Blue Lagoon Funds Jv Partner’s Technical Report To Advance Project

VANCOUVER, February 6, 2020 - Blue Lagoon Resources Inc. ("Blue Lagoon" or "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to announce that the Company has commissioned and is funding a National Instrument 43-101 Technical Report on behalf of Quebec based Mag One Operations ("Mag One"), a company in which Blue Lagoon has the right to acquire a 70% joint venture interest.

The purpose of the technical report is to establish a current mineral resource for magnesium oxide (MgO) at the Normandie tailings pile site located near Thetford Mines, Quebec. Mag One has the right to remove and process up to 60 million tonnes of tailings from tailings piles owned by Asbestos Corporation Ltd. in the Thetford Mines area, including the Normandie tailings pile. The tailings piles host an historic resource of 60 million tonnes grading 37.60-38.96% MgO, including 26.2 million tonnes grading 36.80% MgO in the measured and indicated categories at the Normandie tailings pile, as reported in a NI 43-101 technical report prepared for Nichromet Extraction Ltd. in 2007. The historic resource is based on 11 drill holes totalling 595 meters, and 30 test pits dug for sampling. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. Blue Lagoon is not treating the historical estimate as a current mineral resource.

"Funding this initial report is an important step for the advancement of Mag One's project because it will give the company and its investors reliable information on the quantity and grade of magnesium oxide in the tailings pile," said Rana Vig, President & CEO of Blue Lagoon Resources. "The patent pending process being tested by Mag One allows for the cost effective extraction magnesium and other minerals from these magnesium rich tailings in order to produce high purity Magnesium Oxide," he said.

The patent pending process uses all of the mineral, essentially becoming a zero waste process. The fine grained, high purity Magnesium Oxide is used in the chemical industry where, depending on the application, it can be sold for up to $1200 USD/ton. Target high end applications include additives in rubber and cement as well as a flame retardant.

Technical content of this news release was approved by William Cronk, P.Geo., and a Qualified Person.

For further information, please contact:
Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: rana@ranavig.com

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

Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the completion of due diligence and completion of the joint venture with Mag One. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "intends", "believes", "plans to", "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on information as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, to be different, including that additional work will result in a current mineral resource being delineated for the Normandie pile, or that proprietary processes may not yield the anticipated results at larger scale of testing or processing. Readers should not place undue reliance on forward-looking statements and forward looking information. Blue Lagoon does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

SOURCE: Blue Lagoon Resources Inc.