Mr. Mehran Ehsan reports

PERMEX PETROLEUM ANNOUNCES CLOSING OF CONVERTIBLE DEBENTURE FINANCING

Permex Petroleum Corp. has closed its previously announced private placement of convertible debenture units of the company for gross proceeds of $500,000 (U.S.).

Pursuant to the offering, the company issued 500 units, with each unit consisting of one convertible debenture in the principal amount of $1,000 (U.S.) and one common share purchase warrant. Each warrant is 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 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. The debentures will rank senior to all other existing and future indebtedness of the company, and are secured by a general security agreement over certain assets of the company.

At any time during the term of the debentures, 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 company intends to use the proceeds of the offering for general working capital purposes, as well as potential mergers and acquisitions. ThinkEquity LLC is adviser to Permex in pursuing strategic alternatives.

All securities issued in the offering are subject to resale restrictions imposed by applicable laws or regulation, including a statutory hold period expiring four months and one day from the date of closing of the offering.

We seek Safe Harbor.