Mr. Ernesto Balarezo reports

SIERRA METALS ANNOUNCES MINERAL RESOURCE EXPANSION AT BOLIVAR MINE IN MEXICO

After systematic drilling in 2023, Sierra Metals Inc. has had an additional 15.5 million copper equivalent pounds in measured and indicated mineral resources hosted by the Dulce structure at its Bolivar mine in Mexico.

Ernesto Balarezo Valdez, Sierra Metals' chief executive officer, commented: "We are very pleased with the increased mineral resource announced today, which is a testament to the hard work of our exploration team as we continue to demonstrate the growth potential at our Bolivar mine. This work is also consistent with our strategy of identifying additional mineral resources at our operating mines to sustain long-term production increases; and it is yet another sign of the momentum we are seeing across our business."

The results reported today include 52 drill holes from a total of 91 holes in the 2023 drill program, which increases the mineral resources when compared with those reported in the 2021 preliminary economic assessment (PEA). By including these new boreholes in the evaluation, the dimensions of the mineralized orebody are now extended by approximately an additional 400 metres along strike by 300 metres vertically. The recent results in the enlarged mineralized zone now have higher copper and gold grades in comparison with average grades published in 2022 (833,058 tonnes of 0.74 per cent copper, 0.36 gram per tonne gold and 26.03 grams per tonne silver. Additional drilling is planned for the coming months.

The company has presented the results of the mineral resource update and related exploration holes drilled across the Dulce structure (see attached table). The planned drilling is part of the continuing program to replace and continuously grow mineral resources at the Bolivar mine.

The mineralized body or feeder zone, called Dulce, strikes in a northeast-southwest trend with a 60-degree dip to the northwest. Its vertical projection extends from surface downward until connecting with the mantos Bolivar NW and Cieneguita. Spatially, the Dulce zone is located between the mentioned manto bodies (Bolivar NW and Cieneguita), cutting carbonate rocks previously affected by calc-silicate metasomatism. The width of mineralization varies between 0.50 metre and 57.30 metres, with the best skarn development occurring at the contact with the mantos. Copper and gold grades are directly correlated to the presence of chalcopyrite, lesser bornite and pyrite. In addition, significant amounts of sphalerite and minor galena are present.

Analytical methods

Since 2022, all rock samples are prepared and analyzed at the on-site assay laboratory at Piedras Verdes, Bolivar. Copper, lead, zinc and iron are analyzed by acid digestion method in aqua regia, finished in atomic absorption. Gold is analyzed by atomic absorption and finished using a fire assay test method and silver by the gravimetric finished fire test method. The diamond drilling program carried out at Bolivar is used to obtain HQ-diameter and NQ-diameter drill core. The core is split in half on site, sending 50 per cent of the core sample for analysis. Prior to 2022, rock samples were analyzed at the facilities of the Chemex commercial laboratory in Mexico.

Qualified person

Ricardo Salazar Milla (AIG No. 8551), corporate manager, mineral resources, is a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Salazar has reviewed and approved the scientific and technical content of this news release.

About Sierra Metals Inc.

Sierra Metals, a diversified Canadian mining company with green metal exposure, including increasing copper production and base metal production with precious metal byproduct credits, is focused on the production and development of its Yauricocha mine in Peru and its Bolivar mine in Mexico. The company is focused on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the company has large land packages at all three of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

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