Sierra Metals Announces Changes to Organizational Structure Following Strategic Review

TORONTO–(BUSINESS WIRE)–Sierra Metals Inc. (TSX: SMT) (NYSE American: SMTS) (BVL: SMT) (“Sierra Metals” or the “Company”) is pleased to announce the completion of an internal organizational review, following the review strategy announced at the end of 2021.

Sierra Metals is bolstering its current operating portfolio through various upscaling opportunities. These include:

– Increased emphasis on the production of copper and steel products such as zinc and iron ore;

– Advancement of the Company’s mine expansion plans, with the aim of increasing the yield of the Yauricocha and Bolivar mines;

– Reactivation of brownfield and greenfield exploration activities, across Sierra’s vast resource base;

– Increased focus on ESG, human capital and permits

In order to align the organization to effectively achieve these goals, as well as to overcome current operational issues, the following appointments have been made:

James León – Vice President, Operations

Effective February 1st, following his previous appointment as Country Manager Perú, Mr. León will now manage Yauricocha and Bolivar operations. Mr. León will be based in Mexico. He will oversee the delivery of increasingly improved operational results and efficiencies, following the difficult challenges that Bolivar and Yauricocha have faced over the past two years.

Mr. León is a Peruvian mining engineer with over 25 years of experience and has worked at Sierra Metals since August 2017 in a variety of roles including Director of Operations in Mexico until 2019 and then Country Director in Peru.

Alonso Lujan – Vice President, Exploration

Effective February 1st, as Vice President, Exploration, Mr. Lujan will focus on resource growth and business opportunities, both in brownfield and new exploration, at our properties in Peru and Mexico. Yauricocha and Bolivar are in under-explored and highly prospective geological regions, with an additional 80,000 hectares of virgin properties owned by Sierra Metals. His role is fully aligned with the strategic objective of unlocking the significant potential value of these properties.

Mr. Lujan is a Mexican geological and mining engineer with over 30 years of international experience in mineral exploration with a positive track record for increasing resources, production and company value.

Alberto Calle – Vice President, Human Resources

Effective November 1, 2021, Mr. Calle will serve as Vice President of Human Resources, responsible for the HR function at Sierra Metals. Given the changing environment and ongoing challenges in this area, this role is essential to help strengthen our teams and maintain a healthy and motivated work environment, both in Peru and Mexico.

Mr. Calle has spent 20 years of his professional experience in human capital with 13 years spent in the large-scale mining industry. He previously held positions at MMG – Las Bambas as Director of Human Resources and Regional Director of Human Resources for Newmont

Juan Jose Mostajo – Vice President, Legal Affairs

Effective December 1, 2021, Mr. Mostajo joins our legal team and will assist in legal matters related to Peru and Mexico. His role is critical in managing ongoing legal and permit issues across our two operations and supporting the company’s strategy going forward.

He has over 23 years of experience in the mining sector and has served as legal advisor to various mining companies, both Peruvian and foreign. His previous roles include a role on Anglo American’s legal management team in Peru as well as vice president of legal affairs for Minera Chinalco, Peru.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with exposure to green metals, including increasing copper production and base metal production with precious metals by-product credits, focused on production and development its Yauricocha mine in Peru and the Bolivar and Cusi mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently made several key new discoveries and still has many exciting brownfield exploration opportunities at the three mines in Peru and Mexico that are in close proximity to existing mines. In addition, the Company also has extensive land packages at all three mines with several potential regional targets offering longer term exploration potential and potential for mineral resource growth.

The Company’s common shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For more information about Sierra Metals, please visit www.sierrametals.com.

Keep following, liking and watching our progress:

the Web: www.sierrametals.com | Twitter: sierrametaux | Facebook: Sierra Metals Inc | LinkedIn: Sierra Metals Inc.

Forward-looking statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and United States securities laws (collectively, “forward-looking information“). Forward-looking information includes, but is not limited to, statements regarding the date of the 2020 shareholder meeting and the expected filing of compensation disclosure. Any statement that expresses or implies discussions regarding the predictions, expectations, beliefs, plans, projections, goals, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or indicating that certain actions, events or results “may”, “could”, “would”, “could” or “will be taken, will occur or will be carried out, or the negative form of any of these terms and similar expressions) are not statements of historical fact and may be 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 “Risk Factors” in the Company’s Annual Information Form dated March 18, 2020 for its fiscal year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the Securities and Exchange Commission, which documents are available at www.sedar.com and www.sec.gov, respectively.

The risk factors mentioned above are not an exhaustive list of factors that could affect the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the actual achievements of the Company 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 as of the date the statements are made, and the Company undertakes no obligation to update such forward-looking information if circumstances or beliefs, expectations or opinions must change, except as required by applicable law. For the reasons set forth above, undue reliance should not be placed on forward-looking information.