Mr. Ernesto Balarezo reports

SIERRA METALS PROVIDES UPDATE ON LEVEL 1120 PERMIT AT ITS YAURICOCHA MINE IN PERU

Sierra Metals Inc. has provided an update on the status of its permit to operate below the 1120 level at its Yauricocha mine in Peru. The Level 1120 permit that is currently being assessed by the National Service for Environmental Certification for Sustainable Investments in Peru (SENACE) is in the final stages of the procedure and a resolution is expected by the end of Q1 2024. All other Peruvian agencies involved in the assessment have granted their positive opinion to operate below Level 1120.

Ernesto Balarezo, chief executive officer of Sierra Metals, commented: "Obtaining the permit will provide our Yauricocha mine with access to large orebodies, thereby enabling the mine to achieve its full capacity by increasing its throughput by approximately 40 per cent. Additionally, this will support the long-term continuation of Yauricocha, where over 1,500 employees and their families depend on this operation as well as several local communities benefit from mining taxes provided by Yauricocha. With this permit in place, the company will be able to execute its comprehensive investment plans, covering both operating expenses and capital expenditures, totalling nearly $1-billion over the next decade."

The company anticipates that once the Level 1120 permit is received, it can begin development and preparation work to start mining. The company expects that it will take between six and nine months to reach full production from below Level 1120. Current estimates for capital required to begin mining below Level 1120 range between $3-million and $4-million, which the company expects to finance from existing sources of cash and working capital.

The company continues to work on this matter, continuously providing information to the authorities in order to obtain the approval of the permit, and will continue to update the market on this matter in due course.

About Sierra Metals Inc.

focused on copper production with additional base and precious metals byproduct credits at its Yauricocha mine in Peru and 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.

We seek Safe Harbor.