Mr. Mehran Ehsan reports

PERMEX PETROLEUM ANNOUNCES WARRANT REPRICING AND EXERCISE INCENTIVE PROGRAM

Permex Petroleum Corp. has implemented an early warrant exercise program intended to encourage the exercise of up to 1,015,869 unlisted common share purchase warrants of the company, which were issued as part of the company's private placements.

Warrant Repricing and Exercise Incentive Program

Pursuant to the Program, the Company will amend the exercise price of the following Eligible Warrants to USD$2.86 per Eligible Warrant, commencing on May 18, 2023, at 9:00 a.m. (Vancouver time) and expiring on June 16, 2023 at 5:00 p.m. (Vancouver time) (the "Early Exercise Period"):

In addition to the repricing, the Company will also offer, to each holder of Eligible Warrants (the "Warrant Holders") who exercises the Eligible Warrants during the Exercise Warrant Period, the issuance of one additional common share purchase warrant for each Eligible Warrant exercised during the Early Exercise Period (each, an "Incentive Warrant"). Each Incentive Warrant entitles the Warrant Holder to purchase one common share of the Company (each, a "Share") for a period of 5 years from the date of issuance, at a price of USD$4.50 per Share. The Company may also issue pre-funded common share purchase warrants (each, a "Pre-Funded Warrant") in lieu of Shares, upon the exercise of Eligible Warrants, to certain Warrant Holders. Each Pre-Funded Warrant will allow the holder thereof to acquire one Share at a nominal exercise price of USD$0.01 and will not expire.

The Eligible Warrants which remain unexercised following the completion of the Early Exercise Period will continue to be exercisable, on the terms existing immediately prior to the implementation of the Program, and no further Incentive Warrants will be granted on the exercise of the Eligible Warrants following the completion of the Early Exercise Period. Permex anticipates using the proceeds from the exercise of any Eligible Warrants for working capital purposes.

The terms and conditions of the Program and the method of exercising Eligible Warrants pursuant to the Program are set forth in a letter which is being delivered to the last known contact of each Warrant Holder. Warrant Holders who wish to participate in the Program will be required to deliver the applicable warrant exercise documents to the Company to exercise their respective Eligible Warrants and in consideration for the issuance of the Incentive Warrants.

The Incentive Warrants, and any securities issuable on the exercise thereof, will be subject to a four-month hold period from the date of issuance pursuant to applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada. None of the securities issued in connection with the Program will be registered upon issuance under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission to register the Shares within 30 days of the end of the Early Exercise Period. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful. The Early Exercise Period will continue for at least 20 business days as required by Rule 14e-1(a) under the United States Securities Exchange Act of 1934, as amended.

No insiders will be participating in the Program and the Program is subject to approval from the Canadian Securities Exchange.

We seek Safe Harbor.