4. STOCK OPTIONS

The Company's Stock Option Plan (the "Plan") provides the grant of 5,000,000 shares of common stock of the Company, subject to increase after March 31, 2019, upon approval by the Company's directors, provided that the total number of shares that may be optioned and sold under the Plan shall at no time be greater than 15% of total number of shares of common stock outstanding, less any options still outstanding under any previous stock option plan.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected term of the option, risk-free interest rates, the value of the common stock and expected dividend yield of the common stock. Changes in these assumptions can materially affect the fair value estimates.

On January 8, 2021, the board of directors granted 1,600,000 options to its directors and one of its contractors. These stock options vested immediately. The fair value of the options granted calculated to be $95,722. The fair values were determined using the Black-Scholes Option Pricing model with the following assumptions:

		At January 8, 2021
Expected Life of Options		2 years
Risk-Free Interest Rate		0.14%
Expected Dividend Yield		Nil
Expected Stock Price Volatility		118.60%

As at December 31, 2021, the Company had 1,800,000 (2020 - 200,000) options outstanding and exercisable with a weighted average exercise price and weighted average life of $.10 and .92 years, respectively.