Sierra Minerals Inc.

Sierra Minerals Inc.

March 05, 2009 18:45 ET

Sierra Minerals Forms Strategic Review Committee

Rejects Treasury Metals Proposal As Inadequate

TORONTO, ONTARIO--(Marketwire - March 5, 2009) - Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") announces that its Board of Directors unanimously approved the formation of a Strategic Review Committee comprised of three independent directors. The committee is comprised of Donald Goldman (Chairman), Bill Cavalluzzo and Julian Kemp. The Committee's purpose is to evaluate and make recommendations to the full Board of Directors on mergers and acquisition opportunities presented to the Company by various parties and opportunities identified internally by the Company's management. The committee's mandate is to identify, review and recommend opportunities that create superior shareholder value in relation to the Company's current operating plans and organic growth initiatives.

Management of Sierra and members of the Strategic Review Committee of the Board of Directors met with the management of Treasury Metals Inc. ("Treasury") and reviewed the merits of the proposal put forth by Treasury (see news release dated February 2, 2009). The Board of Directors reports that it has unanimously rejected the proposal as inadequate and determined that the proposal is not fair from a financial point of view to the shareholders of Sierra or in the best interests of Sierra.

With the receipt of a substantial portion of the recently announced non-brokered private placement (see news release dated February 27, 2009), the Company believes that it continues to create immediate and sustainable value.

About Sierra Minerals

Sierra Minerals is a Canadian based gold production and exploration company. The Company owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. All gold production is un-hedged and the Company expects to produce approximately 25,000 to 30,000 ounces of gold in 2009. Sierra is currently completing its initial National Instrument 43-101 mineral resource estimate at Cerro Colorado which is expected to be completed by the end of Q1 2009. The Company's exploration pipeline includes an extensive regional land package which covers over 34,000 hectares in Sonora, Mexico. Further information about Sierra Minerals and the Cerro Colorado Gold Mine can be found on the Company's website at


This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts including the extent of future production from the Cerro Colorado Gold Mine. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Mexico, if any; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's other regulatory filings filed with the Canadian Securities Administrators and available at Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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