vote against these, page-4

Short answer: No it will not dilute the SP substantially.

With a market cap of 30.17M and 548.60M shares currently on issue, if ALL the options (20.8M) were exercised we would see an increase in overall shares. We would have a total of 569.40M however exercising at 7c would also increase the company market cap by 1.456M. (To roughly calculate SP divide market cap by number of shares)

So the two basically offset each other and the share price would stay the same. If the share price is significantly higher than the exercise price then it would decrease the SP and conversely if the share price is lower than the exercise price and all the options are exercised then it would increase the SP.