Mr. Rana Vig reports

BLUE LAGOON COMPLETES SECOND TRANCHE OF PRIVATE PLACEMENT - CRESCAT CAPITAL, PHOENIX GOLD FUND AND NICOLA MINING INCREASE THEIR POSITIONS

Blue Lagoon Resources Inc. has closed a second tranche of its previously announced non-brokered private placement, bringing the total funds raised across both tranches to $1,297,500.

In this second tranche, the company issued 2.8 million units at a price of 25 cents per unit, raising gross proceeds of $700,000.

The financing saw continued participation from key institutional investors and stakeholders, including Crescat Capital LLC, Phoenix Gold Fund and the company's toll milling partner Nicola Mining, all of which have previously invested in Blue Lagoon. This marks Crescat's fifth investment in the company over the past three years, further validating its confidence in Dome Mountain's potential, while Phoenix Gold Fund's and Nicola Mining's increased participation underscores their continuing belief and support for the company's management and growth strategy.

"We are excited to see strong backing from sophisticated investors like Crescat Capital, Phoenix Gold Fund and Nicola Mining, all of whom recognize the value of Dome Mountain's advancement towards production," said Rana Vig, president and chief executive officer of Blue Lagoon Resources. "These investments come at a transformative time, following the recent granting of a mining permit for Dome Mountain -- one of only nine such permits issued in British Columbia since 2015. With this key milestone achieved, we are now laser focused on last preparatory activities and tasks related to the safe and secure opening of Dome Mountain, including finishing the installation of our water treatment facility, which is on track to be completed before the end of May. With these final steps under way, we are targeting early Q3 2025 as the start of production," he added.

Each unit in the offering 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 14, 2027. The proceeds raised from the offering are expected to be used to finish the installation of the water treatment facility at the mine site, for other preparatory work and for general corporate purposes. The securities issued under the offering are subject to a four-month hold period expiring on July 15, 2025, in accordance with applicable Canadian securities laws.

Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based publicly listed mining company focused on building shareholder value through the aggressive development of its 100-per-cent-owned Dome Mountain gold project. The company is run by professionals with significant finance and mining experience, and operates within a prime mining jurisdiction in British Columbia, Canada. With the granting of a full mining permit, a key milestone achieved in February, 2025 -- one of only nine such permits issued in British Columbia since 2015 -- Blue Lagoon is focused on last preparatory activities and tasks related to the safe and secure opening of the Dome Mountain gold mine, targeting third quarter 2025 as the start of gold production. The company's primary objective has always been to become a cash-flowing mining company and to ultimately deliver tangible monetary value to shareholders, state and local communities.

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