Dune Oil Moves M47 Seismic to Execution, Targets US$3 Million TR1 Settlement Gain

• Dune Oil has advanced US$ 200,000 to start its 2026 seismic program in the M47 Block in southeastern Türkiye, against an estimated net budget of US$ 600,000 to the company.
• Under the revised farm-in agreement, US$4.1 million is due on or before November 15, 2026, for the initial 2027 post-seismic work program, with no further payments due until November 15, 2027.
• A settlement agreement with TR1 Master Fund would retire US$ 3,681,350 of debt and generate a net gain of US$ 2,977,125, subject to payment no later than November 30, 2026.
• The non-brokered private placement has been upsized to a maximum of CAD 0.15 per unit, with full closing targeted on or before October 20, 2026.
• Dune Oil proposes to settle CAD 950,750 owed to directors, officers, management, and consultants by issuing 6,338,333 shares at CAD 0.15 per share.

Company Overview

Dune Oil Corp. is a Canadian oil exploration company focused on Türkiye. The company holds a 29% earn-in working interest in the M47 oil exploration block (C3 & C4 licenses) in the Cudi-Gabar petroleum province of southeastern Türkiye. The province is a growing oil exploration and production fairway.

Seismic Program Moves from Tender to Execution

Dune Oil Corp. (CSE: DUNE | OTCQB: DUNXF | FSE: Z62) has advanced US$ 200,000 to start seismic work on the M47c oil block (M47Block). The payment follows a tender in which the company received and evaluated several bids before selecting a contractor. Acquisition will use nodal recording technology. Based on the tendered contract terms, the program budget is an estimated US$ 600,000 net to Dune Oil.

The program is targeting several additional drillable exploration locations in the South Lead area and development locations in the North Lead. Once the data is interpreted, Dune Oil is targeting the finalization and announcement of new drilling locations in both areas. The seismic program will set the stage for the 2027 work program and development activities on the M47 Block.

President and Chief Executive Officer of Dune Oil, Scott Lower, described what the survey is intended to resolve on the M47 Block and how the results will be used:

"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."

Revised Farm-In Payment Schedule

The revised farm-in agreement sets 1 near-term payment, with no further payments due until November 15, 2027. Dune Oil has agreed to advance US$4.1 million for the initial 2027 post-seismic work program on or before November 15, 2026.

All other material terms and conditions of the earn-in remain as previously announced. Dune Oil identifies the risk that it may be unable to secure the financing required to meet its funding commitments on the extended timelines, or at all.

TR1 Loan Settlement & Net Gain

Dune Oil has entered a settlement agreement with TR1 Master Fund covering a loan dating to July 1, 2023. If the settlement amount is paid by the agreed time, the company would retire US$ 3,681,350 of debt from its balance sheet. It would also record a net gain on settlement of US$ 2,977,125.

Dune Oil is targeting payment by November 30, 2026. Under the agreement, the company has conditionally agreed to settle all of its claims against TR1 Master Fund. If Dune Oil is unable to make the payment when due, the receiver may enter judgment for the full loan amount.

Upsized Private Placement & Debt Settlement

Dune Oil has increased its non-brokered private placement to up to CAD 0.15 per share. Each unit consists of 1 common share and half a share purchase warrant. Each whole warrant is exercisable at CAD$0.25 per share for 1 year from the date of issuance.

Proceeds are allocated to ongoing work on the M47 Block, investor relations, expenses, working capital, and general corporate purposes. Dune Oil is targeting full closing on or before October 20, 2026.

Separately, the company proposes to settle CAD 0.15 each, subject to a 4-month-and-1-day hold period. Both the offering and the debt settlement require approval from the Canadian Securities Exchange.

Next Steps

Dune Oil has 3 payment and financing dates before the end of 2026. Full closing of the upsized private placement is targeted on or before October 20, 2026. The US$4.1 million advance for the initial 2027 post-seismic work program is due on or before November 15, 2026. Payment of the TR1 Master Fund settlement amount is targeted no later than November 30, 2026.

On the technical side, Dune Oil is targeting new drilling locations in the South Lead and North Lead areas once the seismic data is interpreted. Following interpretation, the company is targeting the finalization and announcement of those locations, which will be used to set out the 2027 drilling programs.

After the November 15, 2026 advance, no further payments are due under the revised farm-in agreement until November 15, 2027.

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