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Sierra Intersects 18 Metres Grading 2.46 G/T Gold at Cerro Colorado, Mexico; Expands Drilling Program

Posted on: Wednesday, 31 October 2007, 09:00 CDT

Sierra Minerals Inc ("Sierra") (TSX: SIM) is pleased to provide the results of its ongoing drill program at its 100% owned Cerro Colorado Gold Mine, in Sonora, Mexico. To date the Company has completed 140 - holes (9118 meters) for the purpose of resource definition, exploration and ground sterilization drilling. This drilling is part of a planned multi-phase drilling campaign for the Cerro Colorado Mine, which will be ongoing throughout 2007 and is intended to upgrade the historical mineral resource calculations to NI 43-101 compliance. Due to favorable results to date, the Company has now expanded the 2007 drilling program to 20,000 metres in total and has awarded a drilling contract to Major Drilling Mexican Subsidiary, Major Drilling de Mexico, S.A. de C.V. Major Drilling is now on site and has begun drilling with an Explorer Track Mounted RC type drill rig capable of drilling to 250 m depth.

Of the total 140 holes drilled, 105 holes were drilled for resource calculation and exploratory reasons while the remaining 35 holes were drilled to sterilize potential waste rock areas for planned operations. New highlights from the drill program at Cerro Colorado include drill hole GM-121 which intersected 18 meters of 2.46 g/t gold and 2.48 g/t silver at a depth of 42 metres below surface and drill hole GM-136 that intersected 12 meters at 1.39 g/t gold just 2 metres below surface.

A summary of significant results is as follows:

 ----------------------------------------------------------------------- ----                                                                Au       Ag Hole    Northing   Easting      From        To     Width    Grade    Grade No.      (metres)  (metres)  (metres)  (metres)  (metres)    (g/t)    (g/t) --------------------------------------------------------------------------- --------------------------------------------------------------------------- GM 113   3344031    420204        58        76        18     0.37     5.84 --------------------------------------------------------------------------- GM 114   3344003    420213        84        98        14     0.31     1.37 --------------------------------------------------------------------------- GM 116   3343950    420231         2         8         6     0.26      0.3 --------------------------------------------------------------------------- GM 117   3344069    420227        56        62         6     0.24      0.5 ---------------------------------------------------------------------------            and                    72       100        28     0.42     1.15 --------------------------------------------------------------------------- GM 118   3343936    420272        72        80         8     0.94    10.55 --------------------------------------------------------------------------- GM 119   3344088    420288        58        70        12     0.59      3.5 --------------------------------------------------------------------------- GM 121   3344112    420282        42        60        18     2.46     2.48 --------------------------------------------------------------------------- GM 125   3344045    420305        96       120        24     0.23     0.38 --------------------------------------------------------------------------- GM 126   3344121    420215         2         6         4     1.34     1.15 --------------------------------------------------------------------------- GM 131   3344157    420200        24        46        22      0.4     2.06 --------------------------------------------------------------------------- GM 132   3343919    420290        50        56         6     0.39     2.03 --------------------------------------------------------------------------- GM 133   3343925    420379         6        30        24     0.66     1.07 --------------------------------------------------------------------------- GM 135   3343897    420391        40        46         6     0.81     36.7 --------------------------------------------------------------------------- GM 136   3343913    420384         2        14        12     1.39     2.53 --------------------------------------------------------------------------- GM 139   3344150    420302        12        20         8     0.39     0.98 ---------------------------------------------------------------------------            and                    60        68         8     0.45     2.13 --------------------------------------------------------------------------- 

Note: The above intersections are un-cut. Most drill holes were drilled at a dip of 60 degrees, which is roughly perpendicular to the dip of the known ore systems. True widths are approximately 90 % of the reported widths. At the Cerro Colorado mine site, Sierra has implemented a quality control program to ensure best practices in chemical sampling and analysis of surface and drill core samples. All assaying for the 15 holes reported was completed by International Plasma Laboratories of Richmond BC Canada and was independently checked by the Company's on-site mine assay laboratory. Under the guidelines of the NI 43-101, the required qualified person for the Cerro Colorado Gold Mine is Mr. Stephen Wetherup of CCIC, who is a professional geologist registered in British Columbia, Canada. Mr. Wetherup has reviewed and approved the technical aspects of this release.

THE NEW EXPANDED DRILLING PROGRAM

Gold mineralization currently being mined at Cerro Colorado occurs within five separate ore bodies, Sorpresa, Breccia Central, Obra X, Harris and Abejas. These ore bodies are a system of easterly plunging shoots located within a series of ENE trending southerly dipping reverse fault zones. Mineralization is localised within the ENE structures by another set of faults and joints oriented N to NW. Three separate ENE structural zones have been recognized. The most northerly contains the Sorpresa, Breccia Central and Obra X ore bodies. The two more southerly zones host the Harris and Abejas mineralization. These zones have not been adequately drill tested along strike and between the known ore bodies.

The known mineralization occurs over a vertical range of 250 m with up to 100 m vertical separation between individual ore bodies. It is likely then that additional mineralization will be encountered along strike and between the existing ore bodies. Preliminary shallow drilling has already located previously unknown gold mineralization between the Sorpresa and Breccia Central zones with down hole intercepts of 32 m @ 3.42 g/t gold and 68m @ 0.82 g/t gold.

In addition, an expanded program of 20,000 m of Reverse Circulation drilling commenced the second week of October and was designed to test these zones along strike and at depth. Kevin Sullivan, Chief Exploration Geologist for the Cerro Colorado Mine commented "We have contracted Major Drilling for the next phase with the intent to boost our resource and exploration drilling effort. Martin Walter, Chief Executive Officer, commented: "As we have been increasing production at Cerro Colorado, we have also been drilling exploration holes to complete a resource calculation to NI43-101 standards. We expect the cut-off date for this drilling around year end to allow delivery for a resource calculation by Q2".

Sierra has also introduced major new security measures at the mine. Armed security forces are currently at the mine and will remain in place, along with security vehicles, additional surveillance systems, construction of new barriers and implementation of new security procedures. Further, the Company has engaged the Canadian-based security firm of Wunderlich & Gladston to complete and is now in receipt of a full security audit report on the mine and its infrastructure. Implementation of Wunderlich and Gladstone's recommendation is underway and new security measures and being implemented daily.

Sierra Minerals Inc. is a precious metals producing company focused on acquiring and developing advanced stage gold and silver deposits that have a likelihood of realizing near-term production. The Company's primary focus is Mexico although it is actively reviewing opportunities throughout the Americas. Sierra is committed to company-wide environmental and corporate social responsibility best practices.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs, the availability of exploration results and the extent of future production from the Cerro Colorado Mine. 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, 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.

 Contacts: Sierra Minerals Inc. Martin J. Walter President & CEO (416) 363-8147 (416) 599-4959 (FAX) Email: marty@sierraminerals.ca  Sierra Minerals Inc. Keith Piggott, Chairman and Director General Granmin SA de CV 52 6622111 958 Email: keith@sierraminerals.ca Website: www.sierraminerals.ca

SOURCE: Sierra Minerals Inc.

Source: MARKET WIRE

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