Sierra Metals Reports Third Quarter 2018 Production Results

TORONTO, Oct. 10, 2018

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

Third Quarter 2018 Production Highlights

• Silver production of 0.7 million ounces; a 44% increase from Q3 2017
  
  
• Copper production of 8.6 million pounds; a 24% increase from Q3 2017
  
  
• Zinc production of 20.8 million pounds; a 5% increase from Q3 2017
  
  
• Lead production of 6.4 million pounds; consistent with Q3 2017
  
  
• Gold production of 1,906 ounces; a 26% increase from Q3 2017
  
  
• Total of 566,194 tonnes processed; a 12% increase from Q3 2017

The Company has been able to continue the successful production increases realized during the last year and a half. Q3 2018 consolidated production of copper increased 24% to 8.6 million pounds, silver increased 44% to 0.7 million ounces, lead remained consistent at 6.4 million pounds, zinc increased 5% to 20.8 million pounds and gold increased 26% to 1,906 ounces compared to Q3 2017.

Metal production at Yauricocha in Q3 increased due to higher ore throughput, higher copper and gold head grades, and higher recoveries of all metals, except gold. At Bolivar, higher ore throughput, higher head grades for all metals, and higher copper and gold recoveries resulted in a 13% increase in copper equivalent production in Q3 2018 compared to Q3 2017. At Cusi, the increase in ore throughput and higher silver head grades resulted in higher silver equivalent production.

Igor Gonzales, President, and CEO of Sierra Metals commented: "I am pleased to see continued improvements in the production results for Q3 2018 including notable increases to consolidated metal production of silver, copper, zinc, and gold.  In the third quarter the Company continued to build upon its strong performance in the first half of the year, despite the weather challenges we experienced at Bolivar. The Yauricocha Mine reported sequential solid production results, and the Cusi Mine continued with its tonnage improvements.

Yauricocha continues to perform with solid tonnage ore throughput in the third quarter. Final infrastructure in the Yauricocha tunnel was completed in the third quarter and the Company is now working to complete the tie-in connections to the existing surface infrastructure which should be completed in the fourth quarter, allowing for increased capacity and handling of larger volumes of ore and waste. The Yauricocha shaft also continues to be sunk to the 1270 level in the fourth quarter providing access to further reserves and resources at the Mine. Yauricocha will see consistent levels of ore throughput in 2018 due to a refurbishment of the lower part of the Mascota Shaft, currently underway, which may potentially cause a slowdown in production rates in the fourth quarter. However, this potential slowdown has already been factored into the Company's 2018 production guidance.