Mr. Scott Lower reports

DUNE ADVANCES M47 SEISMIC PROGRAM, EXTENDS FARM-IN WORK COMMITMENT, AND ANNOUNCES SETTLEMENT AGREEMENT AND PRIVATE PLACEMENT

Dune Oil Corp. has discussed an advance payment to commence its 2026 seismic program and contractor selection, payment timeline updates for its earn-in agreement to the M47c,d oil block (the M47 block), a private placement and a loan settlement agreement. The M47 block is an onshore oil block in the Cudi-Gabar petroleum province of southeastern Turkey -- a rapidly growing oil exploration and production fairway.

Seismic Advancement payment and revised work program payment schedule

The company recently advanced $200,000 (U.S.) for seismic commencement and has agreed to advance another $4.1-million (U.S.) for the initial 2027 postseismic work program, on or before Nov. 15, 2026. Under the revised farm-in agreement, no further payments are due until Nov. 15, 2027. Other material terms and conditions of the earn-in as previously announced by the company remain unchanged.

In connection with the new seismic work, several bids were received and evaluated before final vendor selection. Acquisition will use nodal recording technology. Based on the tendered contract terms, the program budget is an estimated $600,000 (U.S.) net to Dune, of which $200,000 (U.S.) has now been advanced for kickoff.

The current seismic program will set the stage for the 2027 work program and development activities. The program is expected to generate several additional drillable exploration locations in the South Lead area and, furthermore, development locations in the North Lead. Following seismic interpretation, the company expects to finalize and announce new drilling locations in both areas.

Loan settlement and $3-million (U.S.) net gain

Dune has entered into a settlement agreement with TR1 Master Fund, allowing it to retire $3,681,350 (U.S.) of debt from its balance sheet and record a $2,977,125 (U.S.) net gain on settlement, upon payment of the settlement amount by the agreed-upon time. The TR1 loan dates to July 1, 2023, and the company expects to pay the settlement no later than Nov. 30, 2026. The company conditionally agreed to settle all its claims against the TR1 Master Fund in connection with the settlement agreement. The settlement agreement removes a significant liability from the company's balance sheet.

Scott Lower, president and chief executive officer of Dune Oil, stated: "We are pleased to report on these positive developments toward kicking off work programs on the M47 block. Selecting the seismic contractor and commencing work moves the program from tender to execution. The survey is designed to clarify subsurface faulting and traps, and provide other useful data. Once interpreted, these results will be used to set out drilling programs for 2027."

Private placement closed on upsized amount and debt settlement

Further to its April 17, June 9, July 29 and Sept. 15, 2026, news releases, the company has upsized its previously announced non-brokered private placement to up to $4-million, including amounts closed to date and debt settlements. On the same terms, the offering will issue up to 26,666,667 units at 15 cents each. Each unit comprises one common share and half a share purchase warrant. Each warrant is exercisable at 25 cents per share for one year from issuance. Proceeds will support continuing work on the M47 oil exploration block, investor relations, expenses, working capital and general corporate purposes. The private placement is expected to be fully closed on or before Oct. 20, 2026.

The company proposes to settle $950,750 in debt owed to directors, officers, management and consultants by issuing 6,338,333 common shares at 15 cents each. The shares will be subject to a four-month-and-one-day hold period under applicable securities laws and Canadian Securities Exchange (CSE) policies. The offering and debt settlement are subject to applicable CSE approval. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Dune Oil Corp.

Dune Oil is a Canadian oil exploration company focused on Turkey. The company holds a 29-per-cent earn-in working interest in the M47 oil exploration block (C3 and C4 licences) located in the Cudi-Gabar petroleum province of southeastern Turkey.

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