Mr. Igor Gonzales reports

SIERRA METALS ANNOUNCES CHANGES TO THE BOARD OF DIRECTORS WITH THE APPOINTMENT OF RICARDO ARRARTE AND THE RESIGNATION OF PHILIP RENAUD

Sierra Metals Inc. has appointed Ricardo Arrarte to the board of directors, who will fill the vacancy left by the resignation of Philip Renaud, who is resigning to focus more of his time on other business ventures. These changes are effective immediately.

Mr. Arrarte is a director with an affiliate of the private equity firm Arias Resource Capital Management LP and is also the chief executive officer for Cautivo Mining Inc. Mr. Arrarte is a mining and mechanical engineer with over 20 years experience in management, operations and consulting for mining companies. Mr. Arrarte has worked with Hochschild Mining PLC as operations manager in charge of four silver mines in Peru, Compania Minera Caudalosa SA as chief executive officer, Consorcio Minero Horizonte as planning and engineering manager, Buenavetura Ingenieros SA -- BISA -- as an engineering consultant, Fosfatos Del Pacifico SA as mine manager, and Cementos Pacasmayo SAA as geology and mine central manager. Mr. Arrarte is experienced in mine and plant design, managing mining operations, production and costs with large teams of personnel. Mr. Arrarte earned his mining and mechanical engineering degrees from Pontifica Universidad Catolica Del Peru and his MBA from the George Washington University in Washington.

On his departure, Mr. Renaud commented: "It has been a great pride for me to be part of the growth and value creation process at Sierra Metals since 2003. I am confident of the strong fundamentals of the company in the future."

J. Alberto Arias, chairman of Sierra Metals, commented: "I want to express my gratitude to Philip for his many years of contribution to the board of directors of Sierra Metals. Philip's commitment, enthusiasm and loyalty to the company were appreciated by the board and management. I wish him all the best in his future endeavours."

He continued: "On behalf of the board and management, I would like to welcome Ricardo to the Sierra Metals board of directors. Ricardo's experience in the Latin American mining industry makes him a valuable addition to our board. We believe that Ricardo will help Sierra Metals realize the considerable growth and strategic opportunities that the company presently has available at all of its properties."

About Sierra Metals Inc.

Sierra Metals is a Canadian-based polymetallic mining company with production from its Yauricocha mine in Peru, and its Bolivar and Cusi mines in Mexico. The company is focused on increasing production volume and mineral resources. Sierra Metals has recently had several new discoveries and still has additional brownfield exploration opportunities at all three mines in Peru and Mexico that are within or in close proximity to the existing mines. Additionally, the company has large land packages at all three mines with several prospective regional targets, providing longer-term exploration upside and mineral resource growth potential.

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