Bolivar Mine Mexico

Yauricocha Mine Peru

Cusi Mine Mexico

Share Capital As of August 12, 2015

Total issued and outstanding shares 164.4 M

Trading At Aug 11, 2015

Recent Price CDN $1.06

52 week High CDN $2.13

52 Week Low CDN $0.95

Market Capitalization $171.1M

TSX: SMT BVL: SMT

Sierra Metals Inc. is a mid-tier Latin American precious and base metals producer, focused on production from its Yauricocha Mine (polymetallic) in Peru, Bolivar Mine (copper) and Cusi Mine (silver) in Mexico. We are committed to the responsible development of our assets and the environments in which we operate.

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.

With strong cash flow generation, an experienced management team and the potential for significant production growth at attractive cash costs, Sierra Metals is well positioned to deliver future growth and increase shareholder value.

Selected Financial Highlights Figures in US$000 2012 2013 2014 H1-2015

Revenue 179,795 143,538 172,614 80,607 Adjusted EBITDA 83,862 54,502 72,597 32,239 Adjusted Net Income 1 34,267 16,277 30,496 11,353 Net Income (loss) (26,263) (33,973) 9,300 761

Operating Cash flow before movements in working capital 86,141 54,307 71,276 33,461 Capex (27,443) (44,017) (39,866) (20,200) Cash Flow from Op. minus Capex 58,698 10,290 31,410 13,261

Cash and Cash Equivalents 80,244 44,930 41,273 29,829 Net Debt 2 9,038 48,585 40,603 49,6481 Attributable to shareholders. 2 Consolidated debt minus total cash and cash equivalents.

Mid-Tier Latin AmericanPrecious and Base Metals Producer

Solid Financial Position H1-2015 EBITDA $32M; Cash Position $29.8M

Low Cash Cost ProducerYauricocha Mine ($14.42)/oz AgBolivar Mine $1.37/lb CuCusi Mine $8.46/oz Ag

Diversified Asset BaseThree operating mines:• The Yauricocha polymetallic mine in Peru • The Bolivar copper and Cusi silver mines in Mexico

Strong Production & Reserve Growth*

2014 – 11.79M Silver Equivalent Ounces | 78.6M Copper Equivalent Pounds2015E – 11.75M Silver Equivalent Ounces | 78.0M Copper Equivalent PoundsNote: All monetary figures in USD; cash position & costs are as of June 30, 2015*Silver equivalent ounces were calculated using USD: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb, $0.95/lb Zn, $1,250/oz Au2015E based on internal projections

AUGUST 2015

HEAD OFFICE79 Wellington Street West, Suite 2100Toronto, Ontario M5K 1H1T +1.416.366.7777TF +1.866.493.9646

LIMA OFFICEAv. Pedro de Osma450 BarrancoLima, PeruT +51.1.630.3100F +51.1.467.0590

MEXICO OFFICEFernando de Borja No.100 Col. San FelipeChihuahua, ChihuahuaCP. 31203 MexicoT +52.614.426.0212F +52.614.426.6877

AUDITORSPricewaterhouseCoopers LLP

TRANSFER AGENT & REGISTRARComputershare Investor Service

INVESTOR RELATIONSMike McAllister Director Corporate DevelopmentT +1.866.493.9646E-mail: info@sierrametals.com

SOLID BOARD OF DIRECTORSJ. Alberto Arias, ChairmanDoug Cater, DirectorSteven Dean, DirectorIgor Gonzales, DirectorDiego Miranda, DirectorPhilip Renaud, DirectorMark Brennan, President and CEO

STRONG MANAGEMENTMark Brennan, President and CEOEd Guimaraes, CFOGord Babcock, COOCarlos Villanueva,General Manager, Sociedad Minera CoronaSergio Ramírez,General Manager, Dia Bras MexicanaMatt Wunder Vice President ExplorationMike McAllister, Director Corporate Development

ANALYST COVERAGECliff Hale-Sanders, Cormark Securities Ali Khan, Edgecrest Capital

Cautionary Statements: This document includes certain "Forward-Looking Statements” as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources and future plans and objectives of Sierra Metals Inc. (“Sierra Metals”, or the “Company”), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results “potentially”, "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this document, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2) permitting, development, expansion and power proceeding on a basis consistent with the Company's current expectations; (3) certain price assumptions for silver, gold, copper, lead and zinc; (4) prices for availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current expectations. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of silver, gold, copper, lead and zinc or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. 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. Readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward Looking Statements, whether as a result of new information, future events or otherwise. References herein to "$" are to the United States dollar and “CDN$" are to Canadian dollars. The Company’s Senior Vice President Exploration, Thomas L. Robyn, Ph.D., CPG, RPG, is the ‘’Qualified Person’’ as defined in NI 43-101 who supervised the preparation of the technical information included in this document. For more information on Sierra Metal’s projects, refer to Sierra Metal’s Annual Information Form and its technical reports, each of which is available on SEDAR at www.sedar.com and at www.sierrametals.com.

Production Summary Revenue Mix by Metal1

Overview

Yauricocha Bolivar CusiOwnership 81.8% 100% 100%Stage Production Production Development/ProductionMetals Ag-Cu-Pb-Zn-Au Cu-Ag-Au Ag-Au-PbMill Capacity (tpd) 2,500 2,500 600By-product cash costs1 Ag $(14.42)/oz Cu $1.37/lb Ag $8.46/oz1For the 3 months ended June 30, 2015.

Metal 2012 2013 2014 H1-2015 GUIDANCE 2015 LOW HIGH Silver (M oz) 2.6 2.6 3.1 1.8 3.1 3.7Copper (M lbs) 15.9 15.9 22.6 13.0 21.0 24.3Lead (M lbs) 35.7 38.0 48.8 23.2 44.3 51.8Zinc (M lbs) 59.0 51.7 54.3 23.5 41.9 48.9Gold (oz) 10,491 6,736 9,457 6,165 11,200 13,000Cu Eq (M lbs) 66.5 62.9 78.6 41.1 72.0 84.0Ag Eq (M oz) 9.9 9.5 11.8 6.2 10.8 12.6

Note: Measured & Indicated include Proven & Probable Reserves based on Gustavson Associates NI 43-101 Technical Reports.

30

25

20

15

10

5

02010 2011 2012 2013 2014 2015E

1.27

.99

0.131.1

13.9

6.4Yauri.

7.5Bolivar

2.5

2.0

1.5

1.0

0.5

0.0

(mill

ion

tonn

es p

er y

ear)

(mill

ion

tonn

es)

7.7 7.7

M&I Resources P&P Reserves Inferred Resources Annual Production

1.71

9.3 9.38.2

5.3 4.2Yauri.

22.9

13.9

6.4Yauri.

7.5Bolivar

23.2

11.112.8

5.3Yauri.

7.5Bolivar

28.5

19.8

1.4

1.32

Copper31%

Gold4%

Silver29%

Lead17%

Zinc19%

1For the 12 months ending June 30, 2015.

2.0E

Yauricocha Mine, Peru

Bolivar Mine, Mexico

Cusi Mine, Mexico

Increasing Resources and Production

Reserves and Resources1 Contained MetalProperty & Classification Tonnes Ag Cu Pb Zn Au Ag Eq. Cu Eq. Ag Cu Pb Zn Au Ag Eq. Cu Eq. (000) (g/t) (%) (%) (%) (g/t) (g/t) (%) (M oz) (M lbs) (M lbs) (M lbs) (oz) (M oz) (M lbs)Proven & Probable ReservesYauricocha Proven 1,207 78.2 0.74 1.61 3.02 0.87 377.6 - 3.0 19.7 42.9 80.5 33,586 14.7 - Probable 4,170 74.8 0.81 1.35 2.15 0.93 327.4 - 10.0 74.6 124.1 197.2 125,332 43.9 - P&P 5,377 75.5 0.80 1.41 2.34 0.92 338.6 - 13.1 94.3 167.0 277.7 158,918 58.5 -Bolivar Proven 4,340 22.5 0.84 - 0.19 0.22 - 1.11 3.1 80.4 - 18.2 31,115 - 106.2 Probable 3,117 15.4 0.65 - 0.52 0.23 - 0.95 1.5 44.7 - 35.7 23,149 - 65.3 P&P 7,457 19.5 0.76 - 0.33 0.23 - 1.04 4.7 124.9 - 54.3 54,180 - 171.0Total P&P 12,834 43.0 0.78 N/A 1.17 0.52 17.7 219.2 167.0 332.0 213,098 Measured & Indicated ResourcesYauricocha Measured 1,767 73.6 0.78 1.39 2.78 0.87 359.0 - 4.2 30.4 54.0 108.3 49,156 20.4 - Indicated 9,812 53.6 0.84 0.75 1.54 0.74 261.7 - 16.2 183.0 165.2 350.0 230,308 82.6 - M&I 11,411 57.5 0.83 0.85 1.73 0.76 280.7 - 20.3 213.5 219.2 458.3 279,464 103.0 - Bolivar Measured 8,847 22.3 0.87 - 0.98 0.20 - 1.35 6.3 169.4 - 190.9 49,600 - 264.2 Indicated 6,557 15.6 0.67 - 1.05 0.20 - 1.14 3.3 97.3 - 151.4 30,800 - 164.7 M&I 15,404 19.4 0.79 - 1.01 0.20 - 1.26 9.6 266.7 - 342.2 80,400 - 428.9 Cusi Indicated 1,665 231.9 - 0.46 0.46 0.08 - - 12.42 - 16.89 16.9 4,282 - - Total M&I 28,480 47.1 N/A N/A 1.24 0.42 42.4 480.2 236.1 817.4 364,146 Inferred ResourcesYauricocha 2,153 221.5 3.89 2.30 7.69 3.04 1,153.7 - 15.3 184.8 109.4 364.9 210,407 79.9 -Bolivar 6,164 18.1 0.73 - 0.93 0.30 - 1.17 3.6 99.8 - 126.6 38,100 - 158.4Cusi 2,737 227.5 - 0.31 0.30 0.08 - - 20.0 - 18.7 18.1 7,039 - -Total Inferred 11,054 109.6 N/A N/A 2.09 0.78 38.9 284.6 128.1 509.6 255,546 1 NI 43-101 technical reports for Bolivar and Cusi were filed on SEDAR on May 31, 2013 and May 9, 2014 respectively. Yauricocha estimate is detailed in Sierra’s Mar 31, 2015 press release. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

www.sierrametals.com

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