Vancouver, British Columbia--(Newsfile Corp. - October 15, 2026) - Dune Oil Corp. (CSE: DUNE) (OTCQB: DUNXF) (FSE: Z621) ("Dune" or the "Company") is pleased to announce 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 Türkiye — a rapidly growing oil exploration and production fairway.

Seismic Advancement Payment and Revised Work Program Payment Schedule

The Company recently advanced US$200,000 for seismic commencement and has agreed to advance another US$4.1 million for the initial 2027 post-seismic work program, on or before November 15, 2026. Under the revised farm-in agreement, no further payments are due until November 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 US$600,000 net to Dune, of which US$200,000 has now been advanced for kick-off.

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 US$3M Net Gain

Dune has entered into a settlement agreement with TR1 Master Fund, allowing it to retire US$3,681,350 of debt from its balance sheet and record a US$2,977,125 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 November 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 Corp., stated: "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."

Private Placement Closed on Upsized Amount and Debt Settlement

Further to its April 17, June 9, July 29 and September 15, 2026, news releases, the Company has upsized its previously announced non-brokered private placement (the "Offering") to up to CAD$4,000,000, including amounts closed to date and debt settlements. On the same terms, the Offering will issue up to 26,666,667 units (the "Units") at CAD$0.15 each. Each Unit comprises one common share (a "Share") and half a share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable at CAD$0.25 per share for one year from issuance. Proceeds will support ongoing 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 October 20, 2026.

The Company proposes to settle CAD$950,750 in debt owed to directors, officers, management and consultants by issuing 6,338,333 common shares at CAD$0.15 each (the "Debt Settlement"). 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 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 and C4 licences) located in the Cudi-Gabar petroleum province of southeastern Türkiye. More information may be found on www.sedarplus.ca and on the Company's website at www.duneoil.ca.

Requests for further information should be directed to:
Scott Lower, President and Chief Executive Officer
Brian Park, VP Finance

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including statements regarding the revised payment schedule under the farm-in agreement, including the advance of US$4.1 million on or before November 15, 2026; the Company's ability to meet those commitments; the planned seismic program, its budget and the announcement of drilling locations; the 2027 work program; the payment of the settlement amount under the settlement agreement, its timing and the gain expected to be recorded on settlement; and the private placement and the Debt Settlement. This information reflects the Company's current expectations and is subject to risks and uncertainties, including that the Company may be unable to obtain the financing required to meet its funding commitments on the extended timelines or at all; that the seismic program may be delayed or exceed its budget; exploration, drilling and operational risk; the risk that seismic results differ from current interpretations; that the Company may be unable to fund the settlement payment when due, in which case the receiver may take out judgment for the full loan amount; that the private placement and the Debt Settlement may not close on the anticipated terms or at all; commodity price volatility; and Türkiye regulatory, JOC partner, financing and currency risks. Readers should not place undue reliance on forward-looking information, which is made as of the date hereof; the Company disclaims any obligation to update it except as required by applicable securities law.

Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319171

Source: Dune Oil Corp.