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## Notes to the Financial Statements for the year ended 30 June 2004 

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This option reserve arises from 44,159,394 unlisted being issued during the course of the year. 

The fair value of each option issued has been valued using the Black-Scholes option pricing model after considering factors such as the term of the option, the risk free interest rate and the volatility of the share price. 

## (b) Listed Share Options 

A total of 44,329,106 listed share options expired on 29 February 2004. The consolidated entity had no listed share options on issue at 30 June 2004. 

## Movements in Listed Options 

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## (c) Unlisted Share Options 

At 30 June 2004, the consolidated entity had 84,840,026 unlisted share options on issue. 

On 20 October 1995, shareholders at a general meeting approved the Employee Share Option Plan (ESOP). The purpose of the ESOP is to provide an incentive to executive of fi  cers on the Company. No new options will be issued in the future under this ESOP. 

On 28 November 2001, shareholders at a general meeting approved a new Employee Option Plan. 

Each unlisted share option entitles the holder to subscribe for one ordinary share on, substantially, the following terms: 

(i) each unlisted option entitles the holder to subscribe for one ordinary share at the exercise prices set out below; 

(ii) the unlisted options are exercisable at any time up to 5.00pm Perth, Western Australia time on the dates set out below by completing an option exercise form and delivering it together with the required payment for the relevant number of ordinary shares in respect of which the unlisted options are exercised to the registered of fi  ce of the Company. Any unlisted options not exercised by that time will lapse. 

