Sierra Metals Reports Record Third Quarter 2016 Production Results

TORONTO, Oct. 17, 2016

TORONTO, Oct. 17, 2016 /PRNewswire/ - Sierra Metals Inc. (TSX: SMT) (BVL: SMT) ("Sierra Metals" or "the Company") reports third quarter production results featuring record mine ore throughput for the Company, as well as record quarterly throughput at its Yauricocha Mine in Peru and at its Bolivar Mine in Mexico and the second highest quarter of metal production in its history.

Results are from Sierra Metals' three underground mines in Latin America: The Yauricocha polymetallic Mine in Peru and the Bolivar Copper mine and Cusi silver Mine in Mexico.

Third Quarter Highlights

• Total of 536,553 tonnes processed; a 19% increase from Q3 2015 production
• Silver equivalent production of 3.2 million ounces; a 25% increase from Q3 2015 production
• Copper equivalent production of 21.3 million pounds; a 25% increase from Q3 2015 production
• Increase of 8% in silver equivalent production for the Company during Q3 2016 vs Q2 2016
• Increase of 15% in silver equivalent production at Yauricocha during Q3 2016 vs Q2 2016
• Record throughput at both the Yauricocha and Bolivar Mines during Q3 2016

During Q3 2016, consolidated metal production increased compared to Q3 2015 production, and achieved the second best level of quarterly metals production in the Company's history, due to record plant throughput, higher head grades and higher recoveries at the Yauricocha Mine in Peru, as well as record plant throughput at the Bolivar Mine in Mexico. This was partially offset by a decrease in head grades at the Bolivar Mine and the decrease in throughput, head grades and recoveries at the Cusi Mine.

"I am very pleased to see significant benefits from the operational improvement program at the Yauricocha Mine continuing to have a strong impact on operational results." commented Mark Brennan, President and CEO of Sierra Metals. "We anticipate improved consolidated results quarter over quarter in the current year."

He continued, "Mexico also saw benefits at both mines as a result of plant improvements. In Bolivar, the installation of a new screening plant and cyclones resulted in improved recoveries, while at Cusi, the installation of a screening plant, a zinc circuit and an improved cyclone rack resulted in recovery and grade improvements in the lead and zinc circuits. The ongoing focus at Bolivar will be to improve the value per tonne of ore mined while at Cusi, grade control and selective mining practices will be the focus.