Sierra Minerals Inc.

Sierra Minerals Inc.

November 15, 2007 06:30 ET

Sierra Reports Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2007) - Sierra Minerals Inc. ("Sierra" or the "Company") (TSX:SIM) is pleased to report its third quarter financial results from its 100% owned Cerro Colorado Gold Mine ("Cerro") located in Sonora, Mexico. All figures are in Canadian dollars unless stated otherwise.

Financial highlights are as follows:

- The mine is now producing at an annualized rate exceeding 20,000 ounces for the first time in its history. Third quarter gold production increased by 31% to 5,287 ounces compared to 4,047 ounces for the second quarter and 4,178 ounces in the first quarter.

- Revenue from gold sales for the quarter up 54% to $3,493,924 compared to the previous quarter of $2,272,320. Total gold sales for the nine months of $9,379,570.

- Income from mining operations of $789,714 increased by 134% from the previous quarter of $337,005 bringing the total income from mining operations for the nine months ending September 30th, 2007 to $2,372,607.

- Net income for the quarter rose to $328,096 compared to a loss of $201,893 from the second quarter of 2007.

- Net income for the nine months ending September 30th of $641,972 equating to $0.01 per share.

- Cash cost per ounce for the third quarter of US$533 and US$510 for the nine months ending September 30th, 2007.

"We have been gradually increasing production on a monthly basis at Cerro and the results are starting to show," said Keith Piggott, Sierra's Chairman of the Board. "We are now producing at 20,000 ounces on an annualized rate and the Company is cash flow positive, giving shareholders full exposure to this strong market for gold. Increasing production at Cerro to 30,000 plus ounces should reduce our cash costs per ounce and result in further increases in revenue. Together with this we have contracted Major Drilling, who are now drilling onsite, and we have expanded our drilling program from the completed 10,000 meters to now 30,000 meters at Cerro. This program will be ongoing into 2008. Focusing on defining Cerro's ore reserves and resources are now Sierra's primary focus."

Sierra Minerals' third quarter financial statements along with the Company's Management Discussion and Analysis ("MD&A") can be found on the Company's website at or alternatively accessed at


This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to the Company's ability to increase gold production and to reduce cash costs of production at the Cerro Colorado Mine, defining Cerro's ore reserves and the continued strong market price for gold. 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, increased costs of materials used in production and currency exchange fluctuations and the volatility of the spot price of gold, 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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