilateral Instrument 61-101 –Protection of Minority Security Holders in Special Transactions. TheCompany is relying on the exemptions from the formal valuationrequirements contained in Section 5.5(b) of MI 61-101 and the minorityshareholder approval requirements contained in Section 5.7(1)(b) of MI61-101.

For further information, pleasecontact:

Rana Vig

President and Chief Executive Officer

Telephone:  604-218-4766

Email: rana@bllg.ca

About Blue Lagoon ResourcesInc.

Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB:BLAGF) is a Canadian-based, well-funded, growth-oriented miningcompany producing from its 100% owned Dome Mountain Gold Mine nearSmithers, British Columbia. Led by a team with deep mining and financeexperience, the Company operates in one of the world’s mostattractive mining jurisdictions.

In February 2025, Blue Lagoon achieved a majormilestone with the granting of a full mining permit - one of only nineissued in British Columbia since 2015 – and has since commencedunderground mining operations. Mineralized material from Dome Mountainis processed under a long-term milling agreement with Nicola Mining.Beginning in H2 2026, the Company plans to reinvest internallygenerated cash flow into near-mine and regional exploration to furtherexpand its resource base on its extensive property.

With a strong commitment to sustainability, community,and First Nation engagement, Blue Lagoon’s objective is to be aprofitable, cash-flowing gold producer while creating lasting valuefor shareholders and stakeholders alike.

The Company is not basing its production decision atDome Mountain on a feasibility study of mineral reserves demonstratingeconomic and technical viability. The production decision is based onhaving existing mining infrastructure, past bulk sampling andprocessing activity, and the established mineral resource.  TheCompany understands that there is increased uncertainty, andconsequently a higher risk of failure, when production is undertakenin advance of a feasibility study.

The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.

Forward-Looking Statement

This news release contains forward-looking statementsand forward-looking information within the meaning of applicablesecurities laws. Forward-looking statements include, but are notlimited to, statements regarding future gold and silver prices,production levels, cash-flow generation, operational expansion,permitting amendments, infrastructure enhancements, explorationpotential, and the Company’s plans, objectives, and expectations forfuture operations at the Dome Mountain Gold and Silver Project.Forward-looking statements are based on management’s currentexpectations and assumptions, including assumptions regardingcommodity prices, operating conditions, regulatory approvals,availability of labour and equipment, and continued support fromstakeholders, including Indigenous partners. Forward-lookingstatements involve known and unknown risks, uncertainties, and otherfactors that may cause actual results or events to differ materiallyfrom those expressed or implied by such statements. These risksinclude, but are not limited to, changes in commodity prices,operational and technical challenges, regulatory or permitting delays,environmental risks, changes in laws or government policy,availability of financing, and general economic and market conditions.Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertakeany obligation to update or revise forward-looking statements, exceptas required by applicable securities laws.

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