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Sierra Metals Offers Update on its Operations In Mexico and Peru

Sierra Metals Inc. ("Sierra Metals" or "the Company") announces that the Peruvian Government has extended its state of emergency and a nationwide lockdown to fight the COVID-19 pandemic until June 30, 2020. President Martin Vizcarra, said the latest extension, would come with the reopening of certain economic activities. Large open-pit mines and a select number of underground mines in the country have already received permission to restart operations in phase one. Phase two would see the second group of mining companies recommence mining activities. Sierra Metals continues to seek consent from the Government to restart mining activities at the Yauricocha Mine, given its remote location and implementation of strict health protocols exceeding Government guidelines.

The Mexican Government, on May 14, 2020, issued a communication stating that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine, as previously discussed in the May 13, 2020 press release, remains in care and maintenance.

The Company continues to focus on the health, safety, and wellbeing of its workforce. A smaller workforce continues to be retained at Yauricocha to oversee the critical aspects of the operations, as Bolivar prepares to ramp-up mining activities. All employees reporting for duty complete a testing and screening process, which includes a quarantine period before they are allowed to join the active workforce at both the Yauricocha and Bolivar Mines. Daily monitoring also continues for all employees working at the mines. The Company is doing everything it can to protect its employees and take care of their families while protecting our active workforces to prevent any labour disruptions at the mines.

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