Sierra Madre Announces Closure of Private Placement and Share Consolidation

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NEWS RELEASE

SIERRA MADRE ANNOUNCES CLOSURE OF PRIVATE PLACEMENT

AND SHARE CONSOLIDATION

August 4, 2020

Sierra Madre Developments Inc. (the “Company”) (TSXV: SMG.H) announces that, further to

its news release of June 18, 2020, the Company has implemented a 2:1 share consolidation and

completed a $1,000,000 non-brokered private placement financing.

Share Consolidation

The Company’s 10,798,083 issued and outstanding common shares have been consolidated on

the basis of one new share for every two outstanding shares. As a result of the share

consolidation, the Company will have approximately 5,399,041 common shares outstanding.

The Company’s shares will begin trading on a post-consolidated basis at the open on August 5,

2020.

Private Placement

The Company closed a private placement and raised $1,000,000 through the distribution of

16,666,666 post-consolidated units (each a “Unit”) at $0.06 per Unit. Each Unit consists of one

post-consolidated common share of the Company and one share purchase warrant exercisable at

a price of $0.08 per post-consolidated share for a period of 12 months from the date of issue.

Funds will be used for payment of certain debts, and for working capital purposes. No finders’

fees were paid in connection with the Private Placement. All securities issued under the

placement are subject to resale restrictions expiring December 1, 2020.

ON BEHALF OF THE BOARD:

“Raymond Wladichuk”

Raymond Wladichuk, 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.