Brinx Resources Ltd. is subject to the ceiling test under the full cost method to determine if there is an impairment to the proved properties. This is based on the excess of capitalized costs over the present value, discounted at 10, of the estimated future net cash flows from the proven oil and gas reserves plus the cost, or estimated fair market value. The Company did not incur any impairment costs for the years ended October 31, 2011 and 2010, respectively.