Company options are issued and bought/sold like normal shares,...

Company options are issued and bought/sold like normal shares, but they do have an expiry date, which means that if you havn't sold or converted them to normal shares (heads) by the expiry date, you lose them including your costs.

If you buy them on market and intend to convert them to heads rather than sell, you must pay the company the exercise price, whatever it has been set at, by the time of expiry. So, for example, if you bought them at .005, and the exercise price was 1c, then in total you will pay 1.5c if you decide to convert.

However, if the heads are trading higher than 1.5c at that time, then you have instant profit. In other words, you are getting cheap shares.

You will receive a form for converting, and you pay the exercise price by mail/transfer etc.

I havn't looked into these specifioc options, so I don't know the details, but from what I've said, you should be able to calculate everything. Most importantly, is to conider whether or not they are good value when you buy them, which requires analysis of their buy price, exercise price, time period until expiry, and last but not least, your best guess on what the heads will be trading at when you convert your options. You don't have to wait until the expiry date to convert, if I'm not wrong.

Hope this helps.