Sierra Metals Inc. (TSX: SMT) (“Sierra Metals” or the “Company”) announces that, in connection with the press release dated March 13^th 2023, it has finalized the definitive agreement (the “Agreement”) with Banco de Credito del Peru and Banco Santander S.A. (together, the “Lenders”) to refinance $18.75 million out of the $25.00 million principal debt repayment obligations that were originally due in 2023 under the Company’s senior secured credit facility. All figures in this news release are stated in U.S. dollars.

The $18.75 million will be due in March 2025. Interest will be accrued at an annualized rate of 6.3% plus the three-month Secured Overnight Financing Rate. In addition, the remaining $6.25 million of the amount owing in 2023, which is not covered as part of the refinancing, will be split in three equal installments due in June, September, and December 2023.

“This refinancing is an important step in the Company’s return to sustainable, long-term growth,” said Ernesto Balarezo, Interim Chief Executive Officer, Sierra Metals. He added, “The updated repayment schedule provides flexibility as we continue to execute on our plan to optimize operations, grow the resources at our core mines and increase production. We appreciate the efforts of our banking partners to reach this agreement.”

In addition to the refinancing of the principal debt repayment obligations for 2023, the Agreement contains certain additional amendments to the terms of the senior secured credit facility, including: (i) covenants regarding executive management continuity; and (ii) mandatory prepayments in the case of excess free cash flow and equity subscription proceeds not required for capital expenditures.

About Sierra Metals

Sierra Metals is a diversified Canadian mining company with green metal exposure including copper, zinc and lead production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru and its Bolivar Mine in Mexico. The Company is focused on the safety and productivity of its producing mines. The Company also has large land packages with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:

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Forward-Looking Statements

This press release contains forward-looking information within the meaning of Canadian and United States securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra Metals and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology. Forward-looking statements include plans to optimize operations, grow the resources at our core mines and increase production. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra Metals to be materially different from any anticipated performance expressed or implied by such forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated March 28, 2023 for its fiscal year ended December 31, 2022 and other risks identified in the Company's filings with Canadian securities regulators, which filings are available at www.sedar.com.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

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