Mr. Scott Lower reports

DUNE OIL UPDATES ON GABAR OIL DISCOVERY AND ADVANCES WORK PROGRAM TARGETS

Dune Oil Corp. is advancing its oil block discovery in the Gabar petroleum province of southeastern Turkey, the Gabar block, which an independent evaluation under COGEH and National Instrument 51-101 standards assigned a 2C contingent resource of 27.6 million barrels (bbl). A tender for a 40-kilometre 2-D seismic acquisition program is now under way ahead of further drilling, which is expected to be finalized by September, 2026, to pave the way for additional drilling locations.

The Gabar block covers approximately 450 square kilometres (km) of block M47 areas, c,d, where Dune has a right to earn up to a 29-per-cent working interest dated Jan. 9, 2026, as amended. The Gabar block is located approximately 11 km southeast of the Sehit Aybuke Yalcin field, Turkey's largest onshore light oil discovery, which targets similar Beloka and Mardin Group carbonate reservoirs as M47. The Gabar region hosts significant established production, with over 100 analogue wells operating within a two km to 12 km radius.

Approximately seven new oil fields have been discovered in the Cudi-Gabar region over the past five years. According to public reports, Gabar regional oil fields currently produce a combined rate of over 80,000 barrels per day (bbl/d), against a state national target of 100,000 bbl/d. Approximately 40 rigs are working a 140-well location inventory in the surrounding area.

The Cetinkaya-1 C-1) well, drilled in 2025, encountered 32.4-degree API light oil with 38 metres (m) of gross pay. Drilling was halted on lost circulation at 2,455 metres, leaving approximately 160 metres of potential reservoir unpenetrated. C-1 is anticipated to be re-entered later this year for further production testing.

An independent NI 51-101 resource evaluation by Chapman has assigned the north prospect a 2C contingent resource of 27.6 million bbl, with an unrisked NPV10 (net present value of 10 per cent) of $733.5-million (U.S.) and a risk-adjusted value of $594.2-million (U.S.). The evaluation assigned an 81-per-cent chance of commerciality. Total unrisked resource potential across the three prospects is 51.6 million bbl net to Dune, with up to 80 vertical development wells on the north prospect, subject to commerciality.

Dune is earning its interest by financing a $15-million (U.S.) work program commitment in stages, with $800,000 (U.S.) advanced year to date. Approximately $4.35-million (U.S.) is due Sept. 15, 2026, and further payments thereafter. Dune bears 60 per cent and 80 per cent of the cost of the next wells, respectively, from its contributions. Thereafter, all costs will be pro rata to interest.

A high-resolution gravity study completed in May to June confirmed the presence of significant fault-related structures and identified priority leads across the licence. The new finalized program covers 40 km of 2-D seismic across three priority exploration areas, to be acquired over approximately six weeks using modern nodal recording technology. A field scouting program was completed on July 29 to July 30 to verify the seismic lines and determine the excavation works in the field. Currently, only about 25 per cent of the block is covered by seismic, with new seismic expected to generate four to six additional drillable exploration locations. Upon completion, the company expects to announce its next drilling locations.

Project highlights:

• 2C contingent resource of 27.6 million bbl on the north discovery, with an unrisked NPV10 of $733.5-million (U.S.);
• Approximately 11 km from the Sehit Aybuke Yalcin oil field, Turkey's largest onshore oil discovery;
• 38 metres of gross oil pay at C-1 discovery well;
• Total unrisked resource potential of 51.6 million bbl net to Dune across three prospects, with a north prospect 3C estimate at an unrisked NPV10 of $1.18-billion (U.S.);
• Seven newly discovered analogue oil fields in the Gabar region over the past five years;
• Analogue Gabar regional fields produce a combined rate of over 80,000 bbl/d;
• 578,213 MSTB PIIP (100-per-cent interest) assessed by appraisal.

About Dune Oil Corp.

Dune Oil (formerly Trillion Energy International Inc.) is a Canadian oil exploration company focused on Turkey. The company has an agreement to earn up to a 29-per-cent working interest in the M47 oil exploration block (C3 and C4 licences) located in the Cudi-Gabar petroleum province of southeastern Turkey. The earn-in includes financing a total of $15-million (U.S.) for 2026 and 2027 work commitments. More information may be found on SEDAR+ and on the company's website.

We seek Safe Harbor.