Sierra Metals closes US$100mn credit facility

PRESS RELEASE

TORONTO--(BUSINESS WIRE)-- Sierra Metals Inc. (TSX:SMT) (NYSE American:SMTS) (BVL:SMT) ("Sierra Metals" or the "Company") announces today that it has entered into a new six-year senior secured corporate credit facility ("Corporate Facility") with Banco de Credito del Peru ("BCP") that provides funding of up to US$100 million effective March 8, 2019. The Corporate Facility provides the Company with additional liquidity and will provide the financial flexibility to fund future capital projects in Mexico as well as corporate working capital requirements. The Company will also use the proceeds of the new facility to repay existing debt balances in the near term.

The most significant terms of the Corporate Facility are as follows:

- Term: 6-year term maturing March 2025

- Principal Repayment Grace Period: 2 years

- Principal Repayment Period: 4 years

- Interest Rate: 3.15% + LIBOR 3M

The Corporate Facility is subject to customary covenants, including consolidated net leverage and interest coverage ratios and customary events of default.

Igor Gonzales, President and CEO of Sierra Metals commented, "The new Corporate Facility combined with our strong cash flow provides greater financial flexibility to our capital structure and will enhance our ability to implement growth initiatives in line with the Company's strategic plan. The main use of this facility is to repay the existing BCP credit facility at our Diabras Peru subsidiary, which was established at the time of the Sociedad Minera Corona acquisition in 2011. The new structure provides a more efficient capital structure that would allow us to better meet the growth plans for Sierra Metals in the future."

About Sierra Metals

Sierra Metals Inc. is a 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.

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.