I didn't have an 'options' tab in my SGX spreadsheet... but now I do :D. More info than some would probably like but so be it... Long story short... IMO there is nothing wrong or unusual with SGX option granting practices and policies.

People need to realize that such options represent compensation for services rendered (mainly to company exec and employees who draw very little if any salary) to the company w/out the company having to pay them with cash now. The more cash the company has the more exploration can be done. People also need to remember that options need to be and are being exercised all the time. When (and if) options are exercised, cash goes to the company to be used for further exploration.

SGX has typically issued options to two distinct groups:

1. 'Directors, management, officers, employees, and consultants [DMOECOs] Options'

2. 'Compensation Options' [COs] (i.e. broker options for assistance w/ PPs at same price as PP, typically)

At Mar. 31, 2007: 10.1M options outstanding (7.9M DMOECOs + 2.3M COs)

At Dec. 31, 2007: 15.4M options outstanding (12.8 DMOECOs + 2.6M COs)

As per April 2008 Corporate Presentation: 15.9M options outstanding

The big increase from Mar-Dec 2007 was due mainly to ~6 million options granted at an average exercise price of $0.37 per common share (i.e. representing ~$2.2 million in cash for SGX if and when exercised).

re: latest 350k options @ 25 cents to 3 consultants... nothing out of the ordinary or wrong with this IMO.

P.S. re: warrants... I cam across an interesting summary statement in latest MD&A...

"As at December 31, 2007, there were 34,169,398 warrants outstanding with a weighted average exercise price of $0.53 of which 5,443,995 expire in 2008 and 28,725,403 expire in 2009."

Therefore, although some argue that on a fully-diluted basis SGX has a large float (i.e. 191 million )... if (when IMO) these warrants are exercised it will mean an additional ~$17 MILLION for the treasury... not bad w/out having to do another PP... IMO SGX will be full-financed throughout 2009 and maybe into 2010 as well.

I am no expert on this and am open to discussion or comments.

red911