Mr. Brad Taillon reports

PERMEX PETROLEUM CORPORATION ANNOUNCES STRATEGIC RELATIONSHIP WITH 360 ENERGY TO COLLABORATE ON IN-FIELD COMPUTING INFRASTRUCTURE TO DEVELOP HYDROCARBONS AND CRYPTOCURRENCY

Permex Petroleum Corp. has entered into a non-binding letter of intent (LOI) with Texas-based 360 Energy Inc. 360 Energy is a next-generation oil field services provider, specializing in the delivery and operations of turnkey, mobile gas offtake solutions that capture and monetize natural gas at the source.

Pursuant to the terms of the LOI, Permex will work with 360 Energy to identify possible sites for the potential deployment of 360 Energy's in-field computing (IFC) technology, an off-grid bitcoin mining operation powered solely by natural gas, and requiring no existing gas, electric or network infrastructure. The IFC system is designed to convert produced natural gas directly into electricity to power 360 Energy's on-site data centres, which management believes has the potential to enable Permex to realize higher returns from natural gas volumes that would otherwise be flared, stranded or sold at likely lower prices.

"We believe that a potential partnership with 360 Energy would allow Permex to move beyond traditional monetization models and embrace transformative technology that could enhance both asset value by capturing higher realizations on natural gas, as well as environmental performance by lowering methane emissions," said Bradley Taillon, chief executive officer of Permex. "We believe 360 Energy's expertise in deploying scalable, pad-based computing systems could allow Permex to extract additional value from the company's current and future gas production while positioning Permex at the forefront of innovation in the energy sector," continued Mr. Taillon. "This potential collaboration reflects a broader strategy by Permex to integrate disruptive technologies into the company's core operations, and to rethink how oil and gas assets are valued, developed and monetized in a rapidly changing energy landscape."

Permex intends to incorporate IFC technology into its asset evaluation process and capital allocation strategy moving forward, and the parties are working toward entering a binding definitive agreement that is expected to be based on the terms outlined in the LOI. "We believe IFC technology has the potential to transform how hydrocarbons are valued, and Permex plans to be at the forefront of that transformation leading the way for how hydrocarbons and digital assets can be co-developed," said Mr. Taillon. "We currently estimate that the deployment of IFC units could capture natural gas realizations upwards of $10 per mcf, while eliminating stranded and flared gas through localized utilization and potentially unlocking development of our fringe basins that currently have limited midstream access," concluded Mr. Taillon.

The LOI is non-binding to either Permex or 360 Energy, and there can be no assurances that Permex will enter into a definitive binding agreement with 360 Energy in any particular time period or at all, or on terms similar to those set forth in the LOI.

About Permex Petroleum Corp.

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

About 360 Energy Inc.

360 Energy provides next-generation solutions for natural gas offtake and monetization in the oil and gas industry. Its proprietary IFC platform captures stranded, flared or uneconomic natural gas, and converts it into reliable power for energy-dense computing, directly at the source. Deployable anywhere, IFC helps oil and gas operators capture stranded gas, maximize oil production and monetize molecules that would otherwise be wasted. 360 Energy is at the forefront of integrating advanced computing with traditional energy production -- on a mission to help operators earn more and flare less.

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