Ann: UPDATE TO METALLURGICAL TESTWORK RESULTS, page-30

Best way to think of it is if you had $30k to invest:

You could buy 10 million options at 0.3c = $30k

OR

You could buy 5 million heads at 0.6c = $30k

If you think the SP could be 3c by 05/2022 then:

Heads: 5 million x 3c = $150k

Options: 10 million at approx 2.6c (3c - 0.42c conversion amount) = $260k

So for the same outlay of $30k you could potentially make an extra $110k ($260k-$150k) with the options.

If you choose to convert your options to shares at any stage till 05/2022 you would pay the company 0.42c x 10m = $42k but the value of your investment would go up about the same amount.