March 12, 2012, Vancouver, BC – Sierra Madre Developments Inc. (the “Company”)(TSX-V: SMG) is pleased to announce the closing of the non-brokered private placement financing (the “Offering”) led by Burgeonvest-Bick Securities Ltd. (“Burgeonvest”) previously announced by news release on February 15, 2012. Pursuant to the Offering, the Company raised $2,276,250 through the sale of 30,350,000 units (the “Units”) at a price of C$0.075 per Unit. Each Unit consists of one common share in the capital of the Company (“Shares”) and one-half of one transferable common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one additional Share at a price of C$0.10 per Share for a period of 12 months expiring March 9, 2013.

In addition to the Offering led by Burgeonvest, the Company raised $250,000 through the sale of 2,500,000 million Flow-Through units at a price of $0.10 per unit. Each Flow-Through unit consists of one flow-through common share in the capital of the Company and one half of one Warrant (each Warrant having the same terms as outlined above).

The securities underlying the Units and the Flow-Through Units issued in connection with the private placement are subject to a hold period expiring July 10, 2012.

The Company has paid Burgeonvest-Bick and other members of the selling syndicate aggregate cash commissions equal to 10.0% of the gross proceeds raised in connection with the Offering and has issued finder’s compensation options to purchase that number of Units (“Compensation Units”) equal to 10.0% of the aggregate Units sold pursuant to the Offering, at an exercise price of C$0.075 per Compensation Unit for a period of 12 months expiring March 9, 2013. Each Compensation Unit will consist of one Share and one half of one Warrant.

The net proceeds from the sale of the Units will be used by the Company to fund property payments and the next phase of drill testing at the Company’s Penoles Project located in Durango State Mexico, and for other general corporate and working capital purposes. The gross proceeds from the sale of the Flow-Through units will be used to fund exploration expenditures at the Company’s Harrison Gold Project in British Columbia which qualify as 100% Canadian Exploration Expense.

For additional information contact: 604-685-3357

ON BEHALF OF THE BOARD

“Carl von Einsiedel”

CEO and Director

This News Release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

FORWARD-LOOKING STATEMENTS DISCLAIMER: Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Sierra Madre in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Neither the 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 news release.