---

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 (the Exchange Act)

For the quarterly period ended AUGUST 31, 2009

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

For the transition period from _____to _______

Commission file number: 333-146675

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

|Wyoming                                                              | 26-0665441                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|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: 8,900,000 shares
of Common Stock as of the date of this report

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, 2009               

|                                                 |   | August 31, 2009 |   |   | August 31, 2008 |   |   | May 31, 2009 |  
|------------------------------------------------ | - | --------------- | - | - | --------------- | - | - | ------------ | -
|                                                 |   | (Unaudited)     |   |   | (Unaudited)     |   |   | (Audited)    |  
|Assets                                           |   |                 |   |   |                 |   |   |              |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|Current assets                                   |   |                 |   |   |                 |   |   |              |  
|Cash and cash equivalents                        | $ | 3,616           |   | $ | 45,588          |   | $ | 5,351        |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|LiabilitiesandStockholders'Equity                |   |                 |   |   |                 |   |   |              |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|Current liabilities                              |   |                 |   |   |                 |   |   |              |  
|Accrued expenses                                 |   | 5,000           |   |   | 6,435           |   |   | 3,325        |  
|Shareholder advances                             |   | 0               |   |   | 0               |   |   | 0            |  
|Total current liabilities                        |   | 5,000           |   |   | 6,435           |   |   | 3,325        |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|Common Stock Subject to Rescission (Note 5)      |   | 0               |   |   | 100,000         |   |   | 0            |  
|Total liabilities                                |   | 5,000           |   |   | 106,435         |   |   | 3,325        |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|Stockholders'equity                              |   |                 |   |   |                 |   |   |              |  
|Common stock, 500,000,000 shares authorized,     |   |                 |   |   |                 |   |   |              |  
|par value $.001, 8,900,000 shares issued and     |   |                 |   |   |                 |   |   |              |  
|outstanding                                      |   | 8,900           |   |   | 6,900           |   |   | 8,900        |  
|Additional paid-in capital                       |   | 106,250         |   |   | 8,250           |   |   | 106,250      |  
|Other comprehensive loss                         |   | 59              |   |   | 59              |   |   | 59           |  
|Deficit accumulated during the exploration stage |   | (116,593        | ) |   | (76,056         | ) |   | (113,183     | )
|Total stockholders' equity                       |   | (1,384          | ) |   | (60,847         | ) |   | 2,026        |  
|                                                 |   |                 |   |   |                 |   |   |              |  
|Totalliabilitiesandstockholders'equity           | $ | 3,616           |   |   | 45,588          |   | $ | 5,351        |  

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             |  
|                                         |   | 2009         |   |   | 2008         |   |   | August 31, 2009     |  
|                                         |   |              |   |   |              |   |   |                     |  
|Revenues                                 | $ | ---          |   | $ | ---          |   | $ | ---                 |  
|                                         |   |              |   |   |              |   |   |                     |  
|Expenses                                 |   |              |   |   |              |   |   |                     |  
|Professional fees                        |   | 1,484        |   |   | 2,300        |   |   | 28,017              |  
|Communications expense                   |   | ---          |   |   | 2,080        |   |   | 16,600              |  
|Office expenses                          |   | 498          |   |   | 2,707        |   |   | 16,267              |  
|Travel and entertainment                 |   | 828          |   |   | 2,842        |   |   | 12,429              |  
|Exploration of resource properties       |   | ---          |   |   | ---          |   |   | 30,000              |  
|Registration and filing fees             |   | ---          |   |   | ---          |   |   | 7,470               |  
|Transfer agency services                 |   | 600          |   |   | 4,000        |   |   | 5,660               |  
|Other services                           |   | ---          |   |   | ---          |   |   | 150                 |  
|                                         |   |              |   |   |              |   |   |                     |  
|Total expenses                           |   | 3,410        |   |   | 13,929       |   |   | 116,593             |  
|                                         |   |              |   |   |              |   |   |                     |  
|Net loss                                 | $ | (3,410       | ) | $ | (13,929      | ) | $ | (116,593            | )
|                                         |   |              |   |   |              |   |   |                     |  
|Basic and diluted loss per common share  | $ | 0.000        |   | $ | 0.002        |   |   | ---                 |  
|                                         |   |              |   |   |              |   |   |                     |  
|Weighted average number of common shares |   |              |   |   |              |   |   |                     |  
|used in per share calculations           |   | 7,606,849    |   |   | 6,900,000    |   |   |                     |  

See accompanying notes to financial statements

---

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

|                              |  |             |  |   |        |  |   |            |  |   |               |   |   | Deficit     |   |   |               |  
|----------------------------- |  | ----------- |  | - | ------ |  | - | ---------- |  | - | ------------- | - | - | ----------- | - | - | ------------- | -
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   | accumulated |   |   |               |  
|                              |  | Common      |  |   |        |  |   | Additional |  |   | Other         |   |   | during the  |   |   | Total         |  
|                              |  | shares      |  |   | Common |  |   | paid-in    |  |   | Comprehensive |   |   | exploration |   |   | stockholders' |  
|                              |  | outstanding |  |   | stock  |  |   | capital    |  |   | Loss          |   |   | stage       |   |   | equity        |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Common shares issued for      |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|cash                          |  | 6,900,000   |  |   | 6,900  |  |   | 8,100      |  |   | ---           |   |   | ---         |   |   | 15,000        |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Contributed services          |  | ---         |  |   | ---    |  |   | 100        |  |   | ---           |   |   | ---         |   |   | 100           |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Currency exchange loss        |  | ---         |  |   | ---    |  |   | ---        |  |   | (2            | ) |   | ---         |   |   | (2            | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Net loss for the period       |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|October 19, 2006 (inception)  |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|to May 31, 2007               |  | ---         |  |   | ---    |  |   | ---        |  |   | ---           |   |   | (5,816      | ) |   | (5,816        | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Balance, May 31, 2007         |  | 6,900,000   |  |   | 6,900  |  |   | 8,200      |  |   | (2            | ) |   | (5,816      | ) |   | 9,282         |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Common shares issued for      |  | ---         |  |   | ---    |  |   | ---        |  |   |               |   |   |             |   |   | ---           |  
|cash                          |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Contributed services          |  | ---         |  |   | ---    |  |   | 50         |  |   | ---           |   |   | ---         |   |   | 50            |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Currency exchange gain        |  | ---         |  |   | ---    |  |   | ---        |  |   | 61            |   |   | ---         |   |   | 61            |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Net loss for the year ended   |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|May 31, 2008                  |  | ---         |  |   | ---    |  |   | ---        |  |   | ---           |   |   | (56,311     | ) |   | (56,311       | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Balance, May 31, 2008         |  | 6,900,000   |  |   | 6,900  |  |   | 8,250      |  |   | 59            |   | $ | (62,127     | ) | $ | (46,918       | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Common shares issued          |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|for cash                      |  | 2,000,000   |  |   | 2,000  |  |   | 98,000     |  |   | ---           |   |   | ---         |   |   | 100,000       |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Net loss for the year ended   |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|May 31, 2009                  |  | ---         |  |   | ---    |  |   | ---        |  |   | ---           |   |   | (51,056     | ) |   | (51,056       | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Balance, May 31, 2009         |  | 8,900,000   |  | $ | 8,900  |  | $ | 106,250    |  | $ | 59            |   | $ | (113,183    | ) | $ | 2,026         |  
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Net loss for the three months |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|ended August 31, 2009         |  | ---         |  |   | ---    |  |   | ---        |  |   | ---           |   |   | (3,410      | ) |   | (3,410        | )
|                              |  |             |  |   |        |  |   |            |  |   |               |   |   |             |   |   |               |  
|Balance August 31, 2009       |  | 8,900,000   |  | $ | 8,900  |  | $ | 106,250    |  | $ | 59            |   | $ | (116,593    | ) | $ | (1,384        | )

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, 2009 |   |   | August 31, 2008 |   |   | August 31, 2009     |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash flows used for operating activities               |   |                 |   |   |                 |   |   |                     |  
|Net loss                                               | $ | (3,410          | ) | $ | (13,929         | ) | $ | (116,593            | )
|Adjustments to reconcile net loss to net cash provided |   |                 |   |   |                 |   |   |                     |  
|by operating activities:                               |   |                 |   |   |                 |   |   |                     |  
|Contribued services                                    |   | ---             |   |   | ---             |   |   | 150                 |  
|Other comprehensive loss                               |   | ---             |   |   | ---             |   |   | 59                  |  
|Changes in operating assets and liabilities            |   |                 |   |   |                 |   |   |                     |  
|Increase (decrease) in accrued expenses                |   | 1,675           |   |   | (7,599          | ) |   | 5,000               |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash flows used for operating activities               |   | (1,735          | ) |   | (21,528         | ) |   | (111,384            | )
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash flows from financing activities                   |   |                 |   |   |                 |   |   |                     |  
|Advances from shareholder                              |   | ---             |   |   | ---             |   |   | ---                 |  
|Proceeds from issuance of common stock                 |   | ---             |   |   | ---             |   |   | 115,000             |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash flows from financing activities                   |   | 0               |   |   | 0               |   |   | 115,000             |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Increase in cash and cash equivalents                  |   | (1,735          | ) |   | (21,528         | ) |   | 3,616               |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash and cash equivalents - Beginning of period        |   | 5,351           |   |   | 67,116          |   |   | ---                 |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|Cash and cash equivalents - End of period              | $ | 3,616           |   | $ | 45,588          |   | $ | 3,616               |  
|                                                       |   |                 |   |   |                 |   |   |                     |  
|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.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

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 Dexing City, 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, 2009.

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, 2009, as filed in its Form 10-K Report dated September 8, 2009 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, 2009 and
  for the period October 19, 2006 (inception), through August 31, 2009 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 $116,593 for the period from October 19, 2006
  (inception), through August 31, 2009. In addition, the Company has not generated
  any revenues and no revenues are anticipated until we begin removing and selling
  gold from our optioned mineral property, 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 plan to support the Company in its operations
  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 public
  offerings, it will have to find alternative sources, such as a second public
  offering, a private placement of securities 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.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

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.

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.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

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 Protection 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 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.

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, 2009, 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.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

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 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, 2009. As of August 31, 2009, 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.

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, start-up 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, 2009.

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 December 2007, the FASB issued SFAS No. 141 (Revised 2008),
  Business Combinations.The objective of this statement will
  significantly change the accounting for business combinations. Under Statement
  141R, an acquiring entity will be required to recognize all the assets acquired
  and liabilities assumed in a transaction at the acquisition date fair value
  with limited exceptions. Statement 141 applies prospectively to business combinations
  for which the acquisition date is on or after the beginning of the first annual
  reporting period beginning on or after

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

December 15, 2009. The Company does not expect the adoption of
  SFAS No. 141R to have a material impact on the consolidated financial statements.

In December 2007, the FASB issued SFAS No. 160 Non-controlling
  Interests in Consolidated Financial Statements-An Amendment of ARB No. 51.The objective of this statement is to establish new accounting and reporting
  standards for the non-controlling interest in a subsidiary and for the deconsolidation
  of a subsidiary. SFAS 160 is effective for fiscal years, and interim periods
  within those fiscal years, beginning on or after December 15, 2009. The Company
  does not expect the adoption of SFAS No. 160 to have a material impact on the
  consolidated financial statements.

In March 2008, the FASB issued Statement of Financial Accounting
  Standards (SFAS) No. 161 Disclosures about Derivative Instruments
  and Hedging Activities, an amendment of FASB Statement No. 133,which
  requires additional disclosures about the objectives of the derivative instruments
  and hedging activities, the method of accounting for such instruments under
  SFAS No. 133 and its related interpretations, and a tabular disclosure of the
  effects of such instruments and related hedged items on our financial position,
  financial performance, and cash flows. The Company does not expect the adoption
  of SFAS No. 161 to have a material impact on the consolidated financial statements.

In May 2008, the FASB issued SFASB No. 163 Accounting
  for Financial Guarantee Insurance Contracts-an interpretation of FASB Statement
  No. 60. The scope of the statement is limited to financial guarantee
  insurance (and reinsurance) contracts. The pronouncement is effective for fiscal
  years beginning after December 31, 2009. The Company does not believe this pronouncement
  will impact its financial statements.

In April 2009, the FASB issued FSP No. FAS 157-4 Determining
  Fair Values When the Volume and Level of Activity for the Asset or Liability
  Have Significantly Decreased and Identifying Transactions That Are Not Orderly.This FSP provides guidance on (1) estimating the fair value of an asset
  or liability when the volume and level of activity for the asset or liability
  have significantly declined and (2) identifying transactions that are not orderly.
  The FSP also amends certain disclosure provisions of SFAS No. 157 to require,
  among other things, disclosures in interim periods of the inputs and valuation
  techniques used to measure fair value. This pronouncement is effective prospectively
  beginning April 1, 2009. The adoption of this standard did not have a material
  impact on the Company's consolidated results of operations or financial condition.

In April 2009, the FASB issued FSP No. FAS 115-2 and FAS 124-2
  Recognition and Presentation of Other-Than-Temporary Impairments.
  This FSP modifies the requirements for recognizing other-than-temporarily impaired
  debt securities and changes the existing impairment model for such securities.
  The FSP also requires additional disclosures for both annual and interim periods
  with respect to both debt and equity securities. Under the FSP, impairment of
  debt securities will be considered other-than-temporary if an entity (1) intends
  to sell the security, (2) more likely than not will be required to sell the
  security before recovering its cost, or (3) does not expect to recover the security's
  entire amortized cost basis (even if the entity does not intend to sell). The
  FSP further indicates that, depending on which of the above factor(s) causes
  the impairment to be considered other-than-temporary, (1) the entire shortfall
  of the security's fair value versus its amortized cost basis or (2) only the
  credit loss portion would be recognized in earnings while the remaining shortfall
  (if any) would be recorded in other comprehensive income. FSP 115-2 requires
  entities to initially apply the provisions of the standard to previously other-than-temporarily
  impaired debt securities existing as of the date of initial adoption by making
  a cumulative-effect adjustment to the opening balance of retained earnings in
  the period of adoption. The cumulative-effect adjustment potentially reclassifies
  the noncredit portion of a previously other-than-temporarily impaired debt security
  held as of the date of initial adoption from retained earnings to accumulated
  other comprehensive income. This pronouncement is effective April 1, 2009. The
  adoption of this standard did not have a material impact on the Company's consolidated
  results of operations or financial condition.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1,
  Interim Disclosures about Fair Value of Financial Instruments.
  This FSP essentially expands the disclosure about fair value of financial instruments
  that were previously required only annually to also be required for interim
  period reporting. In addition, the FSP requires certain additional disclosures
  regarding the methods and significant assumptions used to estimate the fair
  value of financial instruments.

In May 2009, the FASB issued SFAS No. 165 Subsection
  Events which provides guidance to establish general standards of accounting
  for and disclosures of events that occur after the balance sheet date but before
  financial statements are issued or are available to be issued. SFAS 165 also
  requires entities to disclose the date through which subsequent events were
  evaluated as well as the rationale for why that date was selected. SFAS 165
  is effective for interim and annual periods ending after June 15, 2009, and
  accordingly, the Company adopted this pronouncement during the second quarter
  of 2009. SFAS 165 requires that public entities evaluate subsequent events through
  the date that the financial statements are issued.

In June 2009, the FASB issued SFAS No. 166, Accounting
  for Transfers of Financial Assets  an Amendment of FASB Statement No.
  140 which requires entities to provide more information regarding
  sales of securitized financial assets and similar transactions, particularly
  if the entity has continuing exposure to the risks related to transferred financial
  assets. SFAS 166 eliminates the concept of a "qualifying special-purpose entity,"
  changes the requirements for derecognizing financial assets and requires additional
  disclosures. SFAS 166 is effective for fiscal years beginning after November
  15, 2009. The Company has not completed its assessment of the impact SFAS 166
  will have on its financial condition, results of operations or cash flows.

In June 2009, the FASB issued SFAS No. 167, Amendments
  to FASB interpretation No. 46(R) which modifies how a company determines
  when an entity that is insufficiently capitalized or is not controlled through
  voting (or similar rights) should be consolidated. SFAS 167 clarifies that the
  determination of whether a company is required to consolidate an entity is based
  on, among other things, an entity's purpose and design and a company's ability
  to direct the activities of the entity that most significantly impact the entity's
  economic performance. SFAS 167 requires an ongoing reassessment of whether a
  company is the primary beneficiary of a variable interest entity. SFAS 167 also
  requires additional disclosures about a company's involvement in variable interest
  entities and any significant changes in risk exposure due to that involvement.
  SFAS 167 is effective for fiscal years beginning after November 15, 2009. The
  Company has not completed its assessment of the impact SFAS 167 will have on
  its financial condition, results of operations or cash flows.

In June 2009, the FASB issued SFAS No. 168, The FASB
  Accounting Standards Codification(TM) and the Hierarchy of Generally Accepted
  Accounting Principles  A Replacement of FASB Statement No. 162.
  This Standard establishes the FASB Accounting Standards Codification(TM) (the
  "Codification") as the source of authoritative accounting principles recognized
  by the FASB to be applied by nongovernmental entities in the preparation of
  financial statements in conformity with US GAAP. The Codification does not change
  current US GAAP, but is intended to simplify user access to all authoritative
  US GAAP by providing all the authoritative literature related to a particular
  topic in one place. The Codification is effective for interim and annual periods
  ending after September 15, 2009, and as of the effective date, all existing
  accounting standard documents will be superseded. The Codification is effective
  in the third quarter of 2009, and accordingly, the Quarterly Report on Form
  10-Q for the quarter ending September 30, 2009 and all subsequent public filings
  will reference the Codification as the sole source of authoritative literature.

Note 4  Common stock transactions

Activity for the period October 19, 2006 (date of inception)
  to May 31, 2008

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 $0.001 on October 31, 2006.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

On November 30, 2006 the Company received $9,000 for 900,000
  shares of the Companys common stock subscribed for at $0.01 in a private
  placement dated November 01, 2006.

During April and May, 2008, the Company received $100,000
  for 2,000,000 shares of the Companys common stock subscribed for at a
  price of $0.05 per share through its SB-2 registration statement dated October
  11, 2008. See also Note 5.

Note 5  Common Stock Subject to Rescission

During April and May, 2008, the Company received $41,500
  and had a subscription receivable in the amount of $8,500for 1,000,000 common
  shares at a price of $0.05 per share subscribed for under the Companys
  SB-2. In addition, between December, 2007 and May, 2008, the selling shareholders
  as indicated in the SB-2 offering sold 900,000 shares to a total of three new
  shareholders. All of the 1,900,000 shares issued or resold were sold prior to
  the declaration of an effective date for the Companys SB-2 registration
  statement filed on October 05, 2007 under our mistaken assumption that the registration
  statement had become effective through the passage of time. All of the subscribers
  have been informed of this situation.

As a result, the Company made a rescission offering to the
  subscribers and the selling shareholders to refund their monies with interest
  if so requested under an S-1 Rescission Offering registration statement. These
  shares of common stock may be subject to rescission by the shareholder because
  of the Company's failure to comply with securities laws. Rescission rights for individual stockholders
  vary, based upon the laws of the states in which the stockholders reside. Common
  stock that is subject to rescission is recorded separately from stockholders'
  deficiency in the Company's balance sheet. As the statute of limitations expire
  in the respective states, such amounts are reclassified to stockholders' deficiency.

Accounting Series Release (ASR) No. 268 and Emerging
  Issues Task Force (EITF) Topic D-98 require that stock subject to
  rescission or redemption requirements outside the control of the Company to
  be classified outside of permanent equity. The exercise of the rescission right
  is at the holders discretion, but exercise of that right may depend in
  part on the fair value of the Companys common stock, which is outside
  of the Companys and the holders control. Consequently, common stock
  subject to rescission is classified as temporary equity.

In January 2009 under an S-1 rescission offering registration
  statement revised to April 3, 2009 the Company offered to rescind a total of
  1,900,000 shares of common stock issued or sold by the selling shareholders
  under its October, 2007 SB-2 registration statement. These shares represented
  all of the SB-2 shares the Company issued (1,000,000) and the shares (900,000)
  sold by the selling shareholders for which a purchaser could claim a rescission
  right. The rescission offer was intended to address the Companys rescission
  liability relating to its federal and state securities laws compliance issues
  by allowing the holders of the shares covered by the rescission offer to rescind
  the underlying securities transactions and sell those securities back to the
  Company or recover damages, as the case may be. The rescission statement became
  effective on April 13, 2009 and closed on May 14, 2009 with no shareholder accepting
  the offering, i.e., tendering their shares for repurchase. As of the date of
  this report, Sierra has 7,900,000 shares of common stock issued and outstanding.

Note 6  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, 2009 (paid;
  analysis of the work and an engineering report are pending) and an additional
  $40,000 for aggregate minimum exploration expenses of $60,000 on or
  before May 31, 2010. The Company will issue 1,000,000 shares of common stock
  to Jiujiang Gao Feng Mining Industry Limited Company (Jiujiang) upon completion
  of a phase I exploration program as authored by a competent geologist. The Company
  will pay to Jiujiang an annual royalty equal to three

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

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, 2012.

The Option to Purchase and Royalty Agreement is amended to
  require the Company, or its permitted assigns to incur exploration expenditures
  on the property of $60,000 on or before May 31, 2010. In addition upon exercise
  of the option the Company agrees to pay Jiujiang commencing May 31, 2011 $25,000
  per annum as prepayment of the Net Smelter Royalty for as long as the Company
  or its permitted assigns hold any interest in the Property. Failure to make
  the required annual payment will terminate the agreement. Jiujiang grants the
  Company the right to acquire an additional 26% of the interest in the Property
  for $25,000 and the incurring of an additional $100,000 in exploration
  expenditures on the Property on or before May 31, 2012.

The agreement and Option will expire on May 31, 2010 if the
  Company has not incurred exploration expenditures totaling a minimum of $60,000
  on the Property. In addition, the option will terminate on May 31, 2011, and
  each succeeding May 31, if the Company has not paid Jiujiang $25,000 on
  or before that date.

Note 7  Certain significant risks and uncertainties

The Company is subject to the consideration and risks of operating
  in the PRC. The economy of 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 PRC 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 government to control
  inflation have significantly restrained economic expansion in the recent past.
  Similar actions by the PRC government in the future could have a significant
  adverse effect on economic conditions in PRC.

Many laws and regulations dealing with economic matters in
  general and foreign investment in particular have been enacted in the PRC. However,
  the PRC 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 PRC 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, the PRC.
  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 political,
  economic or social conditions, the laws or regulations, or the rate or method
  of taxation in the PRC.

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 the PRC economy.

---

|SIERRA VENTURES, INC.         
|------------------------------
|(An Exploration Stage Company)
|                              
|Notes to Financial Statements 
|August 31, 2009  Unaudited   

Note 8  Related party transactions

Officers contributed administrative services to the Company
  for most periods to May 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 directors for $6,000 ($0.001 per share) as founder
  shares. (Note 4).

---

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
Risks on page 5, 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 quarterly 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 mineral property 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.

Foreign Currency and Exchange Rates

Dollar costs of Sierras property acquisition and planned
exploration costs are in Chinese Yuan also known as 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 $0.13 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, 2009,
SHOULD BE READ IN CONJUNCTION WITH THE CORPORATIONS FINANCIAL STATEMENTS,
INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THIS FORM 10-Q AND IN OUR
ANNUAL REPORT FILED ON FORM 10-K.

---

3

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; telephone (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 on 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, as amended May 15, 2009, we optioned a 25
percent interest in a gold exploration and mining property referred to as the
Zhangjiafan Mining Property located in Jiangxi Province, China by entering into
an Option To Purchase And Royalty Agreement with Jiujiang Gao Feng Mining
Industry Limited Company of Jiangxi City, Jiangxi Province, the beneficial owner
of the property. The option allows us to acquire an interest in the property by
making certain expenditures and carrying out exploration work. 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.

Work commenced on the phase I exploration program on our
optioned Zhangjiafan mineral property on April 27 and concluded on June 04,
2009. Our portion of the phase I geological exploration program on the property
cost $30,000 (paid) (25% of the totally budgeted cost of $120,000) which was a
reflection of local costs for the specified type of work. Phase I will require
up to three months for analysis, evaluation of the work completed and the
preparation of a report. Costs for phase I were made up of wages, fees,
geological and geochemical supplies, assaying, equipment, diamond drilling and
costs of operation. We will assess the results of this program upon receipt of
an appropriate engineering or geological report.

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, in which his firm recommended a
two-phase exploration program to properly evaluate the potential of the
property. Gao Fenglin graduated from Gan-Zhou Geosciences Institute with the
educational equivalency of a U.S. designated geological engineer and has
practiced as an exploration geologist for over 20 years.

The reader of this Report is directed to our Form 10-K Report
for May 31, 2009, dated September 8, 2009, and our S-1 registration statement
dated February 27, 2009 for further discussion of the property, mineral
exploration in China, geology and other background information on the optioned
property.

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. We retained the services of the Jiujiang Geological
Engineering Group Company and Gao Fenglin to complete the first phase of the
work program and to complete and assess the results of the program. Upon receipt
of that report we will be in a position to review the work completed and to
properly evaluate the potential of the property and to determine if gold exists
on the property and if any gold which is found can be economically extracted
& profitably processed.

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

Phase I Exploration Program

We have now completed the field work associated with the first
phase of the exploration plan; we do not expect to receive the results of the
work and a report on the phase I efforts until later this year. If our initial
exploration efforts are favourable we intend to proceed with longer term
exploration.

---

4

Initially, we ran a grid over the entire property and reviewed
maps of the results of past reported geological and geochemical programs
correlating all past information to our grid; then we completed a geological
survey to evaluate certain specific targets previously identified. Phase 1
established a base line grid with 25-meter stations and cross lines run every 50
meters for 100 meters each side of the baseline and related previous ground and
airborne electromagnetic surveys over the grid. Samples taken from various
locations were tested for traces of gold, silver, lead, copper, zinc, iron and
other metals; however, our primary focus was the search for gold. The geologists
will now compare relative concentrations of gold, silver, lead and other
indicator metals in samples recovered 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 2010 or 2011 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.

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. In regards to phase I of the planned exploration program, we have
retained Gao Fenglin as senior geological consultant.

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.

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. Specific direct expenses incurred such as telephone and
secretarial services are charged back to Sierra at cost.

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 claims may not
result in the discovery of commercial quantities of ore. Problems such as
unusual or unexpected formations and other unanticipated conditions can be
encountered in mineral exploration and often result in unsuccessful exploration
efforts. In such a case, we would be unable to complete our business plan.

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.

The Vendor holds the mining rights to the claims which thereby
gives him or his designated agent, the rights to mine and recover all of the
minerals contained within the surface boundaries of the lease continued
vertically downward. In the event it were to grant another deed which is
subsequently registered prior to our deed, the third party would obtain good
title and we would have nothing.

Jiujiang has granted an option to Sierra to allow us to
explore, mine and recover any minerals on the claims. As with the preceding, if
it were to grant an option to another party, that party would be able to

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5

enter the claims, carry out certain work commitments and earn
right and title to the claims; we would have little recourse as we would be
harmed, would not own any claims and would have to cease operations. However, in
either event, Jiujiang would be liable to us for monetary damages for breach of
the agreement. The extent of that liability would be for our out of pocket costs
for expenditures on the claims, if any, in addition to any lost opportunity
costs if the claims proved to be of value in the future. The agreement does not
specifically reference these risks or the recourse. Although we would have
recourse against the vendor in the situations described, there is a question as
to whether that recourse would have specific value.

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 claims into commercial production.

Results of Operations

Sierra was incorporated on October 19, 2006; comparative
periods for the three months ended August 31, 2009, August 31, 2008, and October
19, 2006 (inception), through August 31, 2009, 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, 2009, was $115,000 as proceeds received from sales of our common
stock.

The Corporation did not generate any revenues from operations
for the quarter ended August 31, 2009, nor for the similar quarter in 2008. To
date, we have not generated any revenues from our exploration business.

REVENUES

REVENUE  Gross revenue for the quarter ended August 31 2009,
and August 31, 2008, was $0. To date, we have not generated any revenues.

COMMON STOCK  Net cash provided by financing activities during
the quarters ended August 31, 2009, and 2008 was $0 (nil). $115,000 has been
received from inception on April 11, 2006, through to and including August 31,
2009. No options or warrants were issued to issue shares at a later date in the
most recent quarter.

EXPENSES

Expense Item
    For the quarter ended August 31, 2009
    For the quarter ended August 31, 2008
    Feb. 11, 2005 (Inception) thru August
      31, 2009Mineral property
      exploring
    $ 0
    $ 0
    $
      30,000Professional fees
    1,484
    2,300
    28,017Compensation
    -
    -
    -Communications
    -
    2,080
    16,600Office
    498
    2,707
    16,267Travel, meals
      & entertain
    828
    2,842
    12,429Transfer agency
      services
    600
    4,000
    5,660Registration &
      filing fees
    -
    -
    7,470Other costs and
      services
    -
    -
    150TOTAL
    $ 3,410
    $ 13,929
    $ 116,593


SUMMARY  Total expenses were $3,410 in the quarter ended
August 31, 2009, and $13,929 for the comparative period last year. A total of
$116,593 in expenses has been incurred since inception on October 19, 2006,
through August 31, 2009. 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

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6

decreased relative to the similar period last year as we were
relatively inactive while we awaited the results of the first phase of
exploration on our optioned mineral property. These costs can be subdivided into
the following categories:

PROFESSIONAL FEES: Sierra incurred $1,484 in professional fees
for the quarter ended on August 31, 2009, and $2,300 for the comparative period
last year. From inception to October 19, 2006, we have incurred $28,017 in
professional fees mainly on legal and accounting matters. This cost category
varies depending on legal and accounting requirements.

COMPENSATION: No compensation costs were incurred for the
quarters ended August 31, 2009, or 2008 and no direct compensation costs have
been incurred since inception.

COMMUNICATIONS EXPENSES: No ($0) communications costs were
incurred in the most recent quarter which ended on August 31, 2009, while $2,080
was incurred for the comparative period last year. For the period October 19,
2006 (inception), through August 31, 2009, a total of $16,600 has been spent on
communication costs related to our business. Communications costs dropped in the
quarter under review as a result of reduced activity and communications with
persons, representatives and corporations in China.

OFFICE EXPENSES: $498 in office costs were incurred in the most
recent quarter which ended on August 31, 2009, while $2,707 was incurred during
the comparative period last year. For the period October 19, 2006 (inception),
through August 31, 2009, a total of $16,267 has been spent on office related
expenses which are mostly comprised of facsimile, courier, photocopy, postage
and other general office expenses and services.

TRAVEL, ENTERTAINMENT AND MEAL EXPENSES: $828 in travel,
entertainment and meal costs were incurred in the most recent quarter which
ended on August 31, 2009, and $0 (nil) was incurred for the comparative period
last year. For the period October 19, 2006 (inception), through August 31, 2009,
a total of $12,429 has been spent on this category.

CONTRIBUTED EXPENSES: $0 in contributed expenses (for
contributed administrative costs) were incurred for the quarters ended August
31, 2009, and 2008. A total of $150 has been incurred from inception on October
19, 2006, to August 31, 2009. 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 property for the quarters ended August 31,
2009, or 2008. A total of $30,000 has been incurred from inception on October
19, 2006 to August 31, 2009 for this expense item. This category will vary
depending on our exploration activities and acquisitions.

TRANSFER AGENT FEES AND RELATED EXPENSES: $600 was paid to our
transfer agent in the quarter. No such expense was incurred for the similar
quarter in 2008. A total of $5,660 has been incurred from inception on October
19, 2006, to August 31, 2009, 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 periods
last year. From October 19, 2006 (inception), through August 31, 2009, 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, 2009, $1,735 in net cash was used and for the quarter
ended August 31, 2008, a total of $21,528 was used. $111,384 in net cash has
been used since inception on October 19, 2006, through August 31, 2009.

INCOME TAX PROVISION: As a result of operating losses, there
has been no provision for the payment of income taxes to date in 2008  2009 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
8,900,000 common shares issued and outstanding.

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7

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 cannot satisfy our cash requirements for the
current fiscal year end of May 31, 2010 with available cash on hand and will
have to seek additional financing immediately. As of August 31, 2009, we had a
deficit of $1,384 in unallocated working capital.

For the balance of the current fiscal year to May 31, 2010,
upon receipt of the engineering report on evaluation of the phase I work program
on our optioned mineral property, we will concentrate our efforts on the review
of the report and securing additional financing to be able to carry out our
business plan. Following industry trends and demands, we are also considering
the acquisition of other properties and projects of merit. In either situation,
we will try to raise the funds required 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 2009  2010. Management projects that
we will require up to $130,000 to fund ongoing operating expenses and working
capital requirements for the next twelve months, broken down as follows:

Operating expenses
    $
    35,000Phase II exploration program
    
    50,000Working Capital
    
    45,000Total
    $
    130,000


As at August 31, 2009, we had a working capital deficit of
$1,384. We do not anticipate that we will be able to satisfy any of these
funding requirements internally until we significantly increase our
revenues.

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, 2009, our independent auditors included an
explanatory paragraph regarding concerns about our ability to continue as a
going concern. Our financial statements contain additional notes describing the
circumstances that lead to this disclosure by our independent auditors. 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 could 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, 2009, 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, 2009, was $115,000
as a result of gross

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8

proceeds received from sales of our common stock. 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. In the fiscal year ended May 31, 2008, $100,000
cash was provided by financing activities as the result of the sale of 2,000,000
shares of common stock at a price of $0.05 per share issued under our SB-2
registration statement.

As of August 31, 2009, our total assets consisting entirely of
cash amounted to $3,616 and total liabilities were $5,000. Working capital stood
at negative $1,384.

For the quarter ended August 31, 2009, the net loss was $3,410
($0.000 per share). The loss per share was based on a weighted average of
7,606,849 common shares outstanding. The net loss from inception to August 31,
2009, is $116,593.

Inflation / Currency Fluctuations

Inflation has not been a factor during the recent quarter ended
August 31, 2009. Although inflation is moderately higher than it was during 2008
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). 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 Exchange Act is recorded, processed, summarized and
reported within the required time periods and is accumulated and communicated to
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
errors 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,
2009, 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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9

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 8,900,000 shares of common stock issued and
outstanding as of August 31, 2009 and the date of this report. 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.

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, 2009, was $115,000 as a result of proceeds
received from sales of our common stock. During that same period, the following
table indicates how the proceeds have been spent to date:

Professional Fees
    
    28,017Communications Expenses
    
    16,600Office Expenses
    
    16,267Travel, Entertainment and Meals
    
    12,429Exploration of Resource Property
    
    30,000Transfer Agent
    
    5,660Other Costs and Services
    
    150Total Use of Proceeds to August 31, 2009
    $
    116,593


Common Stock

During the quarter ended August 31, 2009, no shares of common
stock were issued. As of August 31, 2009, and the date of this report, there
were 8,900,000 shares issued and outstanding.

Options

No options were granted during the quarter ended August 31,
2009.

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.

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Item 6. Exhibits and Reports on Form 8-K

Reports on Form 8-K filed during the quarter ended August 31,
2009: 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.

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 15, 2009

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

---