11. Stock Options

6 Months Ended

Jun. 30, 2018

11. Stock Options

In 2017, the Company granted a total of 662,500 options to consultants and employees of the Company. These options vest in 2018. The options had a fair value of $66,539 which is being recognized ratably over the vesting period. Compensation cost of $27,140 was recognized in the first half of 2018. The remaining unrecognized compensation cost of $14,881 is expected to be recognized in the remainder of 2018.

Stock based compensation costs are included in management, production, exploration, and general and administrative expenses where applicable.

	Number of Options		Exercise Prices
Balance December 31, 2016	7,500,000		0.10-0.15
Expired	(500,000)		0.10
Issued	662,500		0.15-0.18
Balance December 31, 2017	7,662,500		0.10-0.18
Expired	(500,000)		0.10
Exercised	(8,000)		0.15
Balance June 30, 2018	7,154,500		0.10-0.18
Exercisable at June 30, 2018	6,892,000	$	0.10-0.15

At June 30, 2018, outstanding stock options have a weighted average remaining term of two years and an intrinsic value of approximately $605,000. During the six months ended June 30, 2018, stock options for 8,000 shares of common stock with an exercise rate of $0.15 were exercised for total proceeds of $1,200. The intrinsic value of the options on the date of exercise was $640.