On 1 July 2016, the Company issued 11,000,000 unlisted...

On 1 July 2016, the Company issued 11,000,000 unlisted conditional performance options. These options have an expiry date of 1 July 2019 which are subject to the following performance hurdles that must be satisfied prior to being exercised:

Tranche 1 (5,500,000 unlisted options):

• -  The Company exercises one or more of the Seymour Lake Lithium Project and/or Root Lake Lithium Project options referred to in the ASX announcements dated 6 January 2016 and 10 February 2016; and
  
  
• -  The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 8 cents.
  
  Tranche 2 (5,500,000 unlisted options):
  

• -  The Company reaches a total JORC compliant resource of all projects of 5 MT, and
  
  
• -  The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the
  
  date of grant of the conditional performance options is not less than 10 cents.
  
  These options have been valued using the single share price barrier option-pricing model.
  
  On 16 December 2016, the Company issued 5,000,000 unlisted conditional performance options. These options have an expiry date of 1 July 2019 which are subject to the following performance hurdles that must be satisfied prior to being exercised:
  
  Tranche 1 (2,500,000 unlisted options):
  

• -  The Company reaches a total JORC compliant resource of all projects of 5 MT, and
  
  
• -  The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the
  
  date of grant of the conditional performance options is not less than 5 cents.
  
  Tranche 2 (2,500,000 unlisted options):
  

• -  The Company reaches a total JORC compliant resource of all projects of 5 MT, and
  
  
• -  The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the
  
  date of grant of the conditional performance options is not less than 8 cents.
  
  These options have been valued using the single share price barrier option-pricing model. The table below gives the assumptions made in determining the fair value of options on grant date.