TORONTO - Sierra Metals Inc. (TSX:SMT | OTCQX:SMTSF | BVL: SMT) ('Sierra Metals' or the 'Company') reports second quarter 2024 production results from its two underground mines in Latin America: the Yauricocha polymetallic mine ('Yauricocha') in Peru and the copper-producing Bolivar mine ('Bolivar') in Mexico.

Ernesto Balarezo, CEO of Sierra Metals, commented, 'Production in the second quarter of 2024 met our annual projections. At Bolivar, we planned for maintenance downtime in the plant and sequenced mining activities in a lower-grade zone in the deposit. We expect that all of this work will ensure a strong operating performance for the second half of the year. Meanwhile, at Yauricocha, we continue to maximize production from the limited ore body above the 1120 level, at least until we are able to fully access the larger ore body below 1120. Development below the 1120 level is on schedule and on budget to achieve full capacity by the fourth quarter. All in all, we delivered a solid quarter of production that will set Sierra Metals up for a strong second half of 2024, keeping us in good standing to meet our production guidance for the year.'

Copper equivalent pounds for Q2 2024 were calculated using the following average realized prices: $4.43/lb Cu, $1.28/lb Zn, $28.61/oz Ag, $2,334/oz Au, $0.99/lb Pb. Copper equivalent production for Q1 2024 and Q2 2023 have been recalculated at the same prices for proper comparison. Copper equivalent pounds for the six-months ended June 30, 2024 were calculated using the following average realized prices: $4.08/lb Cu, $1.20/lb Zn, $25.73/oz Ag, $2,177/oz Au, $0.96/lb Pb. Copper equivalent pounds for the six-months ended June 30, 2023 have been recalculated at the same prices for comparison purposes.

Bolivar processed 373,867 tonnes of ore during Q2 2024, which was a 6% and 8% decline from Q1 2024 and Q2 2023, respectively. Lower throughput during Q2 2024 was mainly attributable to the four days of the scheduled plant maintenance combined with lower availability of water for the processing facilities. The issue of water availability has been resolved, and the Company anticipates recovering production levels in the second half of the year supported by the new plant equipment.

Lower grades during Q2 2024 as compared to Q1 2024 and Q2 2023 were anticipated as a result of the mining program sequence. There was a lower contribution from the high-grade Dulce zone during the quarter as compared to Q1 2024. However, the Company continues to better understand this new zone, and expects to continue mining from Dulce throughout the year.

Metal production for Q2 2024 declined because of lower throughput and lower grades compared to Q1 2024 and Q2 2023, resulting in 21% and 18% less copper equivalent production from the respective quarters.

Bolivar recorded an 8% increase in the copper equivalent production pounds for the six months ended June 30, 2024, due to higher throughput and grades that were either higher or in line with the six months period ended June 30, 2023.

About Sierra Metals

Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product 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.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'believes' or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might', 'will allow', 'occur' or 'be achieved' or the negative of these words or comparable terminology. Forward-looking statements include statements with respect to the timing of the development below the 1120 level, the timing of the increase in production and the timing to operate at full capacity at Yauricocha. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading 'Risk Factors' in the Company's annual information form dated March 15, 2024 for its fiscal year ended December 31, 2023 and other risks identified in the Company's filings with Canadian securities regulators, which are available at www.sedarplus.ca.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Contact:

Tel: +1 (866) 721-7437

Email: info@sierrametals.com

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