Recent developments highlight Laredo Oil's operational progress and financing activities, including commercialization of technology, well development, and capital raises.

• Laredo Oil unveiled commercialization of technology potentially unlocking significant reserves of stranded oil in July 2025 [N1].
• The company raised $1,132,200 in a private offering of short-term notes and warrants in June 2025 [N2].
• Laredo Oil gained access to salt-water disposal wells in September 2024 [N3].
• The company prepared the Midfork well for production as of July 2024 [N4].
• Laredo Oil settled litigation with A&S Minerals Development Company, LLC in March 2024 [N5].
• The company announced an agreement to drill up to three wells in Montana in January 2024 [N6].
• Laredo Oil announced discovery of free oil in connection with an agreement with Texakoma Exploration and Production in December 2023 [N7].
• Promising drilling results were announced under agreement with Texakoma Exploration and Production in November 2023 [N8].

Laredo Oil's proprietary UGD technology offers a potentially cost-effective method to unlock stranded oil reserves in mature fields, which could differentiate it from competitors relying on conventional enhanced oil recovery methods. The company's acquisition of intellectual property and operational expertise through Stranded Oil Resources Corporation enhances its technical capabilities. Recent commercialization efforts and operational milestones, such as gaining access to salt-water disposal wells and preparing wells for production, demonstrate progress in executing its business model. Successful capital raises through private offerings provide necessary funding to advance drilling and development projects. If the company can continue to secure financing and operationally develop its mineral interests, it may increase production and revenue from mature oil fields.

Laredo Oil faces significant liquidity constraints, with a current ratio and cash ratio of 0.02 as of February 28, 2026, indicating limited short-term financial flexibility. The company has incurred recurring net losses and has a substantial accumulated deficit exceeding $31 million. Its small scale and limited personnel may restrict operational capacity and responsiveness. The company operates in a highly competitive environment with larger, better-capitalized firms. Operational risks include drilling hazards, environmental liabilities, and uninsured risks that could materially impact financial condition. The company's ability to secure additional funding is uncertain, and failure to do so could impede development of mineral properties and production growth. Legal proceedings and regulatory compliance add further operational risks.

Laredo Oil's moat is centered on its proprietary underground gravity drainage (UGD) technology, which is designed to recover stranded oil reserves from mature oil fields with specific geological characteristics. The company has developed and refined variations of this method, which it believes can be implemented at significantly lower costs than traditional enhanced oil recovery techniques. Additionally, Laredo Oil has acquired intellectual property and operational experience through its purchase of Stranded Oil Resources Corporation. Its focus on mature fields with substantial recoverable reserves and its specialized technology provide a niche competitive advantage. However, the company's small scale, limited financial resources, and competition from larger, well-capitalized firms constrain the strength of this moat.

• Liquidity Risk: The company has a very low current ratio (0.02) and cash ratio (0.02) as of February 28, 2026, indicating significant liquidity constraints that may affect its ability to meet short-term obligations.
• Operational Risks: Oil and gas drilling activities involve risks such as non-commercial wells, equipment failures, environmental hazards, and uninsured losses that could adversely affect operations and financial results.
• Competitive Risk: Laredo Oil competes with larger, well-capitalized exploration and production companies, which may limit its ability to acquire properties and operate profitably.
• Regulatory and Environmental Risks: The company is subject to extensive federal and state regulations, including environmental protection laws, which may increase operating costs and restrict activities.
• Legal Proceedings: Ongoing and past litigation related to mineral leases and service payments pose financial and operational uncertainties.
• Funding Risk: The company's ability to secure additional financing is uncertain, and failure to obtain necessary funds could limit development and production activities.

• Laredo Oil, Inc. is an oil exploration and production company incorporated in Delaware in 2008, originally named Laredo Mining, Inc., renamed in 2009.
• The company focuses on acquiring mature oil fields and recovering stranded oil reserves using proprietary enhanced recovery methods called underground gravity drainage (UGD).
• UGD involves creating an underground drilling chamber beneath existing oil fields and drilling directional wellbores to drain reservoirs using residual pressure and gravity.
• The company has developed variations of the UGD method applicable to mature oil fields with specific geological characteristics and targets fields with at least 25 million barrels of recoverable oil.
• Laredo Oil acquired Stranded Oil Resources Corporation (SORC) in 2020, which had intellectual property and operational experience in UGD and mature oil field management.
• The company has mineral property interests totaling over 45,000 gross acres in Montana's Lustre, Midfork, and West Fork fields, with ongoing exploratory drilling and development efforts.
• Laredo Oil has a 50% interest in the Cat Creek oil field, recorded at no value on its financial statements.
• The company operates with a small team of five full-time employees as of May 2025.
• Laredo Oil's principal executive office is in Austin, Texas.
• The company faces competition from larger, well-capitalized exploration and production companies.
• Oil and gas price volatility and operational hazards such as drilling risks, environmental liabilities, and uninsured risks are material factors affecting the company.
• The company maintains some insurance but excludes coverage for title failures, surface equipment loss, business interruption, and revenue loss due to commodity prices or well failure.
• Laredo Oil's operations are subject to extensive federal and state regulations including environmental, safety, and drilling permits.
• The company has been involved in multiple legal proceedings related to mineral lease disputes and service payments, with some settled or under payment arrangements.
• Financial snapshot as of February 28, 2026: cash and equivalents $264,166; current assets $351,800; current liabilities $14,716,504; revenue $3,141 for the nine months ended; net loss $1,219,781 for the three months ended.
• Liquidity ratios as of February 28, 2026: current ratio 0.02, cash ratio 0.02, indicating significant liquidity constraints.
• The company has incurred recurring losses resulting in an accumulated deficit of over $31 million as of February 28, 2026.
• Recent financing includes private offerings raising over $1 million in short-term notes and warrants in June 2025 and $750,000 in unregistered common shares in October 2024.
• Operational milestones include gaining access to salt-water disposal wells, preparing the Midfork well for production, and exploratory drilling in Montana fields.
• The company has agreements to drill multiple wells in Montana and has announced discoveries of oil shows and free oil in connection with agreements with Texakoma Exploration and Production.
• Laredo Oil has commercialized technology potentially unlocking significant reserves of stranded oil as of July 2025.
• The company is actively raising funds to develop mineral property interests and expand operations.
• The company has taken steps to control overhead and expenses, raise funds for well development, and attract experienced personnel to sustain operations.
• Revenue recognition follows ASC 606, with crude oil revenue recognized upon transfer of control to purchasers, typically one to two months after delivery.