Stock Based Compensation

12 Months Ended

Dec. 31, 2011

As part of certain employment agreements we issue stock options. These are generally approved by the Board of Directors. The exercise price is set by the average closing price of our stock the ten days prior to approval and the grant date fair value is estimated using a Black Scholes pricing model with the following assumptions:

Volatility		= 225%
Expected term		= 3 years
Dividend yield		= 0
Risk free rate		= .30%

The following table represents the option activity for the periods presented;

	Number of Options
Outstanding at 1/1/10		202,652
Granted		258,180
Exercised		-
(Forfeited/expired)		-
Outstanding at 12/31/10		460,832
Granted		-
Exercised		-
(Forfeited/expired)		(50,632	)
Balance 12/31/11		410,200

During the years ended December 31, 2011 and December 31, 2010 we recognized stock based compensation of $0 and $44,634 respectively which is included in our General and administrative expenses. As of December 31, 2011 all of the options are vested and exercisable with a weighted average exercise price of $.43 and remaining terms between 2 weeks and 19 months. The total intrinsic value of the options outstanding as of December 31, 2011 is $0.

Stock Compensation Plans

At a special meeting of shareholders held on March 23, 2010 the Company’s shareholders approved the Golden Eagle International, Inc. Revised 2009 Equity Incentive Plan (“Plan”). As of December 31, 2011 there were no plan awards granted under the Plan.