Blue Lagoon Commissions MBBR Water Treatment System and Prepares for Underground Mining at Dome Mountain

Blue Lagoon Resources Inc. has announced that the Moving Bed Biofilm Reactor system at its Dome Mountain Water Treatment Plant is now ready for commissioning. Designed to meet all regulatory discharge standards, the plant was developed in close collaboration with Soren Jensen, the Company’s principal environmental consultant from SRK Consulting. Mr. Jensen, who holds a master's degree in chemical engineering, has more than 20 years of experience designing, commissioning, and operating mine water treatment systems, including similar facilities at underground gold mines in Northern Canada.

The MBBR system is part of Dome Mountain’s state-of-the-art Water Treatment Plant, which is designed to treat up to 400 liters per minute. Current mine water output is approximately 20-40 L/min, ensuring ample capacity as operations scale. This robust infrastructure underscores Blue Lagoon’s commitment to environmental stewardship while supporting safe and efficient underground development.

Underground mining operations are scheduled to commence on September 24, 2025, beginning with development work. The Company expects to achieve a steady ramp-up to 100 tonnes per day within four weeks and 150 tpd within twelve weeks. By that point the Company expects to have five to six working faces exposed, providing strong operational flexibility. Importantly, all mine waste will remain underground, further aligning with the Company’s environmental and regulatory commitments.

To enhance operational readiness and safety, Blue Lagoon has signed a Mutual Aid Agreement with New Gold Inc., reinforcing its collaborative approach and ensuring rapid access to additional emergency support if ever required. The Company’s underground program will be led by Mike McCartin, a seasoned underground mining geologist who will oversee daily operations and training of mine staff. Complementing this, a Senior Mining Engineer from Roughstock Mining Services will establish mining protocols, standard operating procedures, and underground surveying requirements, ensuring industry best practices are embedded from day one.

Rana Vig, President & CEO of Blue Lagoon Resources, stated that with a fully permitted project, the right infrastructure, and a strong technical team, the Company is well positioned to generate near-term cash flow, while minimizing risk and maximizing efficiency. Dome Mountain is rare in British Columbia, one of only nine projects permitted since 2015, and Blue Lagoon is advancing it responsibly, with safety and environmental care at the forefront. The production decision is based on having existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource.