Company: NMEX
Filing Date: 2025-11-26
Form Type: 10-K/A
Source: 0001437749-25-036462
Chunk: 22

Company: NORTHERN MINERALS & EXPLORATION LTD.
Filing Date: 2025-11-26
Form: 10-K/A
Chunk 22
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’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

F-8

NOTE 4—OIL AND GAS PROPERTY

On April 11, 2025, the Company and Lost Creek Acquisitions, LLC entered into a Purchase Agreement, whereby the Company purchased the rights to the Phase I Wells. The purchase price is $ cash and shares of common Stock. The shares were valued at $, the closing stock price on April 11, 2025, for a value of $. As of April 11, 2025, $ of the $ has been paid and the shares are disclosed as common stock to be issued. The total purchase price was $, which has been capitalized to the balance sheet.

NOTE 5—IMPAIRMENT OF OIL AND GAS PROPERTIES

During the year ended July 31, 2025, the Company reviewed its oil and gas properties for indicators of impairment in accordance with ASC 360-10, Property, Plant, and Equipment. As a result of revised reserve estimates, management determined that the carrying value of certain properties exceeded their estimated undiscounted future net cash flows. The Company measured the impairment based on the estimated fair value of the affected properties, determined using discounted cash flow techniques and Level 3 inputs, including estimated future production volumes, commodity prices, operating costs, and discount rates.

Accordingly, the Company recognized an impairment loss of $ during the year ended July 31, 2025, which is included in impairment expense within the statement of operations. The carrying value of the impaired properties was reduced to $ representing their estimated fair value as of the measurement date.

NOTE 6—SUPPLEMENTAL OIL AND GAS INFORMATION (Unaudited)

The following supplemental information is presented in accordance with FASB ASC Topic 932, Extractive Activities—Oil and Gas, and the SEC’s Regulation S-K, Subpart 1200, which require disclosures of proved oil and gas reserve quantities and the standardized measure of discounted future net cash flows.

The standardized measure and PV-10 values presented are not intended to represent the fair value of the Company’s reserves.

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows relating to the Company’s proved reserves as of July 31, 2025 is presented below. The estimates are based on the 12-month average of the first-day-of-the-month prices for oil and natural gas, held constant throughout