Sienna Up-Dates its Exploration Program and Land Additions in Pachin

    CALGARY, Aug. 10 /CNW/ - Sienna Gold Inc. (SGP.V TSX Venture Exchange)
announces that the Company has drilled six holes of an 8 hole program on its
Pachin Alto concessions in northern Peru with mixed results. These first holes
provided guidance to the ongoing exploration but did not provide economic
grades of mineralization.

    Drilling Results
    Three holes drilled on geophysical targets encountered long lengths of
propylitically altered andesite and andesitic tuff breccia forming flat lying
beds. The andesitic rocks are cut by dykes of hydrothermal breccia bleached
white or light green. The presence of some tourmaline suggests multiple phases
of hydrothermal alteration. Hydrothermal and incipient crackle breccias
enriched in magnetite and epidote suggest proximity to a porphyry system and
there is some evidence of phyllic alteration at the bottom of the drill holes.
    The vuggy quartz area was tested with one hole, porous, silicified rocks
were encountered but no mineralization of precious or base metals were
encountered. It is conjectured that, due to the leached nature of the rocks,
multiple pulses of barren hydrothermal fluids passed through the zone.
    The Company has drilled two of a planned four holes in the El Pollo zone
of Pachin Alto and anomalous values of copper (300 - 500 ppm) were encountered
beginning about 85 meters from surface. The bottom 15 meters of the hole was
mapped as potassic alteration and could indicate that the top or side of a
mineralized porphyry structure has been encountered. This possibility is being
tested with two subsequent holes.

    Land Additions
    The Company has entered into a joint venture agreement on 3,200 hectares
located along a structural trend immediately adjacent (southeast) to the Pena
Blanca portion of the Pachin Alto concessions, with a group of 4 concession
owners. The Company has 3 years to spend US$400,000 to earn 65% of the joint
venture. If the Company does not spend this amount of money on exploration it
will have the option to purchase the 65% by paying the owners the difference
between US$400,000 and the amount spent on exploration. The Company will then
have a further 2 years to exercise an option to purchase the remaining 35% of
the joint venture for a one time payment of US$500,000 leaving the owners of
the concessions with a Net Smelter Royalty of 0.5%.

    Contract Amendments
    The Company has also restructured its option agreement with
Responsabilidad Sociedad Minera de Limitada Norte America XXI in order to
reduce the monthly payments from a schedule of increasing payments commencing
at $50,000 per month to a flat US$25,000 per month for 47 months with a
balloon payment of $1,850,000 on the 48th month. The amended contract
significantly reduces the cash requirement during the exploration phase. This
option agreement covers the Pachin Alto concessions.

    This press release has been reviewed and approved by Murray Lytle, PEng.,
the company's Qualified Person.

    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.

    Statements in this press release regarding the Company's business which
are not historical facts are "forward-looking statements" that involve risks
and uncertainties, such as estimates and statements that describe the
Company's future plans, objectives or goals, including words to the effect
that the Company or management expects a stated condition or result to occur.
Since forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and uncertainties. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, it can give no assurance that such expectations
will prove to have been correct. These statements are subject to certain risks
and uncertainties and may be based on assumptions that could cause actual
results to differ materially from those anticipated or implied in the forward
looking statements. The Company is under no obligation to update or alter any
forward looking statement. These risks include operational and geological
risks, the risks involved with operating in a foreign jurisdiction and the
ability of the Company to raise necessary funds for exploration. The Company's
forward looking statements are expressly qualified in their entirety by this
cautionary statement.

    %SEDAR: 00008773E

For further information:

For further information: John Rucci, President, (403) 508-2061 or by

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