Siren Gold Limited Annual Report 2020

15 Share-based payments (continued) The weighted average fair value of options granted during the year was $0.05 (31 December 2019 year: Nil). The values of the options were calculated using the Black-Scholes model, applying the following inputs: Options Issued to Key Management Personnel Options Issued for Underwriting Services Options Issued to Other Service Providers Grant date 26 August 2020 29 September 2020 26 August 2020 Market price of Shares 10 cents 25 cents 10 cents Exercise price 37.5 cents 37.5 cents 37.5 cents Number of Options Issued 5,250,000 1,618,262 2,425,000 Expiry date (length of time from issue) 49 months 48 months 49 months Risk free interest rate 0.28 % 0.28 % 0.28 % Volatility (discount) 109% 109% 109% Indicative value per Related Party Option 5.28 cents 16.7 cents 5.28 cents Total Value of Related Party Options $277,200 $270,250 $128,040 The valuations noted above are not necessarily the market price that the Related Party Options could be traded at and are not automatically the market price for taxation purposes. c. Movement in share-based payment arrangements during the year A summary of the movements of all company options issued as share-based payments is as follows: 2020 2019 Number of options Weighted Average Exercise Price Number of options Weighted Average Exercise Price Outstanding at the beginning of the year 5,000,000 $0.25 5,000,000 $0.25 Granted 9,293,262 $0.375 – – Exercised – – – – Expired – – – – Outstanding at year end 14,293,262 $0.331 5,000,000 $0.25 Exercisable at year end 14,293,262 $0.331 5,000,000 $0.25 Reconciliation to total Company Options Non share-based payment options outstanding at the end of the year 5,720,833 5,720,833 Non share-based payment options exercised or expired -47,619 – Total Company options on issue 19,966,476 10,720,833 i. No share-based payment options were exercised during the year. ii. The weighted average remaining contractual life of share-based payment options outstanding at year end was 3.14 years. The weighted average exercise price of outstanding options at the end of the reporting period was $0.331. iii. The fair value of the options granted to directors and employees is deemed to represent the value of the employee services received over the vesting period. iv. The fair value of the options granted to Morgans Corporate Limited for underwriting services is deemed to represent the value of the underwriting services provided over the period. Notes to the Consolidated Financial Statements for the year ended 31 December 2020 Siren Gold Limited 46