Mr. Rana Vig reports

BLUE LAGOON CLOSES FINAL TRANCHE OF FINANCING - FULLY FUNDED TO COMMENCE PRODUCTION

Blue Lagoon Resources Inc. has completed the final tranche of its previously announced private placement financing (see news releases dated Feb. 24, 2025, and March 31, 2025) by issuing 8.9 million units at a price of 25 cents per unit for gross proceeds of $2,225,000. This brings the total proceeds raised across four tranches to $4,871,750.

The final tranche was subscribed for entirely by existing shareholders and strategic investors, including Crescat Capital and Nicola Mining, both of whom increased their positions in the company. The offering was met with strong demand and was oversubscribed.

Rana Vig, president and chief executive officer, commented:

"This overwhelming support -- especially from highly sophisticated shareholders like Crescat and Nicola -- signals tremendous confidence in Blue Lagoon's future. We are now fully funded to launch production this summer. With one of only nine mining permits granted in British Columbia over the past decade, our Dome Mountain gold project is on track to generate cash flow from production and drive the next phase of growth. Dome Mountain is just getting started and we're excited to unlock its full potential."

Each unit sold in the offering consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of 35 cents per share for a period of two years from the date of issuance. The common shares issued are subject to a hold period expiring four months and one day from the date of issuance.

Proceeds from the offering will be used to complete construction of the company's water treatment plant at its fully permitted Dome Mountain gold project and to provide initial working capital as Blue Lagoon prepares to commence production in the summer of 2025.

The company paid $52,630 and issued 30,520 warrants as finders' fees in connection with the offering. The finders' warrants may be exercised to acquire common shares of the company at a price of 35 cents per common share for two years.

About Blue Lagoon Resources Inc.

Blue Lagoon Resources is a Canadian-based publicly listed mining company (Canadian Securities Exchange: BLLG; Frankfurt Stock Exchange: 7BL; OTCQB: BLAGF) 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 now focused on last preparatory activities and tasks related to the safe and secure opening of the Dome Mountain gold mine, targeting Q3 (third quarter) 2025 as the start of gold production. The company's primary objective has always been to become a cash-flowing mining company, to ultimately deliver tangible monetary value to shareholders, state and local communities.

The company is not basing its production decision at Dome Mountain on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource. The company understands that there is increased uncertainty and, consequently, a higher risk of failure, when production is undertaken in advance of a feasibility study.

We seek Safe Harbor.