Sierra Gold Corporation to Begin Gold Production On Sewa River With Recently Arrived Dredge Equipment

Thursday, August 21st 2008

Sierra Gold Corporation announced that it will begin initial gold operation tomorrow on the Sewa River with the 8-inch dredge purchased last month from a South African company. This equipment has the capability to process up to 50 tons per hour. An experienced, highly qualified operator from South Africa will be running the operations. The dredge will enable the company to dramatically increase the amount of gold bearing material to be processed and to expand its river dredging operation to another part of the country

The 8-inch fifty ton dredge was transported this week to Sierra Gold’s Sewa River concession licensed by its joint venture partner. The Sewa River is well known for its richness in both gold and diamonds. The company has done preliminary testing on the property to substantiate the presence of gold and is now ready to move forward. The gold extracted from the Sewa River will increase the company’s potential gold reserves.

Doug Evans, CEO of Sierra Gold, commented: “I am presently in Sierra Leone to supervise the setup of the dredge operations and to attend local ceremonies hosted by the paramount chiefs. This equipment will allow the company to move to another level of gold production. We are excited about the expansion to the Sewa River and the opportunity to be able to mine throughout the year. We look forward to the opportunity to increase the company’s value through increased gold production.”

Sierra Gold is engaged in the exploration and development of gold and diamond properties in West Africa. The Birimian greenstone belt of West Africa has had a long history of gold mining and prospecting. The region has been one of the fastest growing gold producing areas worldwide.