Surface sampling at Old Mina de Fierro, located between the El Gallo and Alta Ley areas, returned an average from 31 samples of 0.988 g/t gold, 42 g/t silver and 0.91% copper.

• Drill hole DB13B438 at Bolivar NW intercepted several zones of mineralization, including 2.35 m true width averaging 1.049 g/t gold, 176 g/t silver and 2.03% copper.

Table A: Results of Sampling in the Old Mina de Fierro Area

Note: Samples in bold collected from the main mineralized zone.

These results show that potentially-economic widths of mineralization occur in the area.  Although the area between the new Mina de Fierro tunnel and the sampled area is scree-covered, the Company’s geologists believe that the Lower Skarn horizon is mineralized throughout this area and can eventually be mined from El Gallo to Alta Ley, yielding a larger volume to the El Gallo deposit than that currently identified. 

Drilling continues in the Bolivar NW area of the Alta Ley mine of the Bolivar property and is returning potentially-economic grades and widths (link to map). Table B below shows the results from recent drilling:

Table B: Selected Drill Results from the Bolivar NW Area

Note *: all holes have prefix DB13B

Drilling in the Bolivar NW area has demonstrated that an area over 600 x 300 meters in extent contains significant widths of copper-zinc-gold-silver mineralization.  Drill spacing at this time is too wide to allow calculation of a 43-101 compliant resource but the Company plans to continue drilling this attractive area with the objective of eventually commissioning a resource update that will include the Bolivar NW area as well as other areas outside the current resource volume.

Bolivar Mine

Bolivar comprises 12 mining concessions covering approximately 6,616 hectares within the municipality of Urique, in the Piedras Verdes mining district of Chihuahua, Mexico. During 2011, the Company completed the construction of the Piedras Verdes Mill, which is located only 6 kilometres from the Bolivar Mine and has an initial capacity of 1,000 tpd, resulting in a declaration of commercial production on November 29, 2011. A construction project to increase production to 2,000 tpd is expected to be completed in 2013. 

During the past 3 months ending on June 30, 2013, Bolivar produced a daily average of 1,010 tonnes at a grade of 1.23% Cu, 0.75% Zn and 30.3 g/t Ag with respective recoveries of 85.21% for Cu, 44.92% Zn and 85.58% Ag.

Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora, La Verde (gold) at the Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo Property in the state of Zacatecas.

The Company’s shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol “SMT”.

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

Sample Location Map of the Old Mina de Fierro Area

Long Section of the Mina de Fierro

Section along N60E Showing Sample Sites on the Surface and in the Old Mina de Fierro Tunnel

Drill Hole Location Map for Bolivar NW