EXPLORATION ALLIANCE WITH CGA MINING SHARE PLACEMENT

PERTH, Western Australia, Nov. 2 /CNW/ - The Directors of Sierra Mining Limited (Sierra) are pleased to advise that the Company has entered into an Exploration Alliance with CGA Mining Limited (CGA) (TSX: CGA), which allows Sierra to accelerate its exploration programs on its outstanding projects in the Philippines, as well as pursue new opportunities.

CGA - who has developed the Masbate Gold Project in the Philippines, the largest gold mine in the country - will provide Sierra with strategic, commercial and technical assistance in respect of its projects, and the companies will work together to identify and secure other exploration and development opportunities in the Philippines.

Sierra is also undertaking a placement to raise $6m, and CGA will support and participate in the issue.

In return, Sierra has granted CGA a right of first refusal in the event Sierra chooses to dispose of an interest in any of its projects, as well as a pro-rata right (subject to necessary approvals) to participate in future capital raisings.

Matt Syme, Managing Director of Sierra, said "Sierra is delighted to be able to strengthen our relationship with CGA through this Alliance. CGA is one of the great success stories in Philippines mining and their support on the ground will be an immense help in progressing our excellent property base."

Michael Carrick, Managing Director of CGA, commented "CGA has great faith in the future of the mining sector in the Philippines and the contribution it can make to the Philippines economy. Sierra has an outstanding portfolio of projects and this Alliance is a terrific opportunity for CGA to participate in the great untapped exploration potential in the country."

SHARE PLACEMENT

Sierra has agreed to place a total of 24 million new ordinary shares at a price of $0.25 each, to a range of institutional and sophisticated investors in Australia and North America. CGA has subscribed 4m shares in the placement.

The funds raised will be used to advance and explore the Company's exploration projects, to investigate and acquire other exploration and development projects and for general working capital.

The Company was advised in respect of the Australian component of the placement by Taylor Collison Limited.

For further information:

Enquiries:    

Mr Matt Syme, Managing Director,   [phone]

Mr Campbell Taylor, Taylor Collison   [phone]