On February 6, 2024, the Company entered into a credit facility arrangement with an arm's length lender that also provides services to the Company. Pursuant to the arrangement, each month, the lender will defer and add to the loan principal an amount equal to half of the fees billed by the lender up to $1,000,000. Amounts loaned will bear interest at a rate of 12% per annum compounded annually and will be due four years from the date of the arrangement. The Company may repay any amounts owing under the credit facility at any time without penalty. In connection with the credit facility, the Company has issued 1,000,000 non-transferable share purchase warrants to the lender, with each warrant exercisable into one share of common stock of the Company at a price of $0.16 per share for a period of four years from the date of issuance. The fair value of these warrants was calculated to be $127,336. In addition, for each $100,000 loaned under the arrangement, the Company has agreed to issue to the lender 200,000 additional non-transferable warrants ("Additional Warrants"). Each Additional Warrant will be exercisable into one share of common stock of the Company at any time within a four-year period from the date of issuance at an exercise price equal to the market price of the shares of the Company on grant.

		Credit Facility
Balance, July 31, 2023	$	-
Principal amount		122,739
Interest expense		7,018
Issuance costs		(15,629	)
Accretion expense		2,002
Balance, July 31, 2024	$	116,130
Reclassification to accounts payable		(63,796	)
Principal amount		58,031
Interest expense		5,008
Issuance costs		(31,610	)
Accretion expense		45,238
Balance, July 31, 2025	$	129,001

		Deferred Financing Asset
Balance, July 31, 2023	$	-
Issuance costs 1,000,000 warrants		127,336
Allocation to credit facility		(15,629	)
Balance, July 31, 2024	$	111,707
Allocation to credit facility		(36,079	)
Balance, July 31, 2025	$	75,628

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of warrants:

	February 5, 2024

Risk-free interest rate	3.67%
Expected life of warrants	4 years
Expected annualized volatility	122.71%
Share price at grant date	$0.16
Exercise price	$0.16
Fair value	$0.13
Dividend	Nil
Forfeiture rate	0%

200,000 additional warrants are yet to be issued to the lender pursuant to the agreement.