Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 101

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 and Mr. Overholtzer ended, and on January 1, 2025, the Company entered
into an independent contractor agreement with Mr. Overholtzer, under which he continues to serve as the Chief Financial Officer of the
Company and is paid a monthly fee of $12,500; the initial term of the agreement is for one year and will be automatically renewed unless
either party provides a 30-day notice prior to the expiration of the agreement.

Loan
to Trio Canada

As
of April 4, 2025, the Company entered into a Loan and Note Purchase Agreement (the “Loan Agreement”) with Trio Canada, whereby
it made a loan (the “Subsidiary Loan”) to Trio Canada in the amount of $1,131,000 (the “Loan Amount”); in return, Trio
Canada issued to the Company a three-year promissory note with a maturity date of April 4, 2028 in the principal amount of $1,131,000
(the “Subsidiary Note”). The outstanding principal amount of the Subsidiary Note accrues interest at a rate of 12% per annum.

Under
the terms of the Loan Agreement, $585,000 of the Loan Amount is required to be used to pay the remaining cash amount payable to Novacor
in connection with the Novacor Acquisition; the remainder of the Loan Amount is to be used for ongoing operating costs of Trio Canada.
As of April 30, 2025, $334,081 has been used for consideration in the Novacor acquisition, and
the remaining, unused portion of the subsidiary loan is $796,919.

    15

NOTE
7 – COMMITMENTS AND CONTINGENCIES

From
time to time, the Company is subject to various claims that arise in the ordinary course of business. Management believes that any liability
of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results
of operations, or cash flows of the Company.

Unproved
Property Leases

The
Company holds various leases related to the unproved properties of the South Salinas Project; two of the leases are held with the same
lessor. The first lease, which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of then-current force majeure
status for an additional, uncontested twelve months, during which we would be