Mr. Ernesto Balarezo reports

SIERRA METALS REPORTS Q4 2023 PRODUCTION, MEETING 2023 GUIDANCE AND PROVIDES 2024 PRODUCTION GUIDANCE

Sierra Metals Inc. has released fourth quarter and full-year 2023 production results from its two underground mines in Latin America: the Yauricocha polymetallic mine in Peru and the copper-producing Bolivar mine in Mexico.

Ernesto Balarezo, chief executive officer of Sierra Metals, commented: "Two thousand twenty-three was a pivotal turnaround year for the company as we successfully fulfilled our commitment of achieving stability and maintained focus on optimizing all facets of the business, particularly in the production from our core mines, while prioritizing the safety aspects of our operations.

"The team at Yauricocha responded positively to our efforts towards recovery to full production capacity. The increase of 2 per cent in Q4 2023 throughput over Q3 2023 may be marginal but marks an important sequential increase for the fourth consecutive quarter.

"Our Bolivar mine achieved an average production of 4,686 tonnes per day throughput in Q4 2023, which is near capacity and close to the production levels not seen since Q3 2020. We have been successful in reducing the backlog in drilling and mine development, and this is reflected in our Q4 2023 and ful- year 2023 production performance."

Mr. Balarezo concluded, "The momentum we built from 2023 will provide the foundation for the future years, as we continue to operate at the highest safety levels while optimizing production and improving our balance sheet."

Consolidated throughput during Q4 2023 was 673,846 tonnes, an 8-per-cent increase when compared with Q3 2023, as throughput from both the mines increased quarter-over-quarter. Grades for all metals at the Bolivar mine and copper grades at the Yauricocha mine also increased quarter-over-quarter. The company achieved a consolidated production of 21.1 million copper equivalent pounds, indicating a 14-per-cent increase compared with Q3 2023.

When compared with Q4 2022, consolidated throughput increased 59 per cent for Q4 2023. Higher throughputs for both the mines were further supported by higher copper and gold grades at Yauricocha, resulting in a 78-per-cent increase in copper equivalent produced pounds in Q4 2023 as compared with the same quarter of 2022.

For 2023, the increase in throughput and grades resulted in higher production for all metals. Consolidated copper equivalent production was 76.7 million pounds, a 37-per-cent increase over the full year 2022 consolidated copper equivalent production.

Yauricocha mine, Peru

The Yauricocha mine continued its momentum of steady increase in throughput in Q4 2023. Throughput during Q4 2023 was 263,851 tonnes, a 2-per-cent increase when compared with Q3 2023, but a 73-per-cent increase over the same quarter of 2022.

As compared with Q3 2023, copper grades increased in Q4 2023, due to the mining in the copper-rich Esperanza and Fortuna zones. Grades for lead, silver and zinc declined in Q4 2023 when compared with Q3 2023, due to the lower contribution in Q4 2023 from the Esparanza North zone and other small orebodies.

In comparison with the same quarter of last year, Q4 2023 grades for lead and zinc were lower while copper, gold and silver grades were higher than Q4 2022.

Copper equivalent production of 10.9 million for Q4 2023 was a 100-per-cent increase over Q4 2022. Despite a continuous quarter-over-quarter increase in throughput during 2023, annual throughput for Yauricocha was 6 per cent below the throughput achieved in 2022. Annual copper equivalent production of 40.1 million pounds was in line with the 2023 production guidance, and represented a 2-per-cent increase when compared with 2022.

A summary of production from the Yauricocha mine for Q4 and full-year 2023 is provided herein.

Bolivar mine, Mexico

The Bolivar mine processed 409,995 tonnes during Q4 2023. Throughput for Q4 2023 was 13 per cent higher than Q3 2023 as a result of higher availability of stopes driven by improved drilling and blasting, and better equipment performance. The incorporation of the Dulce orebody in the production schedule drove a quarter-over-quarter improvement in head grades. Higher throughput and grades resulted in increased production for all metals and consequent 26-per-cent increase in copper equivalent pounds production.

Throughput for Q4 2023 was 52 per cent higher than the same quarter of 2022, as improved drilling performance allowed for better approach to the minable zones. Enhanced ore definition enabled the mine to produce better copper and silver grades during Q4 2023. The resultant copper equivalent pounds production for Q4 2023 was 58 per cent higher than Q4 2022.

During 2023, production for all metals increased at Bolivar due to the higher throughput and grades as compared with the full-year 2022, resulting in 36.6 million copper equivalent pounds produced, an increase of 116 per cent. Bolivar's annual copper equivalent pound production was within the annual guidance range for 2023.

A summary of production for the Bolivar mine for Q4 and full-year 2023 is provided herein.

2024 production guidance

The company expects 2024 to be a year of stable operations while it positions its core mines for long-term growth. The company is in the final stage of a very comprehensive and thorough process to obtain the permit to operate below the 1120 level at the Yauricocha mine and anticipates receipt of this permit by the end of Q1 2024. Thereafter the company expects that it will take between six and nine months during 2024 to reach full production below 1120, providing access to a large orebody that should allow the mine to increase production and lower costs in subsequent years. At Bolivar, plans are under way to enhance the capacity of the tailings dam which will enable the plant to increase production levels.

The company will issue its 2024 cost guidance along with its 2023 full-year financial results to be announced on March 12, 2024.

Conference call and webcast

Management will host a conference call and webcast to discuss Q4 2023 and full-year 2023 financial and operating results on March 12, 2024, at 11 a.m.(Eastern Time). Details are as follows:

Webcast: Chorus Call website

Dial-in: Canada/United States toll-free: 1-800-319-4610

Other dial-in: 1-416-915-3239

About Sierra Metals Inc.

Sierra Metals is a Canadian mining company 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.