Mr. Rana Vig reports

BLUE LAGOON COMPLETES FIRST TRANCHE OF PRIVATE PLACEMENT

Blue Lagoon Resources Inc. has closed the first tranche of the non-brokered private placement offering previously announced by the company on Feb. 24, 2025. The company issued 2.39 million units at a price of 25 cents per unit for aggregate gross proceeds of $597,500.

Each unit consists of one common share in the capital of the company and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company at an exercise price of 35 cents per share until March 4, 2027.

The proceeds raised from the offering are expected to be used to advance the Dome Mountain gold project that recently received its mining permits and for general corporate purposes. The securities issued under the offering are subject to a four-month hold period expiring on July 5, 2025, in accordance with applicable Canadian securities laws.

The company also announces that, to preserve its cash flow, the company will issue 70,175 common shares at a price of 28.5 cents in lieu of an advanced net smelter royalty payment in connection with its Freegold claims.