Year: 2017

Brian Robertson, Chairman and CEO, commented: “These initial drill results validate and extend the mineralized footprint of the El Dorado-Juan Bran zone, outlined by earlier exploration drilling. A zone measuring up to 430 metres in width and extending some 650 metres down dip, varying from 4 to 58 metres in thickness has been outlined. The zone remains open both on strike and down dip. The validation and expansion of the zone by the current drilling bodes well for defining a mineral resource estimate.”

Gordon Babcock, Chief Operating Officer of Sierra Metals Inc. commented: “We are pleased with the updated Resource report and the quality of the defined areas within the Report for the Cusi mine. A 15,000-meter drill program has been in execution at Cusi since December 2016 and has recently been completed, it is important to note that this data has not been incorporated in this resource report. Drilling took place at the Santa Rosa de Lima zone with good results reported to date and the balance of the assay results expected shortly. With the delineation diamond drilling program complete and subsequent exploration programs underway at the Santa Rosa de Lima zone in addition to other areas on the property, potential increases have been targeted with a goal of increased tonnage and grade at Cusi mine.”

Neil Woodyer, CEO stated “The infill drilling results are exceptional and confirm the widths and grades in the widest and higher grade portion of the Bermejal Underground deposit. We are initiating a $7.7 million step-out and infill drilling program of 56,000 metres to add more resources to Bermejal Underground. Los Filos currently operates two open pit mines, Los Filos and Bermejal, and one underground mine at Los Filos. The Bermejal Underground project presents the opportunity to develop a second underground mine to both expand gold production and extend mine life. The results to date confirm the high quality and significant exploration upside potential of Bermejal Underground.”

Mr. David Wolfin, President and CEO stated, “We are extremely pleased with the very attractive economics of the Oxide Tailings Resource PEA. These positive results will enable us to plan the next steps, identify any additional studies and move forward in advancing the oxide tailings project. We intend to follow the recommendations contained in the Technical Report, which will include the pre-feasibility phase, and we continue to review alternative approaches for the storage of existing tailings.”