Sierra Iron Ore Corp. Initiates Legal Action Against A Neighboring Company to the Mazomique Property

VANCOUVER, Jan. 8, 2013 - Sierra Iron Ore Corp (the "Company") in conjunction with "Aztec Zinc de Mexico S.A. de C.V" has initiated legal action against a neighboring company that owns and operates a mine on adjacent property to the recently optioned Mazomique property that is located south of the El Creston property.

The legal action claims that the neighboring company has illegally crossed the property lines and has been operating and extracting iron ore from the Mazomique property for resale into the market. Sierra Iron ore has engaged the law firm of Sepulvedia Longoria for legal representation. The legal action initiated by Sierra Iron Ore is intended to gain a court ordered cease and desist order for any further mining operations conducted by the neighboring company on the Mazomique property. The legal action is also pursuing the injunction and seizure of any iron ore that has been stockpiled near the mining site or staged at the Port of Topolobampo. 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.

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 are vigorously pursuing all legal remedies and will aggressively defend and protect the company's assets," stated Wally Boguski, President and CEO. "We are working with the local court and government authorities at the local, state, and federal levels and expect full cooperation with a speedy favorable resolution to our legal claim."


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 Sinoala 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 magnetite zones identified by recent exploration work.

Sierra Iron Ore also has 100% ownership of the Tom Cat property which is located 200 kilometres east-northeast of Vancouver within the historic Aspen Grove copper camp. The company is currently conducting an exploration program of geological mapping and sampling program as a prelude to a planned diamond drill program.


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



For further information:

Sierra Iron Ore Corporation
Corey Safran, Investor Relations
at 609-228-0595
corey@sierrairon.com
www.vrcorpusa.com