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BLLG.CN ·

Blue Lagoon Files Annual Financial Statements and Provides Comment ON Temporary Cease Trade Order

Financials

FSE: 7BL

CSE: BLLG

OTCQB: BLAGF

BLUE LAGOON FILES ANNUAL FINANCIAL STATEMENTS

AND PROVIDES COMMENT ON TEMPORARY CEASE TRADE ORDER

August 6, 2026 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (CSE: BLLG; OTCQB:

BLAGF; FSE: 7BL) has completed and filed its audited annual consolidated financial statements for

the year ended March 31, 2026, together with the related management’s discussion and analysis and

officer certifications. The filings are available under the Company’s profile on SEDAR+.

The Company has been advised that, notwithstanding the completion of the required filings, the

British Columbia Securities Commission (the “BCSC”) issue d a failure-to-file cease trade order

because the filings were not completed by the prescribed filing deadline. As a result, trading in the

Company’s securities on the Canadian Securities Exchange is expected to be temporarily suspended.

As all required annual filings have now been completed, the Company expects the BCSC to issue an

order revoking the cease trade order, with trading expected to resume on August 7, 2026.

The Company was unable to complete the filings by the prescribed deadline because this year’s audit

was substantially more complex than in prior years. During the fiscal year, Blue Lagoon transitioned

from an exploration and development-stage company into an operating gold producer. As a result,

the audit included several areas that had not previously formed part of the Company’s financial

reporting, including revenue recognition, production inventory, mine operating costs and the

accounting treatment of mine development and production assets.

The expanded audit work coincided with the Company’s transition to a new audit firm. This required

extensive first-year audit procedures, additional documentation review and coordination, which

collectively took considerably more time than originally antic ipated.

The Company emphasizes that the filing delay was administrative and audit -related and was not

caused by an interruption to mine activities or any issue affecting the continuation of operations at

the Dome Mountain Gold Mine. Operations at Dome Mountain continued throughout the audit and

filing process and remain ongoing.

For further information, please contact:

Rana Vig

President and Chief Executive Officer

Telephone: 604-218-4766

Email: [email protected]

About Blue Lagoon Resources Inc.

Blue Lagoon Resources Inc. (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is a Canadian -based, well-

funded, growth-oriented mining company that achieved commercial production at its 100% owned Dome

Mountain Gold Mine near Smithers, British Columbia. Led by a team with deep mining and finance

experience, the Company operates in one of the world’s most attractive mining jurisdictions.

In February 2025, Blue Lagoon achieved a major milestone with the granting of a full mining permit - one

of only nine issued in British Columbia since 2015 – and has since commenced underground mining

operations. Mineralized material from Dome Mountain is processed under a long-term milling agreement

with Nicola Mining. During the second half 2026, the Company plans to continue reinvesting internally

generated cash flow into near-mine and regional exploration to further expand its resource base on its

extensive property.

With a strong commitment to sustainability, community, and First Nation engagement, Blue Lagoon’s

objective is to be a profitable, cash-flowing gold producer while creating lasting value for shareholders

and stakeholders alike.

The Company has not based 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.

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

Forward-Looking Statement

This news release contains forward-looking information within the meaning of applicable Canadian securities laws,

including statements regarding the anticipated revocation of the cease trade order, the temporary nature of the

trading suspension, the resumption of trading in the Company’s securities and the Company’s future production,

development and exploration activities. Such forward-looking information is based on management’s current

expectations and assumptions, including that the Company’s completed filings will satisfy applicable regulatory

requirements and that any required regulatory and exchange procedures will be completed in the ordinary course,

and is subject to risks and uncertainties, including the possibility that additional information or f ilings may be

required, that the regulatory review may take longer than expected or that additional conditions may be imposed

before trading resumes. There can be no assurance as to the timing of the revocation order or the resumption of

trading. Readers are cautioned not to place undue reliance on forward-looking information, and the Company

undertakes no obligation to update or revise such information except as required by applicable securities laws.