EXECUTIVE SUMMARY

NORTHERN MINERALS & EXPLORATION LTD

EXECUTIVE SUMMARY

 

The Company:

Northern Minerals & Exploration Ltd. (“NMEX” or the “Company”) is an emerging natural resource company dedicated to building shareholder value through cash flow from oil and gas production in central Texas and exploration for gold and silver on the Winnemucca Mountain property in northern Nevada.

Corporate Background:

NMEX was incorporated on December 11, 2006 under the laws of the State of Nevada. Its fiscal year end is July 31st,, is a reporting entity to the Securities Exchange Commission and is current in its quarterly and audited filings. The Company had a name change and share consolidation of 10 for 1 in August 2013.

 

Corporate Oil and Gas Strategy:

Management’s strategy is to take advantage of the recent downturn in oil and gas prices by acquiring properties with established production and upside potential for improvement in production. We believe the best way for us to generate value is to grow the business by identifying, acquiring and developing resource properties/projects in known producing areas within our niche operating area. Management’s strategy includes but is not limited to the following:

  1. Establish a solid cash flow foundation from low risk oil and gas projects.
  2. Place into production existing wells on leases acquired.
  3. Seek additional leases and/or drilling prospects with low risk preferably with in-field drilling.
  4. Purchase existing production with un-drilled locations.
  5. Pursue strategic acquisitions with significant oil & gas potential to joint venture and/or market.

 

Management’s niche area of operations is central Texas where its team has over 50 years’ experience in drilling,completing, acquiring and operating oil and gas wells. Our team is focused on taking a very conservative approach in its initial stages of development to build a solid positive cash flow.

 

Summary of Oil & Gas Projects:

Coleman County, Texas – Three well rework/recompletion project:

In October, 2014 the Company entered into an agreement to acquire a 75% working interest (56.25% Net Revenue Interest) in the J.E. Richey lease. The J.E Richey lease is located in a very prolific multiple pay area originally discovered by ARCO in the early 1980’s. This lease area has six known productive formations within the immediate area. This lease offers a conservative approach to building oil and gas production through re-working and re- completing existing wells coupled with spacing allowable for new drilling of 2 or more wells.

The existing three wells on the lease are fully equipped with downhole pumps, rods, tubing, pump jacks, well head and surface equipment including flow lines, production tanks, meter connections and gas gathering pipelines of particular interest on this lease is the Concho Richey #1 well which is located due west of the Olympia Hale #1 well that has produced more than 65,000 BBLS and over 160 MMCFG from the Gray formation.  The Gray formation has not been opened in the Concho Richey well and its log characteristics are very similar to those of the Olympia Hale well.

In March, 2015 the Company entered into an agreement to sell a 37.5% (28.125% NRI) working interest in the 3 wells on the lease for $180,000. The funds are to be used towards the turnkey costs of placing the three wells into production

In May 2015 the Company commenced reworking the J. E. Richey #1 & #3 wells. The following photos were taken of the work being conducted on the J.E. Richey #1 & 3 wells.

The reworking of the J.E. Richey #1 & 3 wells has been completed and these wells are set for production. Work on the third well, the Concho Richey #1 is scheduled for the first week of June, 2015. Upon completion of the work on the Concho Richey #1, the company will start producing these three oil and gas wells into the production tanks and gas gathering pipelines on the lease.

Callahan County, Texas – Shallow Oil Project:

In July, 2014 the Company acquired a 75% working interest (52.5% Net Revenue Interest) in the Isenhower lease. The Isenhower lease has three fully equipped wells completed in the Cook Sandstone at approximately 500 feet. The lease also has one approved water injection well and eight (8) potential undrilled locations. Recent activity on the adjoining leases has renewed the interest in placing the wells back into production. The offsetting leases on the north and west sides of the lease have had 25 new wells drilled on it within the past year to complement the existing wells on those leases. This activity on the adjoining leases is part of a petroleum engineered re-pressuring water-flood program. The target for the re-pressuring water-flood program is the Cook Sandstone which is noted to have excellent porosity and permeability. Our lease is poised in an excellent position to receive benefit from the re-pressuring of the Cook Sandstone by theoperator on the adjoining leases to the north and west sides of our leased acreage. This re-pressuring may significantly improve the production rates on the lease which could have a dramatic effect on the revenues generated from the existing wells and any new wells drilled on our lease. The Company’s plan is to re-work all three of the wells to place them back into production and drill new wells to fully develop the acreage.

Callahan County, Texas – Mississippi Reef Project:

In July, 2014 the Company entered into an agreement to acquire a 60% working interest, (45% net Revenue Interest) in the J. Morgan lease. The J. Morgan lease is located in an area with multiple formations that are known to be oil & gas productive. Of particular interest are the recent Mississippi Reef discoveries in the area. A number of notable Mississippi Reef discoveries have been located using 2D seismic in this area. One of these Mississippi Reef discoveries has produced over 128,000 barrels of oil and 140 MMCF of natural gas in less than 10 years. A 2D seismic survey has been conducted covering the leased acreage reflecting an anomaly of interest.

While the Mississippi Reef is the primary target there are four other productive formations known to produce in the immediate area of the acreage and the possibility of three other formations that are also known to produce in the area. Of particular interest is the Cross Cut formation which was productive on the east side of the lease and could have potential on other parts of the acreage.

Winnemucca Mountain Gold Property

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The Winnemucca Mountain Property (the “Property’) consists of a total 208 unpatented mineral claims in Humboldt County, in northwestern Nevada. Humboldt County is the second largest gold producing county in the United States and hosts numerous past and producing gold mines, including the Getchell (Barrick/Newmont), Marigold (Goldcorp), Lone Tree (Newmont), and Twin Creeks (Newmont). The Property is located about 25 km northwest of the Lone Tree Mine and 30 km southeast of the historic Sleeper open pit mine operated by Amax Gold from 1986 to 1996. Recent exploration at Sleeper has identified an additional resource of over 5 Million ounces of gold and in excess of 60 million ounces of silver.

The Property is located near the northern end of the highly productive Battle Mountain-Eureka mineral trend, and is underlain by Triassic sediments cut by several phases of Cretaceous and Tertiary intrusive and volcanic rocks. Previous exploration on the Winnemucca Mountain Property conducted by Santa Fe Pacific Gold Corp. (now Newmont Mining) between 1988 and 1990, focused on the pediment covered Swordfish zone. Gold mineralization in the Swordfish zone occurs within a northeast trending, low sulfide quartz vein system that extends approximately 670 meters (2,200 feet) along the western flank of claim block. Santa Fe conducted geological mapping, rock sampling, trenching, CSAMT and induced polarization geophysical surveys, collected 286 auger hole bedrock samples, and completed a total of 18,260 meters (52,470.8 feet) in 73 reverse circulation (RC) drill holes, nearly all of which were focused on the Swordfish zone and reported results ranging up to 13.7 m averaging 3.9 g per tonne gold (45 feet averaging 0.137 opt gold). Near the end of Santa Fe’s tenure on the Property, a step-out hole 500 meters (1600 feet) to the northeast of the swordfish zone encountered 69 g/t gold (2.2 opt gold) across 1.5 meters (5 feet) at what is known as the ‘SF Extension’.

This intercept was never followed up on by Santa Fe who relinquished their interest in the Property shortly thereafter.Management considers the untested and pediment covered 500-meter strike between the Swordfish Zone and SF Extension to be a high priority drill target, as well as investigating other areas beyond.In addition to the Swordfish and SF Extension areas, additional exploration targets have been identified and are comprised of multiple outcropping vein-type occurrences reported to carry anomalous gold values that have yet to be explored in detail. Exploration conducted in 1996, which included an induced polarization (IP) survey, is thought to have delineated two new target zones that correlate well with known mineralized areas.

Initial exploration completed by Northern Minerals and Exploration (“Northern”) including geologic mapping, rock sampling and geochemical exploration has shown a series of steeply dipping quartz veins outcroppings which appear to be associated with a major northeast trending, gold-bearing shear zone that is several hundred feet wide and 3,000-5,000 feet in length in the Swordfish Target area on Winnemucca Mountain. Indicating that the total strike length at the Swordfish Target is potentially significantly longer than the 2,200 feet previously outlined by Santa Fe Pacific in the 1990’s.

Results from the Northern’s initial phase of the exploration on the Winnemucca Mountain Property have been combined with available historic data to construct 3D modeling of the potential resource target area and to determine an ideal drilling strategy.

Winnemucca Mountain Property Summary

The Winnemucca Mountain Property covers 3800 acres and is located in an area of numerous past and current gold mines. Two of the most significant are the Sleeper and Hycroft mines, both of which produced over one million ounces of gold during operations from the late 1980’s to the late 1990’s. Both mines are located to the west of Winnemucca Mountain.

Gold and silver were first discovered in the Winnemucca Mining District in 1863, and during the 1860’s several smelters were constructed in the area. Modern exploration began in the 1980’s with mapping, geochemical sampling, geophysics and drilling conducted by several companies including St. Joe, Cordex, Tenneco, and Sante Fe Pacific Gold. By the mid-1990’s over 52,000 feet of drilling had been completed. A large percentage of this drilling was done in the Swordfish Target which is currently being evaluated by the company as a potentially minable deposit. Northern is planning further exploration on the Winnemucca Mountain property with the focus of defining the potential of one million plus ounces of gold equivalent on the Property.

Northern Minerals and Exploration Ltd. currently holds an option to acquire an 80% interest in the Winnemucca Mountain Property.

Management

Howard Siegel – President, CEO, CFO & Director

Howard Siegel is an attorney licensed to practice law in the State of Texas and has been a practicing attorney for over 40 years. He holds a law degree from St. Mary’s University Law School. Mr. Siegel’s law practice includes tax, real estate, and corporate law matters. He previously worked for the Internal Revenue Service, Tenneco, Inc., The Superior Oil Company and Bracewell & Patterson. He has also served as a Director of numerous public and private corporations.

Ivan Webb – Vice President, Director

Ivan Webb is a seasoned and successful entrepreneur, with over 35 years of experience in the oil and gas industry internationally and in the United States. He is experienced with acquiring concessions and leases, drilling new wells and reworking existing wells, well completion, oil and gas production management, working with service companies and regulatory compliance. Internationally he has successfully leased more than 18,000,000 acres. Domestically he has been involved with the acquisition and/or management of more than 250 wells in Kansas, , Oklahoma and Texas. Mr. Webb has also over 40 years of experience in managing or assisting public companies in both the US and Canada with regulatory compliance.

Roger Autrey – Executive Secretary

Roger Autrey, has experience in assisting businesses in the field of international oil and gas with over 20 years sales, marketing and commercial experience acquired through privately operated and publicly traded oil companies. Mr. Autrey is currently active in several oil and gas projects in Australia & Africa. He has been personally responsible for identifying, evaluating and recommending multiple new prospects being offered by governmental agencies, creating sealed bid applications to numerous private and public companies, and involved in private bids resulting in successful awards of over 100,000,000 gross acres, both onshore and offshore farm-in projects. Further, he has been responsible for creating all sales and marketing materials used for farm-in projects for prospective clients and participated in numerous oil and gas conventions globally.

 

Contact Information: 

1301 Avenue M or P.O. Box 31

Cisco Texas 76437

Tel 254-442-2627

Website: www.northernmineralsexploration.com OTCQB Symbol: NMEX

Email: info@northernmineralsexploration.com

 

For further information on NMEX please refer to the Company’s website and the Company’s filings with the Securities Exchange Commission at www.sec.gov

 

Forward-Looking Statements

Some information in this document constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements including the completion of a change of name and share consolidation. The words “may,” “will,” “expect,” “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “project,” “plan,” and similar expressions are intended to identify forward-looking statements. Forward looking statement include but are not limited to statements regarding current and future exploration plans and potential or anticipated exploration results in relation to the Winnemucca Property, and future plans and objectives of Northern Mineral & Exploration Ltd. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Northern Minerals & Exploration Ltd herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Northern Minerals & Exploration Ltd disclaims any obligation to update forward-looking statements contained in this document, except as may be required by law.