SHARE CAPITAL (Tables)

12 Months Ended

Aug. 31, 2012

Black-Scholes option pricing model Asumptions

For stock options granted in prior years, the Black-Scholes option pricing model was used to calculate to estimate the fair value of the options at the grant date. The following assumptions were made:

	2011	2010
Risk Free Rate	0.17%	0.19%
Expected Life of Option	5 years	5 years
Expected Volatility of Stock (Based on Historical Volatility)	115.6%	92.6%
Expected Dividend yield of Stock	0.00	0.00

Options outstanding under the 2010 Plan

The following table sets forth the options outstanding under the 2010 Plan as of August 31, 2012:

	Available for Grant	Options Outstanding	Weighted Average Exercise Price
Balance, August 31, 2010	4,450,000	550,000	$ 0.26
Options granted	(250,000)	250,000	$ 1.30
Balance, August 31, 2012 and 2011	4,200,000	800,000	$ 0.59

Summary of information concerning outstanding and exercisable common stock options

The following table summarizes information concerning outstanding and exercisable common stock options under the 2010 Plan at August 31, 2012:

Exercise Prices	Options Outstanding	Remaining Contractual Life (in years)	Weighted Average Exercise Price	Number of Options Currently Exercisable	Weighted Average Exercise Price
$ 0.26	550,000	2.92	$ 0.26	300,000	$ 0.26
$ 1.30	250,000	3.29	$1.30	150,000	$1.30
	800,000			450,000

Summary of status of the Company's unvested stock options

A summary of status of the Company’s unvested stock options as of August 31, 2012 under all plans is presented below:

	Number of Options	Weighted Average Exercise Price	Weighted Average Grant Date Fair Value

Unvested at August 31, 2010	475,000	$ 0.26	$ 0.18
Granted	250,000	$ 1.30	$ 0.97
Vested	(175,000)	$ 0.56	$ 0.47

Unvested at August 31, 2011	550,000	$ 0.64	$ 0.47
Vested	(200,000)	$ 0.78	$ 0.58

Unvested at August 31, 2012	350,000	$ 0.56	$ 0.41

Titan Oil & Gas, Inc. 10-K