NOTE 7 STOCK OFFERING
During January 2011, Bullion engaged an agent in regards to an offering of the securities of Bullion Monarch Mining Inc. in Canada. The offering is expected to consist of a minimum of 10,000,000 Common Shares. The agent will be entitled to a Corporate Finance Fee of Canadian (C)$25,000 as well as 6.75% of the gross proceeds of the stock issuance and broker warrants in the sum of 7% of the total number of securities issued pursuant to the offering. Bullion has granted an option to cover over-allotments, which will allow the agent to offer additional securities in an amount up to 15% of the original amount of securities sold at a price equal to the issue price, the option being exercisable at any time within 30 days of the closing date. As of July 31, 2011, costs incurred of $180,826 related to the offering have been capitalized. Bullion is working with its agent regarding a potential offering in the fall of 2011.
NOTE 8 STOCK OPTION PLAN
On February 18, 2011, the Board of Directors of Bullion approved the 2011 Stock Option Plan of Bullion Monarch Mining, Inc. (the 2011 Plan). The 2011 Plan provides for the granting of options to purchase up to 3,000,000 shares of Bullions common stock to directors, employees and consultants of Bullion, including officers and directors who are employees of Bullion. Under the 2011 Plan, the granting of options, exercise prices and terms are determined by the
Companys Board, or a committee designated by the Board to administer the 2011 Plan. The term of options granted under the 2011 Plan may not exceed 10 years. No options have been granted under the 2011 Plan.