Sienna Gold Inc. - Reasons for Dissident Proxy Circular

CALGARY, Aug. 17 /CNW/ - On August 5, 2010, Albert Hulzebos, a director of Sienna Gold Inc. ("Sienna") and Andreas Glatiotis, a former director of Sienna, filed a Press Release for the Concerned Shareholders of Sienna (filed on SEDAR www.sedar.com as of August 6, 2010 under the Sienna's corporate profile as "Other") relating to their having issued on August 5, 2010 a Dissident Proxy Circular (the "Dissident Proxy Circular") and a form of Dissident Proxy (the "Dissident Proxy") in respect of their solicitation of Dissident Proxies for the Annual and Special Meeting (the "Meeting") of Shareholders of Sienna convened for 10:00 a.m. (Calgary time) on August 23, 2010 in the Alberta A Room, Holiday Inn, 4206 MacLeod Trail S., Calgary, Alberta.

Investors may access the Dissident Proxy Circular and Dissident Proxy under Sienna's corporate profile on SEDAR for two instruments announced on SEDAR as of August 5, 2010.

Albert Hulzebos and Andreas Glatiotis seek in the Dissident Proxy Circular among other things, the Shareholders' voting affirmatively under the Dissident Proxy for the Meeting to fix the Board of Sienna at five directors and to elect an alternative slate of directors (Albert Hulzebos, Andreas Glatiotis, Colin Q. Winter, Kenneth D. Moore and Ernest Toews).

They have received numerous inquiries concerning their Dissident Proxy Circular and Dissident Proxy. To assist in providing notice to the public concerning their reasons for having initiated such Dissident Proxy for the Sienna shareholders, they wish to restate without amendment contents of their Dissident Proxy Circular that they believe are noteworthy. These are those extracts (not continuous text):

    
                          "REASONS FOR SOLICITATION
    

Overview

The Concerned Shareholders are of the opinion that the board of directors of Sienna (the 'Board') has:

    
    -   failed to make any material progress of Sienna despite raising
        approximately $2.5 million dollars since July 2008 through numerous
        equity financings;

    -   contributed to Sienna's market capitalization being materially eroded
        from approximately $24.5 million as of July 16, 2008 to approximately
        $9 million as of the date of this Circular as a result of failing to
        develop Sienna's key properties;

    -   failed to raise sufficient capital to conduct further necessary
        exploration activities in order to move Sienna's properties towards
        pilot phase of mining operations; and

    -   failed to keep its promises made to investors.
    

The Corporation's last exploration activity was the completing of its drilling operations in May, 2008. Since then, the Board has not conducted any active exploration operations other than the construction of a road of approximately five kilometres at the IGOR Property, designed to secure access for the Corporation's three proposed drilling pads to facilitate the drilling of five drill holes. The Corporation has not to date announced its having fully completed its road building and access construction in order to permit the Corporation to proceed with its long promised 2008 IGOR drilling program.

According to Sienna's public disclosure records under its profile on SEDAR at www.sedar.com, Sienna has expressed repeatedly (management discussion and analysis dated August 15, 2008, February 26, 2009, May 29, 2009 and August 28, 2009 and press releases dated September 10, 2008, January 28, 2009 and January 12, 2010) its declaration of commitment to conduct further exploration work/drilling operations on the Corporation's IGOR mine property in Peru pending completion of various financings, which were completed on various dates.

Despite the foregoing public disclosure/announcements, at no time during that period did Sienna actually resume its drilling operations on the IGOR property, and Sienna has not obtained any new data for its IGOR property as to:

    
    (a) drilling, coring and assaying;

    (b) trenching or blasting;

    (c) geological mapping;

    (d) geological or soil sampling; and

    (e) geophysical exploration;
    

as evidenced by the lack of any recent technical report (Sienna last filed a technical report on February 8, 2008).

Broken Promises

Sienna has demonstrated a pattern of broken promises as demonstrated by the following press releases and other public disclosure documents. (Note of Albert Hulzebos and Andreas Glatiotis - see the Dissident Proxy Circular issued as of August 5, 2010, pages 4, 5 and 6 for a complete listing by way of extracts from public announcements made by Sienna from May 29, 2008 to June 9, 2010.)

In these announcements:

    
    1.  the Corporation has expressed repeatedly its declaration of
        commitment to conduct 'further exploration work/drilling operations
        on the Corporation's Igor Mine Project in Peru'; and

    2.  the Corporation has declared its new operations by its 'resumption of
        drilling operations'; its having 'adopted a drilling budget of
        $328,000 to complete a 2500 meter follow up drill program to the
        Company's discovery hole in Callanquitas'; its declaration that 'site
        work for the new drill sites will commence immediately and drilling
        will start once the road construction is complete.' - January 12,
        2010."
    

Despite all of the above public announcements:

    
    -   no drilling plan was created by management of Sienna for formal
        adoption by the Board;

    -   no drilling plan was independently prepared for or formally adopted
        by the Board; and

    -   no drilling/exploration budget was formally adopted by the Board."
    

Investors and interested parties are strongly encouraged to review the Dissident Proxy Circular issued as of August 5, 2010 under Sienna's profile on SEDAR at www.sedar.com for further disclosure of the Dissenting Shareholders, including those under the heading on pages 6 and 7 - "Goals of the New Slate of Directors" and they welcome inquiries to Albert Hulzebos at (403) 650-9799 or by email at ahulzebos@shaw.ca; and to Andreas Glatiotis at (403) 826-8981 or by email at pyrope@telus.net.

SOURCE CONCERNED SHAREHOLDERS OF SIENNA

For further information: For further information: Albert Hulzebos and Andreas Glatiotis, c/o Colin Q. Winter Law Firm, 240, 600-6th Avenue S.W., Calgary, Alberta, T2P 0S5, Tel: (403) 232-8582/3, Fax: (403) 263-9171, cqw@colinqwinterlaw.com

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CONCERNED SHAREHOLDERS OF SIENNA

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