NOTES TO THE FINANCIAL STA TEMENTS for the year ended 31 December 2004 Number of Number of options options at at end of the year Number  Date first  Exercise price  beginning Options  Options Options Pr oceeds  of shares Fair value Grant date exercisable Expiry date per share of the year granted lapsed exercised On issue Vested r eceiv ed issued 1 aggregate 2 $ $ $ 16 June 1998 16 June 2001 15 June 2003 4.84 280,000 – – 280,000 – – 1,355,200 280,000 1,532,500 15 June 1999 15 June 2002 14 June 2004 5.12 685,000 – – 470,000 215,000 215,000 2,406,400 470,000 2,895,850 18 April 2000 18 April 2003 17 April 2005 3.92 650,000 – – 500,000 150,000 150,000 1,960,000 500,000 2,920,500 26 August 2000 26 August 2003 25 August 2010 5.83 3,000,000 – – – 3,000,000 1,000,000 – – – 6 June 2001 6 June 2004 5 June 2006 6.69 700,000 – – – 700,000 – – – – 19 October 2001 19 October 2004 18 October 2006 6.52 1,075,000 – 150,000 – 925,000 – – – – 18 June 2002 18 June 2005 17 June 2007 6.20 750,000 – 50,000 – 700,000 – – – – 12 December 2003 22 December 2004 22 December 2007 6.38 – 208,314 – – 208,314 – – – – 12 December 2003 12 December 2006 22 December 2008 6.38 – 100,000 – – 100,000 – – – – 7,140,000 308,314 200,000 1,250,000 5,998,314 1,365,000 5,721,600 1,250,000 7,348,850 Number of Number of options options at at end of the year Number  Date first  Exercise price  beginning Options  Options Options Pr oceeds  of shares Fair value Grant date exercisable Expiry date per share of the year granted lapsed exercised On issue Vested r eceiv ed issued 1 aggregate 2 $ $ $ 15 June 1999 15 June 2002 14 June 2004 5.12 215,000 – – 215,000 – – 1,100,800 215,000 1,420,550 18 April 2000 18 April 2003 17 April 2005 3.92 150,000 – – 100,000 50,000 50,000 392,000 100,000 607,000 26 August 2000 26 August 2003 25 August 2010 5.83 3,000,000 – – – 3,000,000 2,000,000 – – – 6 June 2001 6 June 2004 5 June 2006 6.69 700,000 – 50,000 100,000 550,000 – 669,000 100,000 735,000 19 October 2001 19 October 2004 18 October 2006 6.52 925,000 – – 200,000 725,000 725,000 1,304,000 200,000 1,522,000 18 June 2002 18 June 2005 17 June 2007 6.20 700,000 – 50,000 100,000 550,000 – 620,000 100,000 739,000 12 December 2003 22 December 2004 22 December 2007 6.38 208,314 – – – 208,314 208,314 – – – 12 December 2003 12 December 2006 22 December 2008 6.38 100,000 – – – 100,000 – – – – 15 June 2004 15 June 2007 14 June 2009 6.95 – 200,000 – – 200,000 – – – – 15 June 2004 1 July 2005 1 July 2008 6.95 – 130,148 – – 130,148 – – – – 5,998,314 330,148 100,000 715,000 5,513,462 2,983,314 4,085,800 715,000 5,023,550 2004 Summary of options over unissued ordinary shares Consolidated and the Company (d) Santos Executive Share Option Plan (continued) Contributed Equity (continued) 1 Shares issued on the exercise of options have occurred at varying dates throughout the financial year. 2 The fair value of shares issued as a result of exercising options during the reporting period has been determined using the market price of th Compan y’s ordinary shares on the Australian Stock Exchange as at close of trading on the respective issue dates. 2003 Annual Report 2004 66 1 Shares issued on the exercise of options have occurred at varying dates throughout the 2003 financial year. 2 The fair value of shares issued as a result of exercising options during the 2003 financial year has been determined using the market price of th e Compan y’s ordinary shares on the Australian Stock Exchange as at close of trading on the respective issue dates.