Dividend Reinvestment Plan

As previously announced on October 1, 2013, the Company’s Board of directors approved the adoption of a dividend reinvestment plan (the “Plan”). Eligible shareholders may elect to participate in the Plan. Participation in the Plan is optional. The enrollment deadline for participation in the Plan for the fourth quarterly dividend is 4:00 p.m. (Eastern Standard Time) on January 14, 2014.

For further information on Sierra Metals’ dividend reinvestment plan, please visit www.sierrametals.com/investors/dividends.

The declaration and payment of future dividends will be subject to the Company’s cash requirements, as well as the satisfaction of statutory solvency tests. In addition, the Board of directors of the Company will assess future years’ dividend payout levels, from time to time, in light of the Company’s financial performance and its current and anticipated business needs at such time.

Sierra Metals designates this dividend to be an “eligible dividend” pursuant to subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation.

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.

Important Notice

This press release is made only as a matter of disclosure and does not imply an offer or invitation to participate in the Plan. The Plan does not constitute an offer in any jurisdiction in which such an offer would not be in compliance with any applicable legislation.