Dune Oil's US$4.1 Million Advance Ends M47 Payments Until November 2027

Dune Oil has advanced US$200,000 to start its 2026 seismic program on the M47 Block in southeastern Türkiye and has selected a contractor after evaluating several bids. Under a revised farm-in agreement, the company will advance a further US$4.1 million for the initial 2027 post-seismic work program on or before November 15, 2026, with no further payments due until November 15, 2027. Dune Oil has also agreed to a settlement with TR1 Master Fund that would retire US$3,681,350 of debt and record a US$2,977,125 net gain once the settlement amount is paid. It has also upsized its non-brokered private placement to up to CAD$4,000,000, including amounts closed to date and debt settlements.

Company Overview

Dune Oil Corp. (CSE: DUNE | OTCQB: DUNXF | Frankfurt: Z62) is a Canadian oil exploration company focused on Türkiye. The company holds a 29% earn-in working interest in the M47 oil exploration block, covering the C3 and C4 licenses, in the Cudi-Gabar petroleum province of southeastern Türkiye, a rapidly growing onshore oil exploration and production fairway.

Seismic Program Moves From Tender to Execution

Dune Oil received and evaluated several bids before selecting its seismic vendor, and the 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, of which US$200,000 has been advanced for kick-off.

The survey will feed into the 2027 work program and development activities. Dune Oil expects it to generate several additional drillable exploration locations in the South Lead area and development locations in the North Lead. Following seismic interpretation, Dune Oil expects to finalize and announce new drilling locations in both areas.

President and Chief Executive Officer of Dune Oil, Scott Lower, linked the contractor selection to the start of field work and the 2027 drilling plan:

"We are pleased to report on these positive developments towards 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."

Revised Farm-In Payment Schedule

The revised farm-in agreement for the M47 Block changes the earn-in payment schedule. Dune Oil has agreed to advance US$4.1 million for the initial 2027 post-seismic work program on or before November 15, 2026, and no further payments are then due until November 15, 2027. All other material terms of the earn-in remain unchanged from those previously announced by the company.

TR1 Loan Settlement

Dune Oil has entered into a settlement agreement with TR1 Master Fund covering a loan that dates to July 1, 2023. Once the settlement amount is paid by the agreed time, Dune Oil will retire US$3,681,350 of debt and record a US$2,977,125 net gain on settlement.

Dune Oil expects to pay the settlement no later than November 30, 2026, and has conditionally agreed to settle all of its claims against TR1 Master Fund as part of the agreement. The settlement agreement removes the TR1 liability from Dune Oil's balance sheet.

Private Placement Upsized to CAD$4,000,000

Following its April 17, June 9, July 29, and September 15, 2026 updates, Dune Oil has upsized its non-brokered private placement to up to CAD$4,000,000, including amounts closed to date and debt settlements. The offering will issue up to 26,666,667 units at CAD$0.15 each. Each unit comprises 1 common share and half of a share purchase warrant. Each whole warrant is exercisable at CAD$0.25 per share for 1 year from the date of issuance.

Proceeds will support ongoing work on the M47 oil exploration block, investor relations, expenses, working capital, and general corporate purposes. The company expects the placement to be fully closed on or before October 20, 2026.

Dune Oil also proposes to settle CAD$950,750 of debt owed to directors, officers, management, and consultants by issuing 6,338,333 common shares at CAD$0.15 each. Those shares will be subject to a 4-month-and-1-day hold period, and both the offering and the debt settlement are subject to Canadian Securities Exchange approval.

Next Steps

The upsized private placement is expected to close in full on or before October 20, 2026. Dune Oil has agreed to advance US$4.1 million for the initial 2027 post-seismic work program on or before November 15, 2026, and expects to pay the TR1 Master Fund settlement no later than November 30, 2026. Once the M47 seismic data has been interpreted, the company expects to finalize and announce new drilling locations in the South Lead and North Lead areas, and the results will be used to set drilling programs for 2027 on the M47 Block.