Mr. Ernesto Balarezo reports

SIERRA METALS REPORTS THIRD QUARTER 2023 PRODUCTION RESULTS

Sierra Metals Inc. has released its third quarter 2023 production results from its Yauricocha polymetallic mine in Peru and the Bolivar copper mine in Mexico.

The company's Q3 2023 results will be released on Monday, Nov. 13, 2023, before the market open, with management hosting a conference call and webcast the same day at 11 a.m. ET. Register on-line.

Ernesto Balarezo, chief executive officer of Sierra Metals, commented: "During the quarter, we continued to make tremendous strides in optimizing our strong portfolio of assets. We have been able to maintain Bolivar at desired levels of output and we are happy to see that our efforts at Yauricocha are paying off. We are now well along the process of divesting our Cusi silver mine, obtaining the permit to mine below the 1120 level at Yauricocha and improving our balance sheet. We remain steadfast in our focus to safely grow our business and create long-term value."

Consolidated production results (excluding Cusi)

Consolidated production results include the Yauricocha mine and Bolivar mine, and do not include results from the Cusi mine, which the company deems to be a non-core asset.

Consolidated throughput in Q3 2023 was 4 per cent lower than in Q2 2023 but 25 per cent higher than in Q3 2022. Throughput from the Yauricocha mine during Q3 2023 of 259,732 tonnes was 6 per cent higher from the previous quarter. The Bolivar mine throughput in Q3 2023 increased by 59 per cent over Q2 2022 but declined 11 per cent compared with Q2 2023, as anticipated.

The Cusi mine, which was considered a non-core asset in Q1 2023, was placed in care and maintenance on Sept. 20, 2023.

Yauricocha mine, Peru

The Yauricocha mine processed 259,732 tonnes during Q3 2023, an increase of 6 per cent over the previous quarter. Copper grades increased by 23 per cent when compared with Q2 2023, as well as silver and gold grades by 7 per cent and 3 per cent, respectively.

Copper equivalent production for Q3 2023 of 10.4 million pounds represented a 9-per-cent increase over the previous quarter. This increase was attributed mainly to the 36-per-cent increase in copper production. Lead and gold production increased 4 per cent and 8 per cent, respectively, while zinc production declined 9 per cent due to lower grades compared with Q2 2023.

When compared with Q3 2022, the 4-per-cent decrease in the copper equivalent pounds produced resulted from the change in metal prices, particularly zinc prices, which declined by more than 26 per cent as compared with Q3 2022. The increase in metal production, except for gold, did not offset the impact of the change in metal prices as compared with Q3 2022.

A summary of the Yauricocha mine production is provided in the associated table.

Bolivar mine, Mexico

The Bolivar mine processed 362,890 tonnes in Q3 2023, which was a 59-per-cent increase from Q3 2022. Bolivar also recorded higher grades for all metals, namely 28 per cent, 27 per cent and 37 per cent for copper, silver and gold, respectively, as compared with Q2 2022. As a result, copper equivalent production of 8.1 million pounds in Q3 2023 was 113 per cent higher than in Q3 2022. When comparing Q3 2023 with Q2 2023, as anticipated, Bolivar's copper equivalent production was 24 per cent lower, driven by the lower output and lower grades. However, Bolivar's copper equivalent pounds produced during the nine-month period ended September, 2023, were 150 per cent higher than the copper equivalent pounds produced in the same period of 2022.

A summary of the Bolivar mine production is provided in the associated table.

Cusi mine, Mexico

The company is currently engaged in discussions with interested parties for the sale of the Cusi mine.

As a result of being placed in care and maintenance late in Q3 2023, the Cusi mine only processed 29,050 tonnes of ore during Q3 2023, which was 44 per cent and 55 per cent lower than Q2 2023 and Q3 2022, respectively. Silver equivalent production was also lower by 52 per cent and 69 per cent, respectively, from both corresponding periods.

A summary of the Cusi mine production, not included in the consolidated production numbers, is provided in the associated table.

Conference call and webcast

Management will host a conference call and webcast to discuss Q3 2023 financial and operating results on Nov. 13, 2023, at 11 a.m. (ET). Details are as follows:

• Webcast: access on-line;
• Dial-in: Canada/United States toll-free: 1-800-319-4610;
• Other dial-in: 1-416-915-3239.

Participants are asked to dial in five to 10 minutes before the scheduled start time and ask to join the Sierra Metals third quarter 2023 consolidated financial results call.

About Sierra Metals Inc.

Sierra Metals is a Canadian mining company focused on copper production with additional base metal and precious metal byproduct credits at its Yauricocha mine in Peru and the Bolivar mine in Mexico. The company is intent 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 in Peru and Mexico that are within close proximity to the existing mines. Additionally, the company has large land packages at each of its mines with several prospective regional targets, providing longer-term exploration upside and mineral resource growth potential.

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