Ann: Maiden Exploration Target at Siren's Big River, page-8

Very true. What I have seen in the past is the following. It is very expensive, time consuming and in most cases, fraught with failure more often than not. For a large cap gold miner to start a brownfield or greenfield exploration program.

it is much easier to keep the feelers out, wait for a small cap gold explorer to release and consequently grow a JORC Resource to the point where they make a takeover offer.

As gold deposits are drilled out and JORC resources increased by small caps, this is especially the case for high grade gold deposits like Siren's at Alexander River and Big RIver.

The discounted future cashflows become too compelling to allow the small cap company to continue to financing and production. Hence a take over offer is made by a large cap.

As a rough simple guide, if you take the in situ value of the gold and apply a ~10-15% value to it, it comes close to what some of these takeover offers have been in the past.

If you add Big River's JORC Resource target, announced today, 100,000-120,000 @ a high grade 7-9grams per tonne to Alexander River's 1.128Million Oz at 6.9g/t down 1000metres(700metres from surface). This equates to around 1.4million Oz at 6.6g/t worth today $A3.4Billion.

So at ~10-15% of this that is around $A345million to $A518million. With only 85million shares on issue that equates to a possible take over offer of between $A4.05 and $A6.08.

Siren Gold's current market cap is $A21million (25c share price).

That 1.128million Oz Target at Alexander River is only down 1000m into the diagonal high-grade quartz shoot, around 700metre from surface. Blackwater next door and Fosterville in Victoria run down 2,000metres + and the gold grade rises the deeper you mine.(See below). In reality, we should expect Alexander River to contain ~2.4million Oz at 6.9g/t down 2000metres as drilling continues at depth over the next 12-18 months.

This equates to $A5.88Billion at Alexander River and $300million of high-grade gold at Big River, Over $A6Billion in total as drilling continues by Siren. Calculate that at the ~10-15% takeover level ~$A600million to $A900million for Siren.

I personally believe there will come a tipping point where the in situ value of the high grade from surface gold in the ground, which will drive extraordinary cashflows will reach a compelling level, where a takeover offer becomes a strong probability.

Whether we are getting close already to this tipping point, once the Maiden JORC Gold Resource is released by Siren, is something we wont know until it is completed.

It is something that we need to keep at the back of our minds as these incredible assets are drilled out.