Mr. Brad Taillon reports

PERMEX PETROLEUM CORPORATION ANNOUNCES ENTRY INTO OPTION AGREEMENT FOR RIGHT TO ACQUIRE ENERGY PRODUCING ASSETS IN CONNECTION WITH BITCOIN MINING STRATEGY

Permex Petroleum Corp. has entered into an option agreement to purchase producing oil and natural gas wells from an ownership group including Navidad Petroleum and TMR Exploration. The assets include over 50 producing wells and gathering facilities, as well as over 20,000 net mineral acres of undeveloped leasehold interests.

Pursuant to the terms of the option agreement, in consideration of a $75,000 (U.S.) cash payment, Permex received a six-month option to acquire all of the group's interest in certain producing oil and natural gas assets for total consideration of $3-million (U.S.) in a combination of cash and stock, including a minimum of $1.75-million (U.S.) in cash. If the group terminates the option, Permex will receive a refund of the $75,000 (U.S.) option payment as well as the break fee payment of $50,000 (U.S.) from the group.

"We believe this option gives Permex the ability to not only potentially expand its gas production and behind pipe reserves but could also further Permex's strategy of co-developing hydrocarbon and bitcoin assets across producing oil and gas properties. The assets covered by this option currently produce approximately four MW of power, and we believe that, if we decide to exercise this option, the underlying assets will be turnkey prepared for the deployment of infield bitcoin mining operations," said Permex chief executive officer Brad Taillon.

"Since Permex's existing asset base reserves are weighted heavily towards oil, in our opinion, diversifying our asset base with the possible acquisition of an additional source of stable gas production with significant behind-pipe gas reserves makes fiscal sense as such acquisition could give the company the opportunity to develop significant reserves across both hydrocarbon categories," Mr. Taillon added.

Permex intends to work with its bitcoin mining partner, 360 Energy Inc., to continue the planning process for the potential deployment of bitcoin mining across the assets the company currently holds, as well as assets the company may acquire in the future.

About Permex Petroleum Corp.

Permex is a uniquely positioned junior oil and gas company with assets and operations across the Permian basin. The company is focused on the development of oil and gas assets with a strategic emphasis on assets for bitcoin mining operations alongside hydrocarbon production.

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