Sierra Minerals Inc.

Sierra Minerals Inc.

July 24, 2009 12:56 ET

Sierra Minerals Sets New Quarterly Production Record

Cerro Colorado Produces 5,447 Ounces Au in Q2, 2009

TORONTO, ONTARIO--(Marketwire - July 24, 2009) - Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") announced today that the Company has produced 5,447 ounces of gold in the second quarter of 2009 (ended June 30, 2009) at its 100% owned Cerro Colorado mine in Sonora, Mexico. This represents an 18% increase over the fiscal quarter ended March 31, 2009 and on a year-to-date basis, a 6% increase over production in the first half of 2008. Gold production for the first six months of 2009 was 10,046 ounces.

Gross proceeds from the quarter were approximately US$4.7 million on the sale of 5,063 ounces of gold at an average realized price of US$924 per ounce. This represents an increase of gross proceeds of 5% over the fiscal quarter ended March 31, 2009 and a 4% increase over the same period in the prior fiscal year. Gold sales for the six months ended June 30, 2009 were approximately US$9.1 million on the sale of 9,974 ounces at an average realized price of US$917 per ounce. This represents an increase of gross proceeds of 5% over the six months ended June 30, 2008.

Sierra is pleased to announce the appointment of Andres Tinajero, MBA, CMA as the Company's new Chief Financial Officer ("CFO") effective July 1, 2009. Mr. Tinajero possesses 13 years of financial management experience and also serves as CFO of Vena Resources Inc. Prior to that, he served as Controller at Lafarge Canada, a $19 billion construction business focused in aggregates, cement, asphalt and ready-mix operations. Mr. Tinajero holds an MBA from Tecnologico de Monterrey ("ITESM") in Mexico. He is proficient in English and Spanish.

The appointment of Mr. Tinajero follows the resignation of Rebecca Hudson as the Company's Chief Financial Officer, effective June 30, 2009, to pursue other business activities. The Board of Directors of Sierra wishes to thank Ms. Hudson for her contributions to the Company and wishes her well in her future endeavours.

Michael Farrant, President and CEO of Sierra stated, "On behalf of the management and board of directors of Sierra, I'd like to welcome Andres to the Sierra team. At Cerro Colorado, the operating team led by Phil Davies, continues to do a terrific job advancing the Company's stated goal of increasing production to an annualized rate of 30,000 ounces of gold. With a solid operating plan now in place and a strengthened balance sheet, it is time to aggressively pursue a corporate transaction aimed at growing the Company's production profile and mineral resource base. We look forward to keeping our shareholders updated as this process unfolds."

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 ounces of gold in 2009. The Company's exploration pipeline includes an extensive 34,000-hectare regional land package 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.

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