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Message: Golden Hope Mines, Options Granted
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Below is an email response to me from Sasha at GNH IR re: the recent options NR:
"Thank you in advance for your question. GNH issues compensation option on a yearly basis to key people in the company as per the stock option plan approved by shareholders. GNH issues options at roughly the same time every year, right around the Annual General Meeting.
There is a discrepancy between the popular perceptions of compensation options versus the reality of how they function. Contrary to what most believe, options are not simply free trading stock that is given out, options give the option holder the right to acquire the security at a later date at a given price. Therefore, options are forward looking, not retroactive. They do not compensate for past performance but incentivize future performance.
In this case, the options granted on Thursday June 30, 2011 at $0.12 are only worth something to the holder if value is created and the common share price rises. The purpose of an option is to create an incentive for key people to perform and generate value for their own options and therefore for the shareholder as well. Moreover, compensation options are taxed by the Canada Revenue Agency as both income and capital gains (or losses).
With regards to the generous nature of the size of allocations, I have to respectfully disagree. I see extremely large option packages being allocated across TSXV listed companies on a regular basis and often more than once a year. As per our corporate by-laws, GNH can issue up to 10% of it’s issued and outstanding stock in options. The option grant Thursday represents roughly 2.4%.

I hope this clarifies the issue for you.

Regards,
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Sasha Asgary
Director of Corporate Communications
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