Because there seems to be some questions surrounding the pricing of incentive stock options..,

Lifted from the Management Information Circular, October 21, 2010.

INCENTIVE STOCK OPTIONS

Summary of General Requirements

(a) Summary of General Requirements

The Company has an Incentive Stock Option Plan (the “Existing Plan”) which complies with the

rules set forth for such plans by the TSX Venture Exchange (the “Exchange”). However,

management wishes to increase the number of shares that may be subject to options under the

Existing Plan from 15,505,136 to 20,136,860. The Existing Plan provides for the issuance of

options to directors, officers and employees of the Company to purchase common shares of the

Company. The stock options may be issued at the discretion of the Board of Directors and may

be exercisable during a period not exceeding 10 years. The exercise price will not be lower than

the "market price" of the Shares on the Exchange at the time of grant. In the context of the

Existing Plan, "market price" means the last closing price of the Company's shares on the day

immediately preceding the date on which the directors grant and publicly announce the options

and will not otherwise be less than $0.10 per share. A four-month hold period on all shares

issued pursuant to stock options is imposed by the Exchange from the date of grant.

Disinterested shareholder approval will be obtained for any reduction in the exercise price of

options granted to persons who are insiders of the Company at the time of the proposed

amendment.

Clear as mud now, right?!