October 07, 2009 09:22 ET

American Sierra Gold Corp. Signs LOI to Acquire California Gold Project With Large Upside Potential

RENO, NV--(Marketwire - October 7, 2009) - American Sierra Gold Corp. (OTCBB: AMNP), an independent gold exploration company headquartered in Reno, Nevada, is pleased to announce that it has entered into a Letter of Intent with Trinity Alps Resources, Inc. to acquire a 75% stake in the high-grade Discovery Day Gold Project.

The Discovery Day Gold Project covers over 950 acres and controls the entire Knownothing Mining District, which includes the four principal mines -- the Gilta, Discovery Day, Hansen, and Knownothing and several other smaller mines and prospects. As many as 7 different high-grade vein systems are known to exist in the Knownothing district based on historical data and indicated through extensive surface exploration and soil geochemistry surveys.

An ore reserve estimate from 1996 published study by Cooksley Geophysical, Inc. reported a total inferred resource of 1,165,000 ounces of gold, of which over 157,000 ounces were considered to be in the proven and probable categories. The Company will need to re-evaluate historical data and carry out additional exploratory work on the numerous targets available to take the property's resource to a mineable category.

"The Discovery Day Gold Project is an exciting gold exploration project with all the elements to become a successful mining operation: significant past production history, exploration upside potential and all necessary infrastructure in place. Most of the due diligence process for the acquisition has been completed and we expect to sign a final agreement in the near future," said Mr. Wayne Gruden, American Sierra Gold's CEO.

"A major facet of AMNP's business strategy is to acquire near term production properties in order to immediately capitalize on the current gold prices. These properties are in great demand and short supply. We believe the Discovery Day Gold Project is uniquely situated to provide significant returns in both the near and long term. The turnkey mine and processing facilities, which include a 100 tpd ore mill, are fully permitted for on-site production through 2016 with all environmental impact studies and necessary operational permits completed and approved. Thus, the possibility of producing early cash flows for American Sierra Gold would be greatly increased with this acquisition," added Mr. Gruden.

Under the terms of the Letter of Intent executed on June 28, 2009, American Sierra has agreed to invest US$2 million in the property over a period of 2 years in order to earn a 75% stake in the project. In addition, American Sierra agreed to issue 2 million shares and 2 million 5-year warrants of AMNP's stock to the vendor of the project over the same period.

About American Sierra Gold Corp.:

American Sierra Gold Corp. is a publicly traded independent gold exploration company headquartered in Reno, Nevada (OTCBB: AMNP). Shareholders and prospective investors are encouraged to call investor relations at 1-888-279-3921 or visit American Sierra Gold Corp.'s website: http://www.americansierragold.com and to subscribe to the email newsletter.

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management.

Cautionary Note to Investors

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press release, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," that the SEC guidelines strictly prohibit us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our SEC filings, File No. 000-52927. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

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