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notes to and forming part of the financial statements for the year ended 30 June 2004 (continued) 

## NOTE 36 - EMPLOYEE ENTITLEMENTS AND SUPERANNUATION COMMITMENTS (continued) 

(b) Employee share option plan 

An employee share option plan has been established where directors, executives and certain members of staff of the consolidated entity are issued with options over the ordinary shares of RML. The options, issued for nil consideration, are issued in accordance with the terms and conditions of the shareholder approved RML Employee Share Option Plan and performance guidelines established by the directors of RML. The options will not be quoted on the ASX. 

Options outstanding at balance date are 2,000,000 options issued to a director on 10 December 2001 with an exercise price of $0.42 per fully paid ordinary share and expiring on 10 December 2006. One third of the options can be exercised 6 months after issue, a further one third 18 months after issue and the remaining one third 30 months after issue. 

Also outstanding at balance date are 1,465,000 options which are comprised of the opening balance of 1,860,000 less 280,000 options exercised and 115,000 options lapsed during the year. These options were issued on 20 September 2002 with an exercise price of $0.81 per fully paid ordinary share and expire on 19 September 2007. One third of the options were able to be exercised 6 months after issue, a further one third 18 months after issue and the remaining one third 30 months after issue. 

An additional 105,000 options were issued under the employee share option plan on 13 August 2003, with a strike price of $0.81 and an expiry date of 13 August 2008. During the year 10,000 of these options were exercised leaving 95,000 options at balance date. 

There is currently one director, 4 executives and 14 staff participating in this plan. 

Employees will only be able to exercise the options allocated to them if they meet certain performance criteria. Details of the employee share option plan for both the parent and the consolidated entity are as follows: 

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The following table summaries information about options exercised by employees during the year ended 30 June 2004. The were no employee options exercised during the year ended 30 June 2003. 

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Fair value of the shares issued during the reporting period is estimated to be the market price of the shares of Resolute Mining Limited on the ASX as at close of trading on their respective issue dates. 

(c) Superannuation commitments 

All employees are entitled to varying levels of benefits on retirement, disability or death. The Company and the consolidated entity have entered into a superannuation plan that provides benefits determined by the accumulation of contributions and earnings of the plan. 

Employees may contribute to the plan at various percentages of their wages and salaries. The consolidated entity also contributes to the plan generally at a rate of 9-12% of the employees’ wages and salaries. Contributions by the consolidated entity of 9% of employees wages and salaries are legally enforceable in Australia. 

(d) The number of employees in the Resolute Mining group as at 30 June 2004 is 546 (2003: 390). 

