Note 18. Share-based payments (continued) (a) Issue of Options and Performance Rights (continued) Performance Rights: Grant Date Beginning Balance Granted as remuneration Exercised during year Lapsed Balance at end of year Vested and Exercisable 3 Nov 2021: Tranche 1 – 12,000,000 – – 12,000,000 – 3 Nov 2021: Tranche 2 – 12,000,000 – – 12,000,000 12,000,000 3 Nov 2021: Tranche 3 – 12,000,000 – – 12,000,000 – 23 Oct 2020: Tranche 1 10,000,000 – (10,000,000) – – – 23 Oct 2020: Tranche 2 10,000,000 – – 10,000,000 10,000,000 23 Oct 2020: Tranche 3 10,000,000 – (10,000,000) – – – 31 Oct 2019: Tranche 1 2,600,000 – (2,600,000) – – – 31 Oct 2019: Tranche 2 2,600,000 – – – 2,600,000 – 31 Oct 2019: Tranche 3 2,600,000 – – – 2,600,000 – 27 Nov 2018: Tranche 1 3,466,667 – (3,466,667) – – – 27 Nov 2018: Tranche 2 286,976 – – (286,976) – – 27 Nov 2018: Tranche 3 3,466,666 – (3,466,666) – – – Total 45,020,309 36,000,000 (29,533,333) (286,976) 51,200,000 22,000,000 During the 2022 financial year 36 million performance rights were granted with the following performance conditions attached: Tranche 1 – to vest upon the later of both the following conditions occurring: – The Closing Price of Sunstone Shares being $0.071 or more for 10 trading days out of any 20 consecutive trading days; and – 12 months after issue. Tranche 2 – TSR performance as measured against the ASX Small Resources Index, as follows: – Performance below the index no shares will vest. – Performance equal to the index will see 50% vest, increasing linearly with outperformance of the index by up to 25%, such that 100% of shares will vest should Sunstone’s performance be greater than 25% above the index performance; and – Testing will be annually on 30th June. Tranche 3 – to vest upon the later of both the following conditions occurring: – The Closing Price of Sunstone Shares being $0.094 or more for 10 trading days out of any 20 consecutive trading days; and – 12 months after issue. Each tranche of Shares will not be able to be released from the Employee Performance Rights Plan until the performance based Vesting Conditions for that tranche have been achieved. During the 2022 financial the share price hurdles for tranches 1 and 3 have been met however vesting is still subject to the recipients remaining as an employee for 12 months after date of issue. Subsequent to 30 June 2022, the TSR testing for the tranche 2 grants for 2020 and 2021 resulted in Sunstone’s performance being greater than 25% above the index performance and 22 million performance rights vested, while the tranche 2 performance rights granted in 2019 will lapse. Notes to the Financial Statements for the year ended 30 June 2022 52 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022
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