Sienna Gold Inc.
TSX VENTURE : SGP
LMA : SGP

Sienna Gold Inc.

January 26, 2012 09:00 ET

Sienna Gold Continues Successful Drill Campaign: Best Intercept of 10.15 M at 0.994 Grammes Per Tonne Gold (G/T) and 434.9 G/T Silver Including 3.5 M at 2.541 (G/T) Gold and 1221.2 G/T Silver

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2012) - Sienna Gold Inc. ("Sienna" or the "Company") (TSX VENTURE:SGP) (LMA:SGP) is very pleased to announce results from the latest drill holes at Callanquitas on the Igor project, La Libertad, Peru. The five drill holes totalled 1637.1 meters (m) and were designed to test the main part of the Callanquitas Structure and its possible extension to the south. All drill holes intersected mineralization at the predicted depths.

Hole CA-11-13 returned the best results, with 10.15 m at an average grade of 0.994 grams per tonne (g/t) gold and 434.9 g/t silver. This included 3.5 m with 2.541 g/t gold and 1221.2 g/t silver. The highest sample was from this interval and was 1.15 m with 4.227 g/t gold and 2119 g/t silver.

Significant assay results for all drill holes in the 2011 -2012 drill campaign.

Drill Hole From To Interval Weighted Averages
(m) (m) (m) Gold (g/t) Ag (g/t)
CA-11-09* 46.5 82.1 35.6 0.961 15.9
Including 77.95 82.1 4.15 3.917 29.7
CA-11-10* 8.25 18.9 10.65 0.710 5.1
Including 9.5 11.45 1.95 3.029 12.6
CA-11-10* 100.6 129.75 29.15 2.459 5.3
Including 105.75 112.05 6.3 2.611 2.0
Including 117.1 125.5 8.4 4.388 8.5
CA-11-10* 162.85 167.3 4.45 2.190 13.4
Including 164 164.6 0.6 10.050 32.5
CA-11-11* 98.2 103.55 5.35 0.060 26.9
CA-11-11* 138.4 146 7.6 0.070 30.1
CA-11-11* 182 212 30 0.508 306.1
Including 193.5 199.2 5.7 0.665 877.0
Including 195.9 196.5 0.600 1.623 3995
Including 206.5 210 3.5 0.272 883.3
CA-11-12 9.9 17.2 7.3 1.031 106.1
Including 14.9 15.8 0.9 4.165 822.0
CA-11-13 41.85 91.6 49.75 0.251 12.3
Including 84.55 91.6 7.05 0.079 72.3
CA-11-13 118.3 128.45 10.15 0.994 434.9
Including 120.8 124.3 3.5 2.541 1221.2
Including 122.1 123.25 1.15 4.227 2119.0
CA-11-13 157 160.3 3.3 0.121 39.0
CA-11-14 14 28.5 14.5 0.551 9.0
Including 24 24.8 0.8 4.644 22.5
CA-11-14 50.9 66.6 15.7 0.475 5.0
Including 64.4 66.6 2.200 1.542 3.4
CA-11-14 160.0 176.0 16 0.366 8.0
Including 163.5 168 4.5 0.522 20.6
CA-11-15 15.4 15.8 0.4 1.051 127.0
CA-11-15 223.4 224.1 0.7 0.699 63.6
CA-11-15 275 277.2 2.2 1.036 106.7
Including 276.1 276.6 0.5 3.860 333.0
CA-11-15 429.25 429.75 0.5 0.575 34.8
CA-11-16 14.0 34.0 20.0 0.568 15.9
Including 26.0 32.0 6.0 1.401 5.4
Including 29.0 29.95 0.95 5.052 12.5
CA-11-16 102 103.8 1.8 0.062 89.0
CA-11-16 105.3 106.3 1.0 0.272 58.8
CA-11-16 174.25 175.1 0.85 4.258 47.1
CA-11-16 231.0 237.0 6.0 0.391 188.1
Including 231.0 233.0 2.0 0.961 500.0
CA-11-16 254.0 265.0 11.0 2.134 11.7
Including 255.4 260.0 4.6 4.784 17.2
Including 257.4 259.1 1.7 10.080 5.6
*results previously issued in the press release dated the 19-12-2011.

A map of drill hole locations and significant mineralized intercepts is shown below. Further maps and cross sections are available on the Sienna Gold website: www.siennagold.com.

Completed Drill Holes and Significant Mineralized Intercepts

To view the map associated with this press release, please visit the following link:

http://media3.marketwire.com/docs/sgpmap.jpg

The Callanquitas Structure

Dr. Warren Pratt, Director of Sienna Gold Inc comments, "We are very pleased with these initial results. The Callanquitas Structure is proving robust and predictable. Two points should be emphasized. Firstly, drilling and surface sampling demonstrate high grades and continuity both laterally (> 900 m) and over a considerable elevation difference (>400 m). Secondly, we have started to identify higher grade oreshoots with exceptional silver grades; these may well be the eventual 'mine-makers'. The 10,000 m drill program is designed to help define a resource by the end of 3rd Quarter 2012. It will be modified accordingly if more oreshoots are identified. This would quickly add ounces."

Exploration Update

Two rigs are currently drilling. To date they have drilled a total of 3,300 m. A third drill rig will arrive in mid to late February to help complete approximately 10,000 m of drilling at Callanquitas and allow definition of a NI 43-101 compliant resource by the end of 3rd quarter 2012.

Sampling Methodology

Cores taken from the diamond drill rig are stored in plastic core boxes and transported to the camp for detailed logging. Afterwards, the core is cut on site with a diamond saw.

One half is then sent to an accredited laboratory in various sample lengths. Randy Henkle (P.Geol.), the Company's independent Qualified Person, completed a chain of custody review to ensure the integrity of all sample data.

Assaying Methodology

The samples are analysed by SGS Laboratories in Lima by inductively coupled plasma atomic emission spectroscopy for silver and 37 other elements (included Hg and Te) and a 30 gram fire assay technique for gold. Samples above detection limits are re-assayed using a gravimetric fire assay. The specific lab procedures can be found in the Company's 43-101 report on the Igor property.

This press release was reviewed and approved by Dr. Warren Pratt (CGeol) who is a "Qualified Person" according to National Instrument 43-101.

Sienna Gold Inc. is a gold exploration company with property interests in Peru. Its key prospect is the Igor Mine Project, a formerly producing mine that the Corporation plans to explore further.

If you wish any further information, please feel free to contact John Rucci at any of the contact points noted below.

John M. Rucci, President

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

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