Mineral Resource Estimate Increases At Cusi Silver Mine, Mexico

TORONTO - Sierra Metals Inc. updated its Mineral Resource Estimate at the Company's Cusi Mine, located in Chihuahua State, Mexico. The Company believes that the Santa Rosa de Lima zone and the Northeast-Southwest demonstrates strong potential for further structural extensions of high-grade zones at the Company's Cusi Mine. Conversion of some of the higher grade to measured and indicated resources has been the priority for the Cusi exploration efforts. The updated Mineral Resource Estimate disclosed herein is the result of drilling programs completed between January 2018 and August 2020.

"Sierra's management team is extremely pleased with the increases realized in the measured and indicated resources, and the significant increase in the inferred resources reported in this resource estimate for the Cusi Mine,” said, Luis Marchese, CEO. “When compared to the previous estimate filed in February 2018, the Company saw an 18% increase to the measured and indicated resource tonnage and a 200% increase in the inferred resource tonnage. These increases represent a significant amount of additional drilling and mine exploration development work completed at the Cusi Mine, which included the Santa Rosa de Lima Zone as well as the Northeast-Southwest zone, which have strong potential for further structural extensions of high-grade zones. The Company remains committed to resource growth through brownfield exploration and this resource estimate confirms the presence of additional high-quality tonnage at the Cusi Mine allowing the Company to study the potential for production increases going forward. We remain committed to brownfield exploration programs at the Cusi mine with the aim of further mineral resource expansions. This updated mineral resource estimate is the foundation of our upcoming Preliminary Economic Assessment update that will help us to determine the most capital efficient expansion scope for the Cusi mine, in a similar way that we have evaluated the Yauricocha Mine in Peru and Bolivar Mine in Mexico."