Stock Options

9 Months Ended

Aug. 31, 2011

Stock Options [Text Block]

15.	Stock Options
	There were no stock options granted during the nine months ended August 31, 2011. The Company uses the Black- Scholes option pricing model to calculate the fair value of stock options when the options are granted. Expected volatility is based on historical volatility. Because trading tends to be thin, in relation to the total shares outstanding, average weekly stock prices were used to calculate volatility. Management believes that the annualized weekly average of volatility is the best measure of expected volatility. U.S. Treasury constant maturity rates were utilized with maturities most closely approximating the expected term of the option. The expected term of the options was calculated using the alternative simplified method, which defines the expected life as the average of the contractual term of the options and the weighted average vesting period for all option tranches.
	The following table summarizes the continuity of the Company’s stock options:

					Weighted-
			Weighted		Average
	Number		Average		Remaining
	of		Exercise		Contractual Term	Intrinsic
	Options		Price		(years)	Value
			$
Outstanding, November 30, 2009	48,200,000		0.056		2.72
Cancelled	(3,900,000	)	(0.058	)
Outstanding, November 30, 2010	44,300,000		0.056		1.68	–
Cancelled	(5,000,000	)	(0.058	)
Expired	(11,600,000	)	(0.050	)
Outstanding, August 31, 2011	27,700,000		0.058		1.36	–

As at August 31, 2011, the following common stock options were outstanding and exercisable:

		Remaining
		Contractual
	Exercise Price	Life (years)
Number of Options
	$
17,000,000	0.05	1.35
10,700,000	0.07	1.37
27,700,000