Exall Resources Limited
TSX : EXL
OTC Bulletin Board : EXALF

Exall Resources Limited

August 16, 2006 17:04 ET

Exall Grants Options

TORONTO, ONTARIO--(CCNMatthews - Aug. 16, 2006) - Exall Resources Limited (EXL:TSX)(OTCBB:EXALF) announced today that the Board of Directors of the Corporation has granted an aggregate of 2,950,000 options to directors, officers and consultants of the Corporation, with each option exercisable at a price of $2.75.

Under Exall's stock option plan 10% of the outstanding share capitalization can be issued as options. Prior to this grant, Exall had issued only about 4.7% of its capitalization in options. Following this grant, the total number of options outstanding will represent about 8.4% of the number of outstanding common shares. The 2,950,000 options granted are exercisable until August 15, 2011, but 2,550,000 of these options that were granted to management of Exall have specific requirements for vesting before exercise can occur.

The option grant provisions are as follows:

1. The options are priced at $2.75 per share which is above the all-time high and current 52 week high of $2.62 and well above the recent trading range of $1.75-$2.00.

2. The vesting provisions are as follows:

a) 20% of the options granted to management and consultants will vest when the oil and gas division is re-organized into a stand alone, publicly traded company on or before December 31, 2006.

b) 30% will vest when the stock trades above $3.00.

c) 50% will vest when the stock trades above $5.00.

3. Directors were awarded 50,000 options each in their capacity as directors with a $2.75 strike price, which will vest immediately.

4. The options have been granted for a period of 5 years.

Exall also announced that it received proceeds of $550,455 from the exercise of 1,126,050 warrants on August 15 and August 16, 2006, which had been issued in Exall's bought deal that closed in September, 2005.

Exall is active in its business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore the United Kingdom. Exall owns 3,398,000 common shares (8.2%) of Southern Star Resources Inc., Exall's joint venture partner in the Gold Eagle Project.

Exall has 80,420,404 common shares issued and outstanding prior to the exercise of the warrants.

FORWARD LOOKING STATEMENTS:

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949
    www.exall.com