Mr. Mehran Ehsan reports

PERMEX PETROLEUM PROVIDES CLARIFICATION ON PRIOR NEWS RELEASE ISSUED FEBRUARY 28, 2024 ANNOUNCING CONVERTIBLE DEBENTURE FINANCING

Permex Petroleum Corp. is issuing this news release to clarify certain statements contained in its earlier news release issued today with respect to the company's convertible debenture financing.

The company inadvertently issued the initial news release, and advises that the initial news release should be disregarded in its entirety and replaced by the following disclosure regarding the convertible debenture financing.

Permex Petroleum announces convertible debenture financing

Permex Petroleum intends to complete a private placement of convertible debenture units of the company for gross proceeds of up to $20-million (U.S.). Each unit will consist of one convertible debenture in the principal amount of $1,000 (U.S.) and one common share purchase warrant. Each warrant will be exercisable for a period of five years from the date of issuance for one common share of the company at an exercise price of $4.08 (U.S.).

The debentures will mature on the earlier of: (i) one year from the date of issuance or (ii) three months from the date of issuance if the company does not enter into a securities exchange, unit purchase or merger agreement with a third party to the reasonable satisfaction of a majority of the holders of debentures. The debentures will bear simple interest at a rate of 10 per cent, payable on the maturity date or the date on which all or any portion of the debenture is repaid. Interest will be paid in cash or shares based on a conversion price of $3.40 (U.S.), subject to the approval of the Canadian Securities Exchange.

At any time during the term, a holder of debentures may elect to convert the outstanding principal and any accrued and unpaid interest thereon into shares at the conversion price. The debentures will automatically convert into shares at the conversion price in the event the company completes a financing of shares for aggregate gross proceeds of at least $7.5-million (U.S.).

The proceeds of the offering are expected to be used for general working capital purposes as well as potential mergers and acquisitions. ThinkEquity LLC is adviser to Permex in pursuing strategic alternatives.

The units being offered in the offering will be offered only to persons who either qualify as an accredited investor as defined in Rule 501(a) of Regulation D under the United States Securities Act of 1933, as amended, or who are located outside of the United States and are not a U.S. person as defined in Regulation S under the U.S. Securities Act. In connection with the offering, the company may pay finders' fees as permitted by the policies of the exchange. All securities issued pursuant to the offering and underlying securities 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.

We seek Safe Harbor.