Blue Lagoon Kicks Off Phase One Drill Program at its Dome Mountain Gold Project

VANCOUVER, July 23, 2020 - Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) is pleased to announce that the planned Phase One drilling program has started on the Company's Dome Mountain Gold Project located a 50 minute drive from Smithers B.C. The Dome Mountain Gold Mine Project holds a Mining Permit and Environmental Management Act Permit (EMA) providing for up to 75,000 tonnes production annually and 15 known high grade gold veins identified, with a significant portion of the property yet to be explored.

Phase One Drilling will consist of 2800 meters of HQ diamond drilling from 22 holes located on eight pre-existing pads (see Figure 1 below). Table One shows the pads and planned drillholes in order of priority. Planned lengths of holes are based on the Vulcan model and are designed to end 5 meters beyond the vein margin.

TABLE ONE

Figure 1

Drill holes drilled from Pad 16-8 are not designed to hit the infered resource. This setup is planned to intercept high-grade gold mineralization along a NNE-SSW mineralized structure that was encountered in drill hole DM-16-79 during the 2016 drill campaign.

"It's been some time since any drilling activity has taken place at the Dome Mountain project so we're quite excited to pick up where things were left off in 2016, particulary in this robust gold market," said Rana Vig, President and CEO of Blue Lagoon Resources.

This Phase One drill program is targeting a portion of the inferred resource as defined by the recently filed Preliminary Economic Assessment (PEA). (PEA NI43-101 Technical Report filed on July 15, 2020). Using a cut-off of 3.42 g/t Au and a gold price of $1450 per troy ounce the PEA outlined an undiluted indicated resource of 81,017 ounces gold at 15.78 g/t gold and an inferred resource of 149,240 ounces gold at 10.09 g/t gold. Click here to read the Company's full news release on the results of the PEA.

The drill collars chosen are located on already completed drill pads and existing road infrastructure. Multiple HQ drill holes will be completed from each pad and are designed to infill along and in an already defined Inferred resource domain with planned intercepts designed to be within 30 meters area of influence, with as much as 33% of the existing Inferred resource to be tested for potential upgrade to Indicated (see Figure 2).

Figure 2

Bill Cronk, Chief Geologist for Blue Lagoon stated "I am very excited to begin work on the Dome Mountain Gold Project. This project is very versatile and prospective having a significant indicated gold resource, a Mine Permit in place, mine infrastructure development, an inferred resource ready for upgrading to indicated and, a very prospective land package with multiple mineralized quartz veins ready for drill target prioritization." Furthermore, this phase one drilling program is just the first part of a very comprehensive multi-phase plan focused on defining and exploiting the full potential of the Dome Mountain Gold Project," he added.

The scientific and technical data contained in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.

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. Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Blue Lagoon Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration and exploitation of minerals deposits, market prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

SOURCE: Blue Lagoon Resources Inc.