This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20201118005337\/en\/<\/a><\/p>\n Photo 1: Yauricocha Mine, aerial view (Photo: Business Wire)<\/p>\n<\/div>\n \nThis PEA report was prepared as a National Instrument 43-101 Technical Report for Sierra Metals Inc. (\u201cSierra Metals\u201d) by SRK Consulting (Canada) Inc. (\u201cSRK\u201d) and Sierra Metals. The full technical report will be filed on SEDAR within 45 days of this news release.\n<\/p>\n Highlights of the PEA include:<\/b><\/p>\n (1) <\/sup>3,780 Tonnes per dayrepresents the expected upcoming expansion to 3,600 tonnes per day plus a 5% overallotment allowance. Sierra is awaiting this permit from the government and hopes to receive it in Q1 2021.\n<\/p>\n\n \nLuis Marchese, CEO of Sierra Metals commented: \u201cI am very encouraged by the results of this PEA which support the Company\u2019s organic growth strategy and plan to profitably develop and grow the Yauricocha Mine production rate to 5,500 TPD in 2024 from today\u2019s permitted capacity of 3,150 TPD, based on current analyst consensus metal price estimates. The Company plans to continue with its disciplined approach of profitable growth and now plans to proceed with the next step of the completion of a prefeasibility study to further de-risk the plan and determine the best path forward.\u201d<\/i><\/p>\n \nHe continued, \u201cThe PEA study compared the value of the current operations at Yauricocha against several output expansion alternatives from 5,500 to 7,500 TPD and determined 5,500 TPD as the optimum production level based on our current mineral resource base, while maintaining optionality for further growth. Additionally, we increased the measured and indicated mineral resource tonnage by 26% and we increased the inferred mineral resource tonnage by 79% demonstrating added potential and extended longevity for the Yauricocha Mine. Sierra Metals acquired the Yauricocha mine in 2011 with indicated resource of 5 million tonnes. Since then Sierra has mined 9.1 million tonnes of ore and today we are reporting the highest resource in the mine\u2019s history at 16 million tonnes of measured and indicated mineral resources and 12 million tonnes of inferred mineral resources, reflecting the prolific exploration nature of the Yauricocha district. \u201d <\/i><\/p>\n \nHe concluded, \u201cWe are continuing with our strategy to increase the value of the company on a per share basis. This includes demonstrating success with increasing our current mineral resource base and improving the throughput at all mines. We expect these positive developments to further improve profitability and cashflow for the Company and all shareholders this coming year as well as in the future.\u201d <\/i><\/p>\n Updated Mineral Resource Estimate<\/span><\/b><\/p>\n \nThe Yauricocha Mine is located in the Allis district, Yauyos province, department of Lima, approximately 12 kilometers west of the Continental Divide and 60 kilometers south of the Pachacayo railway station. Polymetallic mineralization has been mined at Yauricocha for more than 50 years. Mineralization is genetically and spatially related to the Yauricocha stock; six skarn bodies host mineral resources around the margins of the stock. Near surface mineral is exhausted but significant mineral resources are reported at depth.\n<\/p>\n \nThis Preliminary Economic Assessment (PEA) considers the updated measured, indicated, and inferred resources shown below reported by SRK with an effective date as of June 30, 2020. The resource has not been depleted as part of this study.\n<\/p>\n \nMeasured and Indicated Mineral Resources for Yauricocha are 15,924,000 tonnes averaging 43.8 g\/t silver, 0.5 g\/t gold, 1.2% copper, 0.6% lead and 2.2% zinc representing a 26% tonnage increase from the previous resource tonnage estimate.\n<\/p>\n \nTotal Inferred Mineral Resources for Yauricocha are 11,633,000 tonnes averaging 27.5 g\/t silver, 0.5 g\/t gold, 1.4% copper, 0.3% lead and 1.0% zinc compared from the previous Resource Estimate, representing a 79% tonnage increase to the overall Inferred Resource Estimate.\n<\/p>\n Table 1-1: Summary of Mineral Resources estimate as reported by SRK, <\/i>2020 (Effective <\/i>June 30, 2020)<\/i><\/p>\n![\"Photo](\"https:\/\/mms.businesswire.com\/media\/20201118005337\/en\/839821\/4\/Yauricocha+Mine.jpg\")
<\/p>\n\n
![\"Photo\"](\"https:\/\/mms.businesswire.com\/media\/20201118005337\/en\/839727\/3\/1C8F688B-76B8-47DB-B43B-AC1C4D5F3CAA.jpg\")
<\/td>\n<\/tr>\n![\"Photo\"](\"https:\/\/mms.businesswire.com\/media\/20201118005337\/en\/839728\/3\/IMG_1776.jpg\")
<\/td>\n<\/tr>\n![\"Photo\"](\"https:\/\/mms.businesswire.com\/media\/20201118005337\/en\/839821\/3\/Yauricocha+Mine.jpg\")
<\/td>\n<\/tr>\n