Thanks a lot for the help guys!
Firstly, sorry for the late response, it seems the e-mail notifications got junked for some reason! Had to check in the spam folder.
Secondly, I didn't install any drivers with the Razer mouse. I did install drivers for my Lycosa keyboard as I wanted to use the macros, however as I didn't want any of these functionalities for the mouse I simply plugged it in and I saw a number of drivers downloaded and the mouse seemed to work fine. Anyway I updated the driver. Here is what happened:
1. Updated driver and restarted computer
2. Tried to sleep, mouse did not wake as it should have. It took about 30s.
3. Tried "sleep" a few more times and mouse still would not wake immediately.
4. Uninstalled and re-installed driver and restarted computer.
5. Went into Device Manager and for the mouse I removed the check from "allow this device to wake the computer".
STILL DID NOT WORK!
I put the computer to sleep and hit the mouse and it brought it out of sleep, if I hit the mouse to bring it out of the sleep then the mouse was immediately awake. If I hit the keyboard or pressed the power button (on my desktop) the mouse would not wake.
So, I disabled the keyboard's ability to wake from sleep and now the mouse wakes up fine from sleep. Weird solution, but it works