Sierra Minerals Inc.
TSX : SIM

Sierra Minerals Inc.

November 13, 2006 09:42 ET

Sierra Commences Drilling at its Cerro Colorado Gold Mine

TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Sierra Minerals Inc "Sierra" (TSX:SIM) is pleased to announce that exploration drilling is underway at its producing Cerro Colorado Gold Mine, Sonora Mexico. An initial phase of a minimum of 10 reverse circulation (RC) drill holes has been planned and constitutes the first phase of a more comprehensive exploration program. That program is to consist of IP geophysical and geochemical surveys across a number of project areas as well as further drilling. This initial program is designed to test continuity of mineralization over a length of 200 meters between two known mineralized zones, the Sopressa mineralization and the Harris Breccia zone, both of which are currently being mined by open pit methods. Additional phases of drilling are designed to define and delineate additional resources that surround the known mineralization at the Cerro Colorado Mine as well as test continuity of mineralization up to some 200 meters north of the current mining activities.

To date the most accurate mineral inventory estimate at the Cerro Colorado Mine was calculated in 1996 by Laramide Resources Ltd. and suggests a total drill indicated resource of 4,222,983 tonnes @ 1.334g/t Au. This equates to the mine having an estimated resource of 181,140 ounces of gold. None of these resource estimates are compliant with the National Instrument of 43-101. However, these resources are being confirmed as mine faces are opened. At present based on historical resources estimates the mine has an estimated mine life of 5 years with much of the project's 4,536 hectares having seen very little exploration. The current mine head grade is 0.81 gm/t Au with some 2,000 tonnes of ore being mined, crushed and finally fed on to heap leach pads daily where gold is leached and then extracted. The mine has been in operation since 2004 and is now undergoing the necessary equipment upgrading and capital expansion in order to reach its production target of 30,000 ounces per annum in 2008.

Sierra Minerals Inc. is a precious metals producer focused on acquiring and developing advanced stage gold and silver deposits that have a likelihood of realizing near-term production. The Company's primary focus is Mexico although it is actively reviewing opportunities throughout the Americas. Sierra is committed to company-wide environmental and corporate social responsibility best practices.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs, the availability of exploration results and the extent of future production from the Cerro Colorado Mine. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Sierra documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents, delays in completing exploration activities and results of exploration activities, not all of which are in the control of Sierra. The forward-looking information contained herein is Sierra's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.

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