Mr. Scott Lower reports

DUNE OIL ANNOUNCES $8 MILLION BROKERED LIFE OFFERING TO ADVANCE FLOW TESTING AND PRODUCTION OPERATIONS ON BLOCK M47'S EXISTING ONSHORE LIGHT OIL DISCOVERY LOCATED AT THE CENTRE OF TURKIYE'S FASTEST GROWING, PROVEN WORLD-CLASS OIL BASIN

Dune Oil Corp. has entered into an agreement with Research Capital Corp. as the lead agent and sole bookrunner, on behalf of a syndicate, including Canaccord Genuity Corp., in connection with a brokered, best effort listed issuer financing exemption private placement offering of units of the company at a price of 10 cents per unit for aggregate gross proceeds to the company of up to $8.3-million.

Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of 12.5 cents per common share for a period of 36 months following the closing of the offering.

The warrants issued pursuant to the offering, under applicable Canadian securities laws, shall be exercisable beginning 60 days following the closing date of the offering. In addition, the company will use commercially reasonable efforts to obtain the necessary approvals to list the warrants on the Canadian Securities Exchange.

In connection with the offering, it is expected that president's list investors will be subscribing in the offering alongside other investors for aggregate gross proceeds of up to $2-million.

The net proceeds from the offering is planned to be used for seismic and drilling on the company's M47 block, parts C3 and C4, onshore oil block in Turkey, including: (i) re-entry of the C-2 well for deepening and testing; (ii) a sidetrack deviated or lateral of the C-1 well; (iii) an exploration well tentatively planned on the South prospect (subject to seismic results); and (iv) about 40 kilometres of seismic works on the North discovery area and South prospect, settlement of existing indebtedness, working capital, and general corporate purposes, as more particularly described in the offering document related to the offering.

Investment highlights

Onshore light oil discovery in southeastern Turkey, advancing toward flow testing and first production:

• Earning 29-per-cent working interest in the M47 conventional oil block;
• North field discovery contains 27.6 million barrels of unrisked best estimate (2C) light oil contingent resources, company gross (Dune's 29-per-cent working interest before royalty) or 22.3 MMbbl risked for an 81-per-cent chance of development;
• Independent evaluation, effective Dec. 31, 2025, estimates an unrisked before-tax net present value discounted at 10 per cent of $734-million (U.S.) ($594-million (U.S.) risked) for the North field 2C contingent resources, company net;
• C-1 and C-2 wells encountered significant net oil pay, with 32.4-degree API light oil;
• High-impact work program planned to re-enter and workover North field discovery wells to first production amidst $115-plus (U.S.) Brent oil pricing.

M47 block is situated in proven, rapidly growing Cudi-Gabar region with established route to market:

• At least seven oil discoveries since 2021 in the Cudi-Gabar region;
• Gabar regional production has grown from virtually zero to 83,300 barrels per day in just five years;
• Over 50 million barrels of cumulative oil production since 2021 in Cudi-Gabar region;
• Approximately 200 producing analogue wells located within approximately two to 12 kilometres of M47;
• M47 situated directly on trend with several analogue major producing oil fields;
• Direct path to sales, tanker trucks to haul oil to refinery 130 km away for immediate sales with low capital expenditures.

Significant additional upside with established high-impact Mid (Central)- and South (Findik) prospects, all proximate to producing fields:

• Unrisked prospective resources of 24.0 MMbbl, company gross, across the Mid (Central)- and South (Findik) prospects:
  • Mid (Central)-prospect: 46.8 MMbbl best estimate undiscovered petroleum initially in place, unrisked, Dune's 29-per-cent working interest share;
  • South (Findik) prospect: 28.8 MMbbl best estimate undiscovered petroleum initially in place, unrisked, Dune's 29-per-cent working interest share.

Transformational recapitalization positions the company for growth:

• Pro forma company postfinancing to have positive working capital and a 12-month financed work program, significantly strengthening balance sheet.

Attractive valuation with multiple catalysts to rerate and build shareholder value:

• Pro forma enterprise value of approximately 90 cents per barrel of unrisked company gross 2C contingent resources, relative to a median of $1.79 per barrel of oil equivalent for international non-producing peers.

Strong insider ownership and alignment with shareholders:

• 39 per cent of postfinancing Dune shares subject to staged lock-up escrow release over 36 months:
  • Composed of previous convertible debentureholders and Dune management debt conversions at 15 cents, representing a 50-per-cent premium to the offering price.

Additional offering details

The units will be offered for sale pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 (Prospectus Exemptions) as amended by CSA Coordinated Blanket Order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption) in all provinces of Canada, except Quebec, and other qualifying jurisdictions. The units offered under the listed issuer financing exemption will be immediately free-trading upon closing of the offering under applicable Canadian securities laws.

There is an offering document related to this offering that can be accessed under the company's profile at SEDAR+ and at the company's website. Prospective investors should read this offering document before making an investment decision.

The closing of the offering is expected to occur on or about Nov. 13, 2026, or on such date as the agents and company may agree upon. Closing is subject to the company receiving all necessary regulatory approvals, including the conditional approval of the Canadian Securities Exchange.

The agents will receive a cash commission of 8.0 per cent of the aggregate gross proceeds of the offering and such number of non-transferable broker warrants as is equal to 8.0 per cent of the number of units sold under the offering (in each case, subject to reduction for certain subscribers on a president's list of purchasers identified by the company). Each broker warrant entitles the holder to purchase one unit at an exercise price equal to the issue price for a period of 36 months following the closing.

About Dune Oil Corp.

Dune Oil is a Canadian oil exploration company focused on Turkey. The company is advancing the onshore M47 oil exploration block (C3 and C4 licences) located in the Cudi-Gabar petroleum province of southeastern Turkey.

We seek Safe Harbor.