Last updated on April 19, 2014 at 1:20 EDT

Sierra Metals announcement

August 28, 2013

VANCOUVER, Aug. 28, 2013 /PRNewswire/ – Sierra Metals Inc. (TSX:SMT)(BVL:SMT) (“Sierra Metals” or the “Company”) regrets to
report that on August 20, 2013, an employee of a third party contractor
was fatally injured when he was driving a front-end loader on a surface
yard near the Promontorio silver mine and the ground below the
equipment unexpectedly subsided. The Company believes the accident was
caused by a ground subsidence following heavy rains recently
experienced in the Cusi area. As a result of the accident, Mexican
authorities have been contacted and they have directed that the
Promontorio Mine temporarily stop production, pending completion of
geophysical and hydrological surveys. The surveys have commenced and
the Company anticipates receiving approval to restart operations by the
end of this week. The Company will keep the market informed of any
developments as they occur.

The safety of Sierra Metals’ employees and contractors is the highest
priority and the Company is conducting its own review of the incident
and will put into effect recommendations as a result of those
investigations to prevent such an incident occurring again in the

Sierra Metals production is not materially affected by the temporary
shutdown of Promontorio, as this mine currently contributes
approximately to 20% of Cusi’s silver production and 3% of Sierra
Metals’ silver production. Promontorio’s revenues contribute only to 1%
of Sierra Metals’ total revenues. Cusi’s operations are comprised of
five mines: Santa Eduwiges, Promontorio, La India, Minerva, and San

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, 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”.

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.

SOURCE Sierra Metals Inc.

Source: PR Newswire