SOURCE: Northern Minerals & Exploration Ltd.

July 21, 2015 08:00 ET

Northern Minerals & Exploration Ltd. Progress Report on the Three Oil and Gas Wells on the Coleman County Lease in Texas

CISCO, TX--(Marketwired - July 21, 2015) - Northern Minerals & Exploration Ltd. (OTCQB: NMEX) ("Northern" or the "Company") Further to the Company's news release of April 9, 2015, Northern is pleased to report that it has successfully completed the re-work and/or re-completion of three oil and gas wells on the Coleman County lease in central Texas.

The Coleman County 206.5 acre lease is located in a prolific multiple pay area originally discovered by ARCO in the early 1980s. The lease area has six known historic productive formations: Ellenburger (4,200'), Gray (3,850'), Gardner (3,700'), Jennings (3,600'), Upper Capps (3,450'), and Morris (3,400').

One of the three wells on this Lease (the "Concho Richey #1") is a direct offset to a well on an adjoining lease that has produced more than 65,000 barrels and 160 million cubic feet of gas also from the Gray Sand formation. This offset well after 28 years of production is still producing an average of 6 barrels and 28 thousand cubic feet of gas per day.

Well Summary

The re-work on the J.E Richey #1 well consisted of replacing downhole equipment as needed and conducted an acid/xylene treatment to clean well bore the perforations and to stimulate the Gray Sand formation. This well is open in the Gray Sand formation. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

The re-work on the J.E Richey #3 well consisted of replacing downhole equipment as needed and conducted an acid/xylene treatment to clean out the well bore, the perforations and to stimulate both the Morris Sand and Gray Sand formations. This well is open in both the Morris Sand and Gray Sand formations. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

The re-completion of the Concho Richey #1 well consisted of replacing the downhole equipment as needed and sealing off the perforations in the Tannehill formation followed by perforating into the Gray Sand formation. A two stage process was initiated to stimulate the Gray Sand, an acid treatment followed by a sand frac. These treatments were successful in dramatically improving the entry of oil and gas and significantly improved the pressures on the well. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

Subsequent to the work on the three wells and setting them for production Northern has been in the process of arranging a 24 hour production test and analysis on the gas flow. This testing and analysis is required for the purchase contract with the local gas buyer. An agreement for the purchase of the oil is already in place. The 24 hour production test was set to be completed on July 14 to test the gas flow from the Concho Richey #1 which has the highest pressure of the three wells on the lease.

During the gas production testing on the Concho Richey #1 well, the well had higher than expected pressure as oil and gas was coming in very strong from the formation. It appears that the sand frac treatment has worked well in stimulating the Gray Sand formation in the Concho Richey #1. Due to the higher than expected pressure and the strength of the gas and fluid flows from this well, for safety reasons, the testing was stopped. This was done so that the surface production equipment could be analyzed and tested, and some equipment changed to handle the higher than expected pressure and strong oil and gas flows from the well. This work has now been completed. The gas production testing and analysis has now been rescheduled to be undertaken this week.

The lease is fully equipped with surface equipment including flow lines, production tanks, meter connections and gas gathering pipelines. With the gas contract completed production of oil and gas will commence from all three wells. Once steady production has begun, the production potential of these wells can be tested to determine the optimum rate to produce oil and gas from these wells on the Coleman County lease.

For further information please on the Coleman County lease and Northern please review the Company's website at www.northernmineralsexploration.com or its filings at www.sec.gov and www.otcmarkets.com

For Investor Relations please call Scott at 1-239-596-0567

About Northern Minerals & Exploration Ltd. (NMEX)

Northern Minerals & Exploration Ltd. is a natural resource company focused on both domestic and international exploration and development projects. The Company is currently dedicated to building cash flow from oil and gas production in central Texas and exploration for gold and silver on the Winnemucca Mountain Property in northern Nevada.

Forward Looking Statements: Statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," "seeking," and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward looking statements. The information herein is subject to change without notice. Northern Minerals & Exploration Ltd. shall not be liable for technical or editorial errors or omissions contained herein.

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