NORTHERN MINERALS & EXPLORATION LTD.

NORTHERN MINERALS & EXPLORATION LTD. Annual Investment Guide
(Plain-English Summary for Everyday Investors)

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The Big Picture

This business is shrinking fast. Revenue dropped 42% this year ($8,634 vs. $15,000 last year) and is down 57% from two years ago. With only $264 left after basic costs, they’re barely keeping the lights on.

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Financial Health Check

• Cash Crisis: Only $1,200 in the bank (down from $3,500 last year).
• Debt Mountain: Owes $50,000 in loans + $135,000 (+interest) to a former director. Paid another $66k-$72k to a different director for consulting work.
• Questionable Spending:
  • Bought $25,000 in old oil/gas rights this year (like buying a used car when you can’t afford groceries).
  • Increased leadership pay to $27,600 (+4.5%) despite revenue collapsing.
  • CEO collected $3,450-$4,700 extra for consulting work on top of salary.

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Red Flags for Investors

1. Survival Risk: Auditors doubt they’ll last another year.
2. Insiders Losing Faith: Former directors bought 72% less stock this year ($35k vs. $125k last year).
3. Debt Time Bomb: Owing $135k+ to a former director creates potential conflicts (like your landlord also being your boss).
4. Aging Assets: Old wells mean rising repair costs – think “leaky roof on a 100-year-old house.”

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The Bottom Line for Investors

This looks like a high-risk gamble, not an investment.

✅ Potential Upside:

• If oil/gas prices skyrocket, those $25k rights might pay off.

❌ Reality Check:

• Revenue has dropped 57% in two years
• Leadership keeps paying themselves more while the ship sinks
• Less than $300 in annual profit can’t cover $185k+ in total debt

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Final Takeaway:
Northern Minerals shows classic signs of a company in deep trouble – shrinking revenue, rising debt, and leadership prioritizing their own pay over fixing core problems. While the stock price might look cheap, this is the financial equivalent of buying a lottery ticket. Only consider this if you’re comfortable potentially losing 100% of your investment.

Always do your own research – this company shared limited details about their turnaround plans.