Mexico

Sierra Metals Inc. is one of the largest property holders in the Cusihuiriachic (“Cusi”) mining district with land package of over 230,000 hectares. The Company’s most advanced asset in Mexico is the Bolivar mine located in the Piedras Verdes mining district. The Bolivar mine is a low cost copper-zinc-silver producing asset that achieved commercial production in November 2011. The Company completed an updated NI 43-101 compliant resource in the Fall of 2012 and plans to expand production to 2,000 tpd in 2013.

The Company also owns a substantial base of advanced exploration properties in Chihuahua, Mexico. The Cusi project encompasses 60 concessions covering 11,319 ha that include 12 inactive mines and is located within 40 km of the Company’s Malpaso Mill. Currently, development ore from Cusi is being processed at the Malpaso Mill to generate revenues and evaluate the potential to advance the property towards commercial production. Additionally, Sierra Metals is undertaking an aggressive exploration and development programme at Cusi with plans to complete an updated NI 43-101 compliant resource estimate in early 2013.

The Company is dedicated to maintaining a steady project pipeline that will continue to increase value in the future. In addition to Bolivar and Cusi Sierra Metals continues advancing highly prospective exploration properties towards development and production.