News Column

Sierra Iron Adopts Shareholder Rights Plan and Amends Private Placement Terms

May 29, 2014



ENP Newswire - 29 May 2014

Release date- 27052014 - VANCOUVER, BC - Sierra Iron Ore Corp. is pleased to announce that its Board of Directors has adopted a shareholder rights plan, effective immediately, subject to shareholder and TSX-V approval.

The purpose of the Shareholder Rights Plan is to provide shareholders and the Board with adequate time to consider and evaluate any unsolicited bids made for the Company, to provide the Board with adequate time to identify, develop and negotiate value-enhancing alternatives if considered appropriate, to encourage the fair treatment of shareholders, and to ensure that any proposed transaction is in the best interests of the Company.

The rights issued under the Shareholder Rights Plan will become exercisable only if a person, together with its affiliates, associates and joint actors, acquires or announces its intention to acquire beneficial ownership of shares which, when aggregated with its current holdings, total 20% or more of the Company's outstanding common shares (determined in the manner set out in the Shareholder Rights Plan), other than by a permitted bid.

Permitted bids must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, among other things, must remain open for 60 days. If a take-over bid does not meet the permitted bid requirements of the Shareholder Rights Plan, the rights will entitle shareholders, other than any shareholder or shareholders making the take-over bid, to purchase additional common shares of the Company at a discount to the market price of the common shares at that time.

The Company will seek shareholder approval of the Shareholder Rights Plan at its annual general meeting of shareholders scheduled for June 12, 2014.

Further to the news release dated May 9, 2014, the Company wishes to advise that the previously announced private placement terms have been amended. The Company will issue 1,666,668 units ('Units') consisting of one common share issued at $0.15 per share and one common share purchase warrant (a 'Warrant'). Each Warrant may be exercised by the holder to purchase an additional common share at a price of $0.20, for 24 months from closing.

The proceeds from this private placement will be used for general working capital.

The Company has agreed to pay finders' fees to arm's-length qualified parties. All securities issued will be subject to a four-month hold period from closing. This private placement remains subject to regulatory approval.

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.

Contact:

Sierra Iron Ore Corp.

13236 Cliffstone Court

Lake Country, BC V4V 2R1

Canada

Tel: 250-766-1517

Fax: 250-766-1836


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Source: ENP Newswire


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