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

(TheNewswire)

February 20, 2026 – Vancouver, British Columbia – BlueLagoon Resources Inc. (CSE: BLLG; OTCQB: BLAGF; FSE: 7BL) is pleased to announcethat it has received a second advance payment of   ~ CAD $1.4 millionfrom its milling partner, Nicola Mining, for 1000 tonnes of stockpiledmineralized material from the Company’s 100%-owned Dome MountainGold and Silver Project.

To date, approximately 3,700 tonnes of Dome Mountainmineralized material have been delivered to the mill site and arecurrently stockpiled pending processing. Of this amount:

• The Company previously received an advance payment for1,000 tonnes. 

• It has now received a second advance payment for anadditional 1,000 tonnes. 

These advances are subject to final reconciliationfollowing milling and settlement.

Processing of the Dome material was originally expectedto occur earlier this month, however, to ensure the highestoperational standards and recoveries, Nicola has conductedcomprehensive plant cleanup and maintenance along with componentreplacements at their mill facility. Now that these operationalimprovements are complete, Dome Mountain mineralized material is beingprocessed at the mill.

Peter Espig, President & CEO of Nicola Mining Inc.,commented:

“We value our relationship with Blue Lagoon and areexcited to start this next chapter in our strategic partnership withthe commencement of processing Dome Mountain mineralized material.Blue Lagoon has demonstrated strong operational execution in advancingDome Mountain to this stage, and we look forward to supporting theirtransition into consistent gold and silver production.”

Dome Mountain Mineralized Material being loaded intoNicola mill’s primary crusher

Rana Vig, President and CEO of Blue Lagoon Resources,stated:

“This is a meaningful milestone for Blue Lagoon.Advance payments of this scale reflect growing confidence in DomeMountain as a reliable production asset. We are executing on ourstrategy: advancing production, shipping material, and buildingmomentum. As processing continues, we expect this to mark the nextphase of consistent operational cash flow and continued growth for thecompany.”

The advance payments provide working capital to supportongoing underground development and production activities as theCompany advances Dome Mountain. The Company will provide updates asmilling progresses and will report final reconciled grades andrecoveries once processing is completed.

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 informationwithin the meaning of applicable Canadian securities laws.Forward-looking information includes, but is not limited to,statements regarding ongoing and future milling operations, expectedoperational performance and recoveries, anticipated reconciliation ofadvance payments following processing and settlement, the expectationof consistent operational cash flow, continued growth of the Company,and the advancement of underground development and productionactivities at the Dome Mountain Gold and SilverProject. Forward-looking information is based on management’scurrent expectations, estimates, assumptions and beliefs, including,without limitation, assumptions regarding continued processing at themill facility, anticipated grades and recoveries, the ability tocontinue mining and delivering mineralized material, commodity priceassumptions, and general economic and market conditions. While theCompany believes that these assumptions are reasonable,forward-looking information is inherently subject to known and unknownrisks, uncertainties and other factors that may cause actual results,performance or achievements to differ materially from those expressedor implied by such forward-looking information. Such risks anduncertainties include, without limitation, delays in milling orprocessing, variations in grade and recovery rates, operational risksassociated with underground mining, risks related to third-partymilling arrangements, fluctuations in gold and silver prices,regulatory and permitting risks, financing risks, and generaleconomic, market and business conditions. There can be no assurancethat forward-looking information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated. Readers are cautioned not to place undue reliance onforward-looking information. The Company undertakes no obligation toupdate or revise any forward-looking information, except as requiredby applicable securities laws.

Copyright (c) 2026 TheNewswire - All rights reserved.