We report the implementation and evaluation of a Simulation Theory (ST) approach to the Theory of Mind in intelligent graphical agents driven by an affective agent architecture FAtiMA. The existing cognitive appraisal mechanism is adapted to produce a second appraisal cycle, a double appraisal, in order to evaluate the emotional impact of possible actions. The action with the greatest emotional impact is selected as a means of producing more interesting dramatic actions. A variant in which the actual minds of characters present are used is also implemented and evaluated. Results show that these mechanisms do produce more interesting stories. Categories and Subject Descriptors I.2.11 [Distributed Artificial Intelligence Language]: Intelligent agents General Terms Experimentation Keywords Theory of Mind, Cognitive Appraisal, Emergent Narrative.