Ann: Notice of Extraordinary General Meeting/Prox, page-10

re: Ann: Notice of Extraordinary General Meet... Perhaps I could have explained it by pointing out that while the options will actually cost money to exercise, still potentially at least they must have value to Mr. Williams, otherwise he would not desire them.

The value the options have cannot be calculated precisely, only estimated, because what they actually wind up being worth could vary from nothing to a great deal indeed, depending on the share price when the options are exercised.

So, a formula is used - exactly what it formula was we don't know, only that it accounts for future share price volatility and range, cost of money, and potential dividends, resulting in a number, in this case $480,000. We just have to remember that this is really a fictitious number with only as much significance as we want to give it.