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Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 

## 12. Share Capital (continued) 

During the year ended June 30, 2010, 2,930,000 options were granted to employees, consultants and a director (2009 – 15,851,000 options were granted to various directors and members of management). Using an option pricing model with the assumptions noted below, the estimated fair value of all options recognized during the years ended June 30, 2010 and 2009 have been reflected in the financial statements as follows: 

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The weighted average assumptions used to estimate the fair value of options were: 

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The weighted average fair value of options granted during 2010 is $0.17 (2009 - $0.18). 

Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate. 

e. Agent’s options 

Continuity of Agent’s options outstanding: 

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Each Agent’s option unit is comprised of one common share of the Company and one-half share purchase warrant exercisable at $0.50 for two years until June 25, 2009 (“Agent’s warrant”). Each Agent’s warrant would allow the holder to purchase one common share at $0.65 exercisable to June 25, 2009. As at June 30, 2009 and 2010, all Agent’s options were expired. 

