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

(TheNewswire)

Kamloops, BC – TheNewswire -January 20, 2026 Comet Industries Ltd.(“Comet” or the “Company”) announces that it has entered intoa secured, non-revolving term loan agreement with a syndicate of fourprivate lenders, pursuant to which the Company has received a loan(the “Loan”) in the principal amount of CAD$2,000,000 to supportconstruction and development activities related to the Company’sIron Mask project in Kamloops, British Columbia (the “Iron MaskProject”).

The Loan is a one-year term loan bearing interest at arate of 10% per annum, calculated semi-annually not in advance, withmonthly interest only payments and a maturitydate of January 9, 2027. A commitment fee of $20,000 has been added tothe principal amount outstanding and accrues interest at the same rateas the Loan. The Loan may be prepaid in full prior to maturity,subject to payment of all interest that would otherwise accrue overthe full term and the commitment fee.

Proceeds of the Loan are restricted to:

I. completion of environmentalremediation work and obtaining a Certificate of Compliance from theMinistry of Environment and Parks;

II. payment of trade creditors,contractors, subcontractors, and material suppliers in connection withthe subdivision and related construction activities.

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

The Loan is secured by a first-ranking mortgage over the landscomprising the Company’s Kamloops subdivision project, together withan assignment of rents, an assignment of Project documentation, and afirst-ranking general security agreement over all personal propertyrelated to the project, with security registered pursuant to thePersonal Property Security Act (British Columbia).

The Company is in a position to service the monthly interest paymentsowing under the Loan as they come due and anticipates repaying theprincipal amount owing under the Loan using proceeds generated fromthe sale of lots in Phase 1 of the Iron Mask Project.

The Loan will not be convertible into the Company’s securitieswithout prior approval from the TSX Venture Exchange. Other than thecommitment fee set out above, no bonus securities of the Company,finder’s fee, and/or any other type of compensation will be providedto the lenders for the loan.

“This financing provides Comet with the necessary capital to advancePhase 1 of the subdivision while addressing environmental obligationsand settling outstanding trade accounts,” said management of Comet.“The structure allows the Company to move forward efficiently withcritical project milestones while preserving flexibility in achallenging capital markets environment.”

 said Mike O’Reilly, President and CEO ofComet.

About Comet Industries Ltd.

Comet Industries Ltd. was established in 1972,incorporated in the Province of British Columbia, and is listed on theTSX Venture Exchange. The Company is in the business of holding anddeveloping real estate properties, all in British Columbia (“BC”).The Company owns unimproved land in Kamloops and Nelson Island on afreehold basis. A major initiative by thecompany is the Iron Mask Industrial Park project. Visit: https://www.cometindustries.ca/

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"Michael O'Reilly"

COMET INDUSTRIES LTD.

Michael O'ReillyPresident and CEO

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE

This news release contains certain “forward-lookinginformation” and “forward-looking statements” within the meaningof applicable Canadian securities legislation. Forward-lookinginformation includes, but is not limited to, statements regarding theintended use of proceeds of the Loan, the completion of environmentalremediation and receipt of a Certificate of Compliance, theadvancement and timing of the Company’s subdivision and developmentactivities, repayment of the Loan from project proceeds, and theCompany’s ability to obtain future financing on acceptableterms.

Forward-looking information is based on management’sreasonable assumptions, expectations, and estimates as of the date ofthis news release, including assumptions regarding regulatoryapprovals, construction timelines, costs, availability of contractors,market conditions, and the Company’s ability to meet its obligationsunder the Loan. Such forward-looking information is subject to anumber of risks and uncertainties that may cause actual results todiffer materially from those expressed or implied, including but notlimited to delays in construction or permitting, cost overruns,changes in regulatory requirements, adverse market conditions, andgeneral economic, financial, and operational risks.

Readers are cautioned not to place undue reliance onforward-looking information. Except as required by applicablesecurities laws, the Company does not undertake to update or reviseany forward-looking information to reflect new events orcircumstances.

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