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

Vancouver, British Columbia--(Newsfile Corp. - October 30, 2026) - Dune Oil Corp. (CSE: DUNE) (FSE: Z621) ("Dune" or the "Company") is pleased to announce that it has entered into an agreement with Research Capital Corporation as the lead agent and sole bookrunner, on behalf of a syndicate, including Canaccord Genuity Corp. (together, the "Agents"), in connection with a brokered, best-efforts listed issuer financing exemption private placement offering (the "Offering") of units of the Company (the "Units") at a price of $0.10 per Unit (the "Issue Price") for aggregate gross proceeds to the Company of up to $8,300,000.

Each Unit will consist of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.125 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 (the "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 $2,000,000.

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 ("M47"), onshore oil block in Türkiye, including i) re-entry of the C-2 well for deepening and testing, ii) a side-track 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 40km 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 S.E. Turkiye, Advancing Towards Flow Testing and First Production

• Earning 29% working interest in the M47 conventional oil block
• North Field discovery contains 27.6 MMbbl of unrisked best-estimate (2C) light oil contingent resources, company gross (Dune's 29% working interest before royalty), or 22.3 MMbbl risked for an 81% chance of development⁽¹⁾
• Independent evaluation effective December 31, 2025 estimates an unrisked before-tax NPV10 of US$734MM (US$594MM risked) for the North Field 2C contingent resources, company net⁽²⁾
• C-1 and C-2 wells encountered significant net oil pay, with 32.4° API light oil⁽³⁾
• High impact work program planned to re-enter and workover North Field discovery wells to first production amidst US$115+ Brent oil pricing⁽³⁾

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⁽⁵⁾
• Gabar regional production has grown from virtually zero to 83,300 bbl/d in just five years⁽⁵⁾
• Over 50 million barrels of cumulative oil production since 2021 in Cudi-Gabar region⁽⁵⁾
• Approximately 200 producing analog wells located within approximately 2 - 12 km of M47⁽⁶⁾
• M47 situated directly on trend with several analog major producing oil fields⁽⁶⁾
• 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 (Fındık) Prospects, All Proximate to Producing Fields

• Unrisked prospective resources of 24.0 MMbbl, company gross, across the Mid (Central) and South (Fındık) prospects ⁽⁷⁾
• • Mid (Central) prospect: 46.8 MMbbl best-estimate undiscovered petroleum initially-in-place, unrisked, Dune's 29% working interest share⁽⁸⁾
  • South (Fındık) prospect: 28.8 MMbbl best-estimate undiscovered petroleum initially-in-place, unrisked, Dune's 29% working interest share⁽⁸⁾

Transformational Recapitalization Positions the Company for Growth

• Pro-forma company post-financing to have positive working capital and a 12-month funded work program, significantly strengthening balance sheet

Attractive Valuation with Multiple Catalysts to Re-Rate and Build Shareholder Value

• Pro-forma enterprise value of approximately C$0.90 per barrel of unrisked company gross 2C contingent resources, relative to a median of C$1.79/boe for international non-producing peers⁽⁹⁾

Strong Insider Ownership and Alignment with Shareholders

• 39% of post-financing Dune shares subject to staged lockup escrow release over 36 months
• • Comprised of previous convertible debenture holders and Dune management debt conversions at $0.15, representing a 50% premium to the offering price⁽¹⁰⁾

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 (collectively, 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 (the "Offering Document") related to this Offering that can be accessed under the Company's profile at www.sedarplus.ca and at the Company's website at www.duneoil.ca. Prospective investors should read this Offering Document before making an investment decision.

The closing of the Offering is expected to occur on or about November 13, 2026 (the "Closing"), 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% of the aggregate gross proceeds of the Offering and such number of non-transferrable broker warrants (the "Broker Warrants") as is equal to 8.0% 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold for the account or benefit of, U.S. Persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

About Dune Oil Corp.

Dune Oil Corp. is a Canadian oil exploration company focused on Türkiye. The Company is advancing the onshore 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.

For Further Information

Scott Lower, President and Chief Executive Officer

Dune Oil Corp.
Suite 700, 838 West Hastings Street
Vancouver, B.C., V6C 0A6
Phone: 1-778-819-1585
Email: [email protected]
Website: www.duneoil.ca

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Dune. All statements included herein other than statements of historical fact are forward-looking information. Forward-looking statements in this news release include, but are not limited to, statements regarding: the successful closing of the Offering and the total proceeds from the Offering; the timing to close the Offering; obtaining any required approvals; listing the Warrants on the Exchange and the Company's anticipated use of proceeds from the Offering. Such forward-looking information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Any forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, Dune does not assume any obligation to update or revise them to reflect new events or circumstances.

Oil and Gas Information and Footnotes

All resource and value estimates in this news release are from the independent evaluation of the M47 Block, parts C3 and C4, prepared by Chapman Hydrogen and Petroleum Engineering Ltd. ("Chapman"), an independent qualified reserves evaluator, effective December 31, 2025 and dated March 27, 2026 (the "Chapman Report"), in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 ("NI 51-101"), using forecast prices and costs. "Company gross" means the Company's 29% working interest share before royalties; "company net" means that share after the 12.5% government royalty. The Company is earning its 29% working interest under a farm-in agreement. Contingent resources and prospective resources are not reserves, and the North Field, Mid (Central) and South (Fındık) estimates must not be added together. Product type reasonably expected for all estimates: light crude oil.

⁽¹⁾ North Field contingent resources. Contingent resources, best estimate (2C), project maturity sub-class "development unclarified" (a discovered accumulation where project activities are under evaluation and justification as a commercial development is unknown). Location: North prospect, Mardin Group, M47 Block, Şırnak Province, southeastern Türkiye. Unrisked: 27,641 MSTB company gross (24,186 MSTB company net). Risked: 22,305 MSTB company gross (19,517 MSTB company net). Chance of discovery 100%, chance of development 81%, chance of commerciality 81%. "Contingent resources" are quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered commercially recoverable due to one or more contingencies. Contingencies preventing classification as reserves: the early stage of the project, including that the Mardin reservoir has not been flow tested and no development plan or approvals are in place. Positive factors: two wells with significant log-indicated hydrocarbons, seismic definition, and proximity to producing fields. Negative factors: no test of the Mardin zone and drilling challenges at the target depth. There is uncertainty that it will be commercially viable to produce any portion of the resources. ⁽²⁾ Net present value. Unrisked NPV of future net revenue, discounted at 10%, before income tax, attributable to the company net 2C contingent resources in note (1); the risked value applies the 81% chance of development. The estimated values disclosed do not represent fair market value. ⁽³⁾ C-1 and C-2 wells. Net pay is the Company's interpretation of wireline logs on both wells and is consistent with Chapman's petrophysical evaluation. Neither well has flow tested the Mardin reservoir; log-derived pay is not necessarily indicative of well or reservoir performance. The 32.4° API gravity was measured on a fluid sample from the C-1 well at the time of drilling. ⁽⁴⁾ Oil prices. The Chapman NPV uses a 2027 price of US$72.71/bbl, escalated thereafter, not current Brent prices. Current prices are not necessarily indicative of future prices. ⁽⁵⁾ Gabar production. Source: Ministry of Energy and Natural Resources of Türkiye, statement of August 6, 2026 (83,300 bbl/d record rate; over 50 million barrels since 2021; production from seven fields). These fields are operated by Türkiye Petrolleri Anonim Ortaklığı; the Company has no interest in them and has not independently verified the information. ⁽⁶⁾ Analogous information. The analog wells and fields produce from the same Cretaceous Mardin carbonates on the same structural trend as M47. Source: Türkiye's Ministry of Energy and Natural Resources, public statements in August and October 2026, which identify production from the Şehit Esma Çevik, Şehit Teğmen Akdeniz, Şehit Aybüke Yalçın, Mehmet İrfan Güler, Bulmuşlar, Bülent Sadioğlu and Ağaçyurdu fields. This analogous information was not prepared by a qualified reserves evaluator or in accordance with the COGE Handbook, as far as the Company is aware, and is not an estimate of resources attributable to the Company's lands. There is no certainty that similar results will be achieved on M47. ⁽⁷⁾ Prospective resources. Prospective resources, project maturity sub-class "prospect" (a potential accumulation sufficiently well defined to represent a viable drilling target), Mardin Group, M47 Block; named the "Central" and "Findik" prospects in the Chapman Report. The 24.0 MMbbl is the sum of the unrisked mean estimates, company gross: Central 14,964 MSTB and Fındık 9,023 MSTB (20,989 MSTB company net combined). Risked: Central 4,639 MSTB and Fındık 3,248 MSTB company gross. Chance of discovery 38% and 45%; chance of development 81% each; chance of commerciality 31% and 36%, respectively. "Prospective resources" are quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Positive factors: location on a producing trend, hydrocarbons in the target zone in the North prospect wells, and nearby infrastructure. Negative factors: no Mardin test on the concession, drilling challenges at target depth, and mapping on 2D brute-stack seismic. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. ⁽⁸⁾ Undiscovered petroleum initially-in-place ("UPIIP"). Unrisked best-estimate total property UPIIP (Central 161,265 MSTB; Fındık 99,231 MSTB) multiplied by the Company's 29% working interest. UPIIP is the quantity of petroleum estimated, on a given date, to be contained in accumulations yet to be discovered; it is not a recoverable volume, and its recoverable portion is the prospective resources in note (7). Risk factors as in note (7). There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. ⁽⁹⁾ Valuation. Management's pro-forma enterprise value after the Offering divided by unrisked company gross 2C contingent resources of 27.6 MMbbl. . Not an estimate of future net revenue or fair market value; peer estimates may not be comparable. Boe uses 6 Mcf:1 bbl, an energy equivalency at the burner tip, not a value equivalency at the wellhead, and may be misleading if used in isolation. ⁽¹⁰⁾ Escrow. Calculated on a post-Offering basic basis assuming the maximum Offering.

Abbreviations: bbl - barrels; bbl/d - barrels per day; boe - barrels of oil equivalent; MMbbl - million barrels; MSTB - thousand stock tank barrels; NPV10 - net present value discounted at 10%.

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