Sierra Metals Confirms Receipt Of Further Correspondence From Compania Minera Kolpa And Arias Resource Capital Management

Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE:SMTS) (“Sierra Metals” or the “Company”) confirms that it has received further correspondence from Compania Minera Kolpa S.A. (“Kolpa”) and Arias Resource Capital Management LP (“ARC”) regarding their previously announced unsolicited, non-binding letter of intent.

The Company has been diligently and expeditiously pursuing both short-term financing opportunities and the strategic review process announced in Sierra’s press release dated October 18, 2022. As previously announced, CIBC Capital Markets has been engaged as financial advisor to review strategic options.

Kolpa, ARC and other parties that have already expressed interest, among others, will be invited to participate and submit proposals so that they can be considered in the context of the strategic review process that is reasonably and fairly structured to be in the best interests of Sierra and all of its stakeholders. The process will give proper consideration to all viable options, not only the proposed Kolpa transaction.

The Company has not refused to engage nor rejected any proposals and welcomes and encourages participation of all interested parties. The Company is working diligently and expeditiously with full recognition of the timing considerations applicable in the current situation.