Mr. J. Alberto Arias reports

ARIAS RESOURCE CAPITAL THANKS FELLOW SHAREHOLDERS FOR SUPPORT; WILL REMAIN VIGILANT IN PROTECTING SHAREHOLDER INTERESTS

Sierra Metals Inc. shareholders Arias Resource Capital Fund II LP and Arias Resource Capital Fund II (Mexico) LP, together with other affiliates of Arias Resource Capital (ARC) and its principal holding approximately 27 per cent of the outstanding shares of Sierra Metals, thank their fellow Sierra shareholders for the significant show of support at the company's annual meeting of shareholders last week. A difference of approximately 3.5 per cent of Sierra's outstanding shares (1) ultimately decided the voting as between the company's director nominees and ARC's director nominees.

"The primary purpose of our campaign was to ensure that shareholder interests and value maximization were at the forefront of company decision-making. We shone a light on issues that were being overlooked at the company and are hopeful that the Sierra board will be an advocate for all shareholders going forward," stated J. Alberto Arias, ARC's founder. "We hope the company and the board will now focus on fixing and improving the operational mistakes of the past two years instead of looking to benefit a select minority group of shareholders through unnecessary dilutive equity financings or other unfavourable transactions. ARC remains Sierra's largest shareholder and its interests are aligned with Sierra shareholders at large. We will remain a vigilant and engaged shareholder, and will continue to fight for the rights of all shareholders to prevent value destruction and hold the board accountable for its performance."

About Arias Resource Capital

Arias Resource Capital, founded in 2007, is a Miami-based private equity firm in the metals sector that invests in critical materials empowering the clean energy revolution.

(1) Calculated based on 164.4 million outstanding shares and the number of votes in favour of company director nominees that, if instead voted in favour of ARC director nominees, would have resulted in the election of the ARC director nominees.