Expansion of the El Creston Agreement

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VANCOUVER, June 29, 2011 /PRNewswire/ - Sierra Iron Ore Corp (the "Company") is pleased to announce that it has successfully negotiated an amendment to the El Creston Agreement respecting the El Creston property. As previously announced, the Company acquired an option to earn a 50% interest in the El Creston property in Sinaloa, Mexico from Minera Copper Canyon de Mexico S.A. de C.V.(the "Owner"). The El Creston Agreement will pay the Owner a combination of cash and shares on a predetermined payout schedule that is both timeline and milestone driven. The agreement is subject to regulatory approval.

The amended agreement will expand the mining opportunity beyond the iron ore zones. The agreement will now include all economically recoverable minerals hosted by the El Creston property. There will be no further compensation paid by the company for this amendment.

"The expansion of the El Creston Agreement is a reflection of the mutual desire by both companies to see a rapid drill program and the successful development of the El Creston property. The first stage, 2000 meter drilling program is now under way and management is looking forward to report the results from the drill program in the 3^rd quarter of this year."

The company has granted 374,903 stock options to directors, officers and consultants under the company's stock option plan. The options may be exercised at a price of $0.80 cents for up to five years, subject to vesting restrictions and percentage limits imposed by regulatory requirements or the plan, as applicable

Sierra Iron Ore is a growth focused mineral exploration company creating value through the exploration and development of the El Creston property located in the Sinaloa State of Mexico.

On behalf of The Board of Directors of Sierra Iron Ore Corporation

Paul Lee, Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Sierra Iron Ore Corp. which may cause actual results, performance or achievements of Sierra Iron Ore Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

SOURCE Sierra Iron Ore Corporation