Sierra Iron Options Mazomique Iron Ore Concession

    




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 VANCOUVER, June 18, 2012 /CNW/ - SIERRA IRON ORE CORPORATION (the "Company") is pleased to announce 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. The Mazomique  property has excellent infrastructure to transport drill equipment and  heavy machinery with an existing 25km partly sealed and all weather  gravel road from the city of Choix. 

 In order to earn its 80% interest, the Company is required to pay the  Owner a total cash amount of USD$100,000 in stages: $10,000 upon  execution, $20,000 on or before 6-months after regulatory approval;  $20,000 on or before 12-months after regulatory approval, $20,000 on or  before 18-months after regulatory approval and $30,000 on or before  24-months after regulatory approval. In addition, a total of 14,500,000  shares must be issued to the Owner in stages:  i) 2,000,000 shares no  later than 5-days after regulatory approval; ii) 2,000,000 shares  6-months after regulatory approval; and iii) 10, 500,000 shares on or  before the earliest of the expenditure of $2,000,000 on work programs  over three years, the presentation of a positive feasibility study and  the commencement of commercial iron-ore production on the Mazomique  Property. 

 This acquisition remains subject to regulatory approval which will, in  turn be subject to shareholder approval.  The Mazomique Agreement will  be put to shareholders for a vote at the Company's upcoming Annual  General Meeting scheduled for July 9, 2012. 

 "We are very excited at the prospect of acquiring the Mazomique  Property," stated Wally Boguski, CEO and President. "The proximity to  an operating mine and existing infrastructure will mean that our  company will now have the potential for two near term operating iron  ore mines in the region." 

 There will be no finder's fees paid. 

 About Mazomique The Mazomique concession encloses and surrounds the El Rosario iron mine  currently being operated by Paradox Global Resources S.A. de C.V.   Paradox regularly exports a reported 20 to 30 thousand metric tons of  iron ore per month to overseas markets. The iron mineralization at El  Rosario consists primarily of magnetite and hematite enclosed ore at  the periphery of a skarn zone developed at the contact between  limestone and Tertiary granodiorite. Recent rock chip geochemistry  survey suggests a western extension of the El Rosario iron  mineralization into the Mazomique concession. 

 About Sierra Iron Ore 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. The company has a  continual fieldwork program at the El Creston Property that is  comprised of drilling, mapping, sampling and planning for further  property development. Roads have been built and upgraded as well as  equipment has been mobilized for further developing the known iron ore  mineral zones identified by recent exploration work. 

 Mr. Ruben Verzosa, P. Eng., a Qualified Person (QP) as defined by NI  43-101 has approved the geological content of this Press Release. 

 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.  

   

Sierra Iron Ore Corporation


CONTACT:  Corey Safran, Investor Relations, at 609-228-0595, or by emailat [e-mail]. 


    

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