9. STOCK OPTIONS AND WARRANTS

Stock Options

On July 15, 2014, the shareholders approved and adopted at the Annual General Meeting the Company's 2014 Stock Option Plan. The purpose of these Plans is to advance the interests of the Corporation, through the grant of Options, by providing an incentive mechanism to foster the interest of eligible persons in the success of the Corporation and its affiliates; encouraging eligible persons to remain with the Corporation or its affiliates; and attracting new Directors, Officers, Employees and Consultants. The aggregate number of Common Shares that may be reserved, allotted and issued pursuant to Options shall not exceed 17,400,000 shares of common stock, less the aggregate number of shares of common stock then reserved for issuance pursuant to any other share compensation arrangement. For greater certainty, if an Option is surrendered, terminated or expires without being exercised, the Common Shares reserved for issuance pursuant to such Option shall be available for new Options granted under this Plan. The options are deemed as vested and exercisable on issuance and the maximum life of the options granted under this Plan may not exceed 5 years.

At the Annual General Meeting held March 22, 2023, a new 2023 Stock Option Plan was approved. Under the 2023 Stock Option Plan (the "2023 Plan") the Company may grant options to purchase shares of common stock, $0.001 par value per share, of the Company. The stock subject to options granted under the 2023 Plan shall be shares of authorized but unissued or reacquired common stock. The maximum number of shares of common stock of the Company which may be issued and sold under the 2023 Plan shall be 31,000,000, subject to adjustment for stock splits or consolidations with a maximum life of 5 years and vesting at the discretion of the Board of Directors. Management plans to issue all new option grants under the 2023 Plan and to cancel the 2014 Plan once all currently issued options are either exercised or expire.

On September 9, 2021, the Company issued 500,000 stock options to one of the consultants of the Company with an exercise price of $0.08 vested immediately, expiring September 9, 2026.

On December 6, 2021, the Company issued 250,000 stock options to the president of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On December 6, 2021, the Company issued 500,000 stock options to one of the consultants of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On December 6, 2021, the Company issued 250,000 stock options to one of the consultants of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On August 18, 2022, the Company issued 2,000,000 stock options with an exercise price of $0.06 vesting immediately, expiring August 18, 2027. 1,000,000 to the Chief Financial Officer and 500,000 each to two Directors of the Company (Note 7).

During the year ended August 31, 2023, the Company did not issue any options.

The fair value of the options granted during the year ended August 31, 2022 was estimated on the date of the grant using the Black-Scholes options pricing model, with the following weighted average assumptions:

		2022
Expected dividend yield		0.00%
Expected stock volatility		202%
Risk-free interest rate		2.26%
Expected life of options (years)		5.00
Expected forfeiture rate		0.00%
Grant date fair value per option		0.05

During the year ended August 31, 2023, the Company recorded $0 (August 31, 2022 $163,130) as stock-based compensation expense. During the year ended August 31, 2023 no options were exercised and 1,750,000 options expired unexercised. During the year ended August 31, 2022, 113,388 common shares were issued as a result of the exercise of 226,776 cashless stock options and a total of 3,450,000 stock options expired without being exercised.

A summary of the changes in stock options is presented below:

	Options Outstanding
	Number of Options		Weighted Average Exercise Price $	Weighted Average Remaining Life (Years)
Balance, August 31, 2021	10,076,776		0.08
Issued	3,500,000		0.07
Expired	(3,450,000	)	0.07
Exercised	(226,776	)	0.04
Balance, August 31, 2022	9,900,000		0.08
Expired	(1,750,000	)	0.06
Balance, August 31, 2023 (Outstanding & Exercisable)	8,150,000		0.09	2.91

The Company has the following options outstanding and exercisable as at August 31, 2023:

Issue Date	Expiry Date	Exercise Price	Number of Options	Remaining Life (Years)
December 14, 2020	December 14, 2025	0.05	2,100,000	2.29
January 28, 2021	January 28, 2026	0.14	2,000,000	2.41
February 4, 2021	February 4, 2026	0.18	100,000	2.43
February 5, 2021	February 5, 2026	0.18	300,000	2.44
April 27, 2021	April 27, 2026	0.12	100,000	2.66
May 28, 2021	May 28, 2026	0.12	50,000	2.74
September 1, 2021	September 1, 2026	0.08	500,000	3.01
December 6, 2021	December 6, 2026	0.07	1,000,000	3.27
August 18, 2022	August 18, 2027	0.06	2,000,000	3.97
Balance outstanding and exercisable			8,150,000	2.91

*As at August 31, 2023 the market price of the Company's common shares was $0.021 per share. The intrinsic value of the stock options was $0.

Warrants

There were no warrants issued during the years ended August 31, 2023 and 2022.

During the year ended August 31, 2023, 50,000 warrants were exercised for $2,000, and 4,923,369 warrants expired unexercised.

A summary of warrants as at August 31, 2023 and August 31, 2022 is as follows:

				Weighted Average
	Number of warrants			Exercise Price
Balance, August 31, 2021	9,716,869		$	0.05
Forfeited	(1,952,500	)		0.08
Exercised	(2,91,000	)		0.05
Balance, August 31, 2022	4,973,369		$	0.04
Forfeited	(4,923,369	)		0.04
Exercised	(50,000	)		0.04
Balance, August 31, 2023	-		$	-