Mr. Ernesto Balarezo reports

SIERRA METALS REPORTS FIRST QUARTER 2025 PRODUCTION RESULTS

Sierra Metals Inc. has released first quarter 2025 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: "We are pleased with the strong start to 2025, marked by significant improvements in both throughput and copper production compared to the same period last year. These results reflect the successful execution of our operational improvement initiatives across both mines. We remain focused on driving further efficiencies, enhancing production and delivering long-term value to our shareholders."

Consolidated throughput increased by 18 per cent in Q1 2025 compared with Q1 2024, driven by higher processing volumes at both the Yauricocha and Bolivar operations. Consolidated copper production rose by 14 per cent year-over-year, primarily due to a significant increase at Yauricocha, where copper output more than doubled, supported by higher throughput and improved grades.

Yauricocha mine, Peru

At the Yauricocha mine, Q1 2025 throughput totalled 329,363 tonnes, a 37-per-cent increase over Q1 2024, reflecting continued extraction activities below the 1120 level. With continuing mining in the copper-rich Esperanza zone, the mine reported higher head grades for copper, silver and gold compared with the same period last year, while zinc and lead grades declined. As a result, metal production closely followed grade trends, with copper output more than doubling and gold production nearly tripling year-over-year.

Compared with Q4 2024, a slight decrease in throughput was offset by improved grades across most metals (excluding zinc), leading to higher production volumes for copper, silver, gold and lead.

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

Bolivar mine, Mexico

The Bolivar mine processed 423,408 tonnes in Q1 2025, a 6-per-cent increase compared with Q1 2024. Despite the higher throughput, copper, silver and gold production declined by 25 per cent, 6 per cent and 35 per cent, respectively, due to the anticipated lower head grades across all three metals.

Compared with Q4 2024, throughput decreased by 6 per cent, primarily due to adverse weather conditions that disrupted ore hauling early in the quarter, as well as a planned two-day mill shutdown to replace the crown gear. The combination of lower throughput and declining grades (except for silver) led to quarter-over-quarter production declines of 15 per cent for copper, 3 per cent for silver and 15 per cent for gold.

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

Conference call and webcast

Management will host a conference call and webcast to discuss Q1 2025 financial and operating results on May 15, 2025, at 11 p.m. ET.

Conference call

Canada/United States toll-free:  1-833-752-3744

Other:  1-647-846-8720

Participants are asked to dial in five to 10 minutes before the scheduled start time and ask to join the Sierra Metals first quarter 2025 consolidated financial results call.

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.