The Company had the following common share transactions during the year ended December 31, 2018:

The Company had the following common share transactions during the year ended December 31, 2017:

At December 31, 2018, there were 84,707,143 issued and outstanding common shares (December 31, 2017 - 44,678,701). The Company does not currently pay dividends and entitlement will only arise upon declaration.

The Company has an incentive share option plan (“the plan”) in place under which it is authorized to grant share options to executive officers, directors, employees and consultants. The plan allows the Company to grant share options up to a maximum of 10.0% of the number of issued shares of the Company.

Share options granted under the plan will have a term not to exceed five years, have an exercise price not less than the Market Price as defined by the TSX Corporate Finance Manual and vest over periods no less than eighteen months.

Share option transactions and the number of share options outstanding during the years ended December 31, 2018 and 2017, are summarized as follows:

	Number of share options			Weighted average exercise price (C$)
Outstanding at January 1, 2017		1,785,450			11.47
Granted		796,900			5.26
Exercised		(60,000	)		3.30
Expired		(197,500	)		25.72
Forfeited		(190,000	)		10.30
Outstanding at December 31, 2017		2,134,850			8.29
Granted		1,284,845			2.99
Granted for acquisition of Rye Patch (note 5)		1,511,800			4.52
Forfeited		(1,907,993	)		3.44
Outstanding at December 31, 2018		3,023,502			6.14
Exercisable at December 31, 2018		1,737,967			8.03

Exercise price range (C$)	Number of options outstanding		Weighted average exercise price (C$)		Weighted average remaining life of options (years)		Number of options exercisable		Weighted average exercise price (C$)		Weighted average remaining life of options (years)
1.00 - 10.00		2,729,402		4.36		3.85		1,443,867		5.03		3.71
10.01 - 20.00		191,500		18.16		0.91		191,500		18.16		0.91
20.01 - 31.40		102,600		31.20		2.61		102,600		31.20		2.61
		3,023,502		6.14		3.62		1,737,967		8.03		3.33

The fair value of share options recognized as an expense during the year ended December 31, 2018, was $926 (year ended December 31, 2017 - $892) (note 7(b)).

The weighted average grant date fair value of options granted during the year ended December 31, 2018, was C$1.30 ($1.03) (year ended December 31, 2017 - C$3.07 ($2.36)). The following are the weighted average assumptions used for the Black-Scholes option pricing model valuation of share options granted during the years ended December 31, 2018 and 2017:

	Years ended December 31,
		2018	2017
Risk-free interest rate		2.2%		1.2	%
Expected life of options		4.5 years	4.5 years
Annualized volatility		47.4%		75.4	%
Forfeiture rate		2.2%		2.2	%
Dividend rate		0.0%		0.0	%

The risk-free rate of periods within the expected life of the share option is based on the Canadian government bond rate. The annualized volatility and forfeiture rate assumptions are based on historical results.

On September 13, 2017, the Board of Directors approved grants of deferred share units, restricted share units, and performance share units under its long-term incentive plan.

DSU, RSU and PSU Activity	DSUs (thousands)			DSU Fair Value			RSUs (thousands)				RSU Fair Value			PSUs (thousands)				PSU Fair Value
At January 1, 2017		-	$		-			-		$		-			-		$		-
Granted		113			492			175				762			175				1,318
Change in value		-			(77	)		-				(119	)		-				(228	)
At December 31, 2017		113	$		415			175		$		643			175		$		1,090
Granted		222			501			322				769			322				791
Forfeited		-			-			(138	)			(147	)		(121	)			(134	)
Change in value		-			(634	)		-				(962	)		-				(1,747	)
At December 31, 2018		335	$		282			359		$		303			376		$		-

Directors were granted DSUs where each DSU has a value equivalent to the price of one common share listed on the TSX. The DSUs are settled in cash and fully vest the day before each Annual General Meeting. Cash settlement takes place following a Director’s resignation.

At December 31, 2018, the carrying amount of DSUs outstanding and included in accrued liabilities was $266 (December 31, 2017 - $189). For the year ended December 31, 2018, share-based payments expense related to the DSUs was $77 (year ended December 31, 2017 - $189) (note 7(b)).

Selected employees were granted RSUs where each RSU has a value equivalent to the price of one common share listed on the TSX. The RSUs are settled in cash and fully vest on the three-year anniversary date.

At December 31, 2018, the carrying amount of the RSUs outstanding and included in other liabilities was $97 (December 31, 2017 - $64). For the year ended December 31, 2018, share-based payments expense related to the RSUs was $33 (year ended December 31, 2017 - $64) (note 7(b)).

Selected employees were granted PSUs where each PSU has a value equivalent to the price of one common share listed on the TSX. The PSUs are settled in cash and fully vest on December 31 starting in the grant year (the “Performance Period”). Performance results at the end of the Performance Period relative to performance criteria and the application of a performance multiplier determines the vesting number of PSUs for each participant. Criteria is based on the Company’s share price performance in relation to its peer group.

At December 31, 2018, the carrying amount of the PSUs outstanding and included in other liabilities was $nil (December 31, 2017 - $142). For the year ended December 31, 2018, share-based payments recovery related to the PSUs was $142 (year ended December 31, 2017 expense - $142) (note 7(b)).