Speciality Metals International Limited Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 51 23. SHARE-BASED PAYMENTS (a) Share based payments 2019 $ 2018 $ Share-based payments expense - 23,455 Share-based payments capitalised - - Total share-based payments - 23,455 (b) Performance Rights The following table details the number and movements in performance rights issued as employment incentives during the year. 2019 Number Total vested and unexercised at 30 June 2019 2018 Number Total unvested and unexercisable at 30 June 2018 Outstanding at the beginning of the year 25,000,000 25,000,000 25,000,000 25,000,000 Granted during the year - - - - Converted/expired during the year - - - - Outstanding at the end of the year 25,000,000 25,000,000 25,000,000 25,000,000 (c) Performance rights issued and key terms 25,000,000 unlisted options were granted to Directors as an employment incentive following approval by shareholders at the General Meeting held on 22 June 2018 which expire on 22 June 2020 and are subject to vesting conditions. The key terms of the performance rights, in accordance with the terms approved by shareholders, are as follows: Type of Performance Right: Each Right entitles the Holder to 1 fully paid ordinary share in Speciality Metals International Limited (SEI) upon exercise. Expiry Date: 22 June 2020 (2 years after the issue date) Vesting: The Rights vest upon satisfaction of the following conditions: (a) the Company completes the acquisition of the Mt Carbine Quarry and associated mining leases; or (b) the Company share price on ASX trades on at least 3 consecutive business days above $0.05. (d) Valuation of Performance Rights Granted 30 June 2019 Number of granted Performance rights Grant date Expiry date Fair Value per Performance right at grant date Total Fair Value of Performance Rights Share-Based Payments Expensed in prior years Expensed in the 2019 year AASB 2 Not yet expensed Granted 25,000,000 22 Jun 2018 22 Jun 2020 $0.0132 330,000 3,771 326,229 - 25,000,000 330,000 3,771 326,229 - On 22 June 2018, the fair value of each performance right was $0.0132, therefore the valuation of the grant of performance rights to Directors was $330,000. 1 Fully expensed during the 2018/2019 financial year due to the vesting condition relating to the completion of the acquisition of Mt Carbine Quarries and associated mining leases being satisfied on 28 June 2019. (e) Performance Rights lapsed during the reporting period No performance rights options lapsed during the reporting period without exercise.