Mr. Brad Taillon reports

PERMEX PETROLEUM ANNOUNCES US$2,000,000 PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Permex Petroleum Corp. has arranged a private placement of convertible debenture units of the company for gross proceeds of $2-million (U.S.).

Pursuant to the offering, the company will issue 2,000 units to a single arm's-length subscriber, with each unit consisting of one convertible debenture in the principal amount of $1,000 (U.S.) and 393 common share purchase warrants. 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 $2.54 (U.S.).

The debentures will mature one year from the date of issuance. 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 $2.54 (U.S.), subject to the approval of the Canadian Securities Exchange.

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.). Any conversion of the debentures that would exceed certain dilution thresholds is subject to the appropriate approvals, including shareholder approval if required by the policies of the CSE.

The proceeds of the offering are expected to be used for general working capital purposes. No finders' fees will be paid in connection with the offering.

The conversion price and exercise price of the warrants was determined at the time discussions commenced between the company and subscriber and is based on the closing price of the company's shares on the CSE on May 7, 2025. The company obtained confidential price protection from the CSE for the conversion price and exercise price of the warrants on May 7, 2025.

The company confirms that there has been no undisclosed material information with respect to the company between May 7, 2025, and the date of this news release and is not aware of any reason for the recent volatility in its trading price.

The company intends to close the offering following the five-day notice period required by CSE policy.

About Permex Petroleum Corp.

Permex Petroleum is a uniquely positioned junior oil & gas company with assets and operations across the Permian basin of West Texas and the Delaware subbasin of New Mexico. The company focuses on combining its low-cost development of held-by-production assets for sustainable growth with its current and future blue-sky projects for scale growth. The company, through its wholly owned subsidiary, Permex Petroleum U.S. Corp., is a licensed operator in both states and owns and operates on private, state and federal land.

We seek Safe Harbor.