Comet Industries Announces Non-Dilutive Debt Financing to Fund the Ongoing Development of the Iron Mask Project in Kamloops BC.

For Immediate Release

September 25, 2026

Kamloops, BC September 25, 2026 Comet Industries Ltd. (“Comet” or the “Company”) announces that on it entered into a commitment letter for a secured, non-revolving term loan agreement with a Harbour Mortgage Corp. (the “Lender”), pursuant to which the Company will borrow up to the aggregate principal amount of $8,000,000 (the “Loan”) to support construction and development activities related to the Company’s Iron Mask project in Kamloops, British Columbia (the “Project”).

The Loan has a one year term and bears interest at the greater of the Royal Bank of Canada prime rate plus 4.55% and 9.00% per annum, calculated and payable monthly. A commitment fee of $200,000 is payable to the lender, of which $100,000 was paid upon acceptance of the commitment letter and the balance will be deducted from the initial advance. The Loan will be advanced through multiple draws based on work completed, no more than once per month and in minimum amounts of $500,000, with a $750 administration fee payable on each advance.

The Loan cannot be prepaid during its initial 6-month term. If the Loan is not repaid by the maturity date, an overholding fee equal to 0.25% of the outstanding principal will be payable monthly in advance, in addition to interest and all other amounts owing. Payment of the overholding fee does not extend the Loan’s term or cure the resulting default.

Including the commitment and administration fees, the effective annual interest rate over the one year term is estimated at approximately 13.3%, assuming eight monthly draws. Depending on the timing of permitted draws, the effective annual rate is expected to range from approximately 12.3% to 14.5%. If the Loan remains outstanding for three months after maturity, the effective annual rate over the extended period would be approximately 12.2%. In no event can the effective annual rate exceed 24% per annum.

The proceeds of the Loan are expected to be used to:

I. repay the Company’s existing loan from an arm’s-length third party in the amount of approximately $1.6 million; and

II. pay trade creditors, contractors, subcontractors, and material suppliers in connection with the servicing and related construction activities at the Project.

All lenders are arm’s-length parties, and the transaction does not constitute a related-party transaction under applicable securities laws.

The Loan will be secured by, among other things, a first-ranking mortgage over the lands comprising the Company’s Kamloops subdivision project, together with an assignment of rents, an assignment of receivables, a first-ranking general security agreement over all personal property related to the Project, with security registered pursuant to the Personal Property Security Act (British Columbia). The Company anticipates that it will service the Loan by using a portion of the proceeds received from the sale of lots comprising the Project.

Completion of the Loan is subject to various conditions customary for transactions of this nature, including entering into of a formal loan agreement between the parties and receipt of all requisite approvals, including the approval of the TSX Venture Exchange (the “Exchange”). The loan will not be convertible into any securities of the Company without the prior approval of the Exchange. In connection with the Loan, the Company will pay a cash commission of up to $65,000 to Fit Broker Services Ltd. No bonus securities or other compensation will be provided to the Lender in connection with the Loan.

About Comet Industries Ltd.

Comet Industries Ltd. 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. Visit: https://www.cometindustries.ca/

Follow Iron Mask Industrial Park on LinkedIn.

For further information, please contact:

Michael O’Reilly, President and CEO

Tel: +1 (250) 819-3165

Email: mike@cometindustries.ca

This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Comet Industries’ actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the intended use of proceeds of the Loan.

Although Comet Industries believes the forward-looking statements contained in this news release is reasonable based on information available on the date hereof, forward-looking statements by their nature involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF COMET AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE COMET MAY ELECT TO, NEITHER OF THEM UNDERTAKES TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.