Sierra Metals Inc. Announces Closing of New Senior Secured US$100 Million Corporate Credit Facility

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.

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Forward-Looking Statements

This press release contains “forward-looking information” and
“forward-looking statements” within the meaning of Canadian and U.S.
securities laws related to the Company (collectively, “forward-looking
information”). Forward-looking information includes, but is not
limited to, statements with respect to the Company’s operations,
including anticipated developments in the Company’s operations in future
periods, the Company’s planned exploration activities, the adequacy of
the Company’s financial resources, and other events or conditions that
may occur in the future. Statements concerning mineral reserve and
resource estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties are
developed or further developed. These statements relate to analyses and
other information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects”, “anticipates”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”,
“objectives”, “potential” or variations thereof, or stating that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not statements of historical fact and may be
forward-looking information.

Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ from
those reflected in the forward-looking information, including, without
limitation, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions, cave-ins,
weather conditions and criminal activity; commodity price fluctuations;
higher operating and/or capital costs; lack of available infrastructure;
the possibility that future exploration, development or mining results
will not be consistent with the Company’s expectations; risks associated
with the estimation of mineral resources and the geology, grade and
continuity of mineral deposits and the inability to replace reserves;
fluctuations in the price of commodities used in the Company’s
operations; risks related to foreign operations; changes in laws or
policies, foreign taxation, delays or the inability to obtain necessary
governmental permits; risks relating to outstanding borrowings; issues
regarding title to the Company’s properties; risks related to
environmental regulation; litigation risks; risks related to uninsured
hazards; the impact of competition; volatility in the price of the
Company’s securities; global financial risks; inability to attract or
retain qualified employees; potential conflicts of interest; risks
related to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral reserves
and resources; potential dilutive transactions; foreign currency risks;
risks related to business cycles; liquidity risks; reliance on internal
control systems; credit risks, including risks related to the Company’s
compliance with covenants with respect to its BCP Facility; uncertainty
of production and cost estimates for the Yauricocha Mine, the Bolivar
Mine and the Cusi Mine; and other risks identified in the Company’s
filings with Canadian securities regulators and the U.S. Securities and
Exchange Commission, which filings are available at www.sedar.com
and www.sec.gov,
respectively.

This list is not exhaustive of the factors that may affect any of the
Company’s forward-looking information. Forward looking information
includes statements about the future and are inherently uncertain, and
the Company’s actual achievements or other future events or conditions
may differ materially from those reflected in the forward-looking
information due to a variety of risks, uncertainties and other factors.
The Company’s statements containing forward-looking information are
based on the beliefs, expectations and opinions of management on the
date the statements are made, and the Company does not assume any
obligation to update forward-looking information if circumstances or
management’s beliefs, expectations or opinions should change, other than
as required by applicable law. For the reasons set forth above, one
should not place undue reliance on forward-looking information.

Note Regarding Reserve and Resource Estimates

All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument 43-101 - Standards
of Disclosure for Mineral Projects and Canadian Institute of Mining
and Metallurgy Classification system. These standards differ
significantly from the requirements of the SEC. The differences between
these standards are discussed in our SEC filings. Mineral resources
which are not mineral reserves do not have demonstrated economic
viability.

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