Blue Lagoon Resources Advances Underground Mining as Gold Prices Hit Record Highs

Blue Lagoon Resources Inc. has entered its second week of underground mining operations at the fully permitted Dome Mountain Gold Project near Smithers, British Columbia, as gold prices reach unprecedented levels in global markets. The transition from development to production comes at what company leadership describes as an optimal market moment, with spot gold breaking above US$4,000 per ounce according to recent market reports.

Timing in the mining business is everything, said Rana Vig, President and CEO of Blue Lagoon Resources. With underground mining now underway and gold prices at record levels, Blue Lagoon is well positioned to capitalize on this strong market environment. Our strategy has always been to move Dome Mountain into production efficiently and responsibly - and today, those efforts are aligning with market conditions.

The company's production timeline coincides with what Reuters described as gold's record-breaking run driven by global anxieties in an October 8, 2025 report. Analysts cited persistent geopolitical and economic risks, continued central-bank purchases, and robust investor demand as factors supporting gold's upward trajectory into 2026.

This is a favourable environment, and while we don't control the gold price, we can control readiness and execution, added Mr. Vig. Our goal is to translate this backdrop into efficient operations and disciplined progress toward cash flow thereby increasing shareholder value without further dilution.

In the coming weeks, mined mineralized material will be transported under the company's milling agreement with Nicola Mining Inc., providing a fully permitted and capital-efficient path to gold concentrate sales. The agreement was recently extended to a 10-year term, strengthening the long-term partnership between the two companies. The company achieved a significant milestone in February 2025 with the granting of a full mining permit, one of only nine issued in British Columbia since 2015.

The Dome Mountain Gold Project represents a strategic asset in one of the world's most attractive mining jurisdictions, with first gold sales targeted for the fourth quarter of 2025. Beginning in the first half of 2026, the company plans to reinvest internally generated cash flow into near-mine and regional exploration to further expand its resource base. The production decision is based on existing mining infrastructure, past bulk sampling and processing activity, and the established mineral resource rather than a feasibility study of mineral reserves.