This circuit provides an FM modulated signal with an output power of around 500mW. The input microphone pre-amp is built around a couple of 2N3904 transistors (Q1/Q2), and audio gain is limited by the 5k preset trim potentiometer. The oscillator is a colpitt stage, frequency of oscillation governed by the tank circuit made from two 5pF ceramic capacitors and the L2 inductor. The output stage operates as a 'Class D' amplifier, no direct bias is applied but the RF signal developed across the 3.9uH inductor is sufficient to drive this stage. The emitter resistor and 1k base resistor prevent instability and thermal runaway in this stage.