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AUXX.V ·

Reinstatement for Trading

Corporate Updates

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8792 Shook Road

Mission, British Columbia

Canada V2V-7N1

TSX-V: SMG

Tel: 604. 410-2277

Fax: 604. 410-2275

NEWS RELEASE

January 29, 2019

Sierra Madre Developments Inc. (the “Company”) provides an update on recent events.

Reinstatement for Trading

The Company advises that following its application to have its shares resume trading on the NEX

branch of the TSXV, the Exchange has accepted such filing, and the Company’s shares will be

reinstated for trading commencing Wednesday, January 30, 2019.

Consolidation and Private Placement

The Company confirms its disclosure in its news release of November 14, 2018 in that:

(i) The Company will be undertaking a consolidation of its 53,980,827 issued and outstanding

common shares on the basis of one new share for every 10 outstanding shares;

(ii) The Company will be undertaking a private placement to raise up to $270,000 through the

distribution of 5,400,000 post-consolidated shares at $0.05 per share. Funds will be used

for costs associated with its corporate reorganization with Bear Mountain Gold Mines Ltd.,

payment of certain debts, and for working capital purposes. Finder’s fees may be paid in

accordance with TSX Venture Exchange guidelines; and

(iii) Further to the Company’s news release of October 22, 2018, the Company intends to

transfer all of its interests in the Harrison Gold Property to its wholly owned subsidiary,

Bear Mountain Gold Mines Ltd., in exchange for shares of Bear Mountain which will be

subsequently distributed to the shareholders of the Company.

ON BEHALF OF THE BOARD:

“Carl von Einsiedel”

Carl von Einsiedel, CEO

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 release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION : This news release

includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking

statements include, but are not limited to, statements with respect to: the proposed consolidation of the Company’s

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shares, and the proposed private placement. There is no assurance the Company will be able to raise funds on the

terms stated, or at all. Forward-looking statements are necessarily based upon a number of estimates and assumptions

that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may

cause the actual results and future events to differ materially from those expressed or implied by such forward-looking

statements. Such factors include, but are not limited to: general business, economic, political and social uncertainties;

delay or failure to receive board, shareholder or regulatory approvals; and the uncertainties surrounding the mineral

exploration industry. There can be no assurance that the Company will be successful in completing either the

consolidation or the private placement. Accordingly, readers should not place undue reliance on forward-looking

statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise, except as required by law.