June 25, 2008

Sierra Gold Corporation’s Newly Purchased Equipment to Increase Gold Production By 400-500 Percent

TORONTO, June 25, 2008 (PRIME NEWSWIRE) -- Sierra Gold Corporation (Pink Sheets:SGCP) announced today that it plans to increase present gold production by 400-500%. With its recent purchase of river dredging equipment, the company will now be able to extract gold from the gravels at the bottom of the river.

The gold extracted from the river will increase the potential gold reserves previously estimated to be just over 936,000 ounces based on prior work done by the National Diamond Mining Corporation and mining engineer, Mike Manke. Geologist Alieu Madhi's report did not include any bulk sampling work from the bottom of the river. The report estimated the gold values would exceed US$800 million at today's prices.

Doug Evans, CEO of Sierra Gold, commented: "We are excited about the prospect of dredging the river for gold throughout the year including the rainy season and of increasing the gold reserves for the company."

Sierra Gold is engaged in the exploration and development of gold and diamond properties in West Africa. The Birimian greenstone belt of West Africa has had a long history of gold mining and prospecting. The region has been one of the fastest gold producing areas worldwide. Sierra Leone's neighbors, Ghana and Mali, are the second and third largest gold producers in all of Africa.

Safe Harbor: No assurance can be given that past or similar results of precious metal mining will be indicative of future results. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding of discussion, the words "pleased,""plan,""confident that,""believe,""expect," or "intent to" and similar conditional expressions are intended to identity forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks in the company's SEC reports and filings.

This news release was distributed by PrimeNewswire, www.primenewswire.com

 CONTACT: Sierra Gold Corporation           John Rolston          619-398-9262          www.sierragoldcorp.com