Sierra Madre Fully Repays First Majestic Loan

Sierra Madre Gold and Silver Ltd. is pleased to announce that it has fully repaid the US$5 million non-revolving, secured term loan ("Loan") between First Majestic Silver Corp. ("First Majestic") and the Company.

Alex Langer, Sierra Madre's President and CEO, states: "We are happy to announce the full repayment of our loan facility with First Majestic, which reflects the strong cash generation from our La Guitarra operation. The Company is currently debt free and producing positive operating cash flows. By reducing our financial obligations, we are on a strong path to advance exploration and development activities at both La Guitarra and Del Toro."

Pursuant to its Stock Option Plan (the "Plan"), the Company has granted stock options to employees of La Guitarra Compania Minera, S.A. de C.V., certain directors, members of management, and consultants of the Company to purchase an aggregate of 8,800,000 common shares of the Company at a price of $1.38 per share for a period of five years from the grant date.

The options shall be granted under and subject to the terms and conditions of the Plan and subject to the rules and policies of the TSX Venture Exchange.

The grant includes 150,000 options granted to the Company's investor relations consultant, Adelaide Capital Markets Inc., which will vest as to ¼ three months after the date of the grant; ¼ six months after the date of the grant; ¼ nine months after the date of the grant; and ¼ twelve months after the date of the grant.