Sierra Metals Announces Production Results for the First Quarter of 2014 .

VANCOUVER, April 15, 2014 /CNW/ – Sierra Metals Inc. (TSX:SMT) (BVL:SMT)
(“Sierra Metals” or the “Company”) is pleased to announce its production results
for the first quarter of 2014.

Press Release Highlights:

   -- Total silver ("Ag") production of 728,211 ounces ("oz") in the first 
      quarter of 2014 compared to 610,407 oz for the same period of 2013. A 19% 
      increase year-over-year. 
 
   -- Total copper ("Cu") production of 5.7 million pounds ("lb") in the first 
      quarter of 2014 compared to 4.1 million lb for the same period of 2013. A 
      41% increase year-over-year. 
 
   -- Total lead ("Pb") production of 12.2 million lb in the first quarter of 
      2014 compared to 8.5 million lb for the same period of 2013. A 43% 
      increase year-over-year. 
 
   -- Total zinc ("Zn") production of 12.7 million lb in the first quarter of 
      2014 compared to 13.3 million lb for the same period of 2013. A 4% 
      decrease year-over-year. 
 
   -- Total gold ("Au") production of 2,485 oz in the first quarter of 2014 
      compared to 1,598 oz for the same period of 2013. A 55% increase 
      year-over-year.

Daniel Tellechea, President and CEO of Sierra Metals, commented: “Sierra’s
strong production during the first quarter is mainly reflective of higher lead
head grades and silver recoveries at Yauricocha, and higher throughputs at the
Bolivar and Cusi mines. Bolivar has been operating at a rate close to 2,000 tpd
during the quarter and Cusi at an average production rate of 375 tpd. We expect
solid production results in the second quarter and we are on target to meet our
production guidance for 2014.”

Mine Operations

During this period, the Company achieved a total of 416,465 tonnes of ore
processed (compared to 317,637 tonnes in 2013) from all operations, representing
a 19% increase year-over-year.

There was no variation in production at the Yauricocha Mine during the first
quarter of 2014 versus the first quarter of 2013, while production increased
126% at Bolivar and 16% at Cusi. The lower grade in silver and copper at
Yauricocha and Bolivar was completely offset by the following strong production
results: (1) higher production rates at Bolivar, (2) higher lead head grades and
silver recoveries at Yauricocha, and (3) overall higher production rates, grades
and recoveries at Cusi. A summarized table of consolidated production results is
presented below:

 
Consolidated Production                3 Months Ended 
                             Mar 31, 2014  Mar 31, 2013  % Var. 
Silver production (oz)            728,211       610,407     19% 
Copper production (000 lb)          5,730         4,060     41% 
Lead production (000 lb)           12,180         8,528     43% 
Zinc production (000 lb)           12,732        13,304     -4% 
Gold Production (oz)                2,485         1,598     55%

Yauricocha Mine, Peru

The Yauricocha Mine continued to be the Company’s largest producing mine with
a total of 215,550 tonnes processed in the first quarter of 2014, representing
no variation compared to 214,867 tonnes in 2013. Mineralization at the
Yauricocha Mine is hosted in two different zones including Lead-Oxide (“Oxides”)
and Polymetallic orebodies.

During the first quarter of 2014, aggregate production of these orebodies was
494,294 oz of silver, a 4% increase year-over year; 1.7 million lb of copper, a
20% decrease year-over-year; 11.7 million lb of lead, a 39% increase year-over
year; 12.7 million lb of zinc, a 2% decrease year-over year; and 1,474 oz of
gold, a 8% decrease year-over-year. Lower copper production was driven by lower
head grades in line with Yauricocha’s mine plan. A summary of production from
the Yauricocha Mine for the first quarter of 2014 has been provided below:

 
Yauricocha Production(1)               3 Months Ended 
                             Mar 31, 2014  Mar 31, 2013  % Var. 
Silver production (oz)            494,294       474,601      4% 
Copper production (000 lb)          1,739         2,175    -20% 
Lead production (000 lb)           11,683         8,379     39% 
Zinc production (000 lb)           12,732        13,045     -2% 
Gold Production (oz)                1,474         1,598     -8%

(1) For a detailed summary of production table for the Yauricocha Mine please
click here.

Bolivar Mine, México

During the first quarter of 2014, total ore processed at the Bolivar Mine
increased 126% with 168,190 tonnes processed compared to 74,455 tonnes in 2013.
Copper production during the period increased 112% with a total of 4.0 million
lb produced (compared to 1.9 million lb in 2013). Silver production at Bolivar
increased 70% year-over-year with a total of 91,660 oz produced (compared to
54,062 oz in 2013). This substantial increase in production was a result of
higher production rate and recovery rates year-over year. A summary of
production for the Bolivar Mine for the first quarter of 2014 has been provided
below:

 
Bolivar Production(1)                  3 Months Ended 
                             Mar 31, 2014  Mar 31, 2013  % Var. 
Copper production (000 lb)          3,991         1,885    112% 
Zinc production (000 lb)                0           259   -100% 
Silver production (oz)             91,660        54,062     70% 
Gold production (oz)                  572             0    N.A.

(1) For a detailed summary of production table for the Bolivar Mine please
click here.

Cusi Mine, México

On January 1, 2013 the Company announced that the Cusi Mine achieved
commercial production but is still under development as most of the ore comes
from development rock. During the first quarter of 2014, total ore processed
increased 16% with a total of 32,825 tonnes of ore processed (compared to 28,315
tonnes in 2013). During the first quarter of 2014, production of silver at Cusi
increased 74% with a total of 142,258 oz of silver (compared to 81,744 oz in
2013). This increase is mainly driven by higher throughput compared to the first
quarter of 2013 (32,825 tonnes versus 28,315 tonnes), higher head grades and
recoveries compared to the first quarter of 2013 (169.3 g/t Ag versus 141.7 g/t
Ag), higher recoveries (79.6% versus 63.4% in the first quarter of 2013). A
summary of production for the Cusi Mine for the first quarter of 2014 has been
provided below:

 
Cusi Production(1)                   3 Months Ended 
                           Mar 31, 2014  Mar 31, 2013  % Var. 
Silver production (oz)          142,258        81,744     74% 
Gold production (oz)                439             0    N.A. 
Lead production (000 lb)            497           149    234%

(1) For a detailed summary of production table for the Cusi Mine please click
here.

Quality Control

The technical content of this news release has been approved by Thomas L.
Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101.

About Sierra Metals

Sierra Metals Inc. is a Canadian mining company focused on production of
precious and base metals from its Yauricocha Mine in Peru, and its Bolivar and
Cusi mines 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, and La Verde (gold) at the Batopilas Property in the state of Chihuahua.

The Company’s shares trade on the Bolsa de Valores de Lima and the TSX under
the symbol “SMT”.

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 and
to continue to pay a quarterly dividend. 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.

SOURCE Sierra Metals Inc.

PDF available at:
http://stream1.newswire.ca/media/2014/04/15/20140415_C9814_DOC_EN_39231.pdf

PDF available at:
http://stream1.newswire.ca/media/2014/04/15/20140415_C9814_DOC_EN_39232.pdf

PDF available at:
http://stream1.newswire.ca/media/2014/04/15/20140415_C9814_DOC_EN_39233.pdf

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

President & CEO

Sierra Metals Inc.

1 (866) 493-9646 Thomas Robyn

Senior Vice President, Exploration

Sierra Metals Inc.

1 (866) 493-9646

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