Hi Art:

I’m no expert in this either but my understanding of it is as follows:

1) 1 Warrant is good for 1 share (not 2 warrants for 1 share)

2) Each warrant gives you the right to buy 1 share of MTO at $1.00 at any time until it expires on 15 May 2012 (not June 2012, my mistake)

3)If the shares have not traded above $1.00 by 15 May 2012, it makes no sense to buy them at that level with the warrant. In that case, after 15 May 2012 they become worthless.

As an example, let's say you buy 1000 warrants at 15 cents each. That will cost you $150. Then, e.g. a year from now, MTO shares are at $1.50. You can then decide to purchase 1000 MTO shares at $1 each with your warrants. So, these shares have cost you a total of $1,150 and you have made $1,500 for a $350 profit.

But at the same time you bought the warrants, you could have bought common shares at, for example, $.35 each. $150 would buy you 429 shares. When these shares go to $1.50 each they will be worth $643.50. That means the profit on your initial outlay of $150 would be $643.50 - $150 = $493.50 . That's better than would you could do with the warrants.

However, if the shares go to, for example, $2.00, you would make $900 with the warrants and $708 with the shares.

If they go to $5.00 by May 2012 you would make $3,850 with the warrants and $1,995 with the shares.

So, buying the warrants means you can make more money than buying the shares, the higher the share price goes before 15 May 2012. However, the less the share price increases, the lower the warrant advantage becomes, to the point where you would lose your initial investment in the warrants if share price stays below $1.00 until May15 2008..

If I got anything wrong here, please correct me.