Dane Adam Williams, 41, faced Newcastle District Court via video-link from Clarence Correctional Centre on Thursday afternoon, as Judge Roy Ellis handed down the penalty.

The court heard that Williams was released from custody at Cessnock Correctional Centre on the morning of March 29, 2022.

While he was paroled to a boarding house in Sydney, Judge Ellis said the Queensland man was "shown the door" and released in the Hunter - left to make his own way from Cessnock to Sydney, despite having little means or local knowledge.

Only three hours after becoming free, Williams held-up Liquorland in Cessnock CBD while armed with a 20cm-long kitchen knife.

He stole a carton of premixed gin cans and $450 cash from the store, which was being run by a lone female attendant.

After he was then rejected by a nearby driver when he asked for a "lift", Williams got into the passenger seat of another car occupied by a man who was waiting for his wife to finish shopping.

The court heard the man refused to drive Williams anywhere at first, but changed his mind after he saw the knife.

Williams cried and apologised while in the car - he told the driver he had "never done anything like this before".

The driver wanted to take Williams to a train station, but the parolee asked to be let out on the roadside.

"I'm sorry I had to put you through that, but I was desperate to get out of town," Williams said to the driver as he got out of the vehicle and left two cans of gin for him.

Williams made his way to a service station at Kearsley where he stole a red Lexus sedan, which was being refuelled by an 85-year-old man.

But before Williams could drive away in the vehicle, the elderly man repeatedly opened the door and punched him multiple times over several minutes as Williams sat in the driver's seat.

CCTV footage of the cajacking was played to the court on Thursday.

Judge Ellis said it appeared Williams restrained himself from using significant violence against the 85-year-old.

He was arrested later that day when the Lexus was spotted on the M1 at Beresfield.

Williams was released from jail to participate in the Balund-a rehabilitation program before he was sentenced, but was kicked out in March after he twice failed a drug test.

Judge Ellis gave Williams a 25 per cent discount on his penalty because he pleaded guilty at the earliest opportunity.

With the sentence backdated to account for time he has already spent in custody for these crimes, he will be first eligible for parole in October.