Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 153

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 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 July 31, 2025, $700,665 has been used for consideration in the Novacor acquisition, and the remaining, unused portion of the subsidiary
loan is $430,335.

    16

NOTE
7 – COMMITMENTS AND CONTINGENCIES

Legal
Matters

From
time to time, the Company may be subject to claims and legal proceedings arising in the ordinary course of business. Management currently
believes that any potential liabilities arising from such matters will not have a material adverse effect on the Company’s financial
position, results of operations, or cash flows.

Unproved
Property Leases

South
Salinas Project

The
Company holds various leases related to unproved properties in the South Salinas Project, including two leases with the same lessor:

    ●
    Lease
    1 (8,417 acres): Amended on May 27, 2022 to extend force majeure status for an additional uncontested twelve months, releasing the
    Company from evidencing force majeure conditions during that period. A one-time, non-refundable payment of $252,512 was made and
    capitalized as part of oil and gas property as of October 31, 2022. The force majeure status was extinguished following the drilling
    of the HV-1 well. Continued operations and oil production at the HV