Sierra Minerals Inc.

Sierra Minerals Inc.

June 27, 2008 19:45 ET

Sierra Minerals Implements Strategic Growth Initiatives

New President & CEO Appointed and Private Placement

TORONTO, ONTARIO--(Marketwire - June 27, 2008) -


Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") is pleased to announce the appointment of Michael Farrant as President, Chief Executive Officer and Director effective immediately following the resignation of Martin Walter as a director, CEO and President. Mr. Farrant, based in Toronto, has assumed overall responsibility for Sierra including all corporate activities.

Appointment of New President and Chief Executive Officer

Mr. Farrant is a chartered accountant with 16 years of financial and operational management experience with the last 12 spent in the gold mining sector. Most recently, he has served as Chief Financial Officer of a number of junior mining companies in various stages of growth from exploration and development to a junior gold producer which he successfully merged as part of that company's growth strategy. Mr. Farrant held the positions of Vice President and Treasurer and Operations Controller at Kinross Gold Corporation ("Kinross"). As Treasurer, he established various credit facilities including a US$300 million corporate facility comprised of a syndicate of ten international banks. As Operations Controller he fostered joint venture relationships and provided operational guidance on strategic life of mine plans, mine operating budgets and proposed exploration programs at both open pit and underground mining operations. Mr. Farrant also sat on the Ore Reserve Audit Committee which oversaw the calculation of Kinross' National Instrument 43-101 ("NI 43-101") compliant estimated mineral reserve and resource inventory. Prior to that, he spent six years with Barrick Gold Corporation ("Barrick"), principally in the role of Corporate Controller. Mr. Farrant holds a Bachelor of Commerce with Honours, from Queen's University and earned his C.A. designation in 1995 while with Coopers & Lybrand.

Julian Kemp, Independent Director and Chairman of the Audit Committee commented on the appointment of Mr. Farrant as President and CEO stating:

"We are extremely excited to have Michael join the Company as CEO. He brings to Sierra a blend of entrepreneurship supported by the knowledge and ability to implement best practices from a financial, operational and regulatory standpoint. His nine years with senior gold producers coupled with his time spent in the junior sector provide a unique set of skills and relationships not often available to junior producers."

Commenting on his appointment to Sierra, Mr. Farrant stated: "There are a few key things that I believe create value in this industry. The best starting point one can ask for is production, positive cash flow, exploration upside and a great team of people on the ground. Sierra possesses 2 all of these necessary building blocks for creating value. To take this tremendous potential and maximize its value requires strategic vision and hard work. Through my discussions with various members of the Board of Sierra, I believe we have that united vision and I intend to provide the hard work".

Martin Walter, former President and Chief Executive Officer of the Company has resigned but remains available to assist Mr. Farrant in the transition. Keith Piggott, Chairman of the Board remarked, "On behalf of the Board, I would like to thank Mr. Walter for his service as President and CEO and express our appreciation for his efforts during the early stages of Sierra. We wish him every success in his other endeavours."

Non-Brokered Private Placement and Planned Expansion of Cerro Colorado Mine

The Company is also proposing a non-brokered private placement for gross proceeds of up to $2,502,500, consisting of up to 7,150,000 shares at a price of $0.35 per unit, each unit comprised of one Common Share and one-half Common Share Purchase Warrant, each whole Warrant executed at $0.50 per share for eighteen months, subject to regulatory acceptance.

The proceeds will be used to expand the production rates at the Cerro Colorado Mine. The mine expansion consists primarily of replacing three smaller trucks with larger ones to achieve a 50% increase in tonnes mined and placed on the leach pad, plant upgrades to handle the increased flow from the additional leaching and construction of a new second leach pad. The remaining funds will be used for general working capital purposes.

About Sierra Minerals

Sierra Minerals Inc. (TSX:SIM) is a Canadian based gold production and exploration company. Through its Mexican subsidiary, it owns 100% of the Cerro Colorado Gold Mine in Sonora, Mexico. The Company is currently completing its initial NI 43-101 mineral resource estimate on the property and plans to increase annualized production from 20,000 to 30,000 ounces of gold. In addition, the Company is exploring its extensive regional land package in Mexico which covers over 30,000 hectares. Further information about Sierra Minerals and the Cerro Colorado Gold Mine can be found on the Company's website at


"Michael Farrant" "Keith Piggott"
Michael Farrant Keith Piggott
President and CEO Chairman of the Board


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.

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