HANDENI GOLD INC. | 2013 | FY | 3


12.

Common Stock Purchase Warrants

   
 

During the year ended May 31, 2013, there were no stock purchase warrants granted and 40,162,262 stock purchase warrants expired.

   
 

Pursuant to a release and indemnification agreement, the Company granted 300,000 stock purchase warrants on July 7, 2011 to acquire 300,000 common shares at a price of $0.30 per share exercisable for one year period. The fair value of the granted warrants was $81,158 estimated at the date of grant using the Black-Scholes option-pricing model.

   
 

The following table summarizes the continuity of the Company’s share purchase warrants:


            Weighted     Weighted Average  
            Average     Remaining Contractual  
      Number of Warrants     Exercise Price     Life  
      #         (years)  
                     
  Balance, May 31, 2011   53,416,417     0.33     1.68  
  Issued   300,000     0.30     0.10  
  Balance, May 31, 2012   53,716,417     0.33     0.67  
  Expired   (40,162,262 )   0.26     -  
  Balance, May 31, 2013   13,554,155     0.52     0.33  

As at May 31, 2013, the following common share purchase warrants were outstanding:

    Remaining
Number of Exercise Contractual
Warrants (#) Price ($) Life (years)
     
13,554,155 0.52 0.33

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