Sierra Metals Provides Update on Level 1120 Permit at Its Yauricocha Mine in Peru

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(All amounts expressed in USD, unless otherwise stated)

TORONTO — Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF) (“Sierra Metals” or the “Company”) today provided an update on the status of its permit to operate below the 1120 level (“Level 1120”) at its Yauricocha Mine in Peru. The Level 1120 permit that is currently being assessed by the National Service for Environmental Certification for Sustainable Investments in Peru (“SENACE”) is in the final stages of the procedure and a resolution is expected by the end of Q1 2024. All other Peruvian agencies involved in the assessment have granted their positive opinion to operate below Level 1120.

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Ernesto Balarezo, CEO of Sierra Metals, commented, “Obtaining the permit will provide our Yauricocha Mine with access to large ore bodies thereby enabling the mine to achieve its full capacity by increasing its throughput by approximately 40%. Additionally, this will support the long-term continuation of Yauricocha where over 1,500 employees and their families depend on this operation as well as several local communities benefit from mining taxes provided by Yauricocha. With this permit in place, the Company will be able to execute its comprehensive investment plans, covering both operating expenses and capital expenditures, totaling nearly $1 billion over the next decade.”

The Company anticipates that once the Level 1120 permit is received, it can begin development and preparation work to start mining. The Company expects that it will take between six and nine months to reach full production from below Level 1120. Current estimates for capital required to begin mining below Level 1120 range between $3 to $4 million, which the Company expects to fund from existing sources of cash and working capital.

The Company continues to work on this matter, continuously providing information to the authorities in order to obtain the approval of the permit, and will continue to update the…