Sierra Metals Inc. announced that continued drilling at its Yauricocha mine in Peru has expanded to depth known mineralization in the Central Mine Area. Highlights: The company has completed its second round of drilling to expand resources and reserves in the Central Mine Area by completing 12,263.2 meters of diamond drilling in 65 holes. Drilling has extended known mineralization an additional 150 meters to depth in the Rosaura and Antacaca Sur orebodies.

Drilling has increased the certainty of mineralization in the Antacaca, Antacaca Sur, Catas and Rosaura orebodies. Wide widths of high grade mineralization have been intercepted in all three of the major ore deposit types and high grades of gold continue to be found in the pyritic ore type; for example: Polymetallic Ore: 5.0 meters (true width) averaging 238 g/t silver, 2.62% lead, 1.08% copper, 17.90% zinc and 1.64 g/t gold in hole ANT-11-12-15 Copper Ore: 25.7 meters (true width) averaging 21.6 g/t silver, 3.20% copper and 0.93 g/t gold in hole CAT-14-12-25. Oxide Ore: 5.3 meters (true width) averaging 58 g/t silver, 3.56% lead and 8.83% zinc in hole CAT-14-12-22.

Pyritic Ore: 2.4 meters (true width) averaging 3.67 g/t gold, 34.3 g/t silver, 3.99% zinc and 0.63% copper in hole CAT-14-12-22. The second round of drilling had the objective to increase further the total resource tonnage of these orebodies, increase the tonnes in Measured & Indicated Resources, and demonstrate the longer mine life expected by the Company. In order to accomplish this goal, during this second round the Company has drilled 12,263.2 meters of diamond core in 65 holes.

The coding for the drill hole numbers is as follows: for drill hole ANT-11-12-08 the sequence is: Orebody Drilled - Level from which hole was drilled - year hole was drilled - number of hole drilled from that level. Drilling continues in the Central Mine Area from Level 920 with the objective of exploring the orebodies Antacaca, Antacaca Sur and Rosaura to the 1220 level, a vertical distance of 300 meters below the existing workings. These results will be used to determine the continuity of these bodies to depth and to estimate additional mineral resources that will be converted to mine reserves according to NI 43-101 standards.