Mr. Wally Boguski reports

SIERRA ANNOUNCES PRIVATE PLACEMENT

Sierra Iron Ore Corp., further to its March 21, 2016, news release, has raised $277,500 in the first tranche of the proposed $525,000 non-brokered private placement to qualified investors. The company will issue 793,000 units at a price of 35 cents. Each unit will consist of one common share and one-half share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share, at a price of 50 cents for a period of 24 months from closing.

Subject to market conditions, the company expects to raise an additional $247,500 on the same terms in the near future.

The proceeds of this private placement will be used to advance exploration on the company's Canadian properties and for general working capital purposes.

All securities issued will be subject to a four-month hold period from closing. No finder's fee will be paid on this tranche of the private placement.

The private placement remains subject to TSX Venture Exchange approval.

We seek Safe Harbor.