Mr. Scott Lower reports

DUNE OIL HIGHLIGHTS SIGNIFICANT REGIONAL OIL PRODUCTION SUCCESS IN TÜRKIYE'S CUDI-GABAR BASIN NEAR ITS M47 BLOCK

Dune Oil Corp. has highlighted recent developments in the Cudi-Gabar petroleum province of southeastern Turkey, including statements by the Minister of Energy and Natural Resources regarding potential new oil discoveries west of Gabar, continued regional production growth, and drilling-project filings by Turkish Petroleum Corp. (TPAO) on licences immediately north of Dune's M47 onshore oil block (M47 block), which lies central to Turkey's fastest-growing producing oil trend.

These developments provide regional context as Dune advances seismic planning and the technical evaluation of re-entry and testing programs for the Cetinkaya-1 (C-1) and Cetinkaya-2 (C-2) wells at its M47 block.

• Gabar production has grown from zero to 83,300 bbl/d (barrels per day) in five years.
• Seven producing oil fields developed in the Gabar area since 2021.
• Combined Gabar production reached a record 83,300 bbl/d in August, 2026, targeting over 100,000 bbl/d in the future.
• Over 50 million barrels of cumulative Gabar oil production since 2021.
• Economic contribution from Gabar oil production at approximately $3.5-billion (U.S.).
• Dune's M47 block is situated near these producing fields, targeting similar Cretaceous carbonate reservoirs.

TPAO announces additional drilling programs on neighbouring M47-C1/C2 licences

During Aug. 25 to Aug. 28, 2026, Turkish energy industry publication Enerji Gunlugu reported six TPAO drilling-project groups identifying 22 individual well locations in TPAO's Mehmet Irfan Guler oil field (MIG oil field) on the M47-C1/C2 exploration licences, situated immediately north of Dune's M47-C3/C4 licences. These projects are associated with TPAO's established MIG oil field, which commenced production in 2024. The applications reflect ongoing development and field delineation activities on neighbouring acreage.

Turkish Energy Minister signals potential major new oil discoveries west of Gabar

On Oct. 18, 2026, Minister of Energy and Natural Resources, Alparslan Bayraktar announced that TPAO expects to announce significant new oil discoveries west of Gabar. He indicated that the government expects to provide further information once technical confirmation of the quantities has been completed. The minister's comments highlight continuing exploration beyond the established producing fields of the Gabar region, where TPAO has made several substantial oil discoveries since 2021. The precise new location, discovery well, geological structure and estimated quantities associated with the anticipated western Gabar discovery have not yet been publicly identified.

In an Oct. 20, 2026 address, Minister Bayraktar estimated the economic contribution from Gabar oil production at approximately $3.5-billion (U.S.), emphasizing the economic benefits of replacing imported oil with domestic production and supporting approximately 3,600 local jobs.

Relevance to Dune's M47 exploration and development program

M47 lies in the wider Cudi-Gabar petroleum province, where structurally controlled hydrocarbon accumulations occur in folded and faulted carbonate reservoirs, including the Mardin Group. Differences in fault compartments, fracture connectivity, reservoir quality and fluid contacts can materially affect results between neighbouring structures.

Dune's M47 block targets similar Cretaceous carbonate reservoirs to those producing in the Gabar region. The Cetinkaya-1 (C-1) and Cetinkaya-2 (C-2) wells, drilled in 2025 on the north structure of the M47 block, encountered the Beloka and Mardin Group carbonates, and log analysis of both wells indicates the presence of oil in these reservoirs.

As announced Oct. 15, 2026, Dune advanced $200,000 (U.S.) toward its planned seismic program to improve subsurface structural interpretation and future drilling selection. On Oct. 28, 2026, Dune announced the appointment of petroleum engineering advisers Allan Albertson, PEng, and Dean Casorso, MBA, CET, to support evaluation of potential C-1 and C-2 well re-entry, deepening, testing and completion options. Dune intends to integrate seismic, historical drilling and petrophysical information with regional geological observations to refine its exploration priorities, subject to available funding and necessary approvals.

Scott Lower, president and chief executive officer of Dune Oil, commented:

"Gabar has become an important oil-producing region, with more than 50 million barrels reported produced and continued TPAO development around our acreage. The minister's comments on potential additional discoveries west of Gabar and the neighbouring drilling filings underscore the importance of rigorous regional geological work. Our immediate focus remains on completing the planned seismic evaluation and designing technically sound C-1 and C-2 re-entry and testing programs so that future capital decisions are grounded in reliable subsurface information."

About Dune Oil Corp.

Dune Oil is a Canadian oil exploration company focused on southeastern Turkey. Under its farm-in agreement, the company may earn a 29-per-cent working interest in the M47-C3/C4 exploration licences in the Cudi-Gabar petroleum province, subject to outstanding funding, contractual and applicable regulatory requirements.

We seek Safe Harbor.