Sierra Iron Ore provides update on legal action against neighbor company

Oct 9, 2013

VANCOUVER, BC – Sierra Iron Ore Corporation (Symbol: NAA-TSXV/OTCQX:SIOCF) (the “Company”) is pleased to provide an update on the legal action in conjunction with “Aztec Zinc de Mexico S.A. de C.V” against a neighboring company that owns and operates a mine on adjacent property to the Mazomique property that is located south of the El Creston property.

The legal action taken against the neighboring company has been filed in Mexico and proceedings have begun. The case is advancing through the courts and is currently in the discovery stage. As part of the discovery stage, court appointed officials, including the judge assigned to the case and a 3rd party independent geologist, visited the Mazomique property at the end of September. The purpose of the visit was to survey the property and to investigate the Company’s legal claim that our neighbor acted unlawfully by crossing onto the Mazomique property. The legal action claims that the neighboring company illegally crossed the property lines and had been operating and extracting iron ore from the Mazomique property for resale into the market.

The legal action initiated by Sierra Iron Ore is intended to financially collect from the defendant the value of the iron ore that was illegally removed from the Mazomique property. Additionally, the legal action is also seeking criminal charges against the principals of the neighboring company and any other parties responsible for this alleged criminal act. The presentation of evidence is expected within the next 30 days.

On June 18, 2012, the company announced that it has entered into an agreement (the “Mazomique Agreement”) with Aztec Zinc de Mexico S.A. de C.V. (the “Owner”), an arm’s-length party, to acquire up to an 80% interest in a highly prospective iron ore property (the “Mazomique Property”) comprising of one concession covering an area of 3,055.27 ha near the northeast boundary of Sinaloa and Chihuahua states.

“We continue to vigorously pursue a legal and financial remedy and will aggressively defend and protect the company’s assets,” stated Wally Boguski, President and CEO. “We look forward to advancing our case through the court system so that we can get closer to a verdict which we expect will be favorable for our company.”

For more information contact Corey Safran, Investor Relations, at 609-228-0595, or by email at [email protected].

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