resolution 3 voted in and approved rrso , page-11

It's not that strange.

Option holders have (for their initial outlay plus the 1 cent extension cost) the choice as to whether to throw in the dollar.

If the sp hangs around the 50 cent mark throughout the life of the option then it's an easy decision to make.
IF (in 2008) the sp goes to $2 when a drilling contract is confirmed, to $3 when the drill is in place, $10plus on successful drilling then it's also an easy decision.

I only have a few of these now extendable options. People who have heaps of them will be well-placed if AOI deliver the goods in early 2008.

It's a leveraged play in a speculative high risk stock. All option holders would know that and be aware of the risks.

The risks and potential are fairly explained in the prospectus.

For a small outlay of 1 cent the option extension offer looks pretty good to me.