(All $ figures reported in USD)

• Adjusted EBITDA of $12.0 million in Q1 2019 decreased from $27.4
  million in Q1 2018
• Operating cash flows before movements in working capital of $11.8
  million in Q1 2019 decreased from $27.4 million in Q1 2018
• Revenue from metals payable of $49.2 million in Q1 2019 decreased
  from $61.7 million in Q1 2018 due to lower throughput and lower
  realized metal prices
• Q1 2019 consolidated copper production of 7.7 million pounds,
  consolidated silver production of 0.7 million ounces, consolidated
  zinc production of 16.4 million pounds, consolidated lead production
  of 7.0 million pounds, and consolidated gold production of 1,986
  ounces; a 4% decrease, 16% increase, 10% decrease, a 10% increase, and
  a 2% increase respectively, compared to Q1 2018, management expects
  that annual production guidance will still be met⁽¹⁾
• Record quarterly throughput at the Cusi Mine in Mexico
• $23.9 million of cash and cash equivalents as at March 31, 2019
• Net Debt of $45.0 million as at March 31, 2019
• The Company through its Normal Course Issuer Bid has to date
  repurchased and cancelled a total of 907,266 shares at an average VWAP
  of C$2.04
• Shareholder conference call to be held Tuesday, May 14, 2019, at
  10:30 AM (EST)

(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q1 2019 were calculated using the following realized prices:
$15.57/oz Ag, $2.85/lb Cu, $0.94/lb Pb, $1.23/lb Zn, $1,305/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for Q1
2018 were calculated using the following realized prices: $16.75/oz Ag,
$3.14/lb Cu, $1.15/lb Pb, $1.56/lb Zn, $1,334/oz Au.

TORONTO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/Capex?src=hash” target=”_blank”gt;#Capexlt;/agt;–Sierra Metals Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS)
(“Sierra Metals” or the “Company”) today reported revenue of $49.2
million and adjusted EBITDA of $12.0 million on throughput of 568,401
tonnes and metal production of 4.0 million silver equivalent ounces, or
21.8 million copper equivalent pounds, or 50.6 million zinc equivalent
pounds for the three month period ended March 31, 2019.

The Company has continued to be successful in maintaining positive
operating cash flow generation from its existing operations in order to
reduce debt levels, fund required capital expenditures, and maintain
liquidity.

Despite the loss of 12 days of production at the Yauricocha Mine during
March 2019 due to the illegal strike action which has subsequently been
resolved, the mine continued its strong operational performance during
Q1 2019, realizing an increase in zinc equivalent metal production
compared to Q1 2018. The revenues and Adjusted EBITDA generated during
Q1 2019 allowed the Company to fund its capital expenditure programs and
repay some of the existing debt obligations, despite a challenging metal
price environment.

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The Company achieved record quarterly throughput from the Cusi Mine, and
the third highest quarterly throughput from the Bolivar Mine, 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.

Igor Gonzales, President, and CEO of Sierra Metals stated: “The first
quarter has presented us with several challenges including an illegal
strike at Yauricocha, as well as slower than expected ramp up of
throughput at Bolivar and Cusi with lower head grades and recoveries. I
want to assure shareholders that management remains focused on the
expansions in Mexico and improving tonnage, head grades, and recovery
rates which in turn will help to lower costs. Also, as noted above, it
still bears mentioning that in Q1 2019 Yauricocha saw an increase in
zinc equivalent metal production, Cusi had record throughput and Bolivar
had a 1% increase in throughput over Q1 2018. Subsequent to Q1 2019,
throughput rates continue to improve. At Yauricocha the strike
has been settled and the mine is working to full capacity. In Mexico,
production increases are expected to become more apparent in late Q2
2019 when we should reach higher throughput rates at both Bolivar and
Cusi. Production is also expected to be higher in the latter half of
2019 when the mines are running at the higher throughput rates. Cash
flow continues to be strong and with continued efforts, we expect to see
further improvements in cash flow and good returns on the capital being
invested. Management expects that the Company will still be within the
annual production guidance provided.

We continue to modernize and improve all our Mines, implementing best
operational practices. These improvements are expected to allow for the
Company to increase metal production over the course of the coming year.
Our Company-wide ongoing brownfield exploration programs should also
lead to further significant growth in reserves and resources, which will
add to the value of our assets during the year ahead.”

He continued, “Sierra Metals’ balance sheet remains strong with the
liquidity needed to meet our operational and growth expenditure
requirements. The Company is on-track for further growth in 2019
based upon positive PEA studies which demonstrates robust growth
opportunities for the Company at all Mines. We continue working
on Life of Mine plans which are expected to be completed in mid-2019.
Furthermore, NI 43-101 Technical Reports are expected to be completed
for the Yauricocha Mine by the end of Q2 2019 and for Bolivar and Cusi
Mines by the end of Q4 2019. We are very optimistic that these updated
reports will provide for additional reserves and resources at all Mines.”

The following table displays selected financial and operational
information for the three months ended March 31, 2019:

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MDA Selected Financial Results
			Three Months Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)			March 31, 2019					March 31, 2018
Operating
Ore Processed / Tonnes Milled				568,401					557,710
Silver Ounces Produced (000’s)				691					594
Copper Pounds Produced (000’s)				7,732					8,090
Lead Pounds Produced (000’s)				6,954					6,312
Zinc Pounds Produced (000’s)				16,421					18,214
Gold Ounces Produced				1,986					1,952
Copper Equivalent Pounds Produced (000’s)1				21,767					23,445
Zinc Equivalent Pounds Produced (000’s)1				50,562					47,209
Silver Equivalent Ounces Produced (000’s)1 Advertisement				3,988					4,394
Cash Cost per Tonne Processed			$	51.77				$	46.66
Cost of sales per AgEqOz			$	8.48				$	7.15
Cash Cost per AgEqOz2			$	8.30				$	6.77
AISC per AgEqOz2			$	13.71				$	9.85
Cost of sales per CuEqLb2			$	1.55				$	1.34
Cash Cost per CuEqLb2			$	1.52				$	1.27
AISC per CuEqLb2			$	2.51				$	1.85
Cost of sales per ZnEqLb2			$	0.67				$	0.67
Cash Cost per ZnEqLb2			$	0.66				$	0.63
AISC per ZnEqLb2			$	1.08				$	0.92
Cash Cost per ZnEqLb (Yauricocha)2			$	0.54				$	0.57
AISC per ZnEqLb (Yauricocha)2			$	0.85				$	0.82
Cash Cost per CuEqLb (Bolivar)2			$	2.04				$	1.29
AISC per CuEqLb (Bolivar)2			$	3.59				$	1.94
Cash Cost per AgEqOz (Cusi)2			$	16.53				$	18.34
AISC per AgEqOz (Cusi)2			$	30.57				$	28.33
Financial Advertisement
Revenues			$	49,180				$	61,675
Adjusted EBITDA2			$	12,041				$	27,403
Operating cash flows before movements in working capital			$	11,804				$	27,348
Adjusted net income attributable to shareholders2			$	886				$	11,187
Net income (loss) attributable to shareholders			$	(1,724	)			$	8,703
Cash and cash equivalents			$	23,937				$	25,514
Working capital(3)			$	(19,795	)			$	(1,576	)
(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2019 were calculated using the following realized prices: $15.57/oz Ag, $2.85/lb Cu, $0.94/lb Pb, $1.23/lb Zn, $1,305/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2018 were calculated using the following realized prices: $16.75/oz Ag, $3.14/lb Cu, $1.15/lb Pb, $1.56/lb Zn, $1,334/oz Au.
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(3) The decrease in working capital was due to the Corona Acquisition Facility with BCP being classified as a current liability, as it was repaid in full during May 2019.

Q1 2019 Financial Highlights

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Revenue from metals payable of $49.2 million in Q1 2019 decreased by 20%
from $61.7 million in Q1 2018. The decrease in revenues was partially
due to a 14% decrease in tonnes processed at the Yauricocha Mine 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; which was
partially offset by higher head grades and recoveries for all metals,
except gold head grades at Yauricocha. Lower revenues were also affected
by the decreases in the prices of silver (7%), copper (9%), zinc (21%),
lead (18%), and gold (2%). Additionally, lower copper head grades and
silver and gold recoveries realized at the Bolivar Mine resulted in a
15% decrease in revenues, while Cusi’s revenues increased by 61% due to
the 165% increase in throughput, quarter over quarter.

Yauricocha’s cash cost per zinc equivalent payable pound was $0.54 (Q1
2018 – $0.57), and AISC per zinc equivalent payable pound of $0.85 (Q1
2018 – $0.82). The increase in the AISC per zinc equivalent payable
pound for Q1 2019 compared to Q1 2018 was due to the increase in
treatment and refining charges for the zinc concentrate sold. This was
partially offset by the increase in zinc equivalent payable pounds as
the Company realized higher head grades and recoveries for all metals,
except gold head grades.

Bolivar’s cash cost per copper equivalent payable pound was $2.04 (Q1
2018 – $1.29), and AISC per copper equivalent payable pound was $3.59
(Q1 2018 – $1.94) for Q1 2019 compared to Q1 2018. The increase in the
AISC per copper equivalent payable pound during Q1 2019 compared to Q1
2018 due to higher labour and contractor costs incurred related to stope
and ramp development within the mine required to increase throughput to
the 3,600 tpd and 4,000 tpd level. The majority of these costs are
included in opex. Additionally, sustaining capital expenditures were
$3.6 million higher in Q1 2019 compared to Q1 2018 and related to the
purchase of mining equipment, mine development costs, exploration
drilling within the mine, and plant improvements required to produce
3,600 to 4,000 tpd.

Cusi’s cash cost per silver equivalent payable ounce was $16.53 (Q1 2018
– $18.34), and AISC per silver equivalent payable ounce was $30.57 (Q1
2018 – $28.32) for Q1 2019 compared to Q1 2018. AISC per silver
equivalent payable ounce increased due to higher sustaining capital
expenditures incurred due to investments made in the concentrator plant
in order to increase throughput to 1,200 tpd during Q2 2019.

Adjusted EBITDA⁽¹⁾ of $12.0 million for Q1 2019 decreased
compared to $27.4 million in Q1 2018. The decrease in adjusted EBITDA in
Q1 2019 was due to the decrease in revenues realized at Yauricocha and
Bolivar, mainly due to the illegal strike action at Yauricocha and a
decrease in the prices of all metals.

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Cash flow generated from operations before movements in working capital
of $11.8 million for Q1 2019 decreased compared to $27.3 million in Q1
2018. The decrease in operating cash flow is mainly the result of lower
revenues generated and lower gross margins realized.

Net income (loss) attributable to shareholders for Q1 2019 was $(1.7)
million (Q1 2018: $8.7 million) or $(0.01) per share (basic and diluted)
(Q1 2018: $0.05).

Cash and cash equivalents of $23.9 million and working capital of
$(19.8) million as at March 31, 2019 compared to $21.8 million and
$(8.3) million, respectively, at the end of 2018. The decrease in
working capital was due to the Corona Acquisition Facility with BCP
being classified as a current liability, as it was repaid in full during
May 2019. Cash and cash equivalents have increased by $2.1 million
during Q1 2019 due to $1.5 million of operating cash flows, and $20.7
million drawn down from the new Senior Secured Corporate Facility, being
partially offset by capital expenditures incurred in Mexico and Peru of
$(11.3) million, $(0.1) million of share repurchases, and repayments of
loans, credit facilities and interest of $(8.7) million.

⁽¹⁾ This is a non-IFRS performance measure, see Non-IFRS
Performance Measures section of the MD&A.

Debt Refinancing Update

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During Q1 2019 the Company announced the Closing of a $100 million
Senior Secured Corporate Credit Facility in March. The facility has a
6-year term with a 2-year grace period and has a rate of Libor +3.15%.
This facility will provide the Company with additional liquidity and
will offer financial flexibility to fund future capital projects in
Mexico as well as working capital requirements. The Company will also
use the proceeds of the Corporate Facility to repay existing debt in the
near term.

Subsequent to end of the first quarter, on May 9th, the Company repaid
the remaining $33.2 million existing on the Corona Acquisition Facility
with BCP and the $15.0 million existing on the Revolving Credit Facility
with BCP, after drawing funds from the Senior Secured Corporate Credit
Facility.

Project Development

The Company reported the resolution of the illegal strike action at the
Yauricocha Mine that ran from March 19 – April 13, 2019. During the
strike there were no material situations that took place and an
agreement was been reached whereby no contractors dismissed as part of
the contractor change will be reinstated, which was the initial reason
for the strike.

Mine development at Bolívar during Q1 2019 totaled 1,454 meters. A
portion of the meters (1,070m) were developed to prepare stopes for mine
production. The remainder of the meters (384m) were related to the
deepening of ramps and developing service ramps to be used for
ventilation and pumping in the Lower El Gallo Inferior orebody and
Bolivar West orebody.

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During Q1 2019, at the Cusi property, mine development totaled 1,251
meters, which included 100 meters of ramp development at the Santa Rosa
de Lima Zone; the rest of the development related to stope preparation
in various zones within the mines.

Exploration Update

Peru:

During Q1 2019, the Company drilled 59 holes totaling 9,345 meters at
Yauricocha. The drilling included the following:

Exploration Drilling:

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• Copper Porphyry Mineralization (Central Mine Zone Level 720): 2 holes
  totaling 1,849 meters were drilled to continue to test the priority
  anomaly located in the monzonite intrusive zone, where a copper
  molybdenum mineralized porphyry was discovered earlier in the year;
  drill results continue to display the presence of a copper molybdenum
  porphyry orebody, where we have observed typical alterations, as well
  as copper mineralization disseminated in the encased rock, as veinlets
  with quartz and copper are present with molybdenum;
• Antacaca Orebody (Level 1070 Central Mine Zone): 2 holes totaling
  1,029 meters to explore the continuity of mineralization of the
  orebody at depth; the hole confirmed the continuity of this
  mineralized orebody at depth, with magnetite mineralization with
  nodules of chalcopyrite;
• Contacto Occidental Orebody (Level 1070 Central Mine Zone): 11 holes
  totaling 1,644 meters to explore the continuity of this high-grade
  orebody at depth; six of the drill holes had positive results and
  allowed us to confirm and define the irregularities of the gaps within
  the orebody;

Definition Drilling:

• Esperanza (Level 1020 Central Mine Zone): 5 holes totaling 639 meters
  which confirmed the continuity of mineralization of the orebody; holes
  were executed between the sublevel development level 8 meters above
  the 1020 level;
• Esperanza Distal (Level 1020 Central Mine Zone): 15 holes totaling
  1,661 meters to further define the continuity of this mineralized
  orebody in order to bring it into production during Q3 2019;
• Catas (1070 Level Central Mine Zone): 13 holes totaling 1,440 meters
  to define and provide greater certainty for the continuity of the
  orebody down to the 16^th floor of the 1120 level;
• Karlita (870 Level Cachi Cachi Mine): 11 holes totaling 1,083 meters
  to provide more certainty to the resources existing on the 16^th
  floor of the 920 level of the mine.

Mexico:

Bolivar

• At Bolívar during Q1 2019, 8,240 meters were drilled from surface as
  well as diamond drilling within the mine. 1,794 meters were drilled
  within the mine in the El Gallo zone to the northwest and southeast to
  determine the continuity of the skarn orebody. Surface exploration
  drilling was performed in the Bolívar West, South extension, area with
  1,234 meters drilled, and 2,748 meters in the Bolivar West/Lylli area,
  encountering skarn intersections with some mineralization. Exploration
  drilling was started to determine the potential of the Lower Gallo
  zone to the southeast, which included 708 meters drilled which
  encountered intersections of skarn with some mineralization. 1,756
  meters of geotechnical holes were drilled to determine the type of
  rock that exists near the potential Bolivar West/Piedras Verdes plant
  tunnel project.

Cusi

• During Q1 2019 the Company drilled 1,261 meters to support the
  development of the Santa Rosa de Lima vein in Promontorio to further
  verify the size and continuity of the orezone. In addition, 3,656
  meters of surface diamond drilling was performed to explore the depth
  of the mineralized structure of San Nicolas, San Rafael and Santa Rosa
  de Lima.

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Tuesday,
May 14, 2019, at 10:30 AM (EDT) to discuss the Company’s financial and
operating results for the three months ended March 31, 2019.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s
website:

https://event.on24.com/wcc/r/1956428/CAFED0BBE1AF315572FFBCA7456DFCF6

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The webcast along with presentation slides will be archived for 180 days
on www.sierrametals.com.

Via phone:

For those who prefer to listen by phone, dial-in instructions are below.
To ensure your participation, please call approximately five minutes
before the scheduled start time of the call.

Participant Number (Toll-Free North America): (833) 245-9659
Participant
Number (Toll-Free Peru): 0800-71-476
Participant Number
(International): +1 (647) 689-4231
Conference ID: 6988769

Quality Control

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All technical production data contained in this news release has been
reviewed and approved by Gordon Babcock, P.Eng., Chief Operating Officer
and a Qualified Person under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.

Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of
Corporate Planning is a Qualified Person and chartered professional
qualifying as a Competent Person under the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President Special
Projects and Metallurgy and a chartered professional qualifying as a
Competent Person on metallurgical processes.

About Sierra Metals

Sierra Metals Inc. is Canadian based growing polymetallic mining company
with production from its Yauricocha Mine in Peru, and its Bolivar and
Cusi Mines in Mexico. The Company is focused on increasing production
volume and growing mineral resources. Sierra Metals has recently had
several new discoveries and still has additional brownfield exploration
opportunities at all three Mines in Peru and Mexico that are within or
close proximity to the existing Mines. Additionally, the Company has
large land packages at all three Mines with several prospective regional
targets providing longer term exploration upside and mineral resource
growth potential.

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The Company’s Common Shares trade on the Bolsa de Valores de Lima and on
the Toronto Stock Exchange under the symbol “SMT” and on the NYSE
American Exchange under the symbol “SMTS”.

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

Continue to Follow, Like and Watch our progress:

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Forward-Looking Statements

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This press release contains “forward-looking information” and
“forward-looking statements” within the meaning of Canadian and U.S.
securities laws related to the Company (collectively, “forward-looking
information”). Forward-looking information includes, but is not limited
to, statements with respect to the Company’s operations, including the
anticipated developments in the Company’s operations in future periods,
the Company’s planned exploration activities, the adequacy of the
Company’s financial resources, and other events or conditions that may
occur in the future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties are
developed or further developed. These statements relate to analyses and
other information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects”, “anticipates”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”,
“objectives”, “potential” or variations thereof, or stating that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not statements of historical fact and may be
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, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions, cave-ins,
weather conditions and criminal activity; commodity price fluctuations;
higher operating and/or capital costs; lack of available infrastructure;
the possibility that future exploration, development or mining results
will not be consistent with the Company’s expectations; risks associated
with the estimation of mineral resources and the geology, grade and
continuity of mineral deposits and the inability to replace reserves;
fluctuations in the price of commodities used in the Company’s
operations; risks related to foreign operations; changes in laws or
policies, foreign taxation, delays or the inability to obtain necessary
governmental permits; risks relating to outstanding borrowings; issues
regarding title to the Company’s properties; risks related to
environmental regulation; litigation risks; risks related to uninsured
hazards; the impact of competition; volatility in the price of the
Company’s securities; global financial risks; inability to attract or
retain qualified employees; potential conflicts of interest; risks
related to a controlling group of shareholders; dependence on third
parties; differences in U.

Contacts

Mike McAllister
VP, Investor Relations
Sierra Metals
Inc.
+1 (416) 366-7777
[email protected]

Ed Guimaraes
CFO
Sierra Metals Inc.
+1 (416)
366-7777

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Igor Gonzales
President & CEO
Sierra Metals Inc.
+1
(416) 366-7777

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