Sierra Metals Reports Q3-2018 Financial Results at its Sociedad Minera Corona Subsidiary in Peru

TORONTO, Oct. 30, 2018

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated, and have not been adjusted for the 18.2% non-controlling interest.

Corona's Highlights for the Three Months Ended September 30, 2018

• Revenues decreased by 4% to US$38.1 million vs. US$39.6 million in Q3 2017
• Adjusted EBITDA decreased by 6% to US$17.6 million vs. US$18.8 million in Q3 2017
• Total tonnes processed increased by 6% to 283,446 vs. 268,178 in Q3 2017
• Net production revenue per tonne of ore milled decreased by 10% to US$132.45
• All in sustaining cost ("AISC") per zinc equivalent payable pound lower by 20% to US$0.66
• Zinc equivalent production of 42.9 million pounds vs. 36.9 million pounds in Q3 2017
• $27.8 million of cash and cash equivalents as at September 30, 2018
• $41.7 million of working capital as at September 30, 2018

Igor Gonzales, President and CEO of Sierra Metals commented: "Corona's 2018 third quarter results continue to deliver performance from the Mine through stable metal production and tonnage throughput when compared to Q3 2017. However, softer realized metal prices have resulted in a small decrease in revenue and adjusted EBITDA over the same period in 2017, partially offset by lower cash and all-in sustaining costs per zinc equivalent payable pound.  The Company is still reporting a 12% increase in revenue and adjusted EBITDA when comparing nine months of 2018, to the same period in 2017. Overall, I am happy with the efforts made at Yauricocha to maximize the operational and financial performances which continue to benefit from well-made capital investments at the Mine."

He continued, "based on the positive Preliminary Economic Assessment study completed we are now working towards the first stage of expansion plans at Yauricocha which we expect to take effect in 2019 once all permits are received. We have also commenced pre-feasibility and feasibility studies on a potential secondary stage expansion plan at the Mine.  Management are confident that the outlook for the Yauricocha Mine remains positive for sustained success. The Company continues to have a solid balance sheet, and strong liquidity, to meet its growth and operational expenditure requirements. We look forward to the developments taking place over the fourth quarter, including the completion of the Yauricocha tunnel infrastructure, the rehabilitation of the Mascota shaft, as well as the continued sinking of the Yauricocha shaft providing access to a significant amount of reserves and resources recently delineated. These projects will enable our team to operate more efficiently and effectively and ultimately will provide for a stronger balance sheet for Sierra Metals.  Furthermore, the Company continues to have success in its drilling campaigns at the Mine as evidenced in a recent press release dated October 1, 2018, demonstrating the existence of porphyry style mineralization at Yauricocha and a great opportunity for further expansion potential at the Mine. Yauricocha remains a solid contributor with growth potential and additional brownfield exploration opportunities."

The following table displays selected unaudited financial information for the three and nine months ("9M 2018") ended September 30, 2018: