Sierra Minerals Announces New Gold Discovery in Mexico

TORONTO, ONTARIO, Nov 12 (MARKET WIRE) --
Sierra Minerals Inc. (TSX: SIM) ("Sierra") is pleased to report initial
drilling results from its wholly-owned El Cajon Gold Project in Sonora,
Mexico, approximately 12 km from its producing Cerro Colorado Gold Mine
and infrastructure. This represents the first significant step in
advancing a regional exploration program that began with initial
concession acquisitions in late 2007. These results are extremely
encouraging and justify additional Phase I drilling aimed at determining
the extent of the mineralization, with the ultimate goal of performing a
more comprehensive drill program to establish a National Instrument
43-101 ("NI 43-101") compliant estimated mineral resource that could be
processed at the existing Cerro Colorado facilities. Exploration
expenditures are being funded out of operating cash flow from the Cerro
Colorado mine.

Regional geological studies completed over the past couple years by
Sierra's Mexican subsidiary, Granmin S.A. de C.V. ("Granmin Mexico")
identified a prospective 1km by 3km area that historically has produced
gold from both underground mines and placers. Granmin Mexico has
continued to add to its land position in this area in addition to
existing mineral concessions already under lease. All of these
concessions collectively form the El Cajon Gold Project.

Ongoing geological mapping and surface sampling identified seven targets
to date, within the prospective zone for initial drill testing and in
August 2009, Granmin Mexico began Phase I drilling. Two areas have
reported gold grades over intervals that would be mineable and
economically recoverable at Cerro Colorado. In addition, six of the seven
targets contained intervals of significant mineralization.

To date 40 drill holes totalling 2,040 meters have been completed on the
seven target areas. Additional Phase I, close-spaced drilling is underway
at the La Javelina target and will begin at the Las Amarillas target in
the next few days.

Michael Farrant, President and CEO of Sierra stated, "We are very excited
with these results. One of the Company's stated goals has been to expand
its mineral resources to provide additional ore feed to the
infrastructure already in place at the Cerro Colorado mine. With this new
discovery being only 12km away, it could represent a means of both
boosting future production levels and extending the mine life at Cerro
Colorado."

Table 1: Highlights of Drill Intercepts in the El Cajon Gold Project,
Sonora, Mexico

----------------------------------------------------------------------------
Hole Interval Intercept Au
Area No. (m) (m) (g/t)
----------------------------------------------------------------------------
Las Amarilas LO 1 45.0 - 47.0 2.0 0.63
----------------------------------------------------------------------------
LO 2 60.0 - 62.0 2.0 4.30
----------------------------------------------------------------------------
LO 3 22.0 - 33.5 11.5 0.88
----------------------------------------------------------------------------
Las Amarilas LO 4 11.0 - 19.0 8.0 11.16
----------------------------------------------------------------------------
(including) 14.0 - 19.0 5.0 19.08
----------------------------------------------------------------------------
LO 4b 66.0 - 67.0 1.0 3.58
----------------------------------------------------------------------------
67.0 - 73.0 6.0 0.30
----------------------------------------------------------------------------
LO 5 21.0 - 28.0 7.0 0.25
----------------------------------------------------------------------------
28.0 - 28.5 0.5 6.80
----------------------------------------------------------------------------
----------------------------------------------------------------------------
El Cajon LO 8 26.0 - 27.0 1.0 25.25
----------------------------------------------------------------------------
LO 12 84.0 - 86.0 2.0 0.54
----------------------------------------------------------------------------
LO 14 48.0 - 49.0 1.0 2.50
----------------------------------------------------------------------------
LO 14 50.0 - 52.0 2.0 0.63
----------------------------------------------------------------------------
LO 15 22.0 - 24.0 2.0 0.29
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Mateburro LO 26 13.0 - 14.0 1.0 4.28
----------------------------------------------------------------------------
LO 28 19.0 - 20.0 1.0 10.11
----------------------------------------------------------------------------
LO 30 40.0 - 41.0 1.0 1.13
----------------------------------------------------------------------------
----------------------------------------------------------------------------
El Carro LO 34 29.0 - 30.0 1.0 4.66
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gneiss LO 42 24.0 - 25.0 1.0 0.76
----------------------------------------------------------------------------
----------------------------------------------------------------------------
La Javelina LO 49 14.0 - 33.0 19.0 0.21
----------------------------------------------------------------------------
37.0 - 42.0 5.0 0.55
----------------------------------------------------------------------------
LO 50 3.0 - 11.0 8.0 0.35
----------------------------------------------------------------------------
14.0 - 22.0 8.0 0.45
----------------------------------------------------------------------------
24.0 - 31.0 7.0 1.93
----------------------------------------------------------------------------
38.0 - 44.0 6.0 0.65
----------------------------------------------------------------------------
LO 51 16.0 - 23.0 7.0 1.39
----------------------------------------------------------------------------
(including) 20.0 - 21.0 1.0 8.20
----------------------------------------------------------------------------
29.0 - 33.0 4.0 0.48
----------------------------------------------------------------------------
LO 52 3.0 - 8.0 5.0 0.33
----------------------------------------------------------------------------
15.0 - 16.0 1.0 0.41
----------------------------------------------------------------------------
28.0 - 29.0 1.0 35.41
----------------------------------------------------------------------------
29.0 - 30.0 1.0 0.49
----------------------------------------------------------------------------
LO 53 0.0 - 6.0 6.0 0.64
----------------------------------------------------------------------------
6.0 - 11.0 5.0 16.49
----------------------------------------------------------------------------
11.0 - 13.0 2.0 0.49
----------------------------------------------------------------------------
13.0 - 23.0 10.0 0.58
----------------------------------------------------------------------------
28.0 - 31.0 3.0 0.34
----------------------------------------------------------------------------

(Includes drill assay results received to November 4, 2009. True widths
are approximately 60-65% of reported widths.)

The Las Amarillas target is a shallow high-grade vein with a halo of
auriferous disseminated pyrite. The host structure may be traced 500m
along strike. Mineralization in veins and structures occur where both
porphyritic, intrusive rhyolite and andesite dykes have intruded the
gneiss-meta-sediment contact. Hole LO 4 encountered 11.16 g/t Au between
11.0 to 19.0 meters. Hole LO 3 (50m north of LO 4) averaged 13.5 meters
at 0.88 g/t Au and reported traces of gold mineralization throughout its
45m length. Holes LO 1 and LO 2 targeted the same vein 75m to the north
of the LO 4 intercept and encountered intervals of 0.63 g/t Au and 4.30
g/t Au, respectively. All four holes encountered mineralization in zones
of disseminated pyrite and quartz veining on the gneiss meta-sediment
contact. These zones contained scattered gold values of 0.10 to 2.22 g/t
Au.

Eight additional Phase I holes are planned at Las Amarillas. These will
define mineralization on 25 to 50 meter intervals and continue drilling
along strike. This drilling is expected to be completed within the next
three weeks. At the La Javelina target, current Phase I angle drilling on
25 meter centres is defining a mineralized zone that is 90+m long with
mineralized intervals of 7.0 to 18.0 meters wide. The mineralization
extends from the surface and is open along strike and at depth. Controls
of mineralization are four parallel structures that are in the hanging
wall of a rhyolite dyke. The structural zones host gold mineralization
grading 1.3 to 73.0 g/t Au in quartz veins and faults. Disseminated
pyrite in gneiss between the structures reports grades of 0.19 to 0.64
g/t Au. The discovery hole (LO 50) reported an aggregate thickness of
mineralized intervals of 17.8 meters averaging 0.82 g/t Au. Hole LO 49
(40m east) contained 24.0 meters at 0.28 g/t Au and hole LO 51 (50m west
of LO 50) contained 12.0 meters at 1.65 g/t Au. Intermediate hole LO 52
encountered 8.0 meters at 1.23 g/t Au, including a 1.0 meter interval of
35.41 g/t Au. Intermediate hole LO 53 contained 29.0 meters of
mineralization at 4.0 g/t Au, including a 5.0 meter interval at 16.49 g/t
Au between a depth of 6.0 to 11.0 meters. Four additional Phase I holes
will be drilled in the next few days. A similar zone is present along
strike 175-300m to the west-southwest of this zone and this area will
also be drill-tested as part of Phase I.

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 20,000 to 21,000 ounces of gold in 2009. The
Company's exploration pipeline includes an extensive 34,000-hectare
regional land package in Sonora, Mexico, including the El Cajon Gold
Project. Further information about Sierra Minerals and the Cerro Colorado
Gold Mine can be found on the Company's website at www.sierraminerals.ca.

Assaying and Qualified Person

All samples in this news release were prepared and analyzed by 30 gram
fire assay at the Company's in-house assay lab at the Cerro Colorado mine
site. Sierra has implemented a quality control program to ensure best
practices in sampling and analysis of surface and drill samples.
Duplicate drill samples of each one-meter interval were collected during
drilling and have been sent to IPL Lab in Hermosillo, Mexico for
independent verification. A standard chain of custody procedure has been
practiced. The Company also employs a rigorous quality assurance and
quality control ("QAQC") program comprised of control samples that
include standardized material, blanks and duplicates.

The El Cajon Gold Project is under the direct supervision of Granmin
Mexico's Exploration Manager and Chief Geologist, Mr. Edward Wells, BS,
MS., Certified Professional Geologist and Qualified Person, as defined by
National Instrument 43-101 ("NI 43-101"). He has prepared the technical
information contained in this news release and reviewed the release

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

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 www.sedar.com. 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.

Contacts:
Sierra Minerals Inc.
Michael Farrant
President & CEO
416.775.7543 or 416.278.4149
askus@sierraminerals.ca
www.sierraminerals.ca

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