Sienna Gold Exploration Update: 2013- Building on Success

CALGARY, 01/16/13 - Sienna Gold Inc ("Sienna" or the "Company") (TSX VENTURE: SGP) (LMA: SGP) provides an update of exploration over the last year and details of the Company's plans for 2013 at its 100%-owned Igor project, in La Libertad, Peru.


Mineral Resource Estimate

The main focus in 2012 was drilling, which resulted in the production of an initial Mineral Resource Estimate (NI 43-101) for the Callanquitas Structure. The estimate was announced in a press release dated November 13, 2012.

The resource estimate resulted in a resource of 7.2 million tonnes grading 1.9 grams per tonne (g/t) gold and 71.8 g/t silver; this equates to 3.16 gold equivalent (Au Eq(i)) g/t using a cut-off grade of 1.5 Au Eq(i) g/t. This is approximately 448,500 ounces of gold and 16,600,000 ounces of silver, which equates to approximately 730,500 Au Eq(i) ounces.

The NI 43-101 report was filed on December 17, 2012 and can be viewed on the Company's web site at www.siennagold.com or on Sedar at www.sedar.com.


Surface Sampling and Mapping

In addition to the Callanquitas drilling, mapping and sampling continued throughout 2012. A total of 296 surface samples was collected from outcrops, trenches and old workings. Of these, 138 were greater than 0.5 g/t gold and 98 were greater than 1 g/t gold. The following table shows the most significant samples.

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Sample ID                                 Au Grade (g/t)      Ag Grade (g/t)
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E982777                                             21.4                  53
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E982826                                             14.4                  26
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E982762                                              6.4                1019
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E982763                                             5.99                 537
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E982896                                             27.8                 284
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I237973                                             7.73                 287
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I237874                                             11.2                 242
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I237902                                              5.1                 1.6
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I237934                                              4.6                 7.6
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I237883                                              4.3                79.1
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I237886                                                4                 126
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Detailed mapping at 1:1,000 scale expanded outwards from the Callanquitas Structure. Approximately 340 hectares have been completed.

To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/116sgp1.pdf

This mapping and sampling has been very successful and identified about 8 km of significant veins and mineralized structures. These are grouped into four main target areas (Figures 1-3). These figures show the results of all 4,300 samples collected since the Company acquired Igor in 2005. The maximum values are 94.3 g/t gold and 11,319 g/t silver. Note the restricted area of the current Callanquitas Resource in relation to the other targets.

To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/116sgp1.pdf

To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/116sgp1.pdf


Future Development

Upon securing funding, Sienna Gold plans a 20,000-22,000 m drilling campaign with the following objectives:

- infill drilling along the Callanquitas Structure
- step out drilling at Callanquitas to the north and south
- drilling of new target areas (including Domo and Tesoros)

Metallurgical test work, geotechnical and provisional engineering studies are planned with the goal of producing a Preliminary Economic Assessment (PEA) towards the end of 2013.

Warren Pratt, Director of Sienna Gold Inc, comments "The timely production of the Callanquitas resource estimate was a tremendous step forward for Sienna Gold and Igor. In particular, it demonstrated very high silver grades at a particular topographic elevation. We intend to learn from Callanquitas and use it as the springboard to grow the global resource. Surface sampling and mapping clearly demonstrate the enormous potential of Callanquitas-type structures; there are approximately 8 km that have not been tested with a drill. The future looks very bright."

This press release was reviewed and approved by Dr Warren Pratt (CGeol) who is a Qualified Person according to National Instrument 43-101. Robert Sim (PGeo) is a Qualified Person and is responsible for the preparation of the mineral resource estimate.

Sienna Gold Inc is a gold exploration company with property interests in Peru. Its key prospect is the Igor Mine Project, a formerly producing mine that the Corporation is exploring further.

If you wish any further information, please feel free to contact John Rucci at any of the contact points noted above.


John M Rucci
President



WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Neither 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.




Contacts:

Sienna Gold Inc.
John Rucci
403-508-2061
403-508-2670 (FAX)
rucci@siennagold.com

Sienna Gold Inc.
SUITE 1100, 800 6TH AVENUE S.W.
CALGARY, ALBERTA
CANADA T2P 3G3
www.siennagold.com