Brinx Resources Ltd. utilized the full cost method to assess the impairment to its proved properties, which involves a ceiling test to determine if there is an impairment. The impairment amount 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 pay any impairment costs for the years ended October 31, 2011 and 2010, respectively.