COMMANDER RESOURCES LTD.  (An Exploration Stage Company)  Notes to Financial Statements  For the Years Ended December 31, 2012 and 2011  (Expressed in Canadian dollars)  14. Share Capital (Continued)  (d) Warrants and agent’s warrants The Company had warrants outstanding at December 31, 2012 and 2011 as follows:  There was no change to the Company’s warrants for the year ended December 31, 2012.  In 2011, 4,250,015 warrants were issued in May 2011 in relation to a private placement (Note 14(b)). The fair value of the warrants was calculated using the Black-Scholes pricing model with the following  assumptions:  Expected volatility was determined based on the historical movements in the closing price of the Company’s stocks  for a length of time to the expected life of each warrant.  The Company’s related parties consist of companies controlled by executive officers and directors. The Company  incurred the following fees and expenses in the normal course of operations in connection with those companies for  the years ended December 31, 2012 and 2011 as follows:  During the year ended December 31, 2012, the Company charged Maritime $78,707 (2011 - $56,653) in respect of  office administration, accounting, rent, insurance and investor relation expense shared by the companies. At December 31, 2012, included in receivables were $3,060 (2011 - $254) for administrative and office expenses  from companies related by common directors. At December 31, 2012, included in accounts payable were amounts due to related parties of $765 (2011 - $17,706)  for legal fees to a law firm related by a director in common. At December 31, 2012, investment in securities included 258,000 (2011 - 258,000) common shares of a company  related by a director in common.  - 31 -  2012 2011 Legal 9,628 $ 24,188 $ Office rent and administrative 84,410 78,590 94,038 $ 102,778 $ Issue date May 3, 2011 May 18, 2011 Risk-free interest rate 1.70% 1.68% Expected dividend yield 0% 0% Expected stock price volatility 82% 82% Expected option life in years 2 2 (a) Services  15. Related Party Transactions  Outstanding  Warrants at  December 31, 2010 Expired Number of Warrants Amount - 2,819,166  - - 2,819,166 $ 134,827  $0.30  May 3, 2013 - 1,430,849  - - 1,430,849 77,016  $0.30  May 18, 2013 - 4,250,015  - - 4,250,015 $ 211,843  Issued Expiry Date Exercise  Price Exercised Outstanding warrants at  December 31, 2011 and2012