Ann: Issue of Unlisted Options - Appendix 3B, page-4

These are options for technical, operational and corporate staff at an exercise price of 12.5c (not the board). This incentivises staff to work hard to improve profits to increase the share price...effectively aligning staff interests to shareholder interests. If the staff choose to exercise their options they have to pay 12.5c per share, so the company is not giving the shares away for free. Staff tend to work harder/become more driven when they are incentivised by potential "financial bonuses" like this. This is a positive for staff moral and tends to be a good strategy for improved earnings and therefore the share price.