Been good to see SIH rise from the dead the last few months &...

Been good to see SIH rise from the dead the last few months & hopefully its just the begining of the rerate, things look like they are starting to come together again:

SIHAYO/SAMBUNG

Infill drilling has been successfully completed at Sambung, showing potential to grow 2-3 times the size over 2012, current resource 123,000oz potential to grow to 246,000oz - 369,000oz.

"Resource consultants, Runge Limited, are currently analysing Sambung data with a view of releasing an updated JORC Compliant Resource report in May 2012."

"At the Sambung Resource, we are awaiting final assays from the recently completed Infill Drilling program and
the upcoming Runge JORC Report before we continue further resource definition drilling along strike to the
southeast."

"Resource extension drilling at Sihayo - Sambung Resource"
"Exploration and definition drilling at Hutabargot Julu prospect Sihayo - Sambung and Hutabargot drilling ongoing thru 2012"


HUTABARGOT JULU

Drilling has finally restarted, Still very early days at HJ so patience will be needed, potential is high for a discovery, being such a large target drilling will be hit & miss until they find the spot there looking for, In the latest research report BBY beleives Hutabargot Julu is highly likely to become SIH second mine, Saharan vein drilling already sees strong potential for atleast 3mt @ 1.5gt for 140,000oz with clear potential for much more. Drilling Results wouldnt expect anything until SIH hit something worth releasing that will interest the market but that could come at any time.

Definitive Feasibility Study (DFS)

We still wait, final release moved to end of June, biomass power has blown the construction costs out to roughly $130mil but has brought down mining costs to a competitive US$578oz, increasing the resource/mine life with future discoveries will make up for the one off constuction costs increase, mine life 7 years at 88,000oz, this will only grow with future discoveries.

BBY Research Report

Took a while but finally we have a decent research report released on SIH & very encouraging to see a STRONG BUY put on SIH with a target of $0.30 only on Sihayo/Sambung resource, no value has been put on the exploration outside Sihayo/Sambung resource, BBY beleives there is excellent potential for a major gold or gold & copper discovery outside Sihayo/Sambung resource at any time.

BBY March 2012:

http://www.sihayogold.com/upload/pages/project-updates-for-analysts/sih-initiation-report-march-2012.pdf

BBY April 2012:

http://www.sihayogold.com/upload/pages/project-updates-for-analysts/bby-april.pdf

Illegal Miners To Be Removed

Positive move about to be made on SIH COW, Sihayo will work with the local gov, police, army over the next 2 months to remove the illegal miners off SIH COW, things may get heated but SIH has stepped up security to avoid a repeat of last year. Removal of illegal miners with the backing of the local gov is a major positive for SIH long term future in Sumatra.

PLACEMENT

Its coming April/May imo, question is what price & to who, Summit, Asia Lion, Mr Yaw, BBY likely all to take part imo, what price is what im most interested to see, if a cheap placement was managements intention it would have been placed long ago when SIH was trading around .10, with the sp around .17 atm our placement range is likely between .15-.20, in the past managmeent has been able to place stock at a decent price, hopeing this hasnt changed & upcoming placement is closer to .20 rather then .15, time will tell.

EXPORATION UPSIDE

Main focus has only been of Sihayo/Sambung the past few years, with a little work done at Tambang Tinggi & Hutabargot Julu taking place now, there is 20 Gold/Copper/Silver targets outside the resource yet to be appropriately tested, SIH hasnt even scatched the surface to test potential for new discoveries, over time they will.

SHARE PRICE

After a long period of nothing & plenty of manipulation, SIH has finally began its rerate, peaked at .205 few weeks back now consolidating between .16-.18, a breakout of this range should see next resistance around .21 then next aim will be to take out the highs of 2010 which was .027, with BBY on board with a target of .30 it may be achievable on the back of positive announcements.

New Indonesia Mining Law

SIH looks to be in the clear of this mining law & may even look to do a dual listing on the JSX & ASX

"Copy from recent SIH Presentation":

Basis of SIH Position
* COW is a legally binding contract
* COW allows for amendments by mutual agreement
* COW provides for dispute resolution via International Courts
* SIH mostly satisfies even the most recent Indonesian Government ownership proposals
* Direct Indonesian ownership of the Project is 25% (PT Aneka Tambang)
* Indirect Indonesian ownership of the Project is approximately 25% (Summit plus other shareholders)
Potential Dual Listing (ASX and JSX)
* JSX listing effectively deems the Company to be an “Indonesian Company”
* Indonesian shareholders domicile their shares under the JSX listing
* Other shareholders either ASX or JSX
* Maintain minimum level of Indonesian ownership
* Increase number of Indonesian Directors
* PT Aneka Tambang currently dual listing (JSX and ASX)
Combination of COW tenure, Project ownership and existing SIH Shareholders
* Fully satisfy all existing foreign ownership requirements
* Well placed in regards potential changes to foreign ownership requirements

CONSTRUCTION - PRODUCTION

Looks like construction wont begin until atleast 2013 & production early 2014, all depends when the following permits are approved then SIH can start its plans for construction:

"Copy from recent SIH Presentation":

Obtain Indonesian Permitting to begin construction
* AMDAL Permit – Environmental and Social Impact Study
* Government of Indonesia Feasibility Study
* Forestry “Borrow to Use” Permit
* Target end of Q4 2012 or Q1 2013

SUM IT UP

SIH is starting to get that feel of back in 2010 when we peaked at .27, sp has began to rerate, we have broker coverage, dfs is coming to an end & exporation is begining outside the resource, the top20 is at its stongest levels, news is begining to flow, aslong as targets are achieved a move into the .20's in the near term is a reasonable target on the back of positive news flow.

As always DYOR..