Replies to post #14679 on Sierra Resource Group Inc. (fka SIRG)

[StockKingArthur]

Why those things would be the salaries of sirg's management, the 88 thousand dollars that sirg burns through in a month, the defaulted on notes, and the notes that are coming due. Very hard to pay the bills when sirg has virtually no cash and absolutley no revenue. sirg is going to have to get money somehow. Of course sirg management can always take on some more toxic funding then say they turned down funding because it was toxic, thats been done before.

[Actuate]

The company stated why.

http://quotemedia.10kwizard.com/download.php?ipage=8035402&action=PDF&src=quotemedia&msrc=68a2dcc319463f7fa6367eee2437b37d

Reasons for the Increase in Authorized Common Stock
The Company has entered into a series of agreements with Asher Enterprises Inc. (the “Asher Agreements”), to provide
working capital for the Company’s operations while the Company raises a higher amount needed to re-open operations at the Chloride
Copper Mine. These agreements were previously disclosed in the Company’s filings with the Securities and Exchange Commission on
April 15, 2011, August 15, 2011and November 16, 2011. The Asher Agreements require, among other things, that the Company
maintain a reserve of authorized but unissued Class A Common Stock (the “Reserve Shares”) in an amount 5-times the number of
shares into which the outstanding debt of the Company to Asher Enterprises is convertible (the “Conversion Shares”). With the recent
share price drop that the Company has experienced, the number of Conversion Shares has increased and the number of required
Reserve Shares increased proportionately. As a result, the number of required Reserve Shares exceeded the number of authorized but
unissued shares of the Company’s Class A Common Stock, and the Company became noncompliant with the contractual requirement.
The increase in the number of authorized but unissued shares of Class A Common Stock will both (i) place the Company back into
compliance with the contractual requirements and (ii) enable the Company to borrow further amounts from Asher Enterprises for short
term working capital to keep the Company operating while efforts continue to raise sufficient funds to re-start mining operations at the
Chloride Copper Mine.