@pckeller you are a hero.
There are 8 cubes. And there are 6 faces for a cube. Now if I imagine that each of these cubes are on the vertices of the cube, then there will be 8 cubes, each with six faces. Therefore surface area; 12 = 6*(0.5^2 * 8).
I was having trouble because I could not visualise the cube being split up, so I was ignoring the cubes that were hidden!
I finally get it :D:D:D
May I ask you, is my terminology correct, with respect to the vertices etc.