Ann: New Options Rights Issue for Shareholders, page-5

Issue / Valuation DateExpiry dateTime to expiry (years)Std Dev (Annualised & Rounded) Fair value of one option10-Nov-2130-Nov-232.00100.00% Assumed $0.0138

In the announcement TNR say that Fair value of the new options is assumed to be 1.38 cents. See above.

They also say that the ENTITLEMENT is 2 options for every 5 shares but we MAY apply for more.

TNR have allowed for the fact that all the existing TNRO options could be converted, as the number of new options is 40% of the total of the existing shares plus the existing options.

My conclusion is that this is a Master Stoke.

Existing shareholder would be mad to sell the heads, as the entitlement of 2 options for every 5 shares held would be worth 2.76 cents (if TNRs assumed valuation is correct). So by paying 0.2 cents you get 2.76 cents of value (net 2.74 cents which divided by 5 = 0.548cents per share additional value). To my mind this means that the current value of the heads should be at least 0.5 cents higher than they currently are.

So this is why we are not seeing any mass selling of the heads. I expect them to go up.

Also it should create a market for the options as they entitle the buyer to covert and participate in the new options. Currently at a discount to the share price. Crazy!