Future Disallowed, page-17

As the options get closer to the exercise date they lose their premium , and often trade at a conversion discount 1-2 week before the date an option holder needs to choose between exercising or selling.

When shares are only just in the money this often has the effect of reducing the share price as some option holders sell shares to exercise options closer to the decision time , therefore putting more pressure on the shares and options prices.

There is 200 million options to be exercised at 2 cents , so $3 million in the bank should they get exercised , but for a market cap of $18m that is a big raise , and 5 times larger than the most recent placement which occurred at a 20% discount to the share price

I suggest for all of the money to be exercised the shares will need to be at least 2.4 cents for the majority of option holders to convert and hold .

For all these reasons I think the shares are far better value in my opinion at 1.7 than the options at 0.2 .

There is no way I would pay .5 on the options if i can buy shares at 1.7 , traders mentality is different but i expect to be holding LRS in 2 years time if they deliver in Peru and Argentina in the way Orocobre, and Altura have done in Lithum , and the successful copper plays have done in Peru.

If the share increase by 30% in the next 6 months to the oppie exercise date the share will be worth 2.2 cents , the options on exercise date will be worth .1./.2 , so the shares up 30% the options down 200%

If the shares however increase by 60% by March they are at 2.7% , and the options would be .6 in my view , so a 60% gain compared to a 20% gain

If the shares increase by 100% , then the options will be worth 1.5 , so triple the current price compared to a doubling of the shares.

if the shares stay the same options holders lose 100% of the option price and pay 2 cents if they exercise ,