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Sierra Gold Corporation Announces Discovery of Diamonds On Sewa River From Dredge Operation

October 21, 2008

TORONTO, Oct. 21, 2008 (GLOBE NEWSWIRE) — Sierra Gold Corporation (Pink Sheets:SGCP) announced today discovery of diamonds on the Sewa River with the 8″ dredge purchased from a South African company. The dredging operation produced over 10 carats of diamonds valued at US$110 per carat from its initial test run. Gold has also been collected and its values are presently being assessed. This equipment has the capability to process up to 50 tons per hour.

Sierra Leone is a major exporter of diamonds and is recognized internationally for the size and quality of its diamonds. The country’s major source of hard currency has come from the sale of diamonds. Sierra Leone’s production is characterized by a high proportion of gem quality diamonds. The country became famous world-wide after the discovery of the Star of Sierra Leone, a magnificent 969 carat diamond. In 2002, a 1440 carat, gem quality diamond was discovered in the Kono district, which was later sold in Belgium for approximately US$75 million. Sierra Leone has produced many of the largest alluvial diamonds ever discovered.

Doug Evans, CEO of Sierra Gold, commented: “I am presently in Sierra Leone and have witnessed the discovery of diamonds. We are excited about the diamond potential of this operation and the prospects of adding additional value to the gold production and to the company at large.”

The two high tech gold processing plants that arrived in Sierra Leone from the U.S. should clear customs this week and will be transported to the mining site for initial testing.

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 growing gold producing areas worldwide.

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 GlobeNewswire, www.globenewswire.com

 CONTACT:  Sierra Gold Corporation           John Semachko Jr., Vice-President           330-273-6183           www.sierragoldcorp.com 




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