Mr. Michael O'Reilly reports

COMET INDUSTRIES ANNOUNCES SHORT-TERM DEBT FINANCING TO FUND IRON MASK PROJECT IN KAMLOOPS, BC

Comet Industries Ltd. has secured approximately $742,000 in short-term loans to provide construction financing in relation to the subdivision of its Iron Mask project.

The loans were advanced in accordance with the terms and conditions of two promissory notes dated March 17, 2026, between the company and each of Schore Holdings Ltd. and Seamark Development Corp. The loans are unsecured obligations of the company, bear interest at a rate of 10 per cent per annum and mature on March 17, 2027. The company is entitled to prepay all, but not less than all, amounts owing under the loans prior to the maturity date, subject to a minimum interest payment of $35,000 to each lender.

Related-party transaction

The loans constitute a related-party transaction as such term is defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) as Schore is a corporation controlled by Michael O'Reilly, a director and officer of the company, and Seamark is a corporation controlled by Jess Alfonso, a director of the company. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related-party participation in the loans as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related party, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101). The loans were approved by the board of directors of the company, with Mr. Alfonso and Mr. O'Reilly abstaining from the vote in respect thereof. The company did not file a material change report in respect of the related-party transaction at least 21 days before the closing of the loans as confirmation of the insiders' participation therein was not confirmed until shortly prior to the completion of the loans.

About Comet Industries Ltd.

Comet was established in 1972, incorporated in the province of British Columbia, and is listed on the TSX Venture Exchange. The company is in the business of holding and developing real estate properties, all in British Columbia. The company owns unimproved land in Kamloops and Nelson Island on a freehold basis. A major initiative by the company is the Iron Mask industrial park project.

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