NEW OROPERU RESOURCES INC.  Notes to Consolidated Financial Statements (Expressed in US dollars)  Years ended December 31, 2012 and 2011  Unlimited number of common shares without par value The Company has a stock option plan that authorizes the Board of Directors to grant options for the purchase of up  to 3,279,663 common shares pursuant to a 20% fixed stock option plan . Options granted under the plan vest  according to the terms and conditions by the compensation committee of the Company, subject also to regulatory  vesting requirements where applicable in the case of investor relations options. All of the Company’s currently  outstanding options were issued  with vesting periods ranging fromzero to eighteenmonths from the date ofissue.  Stock options to purchase common shares have been granted to directors, employees and consultants at exercise  prices determined by reference to the market value on the date  of grant.  On October 26, 2012, the Company granted an aggregate of 2,000,000 incentive stock options to directors, officers  and employees of the Company, for the purchase up to an aggregate 2,000,000 common shares of the Company  at an exercise price of $0 .50 per share for a period of five years, subject to regulatory and disinterested shareholder  approval. As at the report date, the Company has yet to receive disinterested shareholder approval. A summary of thestatus ofthe Company’s stock options at December 31, 2012and 2011 and changes during the  yearsis as follows:  Stock options outstandingand exercisable as at December 31, 2012 are as follows: 6. SHARE CAPITAL  a)  Authorized  b)  Stock Options 2012  2011  Number  of  Shares  Weighted  Average  ExercisePrice  Number  of  Shares  Weighted  Average  ExercisePrice  Outstanding, beginning of year  2,350,000  $ 0.51  3,020,000  $ 0.48  Granted  2,000,000  $ 0.50  -  -  Expired  (1,085,000)  $ 0.55  (520,000)  $ 0.38  Exercised  -  -  (150,000)  $ 0.38  Options outstanding  3,265,000  $ 0.49  2,350,000  $ 0.51  Options exercisable  1,265,000  $ 0.49  2,050,000  $ 0.52  Number of Options  Exercise  Expiry Date  Weighted Average Contractual  Life of Options Remaining  Outstanding  Exercisable  Price  in Years  65,000  65,000  $ 1.00  January 29, 2013  0.08  1,200,000  1,200,000  $ 0.45  October 6, 2015  2.76  2,000,000  -  $ 0.50  October 26, 2017  4.76  3,265,000  1,265,000  3.94  18 