Vancouver, BC ¨C August 23, 2013 ¨C Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (¡°Sierra Metals¡± or the ¡°Company¡±) announces that it has signed an amended and restated dealer agreement (the ¡°Amended Agreement¡±) with a designated broker (the ¡°Broker¡±) in respect of its previously announced normal course issuer bid (¡°NCIB¡±).  The Company and the Broker entered into a dealer agreement dated March 26, 2013, as amended on May 10, 2013, whereby the Broker was engaged to operate an automatic share purchase plan (the ¡°ASPP¡±) under the NCIB.   Reference should be made to the Company¡¯s press releases dated March 26, 2013 and May 10, 2013, respectively, for further details regarding the ASPP and the NCIB.

The primary amendment agreed between the parties under the Amended Agreement is the conversion of the ASPP into a discretionary share purchase plan (the ¡°DSPP¡±).  Pursuant to the DSPP, the Broker will only trade with the Company¡¯s expressed instructions.  The NCIB will end on April 1, 2014.

About Sierra Metals

Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. 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 and the San Miguelito gold properties in Northern Peru. 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 the Toronto Stock Exchange under the symbol ¡°SMT¡±.

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:

Forward-Looking Statements

Except for statements of historical fact contained herein, the information in this press release may constitute ¡°forward-looking information¡± within the meaning of Canadian securities law. Other than statements of historical fact, all statements are ¡°forward-looking statements¡±, which involve various known and unknown risk and uncertainties and other factors, including market conditions that may affect the Company¡¯s ability to execute its current business plan.  Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.