Forward-Looking Statements

This report on Form 10-Q contains certain forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.

These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs and the risk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements. The following discusses our financial condition and results of operations based upon our unaudited financial statements which have been prepared in conformity with accounting principles generally accepted in the United States. It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

As used in this quarterly report, the terms "we", "us", "our" and "our company" mean Northern Minerals & Exploration Ltd., unless otherwise indicated.





General Overview

We are an emerging natural resource company operating in oil and gas production in central Texas and exploration for gold and silver in northern Nevada.





Current Business

Refer to NOTE 4 and NOTE 5 for property information.





Results of Operations

Results of Operations for the Three Months Ended October 31, 2021 and 2020

We had not revenue for the three months ended October 31, 2021 and 2020.

Officer compensation

Officer compensation was $6,600 and $6,600 for the three months ended October 31, 2021 and 2020, respectively. Officer compensation is paid to our CFO.

Consulting - related party

Consulting - related party services were $15,000 and $15,000 for the three months ended October 31, 2021 and 2020, respectively. Fees of $5,000 per month are paid to Noel Schaefer, Director, but are recorded as consulting fees.

Professional fees

Professional fees were $19,450 and $33,500 for the three months ended October 31, 2021 and 2020, respectively, a decrease of $14,050 or 41%. Professional fees generally consist of legal, audit and accounting expense. The decrease can be attributed to a decrease in audit fees billed during the period.

Mineral property expenditures

Mineral property expenditures were $0 and $1,000 for the three months ended October 31, 2021 and 2020, respectively, a decrease of $1,000. The decrease in in the current period can be attributed to a decrease in expenditures while the Company pursues additional funding.






         14

  Table of Contents




General and administrative

General and administrative expense was $10,447 and $5,121 for the three months ended October 31, 2021 and 2020, respectively, an increase of $5,326 or 104%. The increase is mainly due to an increase in transfer agent fees.

Interest expense

During the three months ended October 31, 2021 and 2020 we had interest expense of $1,984 and $3,979, respectively.

Other income

During the three months ended October 31, 2020, we had other income of $25,000 that was received as a one-time payment pursuant to the terms of a joint venture agreement the we entered into.

Net Loss

For the three months ended October 31, 2021, we had a net loss of $53,481 as compared to a net loss of $40,200 for the three months ended October 31, 2020, an increase of $1,995, or 33%.

Liquidity and Financial Condition

Operating Activities

Cash used by operating activities was $50,153 for the three months ended October 31, 2021. Cash used for operating activities was $60,899 for the three months ended October 31, 2020.





Financing Activities

Net cash provided by financing activities was $68,000 for the three months ended October 31, 2021. We received $68,000 from the sale of our common stock. Net cash provided by financing activities was $75,000 for the three months ended October 31, 2020. In the prior period we repaid $5,000 of a loan payable and sold common stock from cash proceeds of $80,000.

We had the following loans outstanding as of October 31, 2021:

On April 16, 2017, the Company executed a promissory note for $15,000 with a third party. The note matures in two years and interest is set at $3,000 for the full two years. As of October 31, 2021, there is $15,000 and $5,250 of principal and accrued interest, respectively, due on this loan. As of July 31, 2021, there is $15,000 and $4,875 of principal and accrued interest, respectively, due on this loan. This loan is currently in default.

On June 11, 2020, a third party loaned the Company $14,000. On September 9, 2020, the Company repaid $5,000 on this loan. On March 3, 2021, the party loaned another $5,000 to the Company. The loan is unsecured, non-interest bearing and due on demand.

As of October 31, 2021, the Company owed $5,000 to a third party. The loan is unsecured, non-interest bearing and due on demand.

During the year ended July 31, 2020, a third party loaned the Company $60,000. The loan is unsecured, bears interest at 8% per annum and matures on September 1, 2021. As of October 31, 2021, there is $9,955 of interest accrued on this note.

We will require additional funds to fund our budgeted expenses over the next twelve months. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is still no assurance that we will be able to maintain operations at a level sufficient for an investor to obtain a return on his investment in our common stock. Further, we may continue to be unprofitable. We need to raise additional funds in the immediate future in order to proceed with our budgeted expenses.






         15

  Table of Contents

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.





Critical Accounting Policies

Refer to Note 2 of our financial statements contained elsewhere in this Form 10-Q for a summary of our critical accounting policies and recently adopting and issued accounting standards.

© Edgar Online, source Glimpses