Dallas, Texas--(Newsfile Corp. - February 22, 2023) - Permex Petroleum Corporation (CSE: OIL) (OTCQB: OILCD) (FSE: 75P0) ("Permex" or the "Company"), an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties on private, state and federal land in the United States, has received an updated independent reserve evaluation from MKM Engineering (the "Reserve Report"), effective November 21, 2022, that uses proved and probable reserve classifications that conform to the criteria established by the United States Securities and Exchange Commission (the "SEC").

Reserve Evaluation

According to the Reserve Report, the net present value of net future revenues, (net of royalties, operating costs and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% ("NPV 10%" or "PV10") of the total proved plus probable reserves is estimated at $428 million, or $221.53 per outstanding share (basis).

• Reserves comprised of 93% light oil, and x7% natural gas
  
  
• Total Proved Reserves of 9.2 million BOE and PV10 value of $198 million, an increase of 51% Year-over-Year
  
  
• Total Probable Reserves of 17.8 million BOE and PV10 value of $230 million, an increase of 46% Year-over-Year
  
  
• Total Proved & Probable Reserves of 27.0 million BOE and PV10 value of $428 million, an increase of 48% Year-over-Year

Summary of Net Oil and Gas Reserves and Net Present Value of Revenue:

Before Income Taxes as of September 30, 2022 - Forecast Prices and Costs

1. Natural Gas: 5.98 Mcf/boe
2. Report used McDaniel's & Associates price forecast effective September 30, 2022

"This Reserve Report reconfirms the large reserves in place, and we remain focused on drilling and developing while redeploying the expected strong cash-flow from the completed wells back into drilling programs," said Mehran Ehsan, President and CEO of Permex. "We look forward to providing additional updates as we continue to ramp up our drilling operations to drive organic growth for our Company and sustainable value for our shareholders."

The Reserve Report uses prices calculated using oil and natural gas price parameters established by current guidelines of the SEC and accounting rules based on the unweighted arithmetic average of oil and natural gas prices as of the first day of each of the 12 months ended on the given date. A full copy of the Reserve Report was filed with the SEC as an exhibit to the Company's Form 10-K for the year ended September 30, 2022.

About Permex Petroleum Corporation

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 US Corporation, is a licensed operator in both states, and owns and operates on private, state and federal land. For more information, please visit www.permexpetroleum.com.

Forward-Looking Statements

Statements in this press release may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws as well as applicable Canadian securities laws. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance and are subject to significant risks and uncertainty, including but not limited to, uncertainties inherent in estimating natural gas and oil reserves and in projecting future rates of production. These forward-looking statements should, therefore, be considered in light of various important factors, including those set forth in Company's reports that it files from time to time with the SEC and the Canadian securities regulators which you should review. When used in this press release, words such as "will," "could," "plan," "estimate", "expect", "intend", "may", "potential", "believe", "should" and similar expressions, are forward-looking statements. Forward-looking statements may include, without limitation, statements relating to the Company's financial condition and operating results, legal, economic, business, competitive and/or regulatory factors affecting Permex's businesses, the Company's plan to increase drilling operations and to grow organically, the Company's future cash flow position, and any other statements regarding events or developments Permex believes or anticipates will or may occur in the future. These forward-looking statements should not be relied upon as predictions of future events, and the Company cannot assure you that the events or circumstances discussed or reflected in these statements will be achieved or will occur. If such forward-looking statements prove to be inaccurate, the inaccuracy may be material. You should not regard these statements as a representation or warranty by the Company or any other person that it will achieve its objectives and plans in any specified timeframe, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any obligation to publicly update or release any revisions to these forward- looking statements, whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Contact Information

Permex Petroleum Corporation

Mehran Ehsan
President, Chief Executive Officer & Director
(469) 804-1306

Gregory Montgomery
CFO & Director
(469) 804-1306

Or for Investor Relations, please contact:

Dave Gentry
OILCF@redchip.com

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