Highest Quarterly Throughput To Date At The Cusi Mine

TORONTO - Sierra Metals Inc. reported that it achieved record quarterly throughput from the Cusi Mine in Mexico, and the third highest quarterly throughput from the Bolivar Mine in Mexico, continuing the successful production increases realized in Mexico during 2018. Consolidated production of silver increased 16% to 0.7 million ounces, copper declined 4% to 7.7 million pounds, lead increased 10% to 7.0 million pounds, zinc declined 10% to 16.4 million pounds, and gold increased 2% to 1,986 ounces compared to Q1 2018.

The Yauricocha Mine processed 233,814 tonnes during Q1 2019, representing a 14% decrease from Q1 2018. The Yauricocha Mine experienced a 14% reduction in throughput during Q1 2019 compared to Q1 2018 due to the illegal strike action initiated by members of the Union of the Mine and Metallurgical Workers of Minera Corona on March 19, 2019. This illegal strike was resolved on April 12, 2019, however, resulted in a total of 12 days of lost production during March 2019. Regular operations at the mine and mill resumed on April 14, 2019, and management believes that any production lost during this strike action should not materially affect the Company’s annual production guidance. Despite the reduction in throughput, higher head grades and recoveries for all metals, except gold head grades, realized at Yauricocha resulted in a 3% increase in zinc equivalent pounds produced during Q1 2019 compared to Q1 2018. At Bolivar, a 14% decline in copper head grades, and slightly lower silver and gold recoveries, offset the increase in silver and gold head grades, and copper recoveries, and resulted in an 7% decrease in copper equivalent pounds produced during Q1 2019 compared to Q1 2018. At Cusi, throughput reached approximately 815 tonnes per day (“tpd”) during Q1 2019, and the Company continues to work towards reaching the 1,200 tpd mark during Q2 2019. The 165% increase in throughput realized during Q1 2019 resulted in a 64% increase in silver equivalent ounces produced, despite lower head grades and recoveries for all metals as we continue to develop deeper into the Santa Rosa de Lima zone which has higher head grades. Igor Gonzales, President and CEO of Sierra Metals, said, “The Company has started 2019 with solid production results despite an illegal strike action which occurred at our Yauricocha Mine. This can be attributed to in part to stronger performance from our Mexican Mines including record production at the Cusi Mine where we are reaping the benefits of operational improvement programs and the initial stage of mill expansion at both the Cusi and Bolivar Mines. The Company has also initiated scoping studies which are expected by mid-year 2019 to analyze future operational production increases and continue development at all three Mines. We are also working to update the NI 43-101 Technical Reports with an updated report expected at the end of Q2-2019 for the Yauricocha Mine, and at the end of Q4-2019 for the Bolivar and Cusi Mines. Yauricocha, as noted above did experience an illegal strike action which impacted production in Q1-2019, however, on an annualized basis any production lost during should not materially affect the Company’s annual production guidance.  The company’s address is 161 Bay St., Suite 4260, Toronto, ON M5J 2S1, (416) 366-7777, www.sierrametals.com.