Ann: Appendix 3B Issue of Unlisted Options , page-3

Kent l copied this very good post from Pukin from MPO....though it may not necessary apply totally to VPE today, it gave me a better understanding of why options sometimes are given......though l do agree with you that VPE do enjoy splashing them out at times.

I personally do wish VPE would be taken out and this hanging around for the inevitable (supposedly) is just dragging on.

The dilution to us existing shareholders from this scheme is minimal. It is not as though they are getting free shares!!! If they want to buy the shares, they will have to pay, and it will raise approximately $4m in the bank for MPO.

The majority of options issued this year are around $1.40-$1.50, which is well above the current price.

Total options issued this year are approximately 2.8m.

Total shares on issue for MPO are approx 250m. So if they were SHARES issued free, they would cost existing shareholders only 1.12%!!!

But they aren't being issued free... they have to pay above the current price for all options issued this year.

Current market cap is 266m for 250.8m shares on issue... which equals $1.06 per share.

IF they exercise options, add in the 4m cash.. so 270m for 253.6m shares which equals $1.065 per share.

So there is NO negative effect for existing shareholders.

In fact... there is a major POSITIVE.... it will give MPO management the same goals for the MPO share price as we have, it will drive them harder because they will profit more if the business is successful. The incentive side of these options is a no brainer clearly.

Also I think people are forgetting the tremendous growth MPO is going through. They are spending $50m next quarter on exploration and development... staff numbers are increasing as they try and really grow shareholder value. With all these new staff, they are providing them with incentive to get the company to perform as best as possible.

From what deeman has posted... Stephen Mitchell has said...

"Recent issues of options have been to new staff - which is a critical tool to attract high calibre candidtates. The exercise price will vary because they are priced at the time the employee joins. Some have been issued above $2 and others at premiums to recent prices. What appears to be continual issue of options is associated with building a team in Canada to manage our growing operation there."

The options are not getting issued to the same people over and over and over again. They are going to NEW staff members that are being hired due to MPO's rapid growth.

I will finish with this... if you think management are getting an unfair deal (to us shareholders) by receiving these options, you clearly think MPO is undervalued at these prices. So why not buy MPO shares instead of whinging.

I really everyone on here can finally see that Management Incentive options are GOOD for us shareholders, not bad.