Blue Lagoon Announces Completion of $7.5 Million Private Placement

FSE: 7BL

CSE: BLLG

OTCQB: BLAGF

BLUE LAGOON ANNOUNCES COMPLETION OF

$7.5 MILLION PRIVATE PLACEMENT

August 12, 2020 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (the “Company”)

(CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is pleased to announce that it has completed a private

placement (the “Private Placement”) of 21,496,301 units (“Units”) at a price of $0.35 per Unit for

aggregate gross proceeds to the Company of $7,523,706. Each Unit is comprised 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 of the Company at an exercise price of $0.50 per share for a period of 24 months from

the closing date. The expiry date of the warrants may be accelerated in the event the closing price of the

common shares of the Company on the Canadian Securities Exchange is equal to or greater than $0.75 for

a period of 10 consecutive trading days, in which case the warrants will expire 30 days from the date the

Company provides an acceleration notice to the warrant holders.

Proceeds of the Private Placement will be used for exploration activities to expand and upgrade known

mineralization and resource areas on the Company’s Dome Mountain gold project, as well as for

completing the permitting requirements of the existing underground mine, in addition to general working

capital purposes.

The Company has agreed to pay a finders fee in cash equal to 7% of the gross proceeds from the sale of

Units to third parties sourced by the finders as well as warrants to purchase that number of common shares

of the Company equal to 7% of the number of Units sold to third parties sourced by the finder. The finder’s

warrants may be exercised to acquire common shares of the Company at a price of $0.50 per common

share for a period of 24 months from the date of closing and are otherwise on the same terms as the Private

Placement warrants.

The securities issued pursuant to the Private Placement are subject to a hold period of four months and

one day in accordance with applicable securities laws.

For further information, please contact:

Rana Vig

President and Chief Executive Officer

Telephone: 604-218-4766

Email: [email protected]

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.