ANNUAL REPORT 2006

NOTE 10: SHARE BASED PAYMENT PLANS (continued)
The following table lists the inputs to the model used for the years ended 30 June 2005 and 30 June 2006:
2006 2005
Volatility (%) 73.09% - 83.78% 68.5%
Risk-free interest rate (%) 5.37% - 5.795% 4.8%
Expected life of option (years) 4 years 5 years
Exercise price (cents) 37 – 83 cents 20 cents
Weighted average share price at grant date (cents) 52.82 cents 26.5 cents
A N N U A L R E P O R T 2 0 0 6
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome. No other features of options granted were incorporated into
the measurement of fair value.
The fair value of the cash-settled options is measured at the grant date using the Binomial Tree option pricing model
taking into account the terms and conditions upon which the instruments were granted. The services received and
a liability to pay for those services are recognised over the expected vesting period. Until the liability is settled it is
re-measured at each reporting date with changes in fair value recognised in profit or loss.
NOTE 11: TRADE AND OTHER PAYABLES (CURRENT)
2006
$
Consolidated
2005
$
2006
$
Parent
2005
$
Trade creditors & accruals 558,680 250,451 115,871 236,994
NOTE 12: PROVISIONS
Current
Annual Leave 112,012 72,335 94,517 72,335
112,012 72,335 94,517 72,335
Non-Current
Long Service Leave 36,240 - 36,240 -
Total employee leave provisions 148,252 72,335 130,757 72,335
The number of employees of the Consolidated Entity at balance date was 9 (2005: 8).
NOTE 13: CONTRIBUTED EQUITY AND RESERVES
Parent
Issued capital: 2006 2005
179,015,281 ordinary fully paid shares $ $
(2005: 99,612,523 ordinary shares) 55,186,805 26,387,002
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