Dune Oil Updates on Gabar Oil Discovery and Advances Work Program Targets

Dune Oil Corp. (CSE: DUNE) (OTCQB: TRLEF) (FSE: Z62) ("Dune" or the "Company") is pleased to advance its oil block discovery in the Gabar petroleum province of southeastern Türkiye, "the Gabar Block", which an independent evaluation under COGEH and 51-101 standards assigned a 2C contingent resource of 27.6 MMbbl. A tender for a 40-kilometre 2D seismic acquisition program is now underway ahead of further drilling, which is expected to be finalized by September 2026, to pave the way for additional drilling locations.

The Gabar Block covers approximately 450 km² of block M47 areas, c,d, where Dune has a right to earn up to a 29% working interest dated January 9, 2026, as amended. The Gabar Block is located approximately 11 km southeast of the Şehit Aybüke Yalçın field, Türkiye's largest onshore light oil discovery, which targets similar Beloka and Mardin Group carbonate reservoirs as M47.

The Gabar region hosts significant established production, with over 100 analogue wells operating within a 2-to-12-kilometre radius. Approximately seven new oil fields have been discovered in the Cudi-Gabar region over the past five years. According to public reports, Gabar regional oil fields currently produce a combined rate of over 80,000 bbl/d, against a state national target of 100,000 bbl/d. Approximately 40 rigs are working a 140-well location inventory in the surrounding area.

The Çetinkaya-1 ("C-1") well, drilled in 2025, encountered 32.4° API light oil with 38 metres of gross pay. Drilling was halted on lost circulation at 2,455 metres, leaving approximately 160 metres of potential reservoir unpenetrated. C-1 is anticipated to be re-entered later this year for further production testing.

An independent NI 51-101 resource evaluation by Chapman has assigned the North Prospect a 2C contingent resource of 27.6 MMbbl, with an unrisked NPV-10 of US$733.5 million and a risk-adjusted value of US$594.2 million. The evaluation assigned an 81% chance of commerciality. Total unrisked resource potential across the three prospects is 51.6 MMbbl net to Dune, with up to 80 vertical development wells on the North Prospect, subject to commerciality.

Dune is earning its interest by funding a US$15 million work program commitment in stages. US$800,000 m has been advanced year-to-date. Approximately US$4.35 million is due September 15, 2026, and further payments thereafter. Dune bears 60% and 80% of the cost of the next wells, respectively, from its contributions. Thereafter, all costs will be pro-rata to interest.

A high-resolution gravity study completed in May-June confirmed the presence of significant fault-related structures and identified priority leads across the licence. The new finalized program covers 40 kilometres of 2D seismic across three priority exploration areas, to be acquired over approximately six weeks using modern nodal recording technology. A field scouting program was completed on July 29-30 to verify the seismic lines and determine the excavation works in the field. Currently, only about 25% of the Block is covered by seismic, with new seismic expected to generate four to six additional drillable exploration locations. Upon completion, the Company expects to announce its next drilling locations.

Project Highlights 2C Contingent Resource of 27.6 MMbbl on the North Discovery, with an unrisked NPV-10 of US$733.5 million. Approximately 11 km from the Şehit Aybüke Yalçın oil field, Türkiye's largest onshore oil discovery. 38 metres of gross oil pay at C-1 discovery well. Total unrisked resource potential of 51.6 MMbbl net to Dune across three prospects, with a North Prospect 3C estimate at an unrisked NPV-10 of US$1.18 billion. Seven newly discovered analogue oil fields in the Gabar region over the past five years. Analogue Gabar regional fields produce a combined rate of over 80,000 bbl/d.