Sierra Minerals Inc.

Sierra Minerals Inc.

November 28, 2007 16:42 ET

Sierra Expands Land Holdings Surrounding its Cerro Colorado Gold Mine, Mexico

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) - Sierra Minerals Inc. ("Sierra") (TSX:SIM) is pleased to announce that it has entered into a Heads of Agreement ("HOA") with a Mexican Company, Minera MasOro SA De CV ("MasOro") where Sierra has agreed to acquire 100% of the hardrock rights in certain concessions owned by MasOro located within the Cerro Colorado Mine district, Trincheras, Sonora, adjacent to its 100% owned and operated Cerro Colorado Gold Mine. The new concessions total 8,716 hectares and can be divided into four groups. The acquisition of these concessions brings Sierra's total land under management to 13,312 hectares within the Cerro Colorado Mine area.

Under the terms of the HOA, Granmin SA de CV ("Granmin"), Sierra's 100% owned subsidiary, will earn a 100% interest in four concession groups by undertaking the following:

1) Payment of US$20,100 (paid) a further payment of US$10,000 by March 1st, 2008 and an annual fee to MasOro of US$25,000 on November 1st of each year starting in 2008.

2) Completion of a minimum of 600 metres of drilling by February 15th 2008.

The La Horchata concession group is subject to a 1% NSR (Net Smelter Return) and Granmin has an option until March 1st 2009 to purchase back this 1% NSR by making a payment of US$50,000. Granmin can purchase outright the La Plomosa concession by making a payment of US$110,000 before February 28th, 2008. MasOro will retain a 2.5% NSR over the entire claim group of which Granmin can purchase back up to 1.5% for US$500,000 per 0.5% of the NSR.

Sierra is two months into the six month program of reverse circulation drilling to expand its resource at its Cerro Colorado open pit, heap leach mine.

In addition Sierra is currently executing a multi-phase exploration program of geochemical surveys and follow-up drilling over these new concessions that will expand on and further develop a number of gold anomalies that MasOro has identified through completing BLEG ("Bulk Leach Extractable Gold") surveys.

Sierra Minerals Inc. is a precious metals producing company 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.

This press release contains 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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