November 7, 2012, Vancouver, BC – Sierra Madre Developments Inc. (TSX-V: SMG) (“Sierra Madre” or the “Company”) Further to the Company’s press release dated October 16, 2012, the Company advises its proposed $750,000 private placement to issue units at $0.03 per unit has not been accepted by the TSX Venture Exchange as fitting within the TSXV temporary hardship pricing policy. As a result, the Company intends to raise up to $750,000 through the distribution of up to 15,000,000 units at $0.05 per unit, on a post-consolidated basis.

Each unit will consist of one post-consolidated common share and one warrant exercisable to acquire one additional post-consolidated share for 12 months following closing. The Company has begun marketing the placement, which it expects to close shortly following its AGM to be held on December 12, 2012. The Company has engaged the services of Burgeonvest Bick Securities Limited as book runner to assist in the non-brokered financing. The Company will be paying a 10% cash finder’s fee and 10% finders options.

At the Company’s annual general meeting shareholders will be asked to approve a resolution allowing the Company to consolidate its issued and outstanding common shares on a basis that will allow the Company to complete its private placement at $0.05 per unit. The Company anticipates such consolidation will be between 2:1 and 3:1. The warrant price will be the minimum price allowed under TSXV Policies, expected to range from $0.05 per share to $0.09 per share depending on the consolidation ratio implemented.

As announced September 21, 2012 under the revised terms of the Penoles Option Agreement, the Company can earn a 51% interest by incurring $500,000 in exploration expenditures before March 30, 2013, making a $400,000 payment on March 30, 2013 (payable in cash or shares at the Company’s election – share payments would be based on the 20 day VWAP and subject to TSX approval), making a $1,250,000 cash payment to Riverside on June 30, 2012, incurring an additional $750,000 in exploration expenditures by September 30, 2013, paying $100,000 in cash to Riverside on December 31, 2013 and by making a final payment of $1,500,000 to Riverside on December 31, 2013 ((payable in cash or shares at the Company’s election – share payments would be based on the 20 day VWAP and subject to TSX approval). The $500,000 in expenditures and the $400,000 payment due by March 30, 2013 are firm obligations. The proposed private placement and the amended option agreement is subject to TSX Venture Exchange approval.

Proceeds of the proposed financing will be used to meet the $500,000 exploration requirements due to be completed by March 30, 2013 and for general overhead and operating expenses. The Company plans to complete systematic drill testing (minimum 6 drill holes) below the historic Jesus Maria and San Rafael silver mines and continue evaluation work on the El Capitan gold target. On completion of the drill program at Jesus Maria down hole IP and EM surveys will be completed to delineate priority target areas for continued drilling.

The scientific and technical data contained in this news release pertaining to the Peñoles Project was prepared under the supervision of Carl Von Einsiedel, PGeo., a qualified person to Sierra Madre, who is responsible for ensuring that the geologic information provided in this news release is accurate and acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Sierra Madre Developments: Sierra Madre is a TSX Venture listed junior mining company based in Vancouver, British Columbia, Canada. Management has extensive exploration and mining expertise and the Company’s business model is to acquire advanced gold and silver projects and build shareholder value by rapidly advancing our projects through the resource delineation stage.

ON BEHALF OF THE BOARD

“Carl von Einsiedel”

CEO and Director

For additional information contact: 604-685-3357