Sierra Metals Inc. reported the results of a Preliminary Economic Assessment (“PEA”) regarding the Company’s Cusi Mine, located in Chihuahua State, Mexico. Highlights of the PEA include: After-tax Net Present Value (NPV): USD 81 Million at an 8% discount rate assuming a long term silver price of USD 20/oz. Incremental benefit of increasing the production to 2,400 TPD from 1,200 TPD is estimated to have an after tax NPV (@8%) of USD 28.1 million, and IRR of 46.8%. Net After-tax Cash Flow: USD 134 Million. Life of Mine & Sustaining Capital Cost: USD 91 Million. Total Operating Unit Cost: USD 35.24/tonne and USD 8.83/oz silver equivalent. Plant Processing Rate after expansion: 2,400 tonnes per day (TPD). Average LOM Grades for Silver 127.2 g/t (4.1 oz/t), Gold 0.12 g/t, Zinc 0.48% and Lead 0.34%. Mine Life: 13 years based on existing Mineral Resource Estimate. Life of Mine Silver Payable Production: 33.4 million ounces.