Ann: Successful $5M Placement, page-20

The option should be listed (usually are) and make the offer that little bit attractive. (Some AAU shareholders recently made 600% gains on their options in less than a month). The option will be issued free (with the subscription to the new shares). Exercisable at the expiry OR EARLIER date, by paying the 2c, if that is the stated premium at the time of issue. To convert you do so by paying the funds to the company, so your option is converted to fully paid status. Most players would not do this, unless there was a nice premium on the shares prior to the option expiry. Traders usually sell the options when they are showing nice gains, again usually early in the time frame. Options are time based and unless there is strength in the fully-paids , drop away as time elapses. Investors hold and make a decision prior to expiry, hoping for strength as drilling takes place.