Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") has issued 541,457
common shares from its treasury to Mr. Martin Walter at a deemed price of $0.35
per share, in settlement of amounts owing to Mr. Walter totaling $189,510. Mr.
Walter previously held office as President and Chief Executive Officer of the
Company from September 2004 to June 2008. The share issuance is pursuant to a
resignation agreement between the Company and Mr. Walter dated June 27, 2008 and
includes amounts owing to Mr. Walter as at that date, in his capacity as
President and Chief Executive Officer. The securities are subject to a holding
period until January 26, 2009, being four months from their date of issue.


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 on target to produce approximately
20,000 ounces of gold in 2008. Sierra is currently completing its initial NI
43-101 mineral resource estimate at Cerro Colorado, which it expects to release
during the fourth quarter of 2008. The Company's exploration pipeline includes
an extensive regional land package which covers over 34,000 hectares in Sonora,
Mexico. 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.