Sierra Resource Group Inc. (fka SIRG)

[thizsukz]

I am not the least bit surprised about this. I mentioned last week that it would be prudent to check the outstanding shares. To recap Asher has $88k in convertible notes (January, May and June Notes-See Page 20 of the 10Q) that can be exchanged for roughly $.001 per share (58% x .0018 = .001) or 88million shares. They have another $25k that will be eligible later this month and $38k eligible sometime in March. If all of these are converted at that .001 value we are looking at 151million additional shares to Asher which would bring the total up to around 340 million.

Now on the bright side we have 190million less class B shares available which after the 3:1 split that they are eligible for would have been the equivalent of 570 million Class A shares (the currently trading class). Feel to correct me if I am misreading this (see 8k from 4-21-11 Item 101 (f) on page 2). I would love to believe that this is to accommodate financing but I suspect it is to satisfy Ashers convertible notes.