Mr. Brad Taillon reports

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

Further to Permex Petroleum Corp.'s press releases dated July 4, 2025, the company has closed a private placement of convertible debenture units of the company for gross proceeds of $2-million (U.S.).

Pursuant to the offering, the company issued 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 (the maturity date) 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, or, if elected by the holder, cash, 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 which would exceed certain dilution thresholds is subject to the appropriate approvals, including shareholder approval if required by the policies of the Canadian Securities Exchange.

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

Early warning disclosure under Canadian securities laws

Pursuant to the offering, Kent Lindemuth acquired 2,000 units for aggregate consideration of $2-million (U.S.). Prior to the acquisition, Mr. Lindemuth owned $3-million (U.S.) principal amount of previous debentures and 1,569,000 share purchase warrants, representing 75.24 per cent of the issued and outstanding shares on a partially diluted basis assuming the exercise of Mr. Lindemuth's previous debentures and warrants into shares. Immediately following the acquisition of the units in the offering, Mr. Lindemuth now owns $5-million (U.S.) principal amount of debentures and 2,355,000 warrants, representing 81.71 per cent of the issued and outstanding shares on a partially diluted basis assuming the exercise of Mr. Lindemuth's debentures and warrants into shares. The units were acquired by Mr. Lindemuth for investment purposes. Mr. Lindemuth may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans, and/or other relevant factors.

This disclosure is issued pursuant to National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning reports will be filed by Mr. Lindemuth in accordance with applicable securities laws and will be available on the company's issuer profile on SEDAR+.

About Permex Petroleum Corp.

Permex Petroleum is a uniquely positioned junior oil and gas company with assets and operations across the Permian basin of West Texas and the Delaware Sub-Basin 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.

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