Siren Gold Limited Annual Report 2020

Independent Auditor’s Report Independent Auditor’s Report To the Members of Siren Gold Limited (Continued) Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Exploration and Evaluation As disclosed in note 8 to the financial statements, as at 31 December 2020, the Consolidated Entity’s capitalised exploration and evaluation expenditure was carried at $1,951,330. The recognition and recoverability of exploration and evaluation was considered a key audit matter due to:  The carrying value represents a significant asset of the Consolidated Entity, we considered it necessary to assess whether facts and circumstances existed to suggest that an impairment trigger event has occurred; and  Determining whether impairment indicators exist involves significant judgement by management. Our audit procedures included but were not limited to:  Assessing management’s determination of its areas of interest for consistency with the definition in AASB 6 Exploration and Evaluation of Mineral Resources (“AASB 6”);  Assessing the Consolidated Entity’s rights to tenure for a sample of tenements;  Testing the Consolidated Entity’s exploration and evaluation costs for the year by evaluating a sample of recorded expenditure for consistency to underlying records, the capitalisation requirements of the Consolidated Entity’s accounting policy and the requirements of AASB 6;  Testing the status of the Consolidated Entity’s tenure and planned future activities, reading board minutes, review of Independent Geologist Reports, Solicitor’s Tenement Reports and enquiries with management we assessed each area of interest for one or more of the following circumstances that may indicate impairment of the capitalised exploration costs:  The licenses for the rights to explore expiring in the near future or are not expected to be renewed;  Substantive expenditure for further exploration in the area of interest is not budgeted or planned;  Decision or intent by the Consolidated Entity to discontinue activities in the specific area of interest due to lack of commercially viable quantities of resources; and  Data indicating that, although a development in the specific area is for the year ended 31 December 2020 Annual Report 2020 55