Comet Industries Announces Short-Term Debt Financing to Fund Iron Mask Project in Kamloops, BC

(TheNewswire)

Kamloops, BC – TheNewswire- March 20, 2026, Comet Industries Ltd.(“Comet” or the “Company”) announces that it has securedapproximately $742,000 in short term loans (collectively, the“Loans”) to provide construction financing in relation to thesubdivision of its Iron Mask Project.  

The Loans were advanced in accordance with the termsand conditions of two promissory notes (collectively, the“PromissoryNotes”) dated March 17, 2026 between theCompany and each of Schore Holdings Ltd. (“Schore”) andSeamark Development Corporation (“Seamark” andtogether with Schore, the “Lenders”).  The Loans are unsecuredobligations of the Company, bear interest at a rate of 10%/annum andmature on March 17, 2027 (the “Maturity Date”). The Company is entitled toprepay all, but not less than all, amounts owing under the Loans priorto the Maturity Date, subject to a minimum interest payment of $35,000to each Lender.

Related Party Transaction

The Loans constitute a“related party transaction” as such term is defined underMultilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions(“MI61-101”) as Schore is a corporation controlledby Michael O’Reilly, a director and officer ofthe Company, and Seamark is a corporation controlled by Jess Alfonso,a director of the Company. The Company has relied on exemptions from the formal valuationand minority shareholder approval requirements of MI 61-101 containedin sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of relatedparty participation in the Loans as neither the fair market value (asdetermined under MI 61-101) of the subject matter of, nor the fairmarket value of the consideration for, the transaction, insofar as itinvolved the related party, exceeded 25% of the Company's marketcapitalization (as determined under MI 61-101). The Loans were approved by the board of directors of the Company, withMr. Alfonso and Mr. O’Reilly abstaining from the vote in respectthereof. The Company did not file a material change report in respectof the related party transaction at least 21 days before the closingof the Loans as confirmation of the insiders’ participation thereinwas not confirmed until shortly prior to the completion of theLoans.

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. TheCompany 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 statements that constituteforward-looking statements and forward-looking information, as definedunder applicable Canadian securities laws (collectively,“forward-looking statements”). The words “will”, “intend”,“anticipate”, “could”, “should”, “may”, “might”,“expect”, “estimate”, “forecast”, “plan”,“potential”, “project”, “assume”, “contemplate”,“believe”, “shall”, “scheduled”, and similar terms and allstatements that are not statement of historical facts areforward-looking.

Forward-looking statements are not guarantees of futureperformance, actions, or developments and are based on expectations,assumptions and other factors that management currently believes arerelevant, reasonable, and appropriate in the circumstances, includingassumptions regarding regulatory approvals, construction timelines,costs, availability of contractors, market conditions, and theCompany’s ability to meet its obligations. Such forward-lookinginformation is subject to a number of risks and uncertainties that maycause actual results to differ materially from those expressed orimplied, including but not limited to delays in construction orpermitting, cost overruns, changes in regulatory requirements, adversemarket conditions, and general economic, financial, and operationalrisks.

Readers are cautioned not to place undue reliance onforward-looking statements. The forward-looking statements containedin this news release are made as at the date hereof and the Companydoes not undertake any obligation to update publicly or to revise anyof the included forward-looking statements, whether as a result of newinformation, future events, or otherwise, except as may be required byapplicable securities laws. 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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