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Sierra Metals Fact Sheet


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Sierra Metals Inc. (formerly Dia Bras Exploration Inc.) is Latin America's newest mid-tier precious and base metals producer and offers a strong value proposition to investors based on:

1) Undervalued vs. Peers: Low cash cost producer with strong upside potential for growth.
2) A Solid Financial Position: Strong positive cash flow with $80 million in the treasury and $83 million in earnings during 2012.
3) Diversified Asset Base: Precious and base metals producer with three operating mines in Peru and Mexico.
4) Substantial Reserve Growth: Expanded Reserves 8x in two years; and, 30% annual production growth in 2012.
5) Stable Investment Yield: $10 million annual dividend plus share buyback program.

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Sierra Metals Fact Sheet

  1. 1. Investor HighlightsUndervalued vs. PeersLow-cash-cost producer with strong upside potential for growthSolid Financial PositionPositive cash flow with $80 M in treasury & $83 M in earnings during 2012Substantial Reserve GrowthExpanded Reserves 8x in 2 years & 30% annual production growth in 2012Stable Investment Yields$10 Million annual dividend plus share buyback programHEAD OFFICE595 Burrard St. Suite 3083P.O.Box 49298Vancouver, British Columbia V7X 1L3T 866.493.9646F 604.566.9050LIMA OFFICEAv. Pedro de Osma450 BarrancoLima, PeruT +51.1.710.2400F +51.1.467.0590MEXICO OFFICEFernando de Borja No.100 Col. San FelipeChihuahua, ChihuahuaCP. 31203 MexicoT +52.614.426.0212F +52.614.426.6877AUDITORSPricewaterhouseCoopers LLPTRANSFER AGENT & REGISTRARComputershare Investor ServiceINVESTOR RELATIONST 866.493.9646F 604.566.9050E-mail: info@sierrametals.comShare CapitalAt April 15, 2013Total issued and outstanding shares157,759,661Total fully diluted shares160,773,497TradingAt April 15, 201352 week HighCDN $3.0552 Week LowCDN $2.20Market CapitalizationUS $403 MillionSelected Financial HighlightsFigures in C$000 2010 201112012Revenue 19,744 100,664 179,723EBITDA 922 42,843 83,768Adjusted Net Income (2,105) 23,239 48,313Non-cash Charge on Corona’s Acquisition N.A. 36,587 76,990Net Loss (2,105) (13,348) (28,677)Cash Flow from Operations (2,620) 42,745 60,487Capex (13,575) (23,704) (27,496)Cash Flow from Op. minus Capex (16,195) 19,011 32,991Cash and Cash Equivalents 14,957 20,156 79,835Net Debt 2(9,253) 95,381 8,9911Includes Yauricocha figures since May 2011. 2Consolidated debt minus total cash and cash equivalents.TSX-V: SMT BVL: SMTYAURICOCHA MINE PERUBOLIVAR MINE MEXICOCUSI PROJECT MEXICONewest Latin American Mid-Tier Metal ProducerSierra Metals Latin America’s newest mid-tier precious and base metalsproducer offerring a strong value proposition to investors. The Company owns three mines incommercial production; the Yauricocha mine in Peru and the Bolivar and Cusi mines in Mexico.Formerly known as Dia Bras Exploration Inc., the company is dedicated to increasing global reservesand resources, and adding value through production growth as it strives towards its objective ofbecoming a premier low-cost precious and base metals mining company.
  2. 2. 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 andresources 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 proveto 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 inthis 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 Companys 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 remainingconsistent with current levels; (5) the accuracy of current mineral resource estimates on the Companys property; and (6) labour and material costs increasing on a basis consistent with the Companys current expectations. Important factors that could cause actual results to differmaterially from the Companys expectations are disclosed under the heading "Risk Factors" in the Company’s Filing Statement dated April 27, 2012 (a copy of which is publicly available on SEDAR at under the Companys profile) and elsewhere in documents filed fromtime to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currencymarkets; 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 orunanticipated expenses; employee relations. Accordingly, 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 LookingStatements, whether as a result of new information, future events or otherwise. References herein to "$" are to the United States dollar and ”C$" are to Canadian dollars. Thomas L. Robyn, Ph.D., CPG, RPG, is the ‘’Qualified Person’’ as defined in NI 43-101 and Head of Exploration forSierra Metals Dia Bras Exploration who supervised the preparation of the scientific and technical information of Sierra Metals included in this preparation. For more information on Sierra Metal’s projects, readers should refer to Sierra Metal’s Annual Information Form and its technicalreports, each of which is available on SEDAR at and at SummaryOverviewYauricocha Bolivar CusiOwnership 81.8% 100% 100%Stage Production Production Advanced DevelopmentMetals Ag-Cu-Pb-Zn-Au Cu-Zn-Ag Ag-PbMill Capacity (tpm) 75,000 expanding to 100,000 30,000 expanding to 60,000 19,500By-product cash costs1Ag $(27.28)/oz Cu $1.40/lb N/A1For the 9 months ended September 30, 2012Metal 2010 2011 2012 2013 (projected)Low HighSilver (oz) 234,901 1,517,179 2,620,735 2,582,000 2,922,000Copper (000 lb) 2,926 10,493 15,851 20,400 23,100Lead (000 lb) 248 19,636 35,720 53,700 60,700Zinc (000 lb) 17,705 36,435 59,012 42,400 48,000Gold (oz) N/A N/A 10,491 6,000 7,000Project Capex Expected Benefits2013-2016Peru $60MNew underground $27M Have access to mineralized oremine infrastructure bodies at depthOxides tailings lixiviation plant $10M Increase gold and silver productionExpansion and improvements $14M Increase production, recoveries,at Chumpe Mill revenue and EBITDAExploration $9M Advance high-priority regionalexploration targetsMexico $30MIncrease production x 2 at $11M Increase production, revenuePiedras Verdes Mill and EBITDAExploration $19M Advance high-priority regionalexploration targetsMain Projects Capex $90M25201510501. 20111201211Measured & Indicated includes Proven & Probable Reserves, based on Gustavson Associates’ NI 43-101 Technical Reports1.31.00.1M&I Resources P&P Reserves Annual Production1.4 Mine, PeruBolivar Mine, MexicoCusi Project, MexicoWell Positioned for GrowthIncreasing Reserves and ResourcesReserves and Resources1Contained MetalProperty & Classification Tonnes Ag Au Cu Pb Zn 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 Reserves2Yauricocha 4,163 119.70 0.93 0.70 2.81 2.58 420.8 N/A 16.0 64.3 257.2 235.4 123,156 55.5 N/ABolivar 7,457 19.52 0.23 0.76 N/A 0.33 N/A 1.04 4.68 124.37 N/A 54.30 54,296 N/A 171.16Measured & IndicatedYauricocha 4,181 121.8 0.93 0.72 2.91 2.54 420.8 N/A 16.3 66.6 268.0 233.3 125,026 56.6 N/ABolivar 15,404 19.45 0.24 0.79 N/A 1.06 N/A 1.26 9.63 266.70 N/A 357.70 80,457 N/A 428.02InferredYauricocha 1,794 58.62 1.1 0.64 1.57 1.07 276.4 N/A 3.4 25.1 61.9 42.4 63,678 15.9 N/ABolivar 6,164 18.10 N/A 0.73 N/A 0.93 N/A 1.17 3.59 99.80 N/A 106.40 N/A N/A 158.401NI 43-101 compliant mineral reserves and resources estimate announced September 6, 2012 (Yauricocha) and April 17, 2013 (Bolivar). 2Proven & Probable Reserves are included in Measured & Indicated Resources.www.sierrametals.comTSX-V: SMT BVL: SMT