Exhibit 10.1

OPTION TO PURCHASE ASSETS

This Option to Purchase Assets (the “Agreement”) is made and entered into as of August _31^st , 2025 (the “Effective Date”), by and between:

SELLER(S):

Navidad Petroleum LLC (“Navidad”)

Peach Creek Petroleum LLC (“Peach”)

8 Country Squire Road.

Natchez, MS 39120

TMR Exploration

Quadrangle, L.L.C. (“Quadrangle”)

1324 N. Hearne,

Shreveport, LA 71107

(Navidad, TMR, Peach and Quadrangle each, a “Seller Party” and, collectively, the “Seller”)

BUYER:

Permex Petroleum Corporation

2950 North Loop West, Suite 500

Houston, Texas 77092
(“Buyer”)

Each a “Party” and collectively the “Parties.”

RECITALS

WHEREAS, Seller is the owner, and/or representative of owners, of certain oil and gas assets, as described in Exhibit A attached hereto and incorporated herein (the “Assets”); and

WHEREAS, Buyer desires to obtain from Seller an option to purchase the Assets on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:

1. GRANT OF OPTION & CONSIDERATION

For consideration of Seventy-Five Thousand Dollars, $75,000.00, (“the Option Payment”) Seller hereby grants to Buyer the exclusive right and option (the “Option”) to purchase the Assets, subject to the terms and conditions of this Agreement. The Option Payment will be paid to Seller concurrent with execution of this Agreement and may be refunded to Buyer in certain circumstances, as set forth in this Agreement. The Option Payment shall be applied against the Purchase Price upon closing of the Definitive Agreements (as defined below) and should be considered a deposit against that consideration.

2. OPTION TERM

The term of this Option shall be for a period of six (6) months, commencing on the Effective Date, and expiring on the six-month anniversary of the Effective Date (the “Option Period”), unless earlier terminated as provided herein.

3. OPTION EXERCISE

Buyer may exercise this Option at any time during the Option Period by providing written notice to Seller of its intent to exercise the Option (the “Notice of Exercise”). Upon such exercise, the Parties shall proceed to finalize the terms of the purchase of the Assets as set forth in this Agreement pursuant to the executive and closing of definitive agreements among the Buyer (and/or any subsidiary of Buyer), Seller and any other sellers (the “Other Sellers”) with title to the Assets (the “Definitive Agreements”). If Seller and /or the Other Sellers shall fail to execute Definitive Agreements within 45-days of Buyer’s exercise of the Option (the “Definitive Agreement Date”), then Seller will refund to Buyer the Option Payment and will pay Buyer an additional payment of $50,000.00 USD (“the Break Fee”).

4. PURCHASE PRICE

The purchase price for the Assets shall be $3,000,000.00 dollars (the “Purchase Price”). The purchase price may be paid in the form of cash (USD), Buyer’s common shares or a convertible note(s) issued by Buyer or any combination thereof, to be determined between the Parties at the time of execution of the Definitive Agreements. A minimum of $1,750,000.00 of the total Purchase Price will be in Cash (USD) with the Option Payment being applied against that cash amount of the Purchase Price. Any common shares and/or convertible note(s) will be priced at the market price at the time of the Definitive Agreements are executed, with market price being the 5-day average of the closing price of Buyer’s common shares on the Canadian Stock Exchange and converted to U.S. dollars.

5. NO OBLIGATION TO PURCHASE

Buyer shall have no obligation to exercise the Option and may choose not to purchase the Assets at its discretion, in which case this Agreement shall terminate without further obligation and Seller entitled to retain the Option Payment.

6. TERMINATION

Seller shall have the right to terminate this Agreement at any time upon written notice to Buyer (the “Seller Termination Date”). In the event of termination by the Seller, the Seller shall refund to Buyer the Option Payment and will pay to Buyer the Break Fee.

7. ASSETS

This deal is entered into with the assumption that Seller and the Other Sellers will convey all right, title and interest in the Assets in Exhibit A including all of the right, title and interest from Seller and the Other Sellers. If all of the Assets are not conveyed to Buyer upon closing of the Definitive Agreements, then Buyer will have the right to terminate the Option upon written notice to Seller (the “Buyer Termination Date”) and Seller will refund to Buyer the Option Payment and will pay to Buyer the Break Fee.

8. EXCLUSIVITY

In consideration hereof and of the time and resources that Buyer will devote to the purchase of the Assets and the Definitive Agreement, and the various investigations and reviews undertaken by Buyer, each Seller Party, each of their subsidiaries and each of their respective affiliates, directors, officers, employees, representatives and agents (the “Seller Group”) will not, directly or indirectly, initiate, solicit, entertain, negotiate, accept or discuss, directly or indirectly, or provide any information to any person or entity with respect to any proposal or offer from any person or group of persons other than Buyer and its affiliates (an “Acquisition Proposal”) with respect to a sale of the Assets. Each Seller Party agrees to immediately notify Buyer if any member of the Seller Group receives any indications of interest, requests for information or offers in respect of an Acquisition Proposal, and will communicate to Buyer in reasonable detail the terms of any such indication, request or offer, and will provide Buyer with copies of all written communications relating to any such indication, request or offer.

9. JOINT AND SEVERAL OBLIGATIONS

The obligations to refund to Buyer the Option Payment and pay to Buyer the Break Fee are joint and several obligations of each Seller Party executing this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

EXHIBIT A

Description of Assets

All right, title and interest in the following wells and leases

WELLS

LEASES