9. STOCK OPTIONS (Tables)

12 Months Ended

May 31, 2014

Stock Options Tables

Option activity

	Number			Weighted Average Exercise Price		Remaining Contractual Life (years)		Intrinsic Value
Total outstanding, May 31, 2012		1,400,000		$	0.53
Awarded during fiscal 2013		2,100,000		$	0.12
Expired during fiscal year 2013		(1,050,000	)	$	0.61
Total outstanding May 31, 2013		2,450,000		$	0.16		7.8
Exercised during fiscal year 2014		(350,000	)	$	0.40
Total outstanding May 31, 2014		2,100,000		$	0.12		8.0
Exercisable as of May 31, 2014		525,000		$	0.12		8.0	$	204,750
Non-vested as of May 31, 2014		1,575,000		$	0.12		8.0	$	614,250

Assumptions used in Black-Scholes option model

Estimated fair value of options at date of grant	$	213,696
Black-Scholes model assumptions
Average expected life (years)		5
Average expected volatility factor		353.3%
Average risk-free interest rate		3.0%
Average expected dividend yields	$	-0-