Sierra Minerals Inc. TSX: SIM

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2008) - 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.