Sierra Metals announces record 2012 annual production results and issues 2013 production guidance

Tuesday, Jan 22, 2013

TORONTO, Jan. 21, 2013 /PRNewswire/ - Sierra Metals Inc. (TSX-V:SMT) (BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce its 2012 annual and fourth quarter production results and to issue production guidance for 2013.

Daniel Tellechea, President and CEO of Sierra Metals, commented: "Sierra Metals achieved another record breaking year of production in 2012. Increase in production was the result of Management's efforts to consolidate operations in Peru and Mexico and the realization of subsequent operating efficiencies. The Company is pleased to issue its first production guidance in 2013 as it strives to become a premier precious and base metal producer in Latin America."

Mine Operations

The Company achieved record-breaking production results for the second consecutive year as 2012 marked the first full year of production at the Yauricocha Mine and commercial production at the Bolivar Mine. The Company achieved a total of 1,269,849 tonnes of ore processed (compared to 657,086 tonnes in 2011) from all operations, representing a 33% increase year-over-year. A summarized table of consolidated production results is presented below.

About Sierra Metals

Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha mine in Peru and its Bolivar mine in Mexico. The Company is also advancing its Cusi silver project in Mexico from advanced development into commercial production. 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. 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 TSXV under the symbol "SMT".

This press release does not constitute an offer to sell or solicitation of an offer to buy the securities in the United States or any other jurisdiction. The Common Shares will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Source: Sierra Metals Inc.