Producing Gold, Growing Value

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• Producing Gold, Growing Value
  

TSX SIM October, 2009
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Forward Looking
Information

• This presentation contains projections and
  forward looking information that involve various
  risks and uncertainties regarding future events.
  Such forward-looking information can include,
  without limitation, statements based on current
  expectations involving a number of risks and
  uncertainties and are not guarantees of future
  performance of the Company. These risks and
  uncertainties could cause actual results and the
  Companys plans and objectives to differ
  materially from those expressed in the
  forward-looking information. Actual results and
  future events could differ materially from those
  anticipated in such information. These and all
  subsequent written and oral forward-looking
  information are based on estimates and opinions
  of management on the dates they are made and
  expressly qualified in their entirety by this
  notice. The Corporation assumes no obligation to
  update forward-looking information should
  circumstances or managements estimates or
  opinions change.

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Sierra Minerals Inc.

• OVERVIEW TSX Listed SIM
• Outstanding Shares 90,328,331
• Junior Gold company producing 20,000 25,000
  ounces
• Cash Flow positive
• Asset 100 Owned - Cerro Colorado Gold Mine
  Sonora, Mexico
• NI 43-101 Completed on property
• Sustainable mine production and life

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Solid Management Team

• Management Team
• Michael H. Farrant, B.Comm.(Honours) (Queens),
  CA - President CEO
• ? Based in Toronto head office since June 27,
  2008
• ? 13 years in gold mining, including CFO of gold
  producer. Includes 6 years with Barrick Gold and
  3 years with Kinross Gold.
• ? VP Treasurer (Kinross), Controller (Barrick
  Kinross)
• Philip C. Davies, B.Sc.(Honours) (Mining
  Geology) - COO
• ? Based at Cerro Colorado mine since July 7,
  2008
• ? Experienced mining engineer with 30 years of
  mine building and operating
• experience, including 300,000 ounce Ashanti
  operations in West Africa.
• Andres Tinajero, B.A., MBA, CMA CFO
• ? Bilingual English/Spanish
• ? CFO Vena Resources Inc.
• Mexican Mine Operating Team
• ? 160 person highly skilled and trained operating
  team in Mexico

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Strong Board of Directors

• Board of Directors
• Keith Piggott, B.Sc.(Mining), Cambourne School of
  Mines - Chairman
• ? 40 years in mining with over 12 in Mexico
• ? Experienced mine builder and President CEO of
  Goldgroup Resources Inc.
• Michael Farrant, B.Comm.(Honours) (Queens), CA
• Donald Goldman, LL.B. Chairman, Compensation
  Governance Committee Chairman, Strategic Review
  Committee
• ? Independent Financial Strategic Consultant
• David Ingram, B.Comm.(UofT) M.B.A.(Harvard)
• ? Corporate Director / Advisor of several private
  and public companies
• Julian Kemp, B.B.A (Laurier), CA Chairman,
  Audit Committee
• ? Chief Financial Officer Fortune Minerals Inc.
  
• Bill Cavalluzzo, B.A. (Penn. State)
• ? VP, Investor Relations - Rubicon Minerals
  Corporation.

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Capital Structure TSX
SIM

• Cash generated upon exercise CDN4.17M
• held by 5 largest shareholders 70.1
• Recent Share Price CDN0.26
• Market Cap CDN23.5 Million
• September 30, 2009 (unaudited) Cash gt US2.0M
• September 30, 2009 Debt - US950,000

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Financial
Snapshot

• A Significantly Stronger Sierra
• Cash and cash equivalents as of September 30,
  2009 gtUS2.0M
• Management has improved the financial health of
  Sierra Minerals Inc.
• Long-term Debt as of September 30, 2009 -
  US950,000
• Capital costs are low
• Sierras forecast is to be debt free on or before
  March 31st, 2010

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Recent Financings Private Placement Q1 2009

• 8,650,000 Units _at_ CDN0.20/unit CDN1,730,000
• Included ½ warrant at CDN0.30 for 2 years from
  closing
• Principal Use of Funds
• Strengthen balance sheet
• US500,000 principal Warman debt payment
• US190,000 interest Warman debt payment
• US285,000 final payment on 43-101 drill program
• Use to expand mine production to 30,000 ounces
• US315,000 purchase 3 additional CAT773B haul
  trucks
• Upgrade gold processing plant
• General working capital purposes

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Recent Financings Private Placement Q3 2009

• 10,000,000 Units _at_ CDN0.20/unit CDN2.0M
• Included ½ warrant at CDN0.30 for 18 months
  from closing
• Principal Use of Funds
• Provide financial flexibility
• Reduction in cash operating costs
• US125,000 purchase of CAT D9N dozer vs. rental
  10 month payback
• Ability to purchase secondary crushing system
  approximate 6 month payback
• General working capital purposes

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Near-term Upside Potential

• Expand Mine Production - Significant Increase to
  Earnings and Cash flow
• Establish and Expand Estimated Mineral Resources
  Exploration Upside
• Capitalize on strong Management and Operations
  team
• Get Market Valuation as a Producer
• Share price Currency Acquisitions

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Expand Mine
Production

• Expansion Outlook
• Production 30,000 ounces of gold
• Cash cost/oz.- US500 (estimate based on
  production levels)
• Profit margin at US1,000 gold US500/oz.
• Cash Flow- US12.0M/year

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Driving Cost per Ounce Down
Capitalizing on the Fixed Component

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Initial NI 43-101 Mineral
Resource Estimate Established

• Cash Cost/oz. US605

Three Ore Zones
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Initial NI 43-101 Mineral
Resource Estimate Established

• Mineral Resource Estimate Cerro Colorado
  Mine
• (1) ounces calculated using the
  following conversion rate 1 troy ounce 31.103
  grams
• 5 Year estimated mine life At 30,000
  ounces per year with an
• estimated 67 life-of-mine recovery rate.

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Exploration Upside
The Potential is Just Unfolding

• Expand Initial NI 43-101 Mineral Resource
  Estimate
• Deposit is open to depth
• Perform additional work to find more tonnes at
  higher average grades
• 34,000 Hectare Land Position
• Explore near mine 34,000 hectare land package
  which could provide significant additional
  mineral resources hosted within 20km to 25km
  trucking distance to existing infrastructure.

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Exploration Potential
Land Holdings
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Sierra Minerals
Future Growth Share Price
Currency Acquisitions

• CONCLUSION
• Potential for Substantial Share Price
  Appreciation By
• Realizing value based on our future potential of
  growth and production
• Positive leverage to the upside of gold price
• Adding Recoverable Ounces and exploration
  potential
• Future growth through merger and acquisitions
• Corporate Development Potential
• Goal is to be a multi mine company with extended
  mine life and larger cash flow.
• Merger and Acquisition Strategy The Next Mine
• Focus - Advanced Stage exploration and
  development gold properties in Mexico and/or the
  Americas
• Seeking - low capital cost, heap-leach operations
• Goal - Add profitable ounces to our mineral
  resource inventory and bring into production.

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Cerro Colorado Gold Mine
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Sierra Minerals Inc. Growing
One Mine At a Time
20
8 King Street EastSuite 810Toronto, OntarioM5C
1B5416-775-7555askus_at_sierraminerals.cawww.sierr
aminerals.ca
TSX SIM