4.	*Share Capital*

The Company’s common shares outstanding are no par value, voting shares with no preferences or rights attached to them.

Common shares – 2015

In March 2015, the Company issued 150,000 common shares to the former President of the Company for achieving two of the three milestones outlined in his management agreement (See Note 6 – Commitments and Contingencies). The common shares had a total fair value of $151,428 (Note 7(i)). The fair value was based on the market price on the date of issuance.

Stock options

The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. In accordance with the accounting standard for employees, the compensation expense is amortized on a straight-line basis over the requisite service period, which approximates the vesting period. Compensation expense for stock options granted to non-employees is amortized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each balance sheet date using the Black-Scholes option pricing model.

The following is a summary of stock option activity during the six months ended June 30, 2016 and the year ended December 31, 2015:

	Shares		Weighted Average Exercise Price per Share
Options outstanding and exercisable, December 31, 2014		750,000	$	1.29
Options issued		570,000	$	0.58
Options forfeited		(250,000)	$	1.18

Options outstanding, December 31, 2015		1,070,000	$	0.94
Options exercisable, December 31, 2015		976,667	$	0.97

Options outstanding, June 30, 2016		1,070,000	$	0.94
Options exercisable, June 30, 2016		976,667	$	0.97

There were 50,000 stock options that expired during the three and six months ended June 30, 2015. No stock options expired during the three or six months ended June 30, 2016.

During the three and six months ended June 30, 2016, the Company recognized $3,799 and $7,598 (Three and six months ended June 30, 2015 - $Nil and $Nil) in stock-based compensation relating to employee stock options that were issued and/or had vesting terms.

As at June 30, 2016, the aggregate intrinsic value of the outstanding exercisable options was $386,400 (December 31, 2015 - $Nil).

The following table summarizes information about stock options outstanding and exercisable at June 30, 2016:

Expiry Date	Number Outstanding		Number Exercisable		Remaining Contractual Life (Years)		Exercise Price

June 3, 2018		50,000		50,000		1.93	$	1.16
September 3, 2018		150,000		150,000		2.18	$	1.59
September 18, 2018		300,000		300,000		2.22	$	1.26
September 8, 2020		570,000		476,667		4.19	$	0.58

Balance, June 30, 2016		1,070,000		976,667		3.25