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## 14. Share Capital (Continued) 

## (d) Warrants and agent’s warrants 

The Company had warrants outstanding at December 31, 2012 and 2011 as follows: 

<img src='content_image/250757.jpg'>

There was no change to the Company’s warrants for the year ended December 31, 2012. 

In 2011, 4,250,015 warrants were issued in May 2011 in relation to a private placement (Note 14(b)). 

The fair value of the warrants was calculated using the Black-Scholes pricing model with the following assumptions: 

<img src='content_image/250754.jpg'>

Expected volatility was determined based on the historical movements in the closing price of the Company’s stocks for a length of time to the expected life of each warrant. 

## 15. Related Party Transactions 

## (a) Services 

The Company’s related parties consist of companies controlled by executive officers and directors. The Company incurred the following fees and expenses in the normal course of operations in connection with those companies for the years ended December 31, 2012 and 2011 as follows: 

<img src='content_image/250753.jpg'>

During the year ended December 31, 2012, the Company charged Maritime $78,707 (2011 - $56,653) in respect of office administration, accounting, rent, insurance and investor relation expense shared by the companies. 

At December 31, 2012, included in receivables were $3,060 (2011 - $254) for administrative and office expenses from companies related by common directors. 

At December 31, 2012, included in accounts payable were amounts due to related parties of $765 (2011 - $17,706) for legal fees to a law firm related by a director in common. 

At December 31, 2012, investment in securities included 258,000 (2011 - 258,000) common shares of a company related by a director in common. 

