Mr. Ernesto Balarezo reports

SIERRA METALS ANNOUNCES COMPLETION OF REFINANCING AGREEMENT WITH MAJOR LENDERS

Sierra Metals Inc., in connection with the press release dated March 13, 2023, has finalized the definitive agreement with Banco de Credito del Peru and Banco Santander SA (together, the lenders) to refinance $18.75-million out of the $25-million principal debt repayment obligations that were originally due in 2023 under the company's senior secured credit facility. All figures in this news release are stated in United States dollars.

The $18.75-million will be due in March, 2025. Interest will be accrued at an annualized rate of 6.3 per cent plus the three-month secured overnight financing rate. In addition, the remaining $6.25-million of the amount owing in 2023, which is not covered as part of the refinancing, will be split in three equal instalments due in June, September and December, 2023.

"This refinancing is an important step in the company's return to sustainable, long-term growth," said Ernesto Balarezo, interim chief executive officer, Sierra Metals. "The updated repayment schedule provides flexibility as we continue to execute on our plan to optimize operations, grow the resources at our core mines and increase production. We appreciate the efforts of our banking partners to reach this agreement."

In addition to the refinancing of the principal debt repayment obligations for 2023, the agreement contains certain additional amendments to the terms of the senior secured credit facility, including: (i) covenants regarding executive management continuity; and (ii) mandatory prepayments in the case of excess free cash flow and equity subscription proceeds not required for capital expenditures.

About Sierra Metals Inc.

Sierra Metals is a diversified Canadian mining company with green metal exposure, including copper, zinc and lead production with precious metals byproduct credits, focused on the production and development of its Yauricocha mine in Peru and its Bolivar mine in Mexico. The company is focused on the safety and productivity of its producing mines. The company also has large land packages with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

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