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Sierra Metals Announces Activation of Phase 2 of its Economic Recovery Plan

Sierra Metals Inc. ("Sierra Metals" or "the Company") announces that the Peruvian Government has activated phase two of its economic recovery plan effective June 5, 2020.

Phase two includes mining and mining-related activities in Peru. The Company will begin to recall required furloughed employees and contractors and will start to progressively ramp the mine operations back up to full capacity.

In Mexico, the Government deemed mining an essential service effective June 1, 2020, as previously discussed in the May 25, 2020 press release. The Company has recalled employees from the Bolivar Mines to enter a COVID-19 screening process, allowing the Company to control the risk of new infections and contamination at the mine.

The Cusi Mine remains in care and maintenance for the time being, and management continues to evaluate the best path forward to complete needed development and to reach throughput targets.

The Company continues to focus on the health, safety, and well-being of its workforce. All employees recalled and reporting for duty will complete a testing and screening process, including a quarantine period before they can join the active workforce at both the Yauricocha and Bolivar Mines.

Daily monitoring also continues for all employees while 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.

Luis Marchese, CEO of Sierra Metals, stated: "I am very pleased that we are now in a position to ramp-up our Yauricocha Mine to normal levels with the prescribed health protocols and guidelines from the Government. It is important to highlight that our Yauricocha Mine has the operational flexibility to recover some of the lost production during the COVID-19 state of emergency. We will continue emphasizing the health and well-being of our employees and of the communities in which we operate as we normalize operations."

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