Dune Oil Seeks Up to C$8.3 Million to Take M47 Discovery Toward Flow Testing

• Dune Oil is offering up to C$8.3 million in units at C$0.10 per unit, with Research Capital Corporation leading the offering.
• Each unit carries 1 share and 1 warrant exercisable at C$0.125 for 36 months.
• Proceeds are planned for a C-2 re-entry, a C-1 sidetrack, a possible South prospect well, and about 40 kilometers (km) of seismic.
• The North Field contains 27.6 million barrels of unrisked best-estimate contingent resources (2C) attributable to Dune Oil's 29% interest before royalty.
• Closing is expected on or about November 13, 2026.

Company Overview

Dune Oil (CSE: DUNE | FSE: Z62) is a Canadian oil exploration company focused on Türkiye. It is advancing the onshore M47 oil exploration block, covering the C3 and C4 licenses, in the Cudi-Gabar petroleum province of southeastern Türkiye.

Offering Terms & Agents

Dune Oil has an agreement with Research Capital Corporation, as lead agent and sole bookrunner, for a brokered, best-efforts private placement of units at C$0.10 each. The syndicate includes Canaccord Genuity Corp. Gross proceeds total up to C$8,300,000. The units are offered under the listed issuer financing exemption in all provinces of Canada except Quebec, and in other qualifying jurisdictions, and will be free to trade on closing under Canadian securities laws. Investors on a president's list are expected to subscribe for up to C$1,000,000 alongside other investors.

Each unit consists of 1 common share and 1 common share purchase warrant. Each warrant entitles the holder to buy 1 common share at C$0.125 for 36 months after closing, and becomes exercisable 60 days after the closing date. Dune Oil will use commercially reasonable efforts to list the warrants on the Canadian Securities Exchange (CSE).

The agents receive a cash commission of 8.0% of gross proceeds and broker warrants equal to 8.0% of the units sold, both subject to reduction for president's list subscribers. Each broker warrant entitles the holder to buy 1 unit at C$0.10 for 36 months after closing.

Use of Proceeds at Block M47

Net proceeds are planned for seismic and drilling on M47. The program covers a re-entry of the C-2 well to deepen and test it, and a sidetrack of the C-1 well, meaning a new deviated or lateral section drilled out of the existing wellbore. It also includes an exploration well tentatively planned on the South prospect, subject to seismic results, and about 40 kilometers (km) of seismic over the North discovery area and the South prospect.

Proceeds are also planned for working capital, general corporate purposes, and the settlement of existing indebtedness. After the financing, Dune Oil would have positive working capital and a 12-month funded work program on a pro forma basis.

North Field Contingent Resources

The North Field discovery contains 27.6 million barrels of unrisked best-estimate contingent resources (2C) of light oil, attributable to the 29% working interest Dune Oil is earning under a farm-in agreement, before royalty. Risked for an 81% chance of development, the figure is 22.3 million barrels. Chapman Hydrogen and Petroleum Engineering Ltd. prepared the independent evaluation, effective December 31, 2025. At a 2027 oil price of US$72.71 per barrel, escalated thereafter, it estimates an unrisked, before-tax net present value at a 10% discount rate (NPV10%) of US$734 million for the North Field 2C. The risked value is US$594 million at the same price, both values are net of the 12.5% government royalty, and neither represents fair market value.

Contingent resources are not reserves. The Mardin reservoir has not been flow tested, meaning oil has not yet been produced from it to measure rates. No development plan or approvals are in place, and there is uncertainty that it will be commercially viable to produce any portion of the resources.

The C-1 and C-2 wells encountered net oil pay, the thickness of oil-bearing rock, on wireline logs, which are measurements taken by instruments lowered into a well. A fluid sample from C-1 at the time of drilling measured 32.4° API, a standard measure of oil density on which higher values mean lighter oil. Neither well has been flow tested, and log-derived pay is not necessarily indicative of well or reservoir performance.

Cudi-Gabar Region & Route to Market

M47 lies in the Cudi-Gabar region, where at least 7 oil discoveries have been made since 2021. Gabar regional production has grown from virtually zero to 83,300 barrels per day in 5 years, and the Cudi-Gabar region has produced more than 50 million barrels of oil since 2021. Türkiye Petrolleri Anonim Ortaklığı operates these fields, and Dune Oil has no interest in them.

About 200 analog wells producing from the same Cretaceous Mardin carbonates on the same structural trend are located 2 to 12 km from M47. This analog information is not an estimate of resources attributable to Dune Oil's lands, and there is no certainty that similar results will be achieved on M47.

Tanker trucks would haul oil to a refinery 130 km away for immediate sales, with low capital cost.

Mid & South Prospects

The Mid (Central) and South (Fındık) prospects contain 24.0 million barrels of unrisked prospective resources, attributable to Dune Oil's 29% working interest before royalty. The chance of discovery is 38% for Mid (Central) and 45% for South (Fındık). There is no certainty that any portion of these resources will be discovered.

Undiscovered petroleum initially in place is the oil estimated to be contained in accumulations not yet discovered; it is not a recoverable volume. Dune Oil's 29% share is an unrisked best estimate of 46.8 million barrels for Mid (Central) and 28.8 million barrels for South (Fındık).

Capital Structure & Valuation

A total of 41% of Dune Oil's shares, after the financing, are subject to staged lockup and escrow release over 36 months, assuming the maximum offering. These shares come from previous convertible debenture holders and from management debt conversions at C$0.15, a 50% premium to the offering price.

Management's pro forma enterprise value is about C$0.90 per barrel of unrisked 2C, compared with a median of C$1.79 per barrel of oil equivalent for international non-producing peers. This figure is not an estimate of fair market value, and peer estimates may not be comparable.

Next Steps

Closing is expected on or about November 13, 2026, or on another date agreed by the agents and Dune Oil. It is subject to all necessary regulatory approvals, including the CSE's conditional approval. An offering document for the placement is available on SEDAR+ under Dune Oil's profile and on the company's website.

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