---

UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended AUGUST 31, 2008

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE EXCHANGE ACT

For the transition period from _______ to _______

Commission file number: 000-53284

SIERRA VENTURES, INC.(Exact name of small business issuer in its charter)

|Wyoming                                          | 26-0665441                          
|------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.)
|organization)                                    |                                     
|                                                 |                                     
|1685 H Street, No. 155                           |                                     
|Blaine, Washington                               | 98230                               
|(Address of principal executive offices)         | (Zip Code)                          

Issuers telephone number: (888) 755-9766

Securities Registered Under Section 12(b) of the Exchange Act:
None

Securities Registered Under Section 12(g) of the Exchange Act:
Common Stock, $0.001 par value(Title of class)

Indicate by check mark whether the issuer (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the past 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X]     No
[   ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes
[X]      No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, a non-accelerated filer or a smaller reporting company.

|Large accelerated filer   [    ] | Accelerated
      filer                  
      [   ]
|-------------------------------- | -----------------------------------------------------
|Non-accelerated filer     [X]    | Smaller reporting company
[X]                        

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date: 6,900,000
shares of Common Stock as of October 10, 2008.

Transitional Small Business Format. Yes
[   ]    No [X]

---

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

Sierra Ventures, Inc.
  (an Exploration Stage Company) 
  Balance Sheets 
  August 31, 2008

|                                                       |   | August 31, 2008 |  |   | May 31, 2008 | 
|------------------------------------------------------ | - | --------------- |  | - | ------------ | 
|                                                       |   | (Unaudited)     |  |   |              | 
|Assets                                                 |   |                 |  |   |              | 
|                                                       |   |                 |  |   |              | 
|Current assets                                         |   |                 |  |   |              | 
|Cash and cash equivalents                              | $ | 45,588          |  | $ | 67,116       | 
|                                                       |   |                 |  |   |              | 
|Liabilities and Stockholders' Equity                   |   |                 |  |   |              | 
|                                                       |   |                 |  |   |              | 
|Current liabilities                                    |   |                 |  |   |              | 
|Accrued expenses                                       |   | 6,435           |  |   | 4,034        | 
|Shareholder advances                                   |   | --              |  |   | 10,000       | 
|Contingent
      Liability                             |   | 100,000         |  |   | 100,000      | 
|Total current liabilities                              |   | 106,435         |  |   | 114,034      | 
|                                                       |   |                 |  |   |              | 
|Stockholders' equity                                   |   |                 |  |   |              | 
|Common stock,
      500,000,000 shares authorized,     |   |                 |  |   |              | 
|par value $.001, 6,900,000 shares issued and           |   |                 |  |   |              | 
|outstanding                                            |   | 6,900           |  |   | 6,900        | 
|Additional paid-in capital                             |   | 8,250           |  |   | 8,250        | 
|Other
      comprehensive loss                         |   | 59              |  |   | 59           | 
|Deficit accumulated during the
      exploration stage |   | -76,056         |  |   | -62,127      | 
|Total stockholders' equity                             |   | -60,847         |  |   | -46,918      | 
|                                                       |   |                 |  |   |              | 
|Total liabilities and stockholders' equity             | $ | 45,588          |  | $ | 67,116       | 

See accompanying notes to financial statements

---

Sierra Ventures, Inc.
  (an Exploration Stage Company) 
  Statements of Operations 
  (Unaudited)

|                                         |   |              |  |   |              |  |   | For the period      | 
|---------------------------------------- | - | ------------ |  | - | ------------ |  | - | ------------------- | 
|                                         |   | Three months |  |   | Three months |  |   | October 19, 2006    | 
|                                         |   | ended        |  |   | ended        |  |   | (date of inception) | 
|                                         |   | August 31,   |  |   | August 31,   |  |   | through             | 
|                                         |   | 2008         |  |   | 2007         |  |   | 31-Aug-08           | 
|                                         |   |              |  |   |              |  |   |                     | 
|Revenues                                 | $ | ---          |  | $ | ---          |  | $ | ---                 | 
|                                         |   |              |  |   |              |  |   |                     | 
|Expenses                                 |   |              |  |   |              |  |   |                     | 
|Professional fees                        |   | 2,300        |  |   | 3,300        |  |   | 10,600              | 
|Communications
      expense             |   | 2,080        |  |   | 593          |  |   | 10,827              | 
|Office expenses                          |   | 2,707        |  |   | 666          |  |   | 13,068              | 
|Travel and
      entertainment           |   | 2,842        |  |   | 1,157        |  |   | 7,411               | 
|Exploration of resource
      properties |   | ---          |  |   | ---          |  |   | 30,000              | 
|Transfer agency
      services           |   | 4,000        |  |   | ---          |  |   | 4,000               | 
|Other services                           |   | ---          |  |   | 100          |  |   | 150                 | 
|                                         |   |              |  |   |              |  |   |                     | 
|Total expenses                           |   | 13,929       |  |   | 5,816        |  |   | 76,056              | 
|                                         |   |              |  |   |              |  |   |                     | 
|Net loss                                 | $ | -13,929      |  | $ | -5,816       |  | $ | -76,056             | 
|                                         |   |              |  |   |              |  |   |                     | 
|Basic and diluted loss per common share  |   | ---          |  |   | ---          |  |   | ---                 | 
|                                         |   |              |  |   |              |  |   |                     | 
|Weighted average number of common shares |   |              |  |   |              |  |   |                     | 
|used in per
      share calculations     |   | 6,900,000    |  |   | 6,900,000    |  |   |                     | 

See accompanying notes to financial statements

---

Sierra Ventures,  Inc. 
  (an Exploration
   Stage Company)
  Statement  of Changes
   in Stockholders'  Equity 
  (Unaudited)

DeficitaccumulatedCommon
      
      
      
      
      
      Additional
      
      
      Other
      
      
      during the
      
      
      Totalshares
      
      
      Common
      
      
      paid-in
      
      
      Comprehensive
      
      
      exploration
      
      
      stockholders'outstanding
      
      
      stock
      
      
      capital
      
      
      Loss
      
      
      stage
      
      
      equityCommon shares issued for cash
      
      6,900,000
      
      
      6,900
      
      
      8,100
      
      
      ---
      
      
      ---
      
      
      15,000Contributed services
      
      ---
      
      
      ---
      
      
      100
      
      
      ---
      
      
      ---
      
      
      100Currency exchange loss
      
      ---
      
      
      ---
      
      
      ---
      
      
      -2
      
      
      ---
      
      
      -2Net loss for the periodOctober 19, 2006 (inception)to May 31, 2007
      
      ---
      
      
      ---
      
      
      ---
      
      
      ---
      
      
      -5,816
      
      
      -5,816Balance, May 31, 2007
      
      6,900,000
      
      
      6,900
      
      
      8,200
      
      
      -2
      
      
      -5,816
      
      
      9,282Contributed services
      
      ---
      
      
      ---
      
      
      50
      
      
      ---
      
      
      ---
      
      
      50Currency exchange gain
      
      ---
      
      
      ---
      
      
      ---
      
      
      61
      
      
      ---
      
      
      61Net loss for the year endedMay 31, 2008
      
      ---
      
      
      ---
      
      
      ---
      
      
      ---
      
      
      -56,311
      
      
      -56,311Balance, May 31, 2008
      
      6,900,000
      
      
      6,900
      
      
      8,250
      
      
      59
      
      $
      -62,127
      
      $
      -46,918Net loss for the three monthsended
        August 31, 2008
      
      ---
      
      
      ---
      
      
      ---
      
      
      ---
      
      
      -13,929
      
      
      -13,929Balance, February 29, 2008
      
      6,900,000
      
      $
      6,900
      
      $
      8,250
      
      $
      59
      
      $
      -76,056
      
      $
      -60,847


See accompanying  notes to financial
   statements

---

Sierra Ventures, Inc.
  (an Exploration Stage Company) 
  Statements of Cash Flows 
  (Unaudited)

|                                                              |   |                 |  |   |                 |  |   | For the period      | 
|------------------------------------------------------------- | - | --------------- |  | - | --------------- |  | - | ------------------- | 
|                                                              |   |                 |  |   |                 |  |   | October 19, 2006    | 
|                                                              |   | Three months    |  |   | Three months    |  |   | (date of inception) | 
|                                                              |   | ended           |  |   | ended           |  |   | through             | 
|                                                              |   | August 31, 2008 |  |   | August 31, 2007 |  |   | August 31, 2008     | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash flows used for operating activities                      |   |                 |  |   |                 |  |   |                     | 
|Net loss                                                      | $ | -13,929         |  | $ | -3,358          |  | $ | -76,056             | 
|Adjustments to reconcile net loss to net
      cash provided  |   |                 |  |   |                 |  |   |                     | 
|by operating activities:                                      |   |                 |  |   |                 |  |   |                     | 
|Contribued
      services                                     |   | ---             |  |   | 50              |  |   | 150                 | 
|Other comprehensive loss                                      |   | ---             |  |   | -227            |  |   | 59                  | 
|Changes in operating assets and liabilities                   |   |                 |  |   |                 |  |   |                     | 
|Increase (decrease) in accrued
      expenses                 |   | -7,599          |  |   | -2,000          |  |   | 6,435               | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash flows used for operating activities                      |   | -21,528         |  |   | -5,535          |  |   | -69,412             | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash flows from financing activities                          |   |                 |  |   |                 |  |   |                     | 
|Advances from
      shareholder                               |   | ---             |  |   | ---             |  |   | ---                 | 
|Contingent liabilty - subscriptions
      received in advance |   | ---             |  |   | ---             |  |   | 100,000             | 
|Proceeds from
      issuance of common stock                  |   | ---             |  |   | ---             |  |   | 15,000              | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash flows from financing activities                          |   | 0               |  |   | 0               |  |   | 115,000             | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Increase in cash and cash equivalents                         |   | -21,528         |  |   | -5,535          |  |   | 45,588              | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash and cash equivalents - Beginning of
      period         |   | 67,116          |  |   | 12,282          |  |   | ---                 | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Cash and cash equivalents - End of period                     | $ | 45,588          |  | $ | 6,747           |  | $ | 45,588              | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Supplemental Disclosures regarding cash
      flows           |   |                 |  |   |                 |  |   |                     | 
|Interest paid                                                 | $ | ---             |  | $ | ---             |  | $ | ---                 | 
|Income taxes
      paid                                       |   | ---             |  |   | ---             |  |   | ---                 | 
|                                                              |   |                 |  |   |                 |  |   |                     | 
|Non-cash financing activities                                 |   |                 |  |   |                 |  |   |                     | 
|Paid in capital from contributed
      services               |   | ---             |  |   | ---             |  |   | 150                 | 

See accompanying notes to financial statements

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

Note 1  Nature of Operations

Sierra Ventures, Inc. (the Company) was incorporated under
  the laws of the State of Wyoming on October 19, 2006. The Company is a start-up,
  exploration stage corporation which has an option agreement (Option to Purchase
  and Royalty Agreement) with Jiujiang Gao Feng Mining Industry Limited Company
  (Jiujiang) granting the Company the exclusive right and option to acquire 25%
  of the right, title and interest in the Zhangjiafan Gold Mining property
  situated in Jiangxi Province, China.

The Company is an exploration stage company as defined in the
  Securities and Exchange Commission Industry Guide 7, and is subject to
  compliance with Statement of Financial Accounting Standards No. 7 (SFAS No. 7), Accounting and Reporting by Development Stage Companies. The Company is
  devoting its resources to establishing the new business, and its planned
  operations have not yet commenced; accordingly, no revenues have been earned
  during the period from October 19, 2006 (date of inception) to August 31, 2008.

Note 2  Basis of Presentation and Going Concern

The condensed financial statements presented herein have been
  prepared by the Company in accordance with the accounting policies in its
  audited financial statements for the period October 19, 2006 (inception) through
  May 31, 2008 as filed in its Form S-1 and should be read in conjunction with the
  notes thereto.

In the opinion of management, all adjustments (consisting only
  of normal recurring adjustments) which are necessary to provide a fair
  presentation of operating results for the interim period presented have been
  made. The results of operations for the periods presented are not necessarily
  indicative of the results to be expected for the year.

Interim financial data presented herein are unaudited.

The Companys accounting and reporting policies conform to
  accounting principles generally accepted in the United States of America
  applicable to exploration stage enterprises.

The functional currency is the United States dollar, and the
  financial statements are presented in United States dollars.

The Companys financial statements at August 31, 2008 and for
  the period October 19, 2006 (inception) through August 31, 2008 have been
  prepared on a going concern basis, which contemplates the realization of assets
  and settlement of liabilities and commitments in the normal course of business.
  The Company incurred a loss of $76,056 for the period from October 19, 2006
  (inception) through August 31, 2008. In addition, the Company has not generated
  any revenues and no revenues are anticipated until we begin removing and selling
  gold, and there is no assurance that a commercially viable deposit exists on the
  mineral claims that we may have under option. These conditions raise substantial
  doubt as to the Companys ability to continue as a going concern.

Managements plans to support the Company in operation and to
  maintain its business strategy is to raise funds through public offerings and to
  rely on officers and directors to perform essential functions with minimal
  compensation. If the Company does not raise all of the money it needs from the
  public offering, it will have to find alternative sources, such as a second
  public offering, a private placement of securities,

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

or loans from its officers, directors or others. If the Company
  requires additional cash and cant raise it, it will either have to suspend
  operations until the cash is raised, or cease business entirely.

The accompanying financial statements do not include any
  adjustments related to the recoverability and classification of assets or the
  amounts and classifications of liabilities that might be necessary should the
  Company be unable to continue as a going concern.

Note 3  Summary of Significant Accounting Policies

Cash and cash equivalents

For purposes of the statement of cash flows, the Company
  considers all highly liquid investments purchased with an original maturity of
  three months or less to be cash equivalents.

Mining exploration costs

In accordance with Securities and Exchange Commission Industry
  Guide 7, the Company charges mineral property acquisition costs and exploration
  costs to operations as incurred.

When it has been determined that a mineral property can be
  economically developed as a result of establishing proven and probable reserves,
  the costs incurred to develop such property are capitalized. The capitalized
  costs will be amortized using the units-of-production method over the estimated
  life of the probable reserve.

The beneficial owner holds the right to the claims which give
  him or his designated agent the right to mine and recover all of the metals
  contained within the surface boundaries of the lease vertically downward. In the
  event he were to grant another deed which is subsequently registered prior to
  the Companys deed, the third party would obtain good title and the Company
  would have nothing.

Reclamation costs

Exploration of mineral resources in China is governed by the
  Mineral Resources Law of 1986, as amended on January 1, 1997, and the
  Implementation Rules for the Mineral Resources Law, effective March 26, 1994. On
  February 12, 1998, the State Council issued three sets of regulations, which,
  together with the mineral resources law and implementation rules are referred to
  as the Mineral Resources Law. The regulations are (i) Regulation for
  Registering to Explore Mineral Resources Using the Block System; (ii) Regulation
  for Registering to Mine Mineral Resources; and (iii) Regulation for Transferring
  Exploration and Exploration Rights.

The basic laws and policies for environmental protection in
  China are the Environmental Protection Law, the Environmental Impact Assessment
  Law and the Mineral Resources Law. The State Administration of Environmental
  Protection and its provincial counterparts are responsible for the supervision,
  implementation and enforcement of environmental protection laws and regulations.
  Provincial governments also have the power to issue implementing rules and
  policies in relation to environmental protection in their respective
  jurisdictions. Applicants for exploration rights must submit environmental
  impact assessments and those projects that fail to meet environmental protection
  standards will not be granted licenses.

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

After exploration, the licensee must perform water and soil
  maintenance and take steps towards environmental protection. After the
  exploration rights have expired or the concessionaire stops mining during the
  permit period and the mineral resources have not been fully developed, the
  concessionaire must perform water and soil maintenance, land recovery and
  environmental protection in compliance with the original development scheme, or
  must pay the costs of land recovery and environmental protection. After closing,
  the mining enterprises shall perform water and soil maintenance, land recovery
  and environmental protection in compliance with mine closure approval reports,
  or must pay the costs of land recovery and environmental protection.

Penalties for breaching the Environmental Protection Law
  include a warning, payment of a penalty calculated on the damage incurred, or
  payment of a fine. When an entity fails to adopt preventative measures or
  control facilities that meet the requirements of the enacted environmental
  protection standards, it is subject to suspension of production or operations
  and for payment of a fine. Material violations of environmental laws and
  regulations causing property damage or casualties may result in criminal
  liabilities.

It is difficult to estimate the full costs of the compliance
  with the environmental law since the full nature and extent of our proposed
  activities cannot be determined until the Company starts operations. The Company
  will record a liability for the estimated costs to reclaim the mined land by
  recording charges to production costs for each unit of gold mined over the life
  of the mine. The amount to be charged will be based on managements estimate of
  reclamation costs to be incurred. The accrued liability will be reduced as
  reclamation expenditures are made. Certain reclamation work will be performed
  concurrently with mining and these expenditures are charged to operations as
  incurred.

Use of estimates

In preparing financial statements, management makes estimates
  and assumptions that affect the reported amounts of assets and liabilities in
  the balance sheet and revenues and expenses in the statement of operations.
  Actual results could differ from those estimates.

Fair value of financial instruments and derivative financial
  instruments

The carrying amounts of cash and current liabilities
  approximate fair value due to the short maturity of these items. These fair
  value estimates are subjective in nature and involve uncertainties and matters
  of significant judgment, and, therefore, cannot be determined with precision.
  Changes in assumptions could significantly affect these estimates. The Company
  does not hold or issue financial instruments for trading purposes, nor does it
  utilize derivative instruments in the management of foreign exchange, commodity
  price, or interest rate market risks.

Income taxes

The Company has adopted SFAS no 109, Accounting for Income
  Taxesas of inception. The Company recognizes deferred tax assets and
  liabilities based on differences between the financial reporting and tax bases
  of assets and liabilities using the enacted tax rates and laws that are expected
  to be in effect when the differences are expected to be recovered. The Company
  provides a valuation allowance for deferred tax assets for which it does not
  consider realization of such assets to be more likely than not.

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

Basic and diluted net loss per share

The Company computes net income (loss) per share in accordance
  with SFAS No. 128 Earnings per Share. The basic net loss per common
  share is computed by dividing the net loss by the weighted average number of
  common shares outstanding. Diluted net loss per share gives effect to all
  dilutive potential common shares outstanding during the period using the as if
  converted basis. For the period October 19, 2006 (inception) through August 31,
  2008, there were no potential dilutive securities.

Concentration of Credit Risk

Financial instruments, which potentially subject the Company to
  concentrations of credit risk, consist of cash and cash equivalents. The Company
  places its cash with high quality financial institutions and at times may exceed
  the FDIC $100,000 insurance limit

Special purpose entities

The Company does not have any off-balance sheet financing
  activities.

Impairment or Disposal of Long-Lived Assets

In August 2001, FASB issued Statement No. 144, Accounting for
  the Impairment or Disposal of Long-Lived Assets (FAS 144). FAS 144 clarifies
  the accounting for the impairment of long-lived assets and for long-lived assets
  to be disposed of, including the disposal of business segments and major lines
  of business. Long-lived assets are reviewed when facts and circumstances
  indicate that the carrying value of the asset may not be recoverable. When
  necessary, impaired assets are written down to their estimated fair value based
  on the best information available.

Stock Based Compensation

The Company accounts for its stock-based compensation in
  accordance with SFAS No. 123R, Share-Based Payment, an Amendment of FASB
  Statement No. 123. The Company recognizes in the statement of operations the
  grant-date fair value of stock options and other equity-based compensation
  issued to employees and non-employees. The Company did not grant any new
  employee options and no options were cancelled or exercised during the period
  October 19, 2006 through August 31, 2008. As of August 31, 2008, there were no
  options outstanding.

Business segments

SFAS No. 131 Disclosures About Segments of an Enterprise
  and Related Information establishes standards for the way that public
  companies report information about operating segments in annual financial
  statements and requires reporting of selected information about operating
  segments in interim financial statements issued to the public. It also
  establishes standards for disclosures regarding products and services,
  geographic areas and major customers. The Company has evaluated the requirements
  of SFAS No. 131, and has determined that it is not applicable.

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

Start-up expenses

The Company has adopted Statement of Position No. 98-5,
  Reporting the Costs of Start-up Activities, which requires that costs
  associated with start-up activities be expensed as incurred. Accordingly,
  startup costs associated with the Companys formation have been included in the
  Companys general and administrative expenses for the period from October 19,
  2006 (date of inception) through August 31, 2008.

Foreign currency translation

The Companys functional and reporting currency is the United
  States dollar. The financial statements of the Company are translated to United
  States dollars in accordance with SFAS No. 52, Foreign Currency
    Translation. Monetary assets and liabilities denominated in foreign
  currencies are translated using the exchange rate prevailing at the balance
  sheet date. Gains and losses arising on translation or settlement of foreign
  currency denominated transactions or balances are included in the determination
  of income.

Recently issued accounting pronouncements

In September 2006, the FASB issued SFAS No. 157, Fair Value
  Measurements . This statement clarifies the definition of fair value,
  establishes a framework for measuring fair value and expands the disclosures on
  fair value measurements. SFAS No. 157 is effective for fiscal years beginning
  after November 15, 2007. Management has not determined the effect, if any, the
  adoption of this statement will have on the Companys financial statements.

In September 2006, the FASB issued SFAS No. 158, "Employers'
  Accounting for Defined Benefit Pension and Other Postretirement
  PlansAn amendment of FASB Statements No. 87, 88, 106, and
    132(R)." One objective of this standard is to make it easier for investors,
  employees, retirees and other parties to understand and assess an employer's
  financial position and its ability to fulfill the obligations under its benefit
  plans. SFAS No. 158 requires employers to fully recognize in their financial
  statements the obligations associated with singleemployer defined benefit
  pension plans, retiree healthcare plans, and other postretirement plans. SFAS
  No. 158 requires an employer to fully recognize in its statement of financial
  position the overfunded or underfunded status of a defined benefit
  postretirement plan (other than a multiemployer plan) as an asset or liability
  and to recognize changes in that funded status in the year in which the changes
  occur through comprehensive income. This Statement also requires an employer to
  measure the funded status of a plan as of the date of its yearend statement of
  financial position, with limited exceptions. SFAS No. 158 requires an entity to
  recognize as a component of other comprehensive income, net of tax, the gains or
  losses and prior service costs or credits that arise during the period but are
  not recognized as components of net periodic benefit cost pursuant to SFAS No.
  87. This Statement requires an entity to disclose in the notes to financial
  statements additional information about certain effects on net periodic benefit
  cost for the next fiscal year that arise from delayed recognition of the gains
  or losses, prior service costs or credits, and transition asset or obligation.
  The company is required to initially recognize the funded status of a defined
  benefit postretirement plan and to provide the required disclosures for fiscal
  years ending after December 15, 2006. Management believes that this statement
  will not have a significant impact on the Companys financial statements.

In February of 2007 the FASB issued SFAS 159, The Fair Value
  Option for Financial Assets and Financial LiabilitiesIncluding an amendment of
  FASB Statement No. 115. The statement permits entities to choose to measure
  many financial instruments and certain other items at fair value. The

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

objective is to improve financial reporting by providing
  entities with the opportunity to mitigate volatility in reported earnings caused
  by measuring related assets and liabilities differently without having to apply
  complex hedge accounting provisions. The statement is effective as of the
  beginning of an entitys first fiscal year that begins after November 15, 2007.
  The Company is analyzing the potential accounting treatment.

FASB Interpretation No. 48, Accounting for Uncertainty in
  Income Taxes, an interpretation of FASB Statement No.109 . Interpretation
  48 prescribes a recognition threshold and a measurement attribute for the
  financial statement recognition and measurement of a tax position taken or
  expected to be taken in a tax return. Benefits from tax positions should be
  recognized in the financial statements only when it is more likely than not that
  the tax position will be sustained upon examination by the appropriate taxing
  authority that would have full knowledge of all relevant information. The amount
  of tax benefits to be recognized for a tax position that meets the
  more-likely-than-not recognition threshold is measured as the largest amount of
  benefit that is greater than fifty percent likely of being realized upon
  ultimate settlement. Tax benefits relating to tax positions that previously
  failed to meet the more-likely-than-not recognition threshold should be
  recognized in the first subsequent financial reporting period in which that
  threshold is met or certain other events have occurred. Previously recognized
  tax benefits relating to tax positions that no longer meet the
  more-likely-than-not recognition threshold should be derecognized in the first
  subsequent financial reporting period in which that threshold is no longer met.
  Interpretation 48 also provides guidance on the accounting for and disclosure of
  tax reserves for unrecognized tax benefits, interest and penalties and
  accounting in interim periods. Interpretation 48 is effective for fiscal years
  beginning after December 15, 2006. The change in net assets as a result of
  applying this pronouncement will be a change in accounting principle with the
  cumulative effect of the change required to be treated as an adjustment to the
  opening balance of retained earnings on January 1, 2007, except in certain cases
  involving uncertainties relating to income taxes in purchase business
  combinations. In such instances, the impact of the adoption of Interpretation 48
  will result in an adjustment to goodwill. The adoption of this standard had no
  material impact on the Companys financial statements.

Note 4  Common stock transactions

Activity for the period October 19, 2006 (date of inception)
  to May 31, 2007

On October 31, 2006 the Company received $6,000 from its
  founder for 6,000,000 shares of the Companys common stock subscribed for at
  $.001 on October 31, 2006.

On November 30, 2006 the Company received $9,000 for 900,000
  shares of the Companys common stock subscribed for at $.01 in a private
  placement on November 14, 2006.

Activity for the period June 1, 2007 to May 31, 2008

No shares were issued during this period.

Activity for the period June 01, 2008 to August 31, 2008

No shares were issued during this period.

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

Note 5  Commitments

Under the terms of the Option to Purchase and Royalty
  Agreement, discussed in Note 1, the Company must incur exploration expenditures
  on the property in the minimum amount of $20,000 on or before May 31, 2008 and
  an additional $40,000 for aggregate minimum exploration expenses of $60,000 on
  or before May 31, 2009. The Company will issue 1,000,000 shares of common stock
  to Jiujiang upon completion of a phase I exploration program as recommended by a
  competent geologist. The Company will pay to Jiujiang an annual royalty equal to
  three percent (3%) of net smelter returns. If the results of Phase 1 are
  unfavorable, the Company will terminate the option agreement and will not be
  obligated to make any subsequent payments,

Sierra has the right to acquire an additional 26% of the right,
  title and interest in the property by the payment of $25,000 and by incurring an
  additional $100,000 in exploration expenditures on the property on or before May
  31, 2010.

Note 6  Income taxes

The Company has losses carried forward for income tax purposes.
  There are no current or deferred income tax expenses for the period October 19,
  2006 through August 31, 2008 due to the Companys loss position. The Company has
  fully reserved for any benefits of these losses. Realization of the future tax
  benefits related to the deferred tax assets is dependent on the Companys
  ability to generate taxable income within the net operating loss carryforward
  period.

Note 7  Certain significant risks and uncertainties

The Company is subject to the consideration and risks of
  operating in the Peoples Republic of China. The economy of the PRC differs
  significantly from the economies of the "western" industrialized nations in such
  respects as structure, level of development, gross national product, growth
  rate, capital reinvestment, resource allocation, self-sufficiency, rate of
  inflation and balance of payments position, among others. Only recently has the
  government encouraged substantial private economic activities. The Chinese
  economy has experienced significant growth in the past several years, but such
  growth has been uneven among various sectors of the economy and geographic
  regions. Actions by the PRC to control inflation have restrained economic
  expansion in the recent past. Similar actions by the government in the future
  could have a significant adverse effect on economic conditions in the PRC.

Many laws and regulations dealing with economic matters in
  general and foreign investment in particular have been enacted in the PRC.
  However, China still does not have a comprehensive system of laws, and
  enforcement of existing laws may be uncertain and sporadic.

The Company's primary sources of revenues and cash flows will
  be derived from its business operations in the PRC. The PRC economy has, for
  many years, been a centrally-planned economy, operating on the basis of annual,
  five-year and ten-year state plans adopted by central PRC governmental
  authorities which set out national production and development targets. The PRC
  government has been pursuing economic reforms since it first adopted its
  "open-door" policy in 1978. There is no assurance that the government will
  continue to pursue economic reforms or that there will not be any significant
  change in its economic or other policies, particularly in the event of any
  change in the political leadership of, or the political, economic or social
  conditions in, China. There is also no assurance that the Company will not be
  adversely affected by any such change in governmental policies or any
  unfavorable change in the

---

SIERRA VENTURES, INC. 
  (A Exploration Stage Company) 
  NOTES TO THE FINANCIAL STATEMENTS 
  AUGUST 31, 2008

political, economic or social conditions, the laws or
  regulations, or the rate or method of taxation in the country.

As many of the economic reforms which have been or are being
  implemented by the PRC government are unprecedented or experimental, they may be
  subject to adjustment or refinement, which may have adverse effects on the
  Company. Further, through state plans and other economic and fiscal measures
  such as the leverage of exchange rate, it remains possible for the PRC
  government to exert significant influence on its economy.

Note 8  Related party transactions

Officers contributed administrative services to the Company for
  periods to August 31, 2008. The time and effort was recorded in the accompanying
  financial statements based on the prevailing rates for such efforts, which
  equaled $50 per hour based on the level of services performed. The services are
  reported as contributed administrative support with a corresponding entry to
  additional paid-in capital.

The Company issued a total of 6,000,000 shares of its
  restricted common stock to its director for $6,000 ($.001 per share) as founder
  shares. (Note 4)

An officer of the Company advanced $10,000 to the Company to
  cover expenses. The advance does not have a due date is not interest bearing and
  was repaid in the current quarter.

Note 9  Registration Statement

On August 29, 2008 the Company filed a Form S-1 registration
  statement with the Securities and Exchange Commission. The Corporation is
  offering up to 2,000,000 shares of its common stock at a price of $.05 per
  share.

Note 10  Contingent Liability

During June, 2008, the Company received $4,750 in share
  subscriptions for 95,000 common shares at a price of $0.05 per share subscribed
  for under the Companys SB-2. In addition, during May, 2008, the Company
  received $41,500 in share subscriptions for 830,000 shares at a price of $0.05
  per share subscribed for under the Companys SB-2. All of the shares so issued
  were inadvertently sold prior to the declaration of an effective date for the
  Companys SB-2 registration statement filed on October 11, 2007. All of the
  subscribers have been informed of this situation and have agreed to rescind
  their subscription. As a result, the Company will refund all associated monies
  and has canceled all associated common shares. All of the related consideration
  is therefore shown on the August 31, 2008 financial statements as a contingent
  liability.

---

2

Item 2. Managements Discussion and Analysis or Plan of
Operation.

Cautionary Statement Regarding Forward-Looking
Statements

This quarterly report contains forward-looking statements as
that term is defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future financial performance.
Some discussions in this report may contain forward-looking statements that
involve risk and uncertainty.

A number of important factors could cause our actual results to
differ materially from those expressed in any forward-looking statements made by
us in this report. Forward-looking statements are often identified by words
like: believe, expect, estimate, anticipate, intend, project and
similar expressions or words which, by their nature, refer to future events.

In some cases, you can also identify forward-looking statements
by terminology such as may, will, should, plans, predicts, potential
or continue or the negative of these terms or other comparable terminology.
These statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including the risks in the section entitled
"Risk Factors", that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by
these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity or achievements. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.

General Information

Our financial statements are stated in United States Dollars
(USD or US$) and are prepared in accordance with United States Generally
Accepted Accounting Principles. All references to "common shares" refer to the
common shares in our capital stock.

As used in this annual report, the terms "we", "us", "our", and
"Sierra" mean Sierra Ventures, Inc., unless otherwise indicated.

Sierra is an exploration stage company. There is no assurance
that commercially viable mineral deposits exist on the claim that we have under
option. Further exploration will be required before a final evaluation as to the
economic and legal feasibility of the claim is determined.

Glossary of Exploration Terms

The following terms, when used in this report, have the
respective meanings specified below:

|Development   | Preparation of a mineral deposit for commercial
      production, including installation of plant and machinery and the
      construction of all related facilities. The development of a mineral
      deposit can onlybe made after a commercially viable mineral
      deposit, a reserve, has been appropriately evaluated as economically and
      legally feasible.
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|              |                                                                                                                                                                                                                                                                                                                                                                            
|Diamond drill | A type of rotary drill in which the cutting is done by
      abrasion rather than percussion. The cutting bit is set with diamonds and
      is attached to the end of long hollow rods through which water is pumped
      to the cutting face. The drill cuts a core of rock, which is recovered in
      long cylindrical sections an inch or more in diameter.         
|              |                                                                                                                                                                                                                                                                                                                                                                            
|Exploration   | Prospecting, trenching, mapping, sampling, geochemistry,
      geophysics, diamond drilling and other work involved in searching for
      mineral bodies.                                                                                                                                                                                                                 

---

3

|Geochemistry    | Broadly defined as all parts of geology that involve
      chemical changes or narrowly defined as the distribution of the elements
      in the earths crust; the distribution and migration of the individual
      elements in the various parts of the earth.                                                                 
|--------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                |                                                                                                                                                                                                                                                                                                                                    
|Geology         | The science that deals with the history of the earth and
      its life especially as recorded in the rocks; a chronological account of
      the events in the earths history.                                                                                                                                                   
|                |                                                                                                                                                                                                                                                                                                                                    
|Geophysics      | The science of the earth with respect to its structure,
      components and development.                                                                                                                                                                                                                                          
|                |                                                                                                                                                                                                                                                                                                                                    
|Mineral         | A naturally occurring inorganic element or compound
      having an orderly internal structure and characteristic chemical
      composition, crystal form and physical properties.                                                                                                                                                
|                |                                                                                                                                                                                                                                                                                                                                    
|Mineral Reserve | A mineral reserve is that part of a mineral deposit which
      could be economically and legally extracted or produced at the time of the
      reserve determination.                                                                                                                                                            
|                |                                                                                                                                                                                                                                                                                                                                    
|Mineralization  | Rock containing an undetermined amount of minerals or
      metals.                                                                                                                                                                                                                                                                
|                |                                                                                                                                                                                                                                                                                                                                    
|Oxide           | Mineralized rock in which some of the original minerals,
      usually sulphide, have been oxidized. Oxidation tends to make the mineral
      more porous and permits a more complete permeation of cyanide solutions so
      that minute particles of gold in the interior of the minerals will be more
      readily dissolved.

Foreign Currency and Exchange Rates

Dollar costs of Sierras property acquisition and planned
exploration costs are in Chinese Yuan or Renminbi (RMB). For purposes of
consistency and to express United States Dollars throughout this report, Chinese
currency has been converted into United States currency at the rate of US $1.00
being approximately equal to RMB 7.50 or RMB 1.00 being approximately equal to
US $0.133 which is the approximate average exchange rate during recent months
and which is consistent with the incorporated financial statements.

THE FOLLOWING ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL
  CONDITION OF THE CORPORATION FOR THE PERIOD ENDING AUGUST 31, 2008 SHOULD BE
  READ IN CONJUNCTION WITH THE CORPORATIONS CONSOLIDATED FINANCIAL STATEMENTS,
  INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THIS FORM 10-Q.

---

Overview

We were incorporated in the State of Wyoming on October 19,
2006 as Sierra Ventures, Inc. and established a fiscal year end of May 31. Our
statutory registered agent's office is located at 1620 Central Avenue, Suite
202, Cheyenne, Wyoming 82001 and our business office is located at 1685 H
Street, No. 155, Blaine, Washington 98230. Our telephone number is (888)
755-9766. There have been no material reclassifications, mergers, consolidations
or purchases or sales of any significant amount of assets not in the ordinary
course of business since the date of incorporation. We are a start-up,
exploration stage company engaged in the search for gold and related minerals.
There is no assurance that a commercially viable mineral deposit, a reserve,
exists in our claim or can be shown to exist until sufficient and appropriate
exploration is done and a comprehensive evaluation of such work concludes
economic and legal feasibility.

On March 22, 2007, we optioned a 25 percent interest in a gold
exploration and mining property referred to as the Zhangjiafan Mining Property
located in Jiangxi Province, Peoples Republic of China, 13 kilometres northwest
of Dexing City which is approximately 8 hours by aircraft and ground
transportation west from Shanghai by entering into an Option To Purchase And
Royalty Agreement with Jiujiang Gao Feng Mining Industry Limited Company of
Jiangxi City, Jiangxi Province, China, the beneficial owner of the property, an
arms-length Chinese corporation, to acquire an interest in the property by
making certain expenditures and carrying out exploration work.

---

4

Under the terms of the agreement, Jiujiang granted to Sierra
the right to acquire 25% of the right, title and interest of Jiujiang in the
property, subject to its receiving annual payments and a royalty, in accordance
with the terms of the agreement, as follows:

| | a) | Sierra, or its permitted assigns, contributing
      exploration expenditures on the property of a minimum of US $20,000 on or
      before May 31, 2008 ($30,000 has been paid but the work has not yet
      commenced);                                                
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b) | Sierra, or its permitted assigns, contributing
      exploration expenditures on the property of a further US $40,000 for
      aggregate minimum contributed exploration expenses of US $60,000 on or
      before May 31, 2009;                                         
| | c) | Sierra shall allot and issue 1,000,000 shares in the
      capital of Sierra to Jiujiang upon completion of a phase I exploration
      program as recommended by a competent geologist;                                                                                  
| | d) | Upon exercise of the option agreement, Sierra will pay to
      Jiujiang US $25,000 per annum as pre-payment of the net smelter return.,
      effective May 31, 2010.                                                                                                    
| | e) | Sierra will pay to Jiujiang an annual royalty equal to
      three percent (3%) of NSR; and                                                                                                                                                                               
| | f) | Sierra has the right to acquire an additional 26% of the
      right, title and interest in and to the Property by the payment of US
      $25,000 and by incurring an additional US $100,000 in exploration
      expenditures on the Property on or before May 31,
2010.

To date we have advanced $30,000 for the implementation of
phase I of the planned exploration program which had not commenced as of the
date of this report; we have not spent any money on research and development
activities. Information about the claims was presented to Mr. Jackson for review
without any contractual obligations.

Gao Fenglin, Senior Engineer, Jiangxi Geological Engineering
Group Company, Jiujiang Branch, authored the Report of Exploration at the
Zhangjiafan Gold Property dated March 23, 2007 (the Report), in which his
firm recommends a two-phase exploration program to properly evaluate the
potential of the property. Gao Fenglin graduated from Gan-Zhou Geosciences
Institute with the approximate educational equivalency of a U.S. designated
geological engineer. He has practiced his profession as an exploration geologist
for more than 20 years.

The Corporations S-1 registration statement whereby we are
attempting to raise $50,000 to $100,000 through an initial public offering at a
price of $0.05 per share was filed with the Securities & Exchange Commission
on September 05, 2008.

Our Proposed Exploration Program  Plan of Operation

Our business plan is to proceed with the initial exploration of
the Zhangjiafan property to determine if there are commercially exploitable
deposits of gold and silver. Gao Fenglin, Senior Engineer, recommends a
two-phase exploration program to properly evaluate the potential of the
property. We must conduct exploration to determine if gold exists on the
property and if any gold which is found can be economically extracted and
profitably processed.

We do not claim to have any ores or reserves whatsoever at this
time on our optioned property.

It is our intention to retain the services of the Jiujiang
Geological Engineering Group Company and Gao Fenglin prior to the commencement
of the first phase of the work program who will assess the results of the
program upon receipt of the report.

Phase I Exploration Program

We must conduct exploration to determine if gold exists on the
property and if any which is found can be economically extracted and profitably
processed. Initially, we will run a grid over the entire property and review
maps of the results of any past reported geological and geochemical programs
correlating all past

---

5

information to our grid; then we will complete a geological
survey to evaluate certain specific targets previously identified.

Over the next eight months we intend to complete the first
phase of the exploration plan. If our initial exploration efforts are favourable
we intend to proceed with longer term exploration.

Phase 1 will begin by establishing a base line grid with
25-meter stations and cross lines run every 50 meters for 100 meters each side
of the baseline. We will then relate previous ground and airborne
electromagnetic surveys over the grid. Samples taken from various locations will
be tested for traces of gold, silver, lead, copper, zinc, iron and other metals;
however, our primary focus is the search for gold. We will then compare relative
concentrations of gold, silver, lead and other indicator metals in samples so
the results from different samples can be compared in a more precise manner and
plotted on a map to evaluate their significance.

Phase II will not be carried out until 2009 and will be
contingent upon favourable results from phase I and specific recommendations in
the resulting report. Specifics of the work to be carried out have not yet been
determined and will be delineated as recommendations in the reporting of the
results of phase I. The second phase may require up to six weeks work and may
cost up to $200,000 in total (Sierras portion being $50,000) comprised of
wages, fees, camp, equipment rental, trenching, diamond drilling, assays and
related. Four months may be required for analysis and the preparation of a
report and evaluation on the work accomplished.

Although it may appear that phase II merely continues phase I,
such is not entirely the case. The work is phased in such a manner as to allow
decision points to ensure that future work has a value and will provide better
or additional information as to the viability of the claims. By utilizing a
multi-phase work program, at the end of each phase a decision can be made as to
whether the phase has provided the necessary information to increase the
viability of the project. If the information obtained as a result of any phase
indicates that there is no increased probability of finding an economically
viable deposit at the end of the project, a determination would be made that the
work should cease at that point. This is a standard procedure in the industry
prior to the commitment of additional funding to move a project forward to the
next phase of exploration and/or development.

Employees

Initially, we intend to use the services of subcontractors for
manual labour exploration work and an engineer or geologist to manage the
exploration program. Our only employee will be Ian Jackson our senior officer
and director.

At present, we have no employees, other than Mr. Jackson; he
does not have an employment agreement with us. We presently do not have pension,
health, annuity, insurance, stock options, profit sharing or similar benefit
plans; however, we may adopt such plans in the future. There are presently no
personal benefits available to employees.

We intend to hire geologists, engineers and excavation
subcontractors on an as needed basis. We have not entered into negotiations or
contracts with any of them although it is our intention to retain Gao Fenglin as
senior geological consultant. We do not intend to initiate negotiations or hire
anyone until we receive proceeds from our offering.

Offices

Our offices are located at 1685 H Street, No. 155, Blaine,
Washington 98230. Currently, these facilities are provided to us by Ian Jackson,
a director and officer, without charge, but such arrangement may be cancelled at
anytime without notice. As our business activities progress, we anticipate that
we will be required to pay a pro rata share of the rent incurred for the
facilities that we occupy. Specific direct expenses incurred such as telephone
and secretarial services are charged back to Sierra at cost.

---

6

Risks

At present we do not know if the claims contain commercially
exploitable reserves of gold or any other valuable mineral. Additionally, the
proposed expenditures to be made by us in the exploration of the claim may not
result in the discovery of commercial quantities of ore. Problems such as
unusual or unexpected formations and other unanticipated conditions are involved
in mineral exploration and often result in unsuccessful exploration efforts. In
such a case, we would be unable to complete our business plan.

Following the completion of our SB-2 registration statement
offering, we will have sufficient financial resources to complete the first
phase of our proposed exploration plan. However, in order to complete future
phases of our proposed exploration program we will need to raise additional
funding. Even if the first phase of our exploration program is deemed to be
successful there is no guarantee that we will be able to raise any additional
capital in order to finance future phases. Should we be unable to raise
additional funding to complete future phases of our exploration plan, we would
have to cease operations.

Finally, even if our exploration program is successful we may
not be able to obtain commercial production. If our exploration is successful
and commercial quantities of ore are discovered we will require a significant
amount of additional funds to place the claim into commercial production. Should
we be unable to raise additional funds, we would be unable to see the claim
evolve into an operating mine and would have to cease operations.

Results of Operations

Sierra was incorporated on October 19, 2006; comparative
periods for the three months ended August 31, 2008, August 31, 2007 and October
19, 2006 (inception) through August 31, 2008 are presented in the following
discussion.

Since inception, we have used our common stock to raise money
for our optioned acquisition and for corporate expenses. Net cash provided by
financing activities (less offering costs) from inception on October 19, 2006 to
August 31, 2008 was $25,000 ($15,000 as a result of proceeds received from sales
of our common stock and $10,000 as an advance from a related party).

The Corporation did not generate any revenues from operations
for the quarter ended August 31, 2008 nor for the similar quarter in 2007. To
date, we have not generated any revenues from our exploration business.

REVENUES

REVENUE  Gross revenue for the current quarter and the quarter
ended August 31, 2007 was $0.

COMMON STOCK  Net cash provided by financing activities during
the quarter ended August 31, 2008 was $0 (nil) as compared to $0 (nil) received
for the quarter ended August 31, 2007 and $115,000 received for the period from
inception on April 11, 2006 through to and including August 31, 2008. No options
or warrants were issued to issue shares at a later date in the most recent
quarter. During the current quarter we repaid an advance to a related party in
the amount of $10,000.

During the quarter under review, we issued no (0) shares of
common stock. Between May 01 and June 30, 2008 we ostensibly issued 2,000,000
shares of unrestricted common stock at a price of $0.05 per share for cash
consideration of $100,000 to thirty (30) individuals. We inadvertently sold the
shares prior to the declaration of an effective date for our SB-2 registration
statement filed on October 04, 2007. All of the subscribers have been informed
of this situation and have agreed to rescind their subscription. As a result, we
will refund all associated monies and have cancelled all associated common
shares. All of the related consideration is therefore shown on the August 31,
2008 financial statements as a contingent liability.

---

7

EXPENSES

Expense Item
    For the Quarter ended August 31, 2008
    For the Quarter ended August 31, 2007
    Feb. 11, 2005 (Inception) thru August
      31, 2008Mineral property exploration
    $ 
    $ 
    $30,000Professional fees
    2,300
    3,300
    10,600Communications
    2,080
    593
    10,827Office
    2,707
    666
    13,068Travel, meals and entertainment
    2,842
    1,157
    7,411Transfer agency services
    4,000
    
    4,000Other costs and services
    
    100
    150TOTAL
    $13,929
    $5,816
    $76,056


SUMMARY  Total expenses were $13,929 in the quarter ended
August 31, 2007 and $5,816 for the comparative period last year. A total of
$76,056 in expenses has been incurred since inception on October 19, 2006
through August 31, 2008 which costs have and will vary from quarter to quarter
based on the level of corporate activity, exploration operations and capital
raising. Costs in the most recently completed quarter increased relative to the
similar period last year as we commenced our business plan. These costs can be
subdivided into the following categories:

PROFESSIONAL FEES: Sierra incurred $2,300 in professional fees
for the quarter ended on August 31, 2008 and $3,300 for the comparative period
last year. From inception to October 19, 2006, we have incurred $10,600 in
professional fees mainly on legal and accounting matters. This cost category
will vary depending on legal and accounting requirements.

COMPENSATION: No compensation costs were incurred for the
quarters ended August 31, 2008 or 2007 and no direct compensation costs have
been incurred since inception.

COMMUNICATIONS EXPENSES: $2,080 in communications costs were
incurred in the most recent quarter which ended on August 31, 2008 while $593
was incurred for the comparative period last year. For the period October 19,
2006 (inception) through August 31, 2008 a total of $10,827 has been spent on
communication costs related to establishing our business. Communications costs
rose in the quarter under review as a result of lengthy and frequent
communications with persons, representatives and corporations in China.

OFFICE EXPENSES: $2,707 in office costs were incurred in the
most recent quarter which ended on August 31, 2008 while $666 was incurred
during the comparative period last year. For the period October 19, 2006
(inception) through August 31, 2008 a total of $13,068 has been spent on office
related expenses.

TRAVEL, ENTERTAINMENT AND MEAL EXPENSES: $2,842 in travel,
entertainment and meal costs were incurred in the most recent quarter which
ended on August 31, 2008 and $1,157 was incurred for the comparative period last
year. For the period October 19, 2006 (inception) through August 31, 2008 a
total of $7,411 has been spent on this category.

CONTRIBUTED EXPENSES: $0 in contributed expenses (for
contributed administrative costs) were incurred for the quarters ended August
31, 2008 and 2007. A total of $150 has been incurred from inception on October
19, 2006 to August 31, 2008. All contributed expenses are reported as
contributed costs with a corresponding credit to additional paid-in capital.

EXPLORATION OF RESOURCE PROPERTIES: We did not spend anything
on the exploration of our resource properties for the quarters ended August 31,
2008 or 2007. A total of $30,000 has been incurred from inception on October 19,
2006 to August 31, 2008 for this expense item. This category will vary depending
on our exploration activities.

---

8

TRANSFER AGENT FEES AND RELATED EXPENSES: $4,000 in fees were
paid to our transfer agent in the quarter under review; whereas no such expense
was incurred for the similar quarter in 2007. A total of $4,000 has been
incurred from inception on October 19, 2006 to August 31, 2008 for transfer
agent fees and related expenses.

OTHER GENERAL AND ADMINISTRATIVE COSTS: No other costs were
incurred in the current quarter under review or during the comparative period
last year. From October 19, 2006 (inception) through August 31, 2008, Sierra has
spent a total of $0 on other or miscellaneous expenses or services

NET CASH USED IN OPERATING ACTIVITIES: For the three month
period ended on August 31, 2008, $21,528 in net cash was used and for the
quarter ended August 31, 2007 a total of $5,535 was used. $69,412 in net cash
has been used since inception on October 19, 2006 through August 31, 2008.

INCOME TAX PROVISION: As a result of operating losses, there
has been no provision for the payment of income taxes to date in 2007  2008 or
from the date of inception.

During the current quarter under review, Sierra did not sell
any shares of its common stock. As of the date of this report Sierra has
6,900,000 common shares issued and outstanding.

Sierra continues to carefully control its expenses and overall
costs as it moves its business development plan forward. Sierra does not have
any employees and engages personnel through outside consulting contracts or
agreements or other such arrangements, including for legal, accounting and
technical consultants.

Plan of Operation

Sierra believes we can satisfy our cash requirements for the
current fiscal year end of May 31, 2008 with available cash on hand and the
proceeds of our SB-2 offering which is expected to raise between $50,000 and
$100,000. As of August 31, 2008, we had a deficit of $60,847 in unallocated
working capital.

For the balance of the current fiscal year to May 31, 2009 we
will concentrate our efforts on completing the IPO and commencing the phase I
work program on the optioned mineral property. Following industry trends and
demands, we are also considering the acquisition of other properties and
projects of merit. In either situation, a new public offering would be needed
and completed during a subsequent period.

If it turns out that we have not raised enough money to
complete a secondary exploration program we will try to raise the funds from a
new public offering, a private placement, loans or the establishment of a joint
venture whereby a third party would pay the costs associated with phase II and
we would retain a carried interest. At the present time, we have not made any
plans to raise additional funds and there is no assurance that we would be able
to raise money in the future.

Presently, our revenues are not sufficient to meet operating
and capital expenses. We have incurred operating losses since inception, and
this is likely to continue through fiscal 2008  2009. Management projects that
we will require up to $160,000 to fund ongoing operating expenses and working
capital requirements for the next twelve months, broken down as follows:

Operating expenses
    $35,000Phase I
      exploration program
    30,000Phase II
      exploration program
    50,000Working Capital
    45,000Total
    $160,000


As at August 31, 2008, we had a working capital deficit of
$60,847. We do not anticipate that we will be able to satisfy any of these
funding requirements internally until we significantly increase our revenues.

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9

Due to the uncertainty of our ability to meet our current
operating and capital expenses, in their report on the annual financial
statements for the year ended May 31, 2008, our independent auditors included an
explanatory paragraph regarding concerns about our ability to continue as a
going concern. Our financial statements contain additional note disclosures
describing the circumstances that lead to this disclosure by our independent
auditors.

There is substantial doubt about our ability to continue as a
going concern as the continuation of our business is dependent upon obtaining
further financing. Our issuance of additional equity securities could result in
a significant dilution in the equity interests of our current stockholders.
Obtaining commercial loans, assuming those loans would be available, will
increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further
funds required for continued operations. We are pursuing various financing
alternatives to meet immediate and long-term financial requirements. There can
be no assurance that additional financing will be available to us when needed
or, if available, that it can be obtained on commercially reasonable terms. If
we are not able to obtain the additional financing on a timely basis, we will
not be able to meet our obligations as they come due.

Liquidity and Capital Resources

As of end of the last quarter on August 31, 2008, we have yet
to generate any revenues.

Since inception, we have used our common stock and loans or
advances from our officers and directors to raise money for our optioned
acquisition and for corporate expenses. Net cash provided by financing
activities from inception on October 19, 2006 to August 31, 2008 was $125,000 as
a result of gross proceeds received from sales of our common stock of $15,000
(less offering costs), a $10,000 advance from a related party and the
inadvertent receipt of $100,000 from sales of our common stock which were sold
prior to an effective date for our SB-2 registration statement and which is
indicated on our balance sheets as a contingent liability. We issued 6,000,000
shares of common stock through a Section 4(2) offering in October, 2006 for cash
consideration of $6,000. We issued 900,000 shares of common stock through a
Regulation D offering in November, 2006 for cash consideration of $9,000 to a
total of 5 placees.

As of August 31, 2008 our total assets consisting entirely of
cash and prepaid expenses amounted to $45,588 and total liabilities were
$106,435. Working capital stood at negative $60,847.

For the quarter ended August 31, 2008, the net loss was $13,929
($0.002 per share). The loss per share was based on a weighted average of
6,900,000 common shares outstanding. The net loss from Inception to August 31,
2008 is $76,056.

Inflation / Currency Fluctuations

Inflation has not been a factor during the recent quarter ended
August 31, 2008. Inflation is moderately higher than it was during 2007 but the
actual rate of inflation is not material and is not considered a factor in our
contemplated capital expenditure program.

Item 3. Controls and Procedures

(a) Evaluation of Disclosure
Controls and Procedures.

We carried out an evaluation, under the
supervision and with the participation of our management, including our
principal executive officer and principal financial officer, of the
effectiveness of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) of the Exchange Act (defined below)). Based upon that
evaluation, our principal executive officer and principal financial officer
concluded that, as of the end of the period covered in this report, our
disclosure controls and procedures were effective to ensure that information
required to be disclosed in reports filed under the Securities Exchange Act of
1934, as amended (the "Exchange Act") is recorded, processed, summarized and
reported within the required time periods and is accumulated and communicated to

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10

our management, including our principal
executive officer and principal financial officer, as appropriate to allow
timely decisions regarding required disclosure.

Our management, including our principal
executive officer and principal financial officer, does not expect that our
disclosure controls and procedures or our internal controls will prevent all
error or fraud. A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the
control system are met. Further, the design of a control system must reflect the
fact that there are resource constraints and the benefits of controls must be
considered relative to their costs. Due to the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that
all control issues and instances of fraud, if any, have been detected.
Accordingly, management believes that the financial statements included in this
report fairly present in all material respects our financial condition, results
of operations and cash flows for the periods presented.

(b) Changes in Internal Controls.

During the quarter ended August 31,
2008, there were no changes in the Company's internal control over financial
reporting that have materially affected, or are reasonably likely to materially
affect, its internal control over financial reporting.

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PART II  OTHER INFORMATION

Item 1. Legal Proceedings

The Corporation is and has not been party to any legal
proceedings in the quarter under review.

Item 2. Changes in Securities

Sierra had 6,900,000 shares of common stock issued and
outstanding as of August 31 and October 10, 2008. Of these shares, approximately
6,000,000 shares are held by an affiliate of the Corporation; some of those
shares can be resold in compliance with the limitations of Rule 144 as adopted
by the Securities Act of 1933, as amended.

The issuances discussed under this section are exempted from
registration under Rule 504D or Section 4(2) of the Securities Act, as provided.
All purchasers of our securities acquired the shares for investment purposes
only and all stock certificates reflect the appropriate legends as appropriate.
No underwriters were involved in connection with the sale of securities referred
to in this report.

Item 4. Submission of Matters to a Vote of Security Holders

No matter has been submitted to a vote of security holders
during the preceeding quarter.

Item 5. Other Information

Use of Proceeds

Net cash provided by financing activities from inception on
October 19, 2006 to August 31, 2008 was $25,000 as a result of proceeds received
from sales of our common stock ($15,000) and a loan from an officer and director
($10,000). During that same period, the following table indicates how the
proceeds have been spent to date:

Professional Fees
    7,300Communications
      Expenses
    4,600Office Expenses
    5,357


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11

Travel,
      Entertainment and Meals
    2,352Other Costs and
      Services
    150Total Use of Proceeds to August 31, 2008
    $19,759


Common Stock

During the quarter ended August 31, 2008, no shares of common
stock were issued. As of August 31, 2008 and October 10, 2008 there were
6,900,000 shares issued and outstanding. See also page 6  Results of Operations
/ Revenue / Common Stock.

Options

No options were granted during the quarter ended August 31,
2008.

Code of Ethics

The Board of Directors on March 22, 2007 adopted a formal
written Code of Business Conduct and Ethics and Compliance Program for all
officers, directors and senior employees. A copy of the Code of Business Conduct
and Ethics is available upon written request by any person without charge. To
obtain a copy, an interested party should contact our offices by telephone at
(888) 755-9766 or write to 1685 H Street, No. 155, Blaine, Washington 98230

Web Site

Sierra does not maintain a Web site but has an e-mail address
at sierraventures@gmail.com.

Item 6. Exhibits and Reports on Form 8-K

Reports on Form 8-K filed during the quarter ended August 31,
2008: NONE

Exhibits

|31.1 | Certification of Chief Executive
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                   
|31.2 | Certification of Chief Financial
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   
|32.1 | Certification of Chief Executive
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   
|32.2 | Certification of Chief Financial
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Sierra Ventures, Inc. (Registrant)

Date: October 14, 2008

BY:      
  /s/      Ian Jackson

Ian Jackson, President, Chief
Executive Officer, Principal Executive Officer, Secretary, Treasurer, Chief
Financial Officer, Principal Financial Officer and a Member of the Board of
Directors

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