Mr. Ernesto Balarezo reports

SIERRA METALS ANNOUNCES INTENTION TO LIST ON THE LIMA STOCK EXCHANGE

Sierra Metals Inc. will commence a process to obtain a secondary listing of common shares on the Bolsa de Valores de Lima (BVL, or the Lima Stock Exchange). The process is expected to take up to four months to complete.

Ernesto Balarezo, chief executive officer of Sierra Metals, commented: "The BVL is part of the Latin American Integrated Market (MILA), which is an agreement among the Chilean, Colombian, Mexican and Peruvian stock exchanges. Our potential listing on the BVL should increase Sierra's potential investor exposure and market liquidity, giving access to participate in the company's growth plans to Latin American funds, institutions, retail investors and Peruvian pension funds that have estimated assets under management of over $50-billion (U.S.), of which 50 per cent must be invested in Peru."

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.

We seek Safe Harbor.