Sierra Minerals Earns US$30,751 in Q3 2009

TORONTO, Nov. 16, 2009 (GLOBE NEWSWIRE) -- Sierra Minerals Inc. (TSX:SIM)
("Sierra" or the "Company") today announced its unaudited financial results for
the third quarter ended September 30, 2009. The consolidated interim financial
statements along with management's discussion and analysis are available on
SEDAR at www.sedar.com and on the Company's website at www.sierraminerals.ca.
All currency references are to United States dollars unless otherwise noted.

Q3 2009 - Highlights
* Net earnings for the third quarter were $30,751 or $0.00 per
share versus a Q3 2008 of $664,978 or $0.01 per share.
* Ounces produced increased 1% to 5,162 compared to 5,111 in
Q3 2008.
* Ounces sold decreased by 1% to 5,611 compared to 5,659 in
Q3 2008.
* Realized gold price per ounce was $954 compared to $857 in
Q3 2008.
* Revenue increased 11% to $5,377,213 from $4,838,653 in Q3 2008.
* Cost of sales per ounce was $753 in Q3 2009 compared to $592 in
Q3 2008.
* Non-brokered private placement completed for proceeds of
$1,832,340 (C$2,000,000).
* Debt was reduced by $404,005 during Q3 2009.
* Cash and cash equivalents balance at September 30, 2009 was
$2,354,239.
* September 30, 2009 working capital balance of $1,932,146.
* Non-cash write-down of Los Carlos property of $230,832 to focus
efforts on discovery of new El Cajon Gold Project.
Commentary

Michael Farrant, President and CEO of Sierra Minerals, made the following
comments in relation to the 2009 third quarter results:

"Overall we were pleased with a number of significant accomplishments in the
third quarter. We welcomed Eric Sprott and his team as a new and significant
investor in Sierra. Along with this injection of capital, we have identified a
number of initiatives that will create immediate value and reduce cash operating
costs. We have already begun to eliminate the rental costs of certain mining
equipment by purchasing these items outright. The most significant of these will
be the purchase of a secondary crushing system with expanded capacity. We
believe this will increase production and reduce cash operating costs on a per
ounce basis almost immediately. Our greater financial flexibility has also
allowed us to continuing servicing our financial obligations and more
importantly, new exploration initiatives, out of operating cash flow. We believe
that finding more ounces at Cerro Colorado and within trucking distance to the
mine is one of the best ways of creating additional value for our shareholders.
The discovery of our new El Cajon Gold Project did mean that we made the
decision to abandon the Los Carlos property during the quarter requiring us to
write down approximately $231,000 in previously capitalized property costs.
Earnings for the quarter, excluding this write-down are approximately $262,000.
In recognition of record setting gold prices, we also made the decision to
devote a portion of our mining resources entirely to waste stripping to finally
expose the ore-body in the Upper Breccia zone. Our 22% increase in tonnes mined
from Q3 2008 to Q3 2009 was entirely waste stripping which we expensed as
current mining costs. This one-time additional stripping was completed in early
November. We used the third quarter of 2009 and the record setting revenues that
this gold price environment afforded us to position ourselves to be able to
deliver increased production growth, cash flow and earnings going forward. I am
extremely pleased that we were able to accomplish all of this and still show
bottom line earnings for the quarter. The progress we continue to make is a
credit to our team at the mine and in the field. We also continue to have one of
the lowest general and administrative profiles in the industry. We work hard at
making sure dollars go back into infrastructure and into the ground. I look
forward, as a fellow shareholder, to seeing these investments pay dividends as
gold hits record highs."

Summary of financial and operating results

=====================================================================
Three months ended Nine months ended
September 30, September 30,
--------------------------------------------------
2009 2008 2009 2008
---------------------------------------------------------------------
Gold ounces -
produced 5,162 5,111 15,208 14,627
---------------------------------------------------------------------
Gold ounces - sold 5,611 5,659 15,585 15,229
---------------------------------------------------------------------
Average realized
gold price
($/oz.) $ 954 $ 857 $ 930 $ 886
---------------------------------------------------------------------
Total cash costs
per ounce sold
($/oz.) (a) $ 753 $ 592 $ 658 $ 618
---------------------------------------------------------------------
Metal sales $ 5,377,213 $4,838,653 $14,593,194 $ 2,964,474
---------------------------------------------------------------------
Cost of sales (b) $ 4,249,076 $3,428,775 $10,347,819 $ 9,616,766
---------------------------------------------------------------------
Accretion,
depreciation,
depletion and
amortization $ 321,692 $ 169,674 $ 872,499 $ 595,850
---------------------------------------------------------------------
Mine operating
earnings $ 806,445 $ 1,240,204 $ 3,372,876 $ 2,751,858
---------------------------------------------------------------------
Net earnings for
the period $ 30,751 $ 664,978 $ 949,751 $ 927,630
---------------------------------------------------------------------
Earnings per share
(basic and
diluted) $ 0.00 $ 0.01 $ 0.01 $ 0.01
---------------------------------------------------------------------
Cash flow provided
by operating
activities before
Changes in
non-cash working
capital $ 605,612 $ 1,121,099 $ 2,185,745 $ 2,572,847
---------------------------------------------------------------------
Cash flow provided
by operating
activities $ 412,846 $ 560,323 $ 1,008,658 $ 2,881,247
=====================================================================
(a) See "Supplemental Information on Non-GAAP Financial Measures"
(b) Cost of sales excludes, accretion, depreciation, depletion and
amortization

---------------------------------------------------------------------
Sept. 30, Dec. 31,
2009 2008
---------------------------------------------------------------------
Cash and cash equivalents $ 2,354,239 $ 740,360
---------------------------------------------------------------------
Working capital surplus (deficiency) $ 1,932,146 $(1,844,421)
---------------------------------------------------------------------
Long-term debt in addition to working
capital deficiency $ -- $ (450,000)
=====================================================================
Net earnings for the third quarter of 2009 were $30,751 compared to $664,978
during the third quarter of 2008.

Revenue from metal sales increased to a quarterly record of $5,377,213 in the
third quarter of 2009 compared to $4,838,653 in the third quarter of 2008. Gold
ounces sold remained approximately flat at 5,611 compared to 5,659 in 2008,
however, the average realized price of gold sold rose from $857 to $954 per
ounce.

Third quarter 2009 production of 5,611 ounces compared to 5,111 in the third
quarter of 2008. Cost of sales of $753 per ounce sold for the third quarter of
2009 increased from $592 reported for the third quarter of 2008. The 2009
increase was primarily the result of 2009 equipment rental costs, including a
limited capacity, secondary crushing system and one-time waste stripping costs
incurred to expose the Upper Breccia zone. The Company has begun a review of its
costs and has taken steps at reducing them.

General and administrative costs for the third quarter were $262,643 compared to
$226,451 during the third quarter of 2008 as Sierra began to increase marketing
efforts. $118,848 in exploration expenditures were incurred during the quarter
compared to $243,938 in the third quarter of 2008. These expenditures represent
the cost of work being performed on concessions comprising the Company's
regional land package including terminal evaluation work on the Los Carlos
concession and mapping, drilling and assaying on the Company's new El Cajon Gold
Project. In addition, the Company expensed $230,832 as a non-cash write-down of
previously capitalized property acquisition costs incurred in respect of the Los
Carlos property. Interest expense for the third quarter of 2009 was $31,749
compared to $38,498 in 2008. Lower interest costs were primarily the result of
lower principal loan balances and a lower weighted average rate of interest on
the loans.

Liquidity and Capital Resources

Cash and cash equivalents increased during the quarter from $902,297 as at June
30, 2009 to $2,354,239 as at September 30, 2009. Working capital improved from a
deficiency of $123,015 at June 30, 2009 to a surplus of $1,932,146 as at
September 30, 2009.

During the third quarter of 2009, the Company paid the remaining balance of
$54,005 on the Piggott loan in full and made principal repayments against the
Warman loan totaling $350,000. During November 2009, the Company paid an
additional $100,000 in principal bringing the outstanding balance to $850,000.
This debt is scheduled to be paid in full no later than March 31, 2010. Sierra
expects to make remaining payments out of cash flow from operations.

On September 25, 2009, the Company announced the closing of a non-brokered
private placement through the issuance of 10,000,000 units priced at C$0.20 per
unit for total proceeds of $1,832,340 (C$2,000,000). Each unit consists of one
common share and one half of one common share purchase warrant. Each whole
warrant entitles the holder to acquire one additional common share at a price of
C$0.30 until March 25, 2011.

Subsequent to September 30, 2009, the Company purchased a CAT D9N dozer to
replace its rental dozer. The Company also intends to purchase a secondary
crushing system with greater capacity than its current rental system.

Cash flow from operations will be targeted at additional drilling at the
Company's new El Cajon Gold Project in order to determine the extent of the
mineralization. Phase I drilling is aimed at establishing the basis for a more
extensive drill program which would be designed to establish an initial National
Instrument 43-101 mineral resource estimate at the project.

Results of Mining Operations

Cerro Colorado Gold Mine (100% ownership)

---------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
--------------------------------------------------
2009 2008 2009 2008
---------------------------------------------------------------------
Operating Statistics
---------------------------------------------------------------------
Tonnes mined 1,355,452 1,115,169 3,648,402 2,822,497
Waste 870,675 594,579 2,175,562 1,494,688
Ore - placed
on leach pad 484,777 520,590 1,472,840 1,327,809
Grade (g/t Au) 0.57 0.55 0.65 0.56
Gold ounces
placed on the pad 8,982 9,206 30,158 23,906
Gold ounces -
produced 5,162 5,111 15,208 14,627
Gold ounces -
sold 5,611 5,659 15,585 15,229
---------------------------------------------------------------------
Financial Data
---------------------------------------------------------------------
Metal sales $5,377,213 $4,838,653 $14,593,194 $12,964,474
Cost of sales 4,249,076 3,428,775 10,347,819 9,616,766
Depreciation,
depletion and
amortization 311,488 162,449 841,886 574,176
Accretion 10,204 7,225 30,613 21,674
----------- ----------- ----------- -----------
Mine operating
earnings before
income taxes 806,445 1,240,204 3,372,876 2,751,858
Income taxes 72,432 4,491 794,117 481,614
Net segment
earnings $734,013 $1,235,713 $2,578,759 $2,270,244
=========== =========== =========== ===========
Capital
expenditures $273,768 $113,105 $912,566 $2,132,115
=========== =========== =========== ===========
---------------------------------------------------------------------
Gold production for the third quarter was 5,162 ounces compared to 5,111 in year
earlier period representing a 1% increase over Q3 2008. Average grade mined
during the third quarter of 2009 increased to 0.57 g/t Au compared to 0.55 g/t
Au in the year earlier period. Tonnes mined increased 22% over the prior year
quarter due to improvements in truck fleet availability and the addition of
three CAT733B haul trucks purchased in April 2009. The increase in tonnes mined
during the quarter related entirely to waste stripping on the Upper Breccia
zone.

Corporate Development

Management has received expressions of interest from a number of parties with
respect to exploring the merits of undertaking a corporate transaction. The
Company continues to evaluate certain of these opportunities but offers no
guarantee as to the successful completion of a transaction. In addition, during
the third quarter of 2009, Sierra retained GMP Securities L.P. as advisors with
a view to finding and successfully completing a corporate transaction.

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.

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.

SUPPLEMENTAL INFORMATION ON NON-GAAP FINANCIAL MEASURES

Cash Costs

The Company's MD&A often refers to cash costs per ounce, a non-GAAP performance
measure in order to provide investors with information about the measure used by
management to monitor performance. This information is used to assess how well
the producing gold mine(s) are performing compared to plan and prior periods,
and also to assess the overall effectiveness and efficiency of gold mining
operations. "Cash cost" figures are calculated in accordance with a standard
developed by The Gold Institute, which was a worldwide association of suppliers
of gold and gold products and included leading North American gold producers.
The Gold Institute ceased operations in 2002, but the standard is still an
accepted standard of reporting cash costs of gold production in North America.
Adoption of the standard is voluntary and the cost measures presented herein may
not be comparable to other similarly titled measures of other companies. Costs
include mine site operating costs such as mining, processing, administration,
royalties and production taxes, but are exclusive of amortization, reclamation,
capital, exploration and development costs. These costs are then divided by
ounces of gold sold to arrive at the total cash costs per ounce of gold sold.
The measure, along with sales, is considered to be a key indicator of a
company's ability to generate operating earnings and cash flow from its mining
operations.

These gold cash costs differ from measures determined in accordance with GAAP.
They are intended to provide additional information and should not be considered
in isolation or as a substitute for measures of performance prepared in
accordance with GAAP. These measures are not necessarily indicative of net
earnings or cash flow from operations as determined under GAAP.

The following table provides a reconciliation of total cash costs per ounce sold
for the Cerro Colorado gold mine to the cost of sales, excluding accretion,
depreciation, depletion and amortization as per the unaudited interim
consolidated statements of operations.

---------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
---------------------------------------------------------------------
(unaudited) 2009 2008 2009 2008
---------------------------------------------------------------------
Cost of sales
(excluding
accretion,
depreciation,
depletion and
amortization) $ 4,249,076 $ 3,428,775 $10,347,819 $ 9,616,766
Silver by-product (24,239) (78,375) (96,806) (204,348)
---------------------------------------------------------------------
$ 4,224,837 $ 3,350,400 $10,251,013 $ 9,412,418
Gold ounces sold 5,611 5,659 15,585 15,229
---------------------------------------------------------------------
Total cash costs
($/oz. sold) $ 753 $ 592 $ 658 $ 618
---------------------------------------------------------------------
Breakdown of cost
per ounce sold
Direct operating
costs $ 732 $ 585 $ 642 $ 583
Non-cash
amortization of
deferred
stripping -- -- -- 27
2.5% NSR Royalty 25 21 22 21
Less: silver
by-product
credits (4) (14) (6) (13)
---------------------------------------------------------------------
Total cash
costs
($/oz. sold) $ 753 $ 592 $ 658 $ 618
---------------------------------------------------------------------
-0-
CONTACT: Sierra Minerals Inc.
Michael Farrant, President & CEO
416.775.7543
416.278.4149
askus@sierraminerals.ca