announcement

OPTION ISSUE
At a meeting of Directors it was resolved to issue 24,200,000 options to staff and consultants to recognise and reward their efforts to date on the Company’s behalf, in relation to the development of its various projects. In addition, the option issue is intended to provide them with an incentive to continue their efforts on behalf of the Company and its shareholders.
Shareholder approval will also be sought to issue a further 1,400,000 options to each of the Directors.
The options are to be issued free of charge, and are exercisable at 10.5 cents
per option, and may be exercised on or before 31 December 2010. It is not currently proposed to seek ASX listing of these options
These options will represent approximately 4.2% of the Company’s share capital, and would raise an additional $2,982,000 in cash if they were exercised in full.
The options are currently “out of the money,” and will only have value if the share price increases.