Vancouver, BC – January 23, 2014 – Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (“Sierra Metals” or the “Company”) is pleased to announce its 2013 annual and fourth quarter production results and to issue the production guidance for 2014.

Press Release Highlights:

• Total tonnes of ore processed of 1,321,782 in 2013 compared to 1,269,850 tonnes in 2012. A 4.1% increase year-over-year. During the fourth quarter of 2013, the Company achieved a total of 390,780 tonnes of ore processed compared to 343,076 tonnes in 2012 from all operations, representing a 14% increase year-over-year.

• Total silver (‘‘Ag’’) production of 2,560,467 ounces (‘’oz’’) in 2013 compared to 2,620,774 oz in 2012. Slightly below with the previous year. In the fourth quarter of 2013 a total of 653,705 oz was produced compared to 683,938 oz for the same period of 2012. A 4% decrease year-over-year.

• Total copper (‘‘Cu’’) production of 15.9 million pounds (‘’lb’’) in 2013 compared to 15.9 million lb in 2012. In line with the previous year. In the fourth quarter of 2013 a total of 4.8 million lb was produced compared to 4.3 million lb for the same period of 2012. An 11% increase year-over-year.

• Total lead (‘‘Pb’’) production of 38.0 million lb in 2013 compared to 35.7 million lb in 2012. A 6% increase year-over-year. In the fourth quarter of 2013 a total of 11.3 million lb was produced compared to 8.7 million lb for the same period of 2012. A 30% increase year-over-year.

• Total zinc (‘‘Zn’’) production of 51.7 million lb in 2013 compared to 59.0 million lb in 2012. A 12% decrease year-over-year. In the fourth quarter of 2013 a total of 13.4 million lb was produced compared to 14.7 million lb for the same period of 2012. A 9% decrease year-over-year.

• Total gold (‘‘Au’’) production at the Yauricocha Mine was 6,736 oz in 2013 compared to 10,491 oz in 2012. A 36% decrease year-over-year. In the fourth quarter of 2013 a total of 1,665 oz was produced compared to 2,181 oz for the same period of 2012. A 24% decrease year-over-year.

• Production Guidance for 2014

• Silver:    2,535,000 oz – 2.695,000 oz


• Copper: 22.6 million lb – 24.1 million lb


• Lead:     31.3 million lb – 33.0 million lb 


• Zinc:      43.5 million lb – 45.8 million lb


• Gold:     7,700 oz – 8,200 oz

Daniel Tellechea, President and CEO of Sierra Metals, commented: “2013 marked another strong year of production for the Company. The yearly production for our main metals, silver and copper was slightly below guidance and partly offset by above guidance production for lead, zinc and gold. The Company is pursuing its goal of becoming one of the top mid-tier Latin American metals producer. For 2014, the Company will focus on consolidating its production and exploration at its three operations, including the following at the:

• Yauricocha Mine:, complete the current underground mine infrastructure project, reduce grade dilution by a better control of water inflows, carry out regional exploration outside of the central mine area and maintain existing cash costs

• Bolivar Mine: exploration drilling to increase the quality and grade of the existing resources, expand the mill capacity and reduce cash costs.

• Cusi Mine: complete a pre-feasibility study along with a new 43-101 compliant resources report, continue exploration and development of the mines, upgrade the mine infrastructure at Santa Eduwiges and Promontorio to allow higher production rates and reduce cash costs.’’

Mine Operations

During the fourth quarter of 2013, the Company achieved a total of 390,780 tonnes of ore processed (compared to 343,076 tonnes in 2012) from all operations, representing a 14% increase year-over-year. Total tonnes processed of 1,321,782 in the twelve months of 2013 compared to 1,269,850 tonnes in the same period of 2012.

The decrease in production at the Yauricocha Mine during the fourth quarter was partially offset by strong production results in: (1) higher silver processed at Bolivar and Cusi, which achieved commercial production on January 1, 2013, and (2) higher copper production at Bolivar. Both of these achievements are part of the Company’s growth strategy to expand production in Mexico. A summarized table of consolidated production results is presented below:

Yauricocha Mine, Peru

The Yauricocha Mine continued to be the Company’s largest producing mine with a total of 214,454 tonnes processed in the fourth quarter of 2013 representing a 4% decrease compared to 222,821 tonnes in 2012. Total tonnes processed of 837,496 in the twelve months of 2013 compared to 872,869 tonnes in the same period of 2012. A 4% decrease year-over-year. Mineralization at the Yauricocha Mine is hosted in two different zones including Lead-Oxide (“Oxides”) and Polymetallic ore-bodies.

During the fourth quarter of 2013, aggregate production of these ore bodies was 463,964 oz of silver, a 15% decrease year-over year; 1.2 million lb of copper, a 46% decrease year-over-year; 11.0 million lb of lead, a 28% increase year-over year; 13.4 million lb of zinc, a 3% decrease year-over year; and 1,665 oz of gold, a 24% decrease year-over-year. Lower metal production was driven by lower head grades in line with Yauricocha’s mine plan. A summary of production from the Yauricocha Mine has been provided below:

¹For a detailed summary of production table for the Yauricocha Mine please click here.

Bolivar Mine, México

During the fourth quarter of 2013, total ore processed at the Bolivar Mine increased 62% with 152,242 tonnes processed compared to 93,704 tonnes in 2012. Total tonnes processed of 377,432 in the twelve months of 2013 compared to 312,952 tonnes in the same period of 2012. A 21% increase year-over-year. Copper production during the period increased 69% with a total of 3.7 million lb produced (compared to 2.2 million lb in 2012). Silver production at Bolivar increased 63% year over-year with a total of 90,013 oz produced (compared to 55,143 in 2012). This substantial increase in production was a result of higher processed tonnes as the capacity at the Piedras Verde mill was increased to 2,000 tpd. A summary of production for the Bolivar Mine has been provided below:

¹For a detailed summary of production table for the Bolivar Mine please click here.

Cusi Mine, México

On January 1, 2013 the Company announced that the Cusi Mine achieved commercial production and during the fourth quarter of 2013 total ore processed decreased 9% with a total of 24,085 tonnes of ore processed (compared to 26,550 tonnes in 2012). Total tonnes processed of 106,853 in the twelve months of 2013 compared to 84,028 tonnes in the same period of 2012. A 27% increase year-over-year. During the fourth quarter of 2013 production of silver at Cusi increased 22% with a total of 99,727 oz of silver (compared to 81,680 oz in 2012). This increase is mainly driven by higher recoveries versus the fourth quarter of 2012 (77.44% vs 62.16%). A summary of production for the Cusi Mine has been provided below:

¹For a detailed summary of production table for the Cusi Mine please click here.

Production Guidance

Sierra Metals is pleased to issue its production guidance for 2014. The Company’s production estimates for 2014 are provided below:

Quality Control

The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101.

About Sierra Metals

Sierra Metals Inc. is a Canadian mining company focused on production of 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 TSX under the symbol “SMT”.

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

Forward-Looking Statements

Except for statements of historical fact contained herein, the information in this press release may constitute “forward-looking information” within the meaning of Canadian securities law. Other than statements of historical fact, all statements are “forward-looking statements”, which involve various known and unknown risk and uncertainties and other factors, including market conditions that may affect the Company’s ability to execute its current business plan and to continue to pay a quarterly dividend. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.