Sierra Metals Announces Incident at Yauricocha Mine in Peru

Rhea-AI Summary

Sierra Metals Inc. reports a tragic mudslide at its Yauricocha Mine in Peru on September 11, 2022, resulting in the loss of three contractor employees and one injury. Mining operations are temporarily halted for safety assessments. The company emphasizes its commitment to the safety of all personnel and is cooperating with local authorities, who are investigating the incident. Future updates will be provided as available.

Sierra Metals continues to focus on increasing production and mineral resources across its mining operations.

Positive

• Sierra Metals is committed to employee safety and has halted operations to ensure safe conditions before resuming mining activities.
• The company is focused on increasing production volume and has identified exciting exploration opportunities across its mines.

Negative

• The mudslide incident has resulted in the tragic loss of life, which may impact company morale and community relations.
• Operations at the Yauricocha Mine are suspended, which could result in temporary revenue loss.

TORONTO--(BUSINESS WIRE)-- Sierra Metals Inc. (TSX: SMT) (BVL or Bolsa de Valores de Lima: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) regrets to report that at approximately 4:00 PM Lima Time on Sunday September 11, 2022, there was a mudslide incident at its underground Yauricocha Mine, located in Peru.

As a result, three contractor employees lost their lives and one was injured.

The safety and wellbeing of all employees and contractors is a major commitment and focus of the Company, and all efforts are being deployed to ensure them. Mining operations have been temporarily suspended as a result and will resume once conditions are considered safe and appropriate.

Local authorities have been notified and are conducting an investigation into the incident. The Company will provide any updates as they become available.

The thoughts of the board of directors and management are with the family, friends and colleagues that have been impacted by this unfortunate incident.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol "SMT" and on the NYSE American Exchange under the symbol "SMTS".

For further information regarding Sierra Metals, please visit www.sierrametals.com

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Forward-Looking Statements

This press release contains forward-looking information within the meaning of Canadian and United States securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated March 16, 2022 for its fiscal year ended December 31, 2021 and other risks identified in the Company's filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

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Investor Relations

Sierra Metals Inc.

+1 (416) 366-7777

Email: info@sierrametals.com



Luis Marchese

CEO

Sierra Metals Inc.

+1(416) 366-7777

Source: Sierra Metals Inc.

FAQ

What happened at Sierra Metals' Yauricocha Mine on September 11, 2022?

On September 11, 2022, a mudslide occurred at Sierra Metals' Yauricocha Mine in Peru, leading to the death of three contractor employees and one injury.

How is Sierra Metals addressing the mudslide incident at the Yauricocha Mine?

Sierra Metals has suspended operations at the Yauricocha Mine for safety assessments and is cooperating with local authorities conducting an investigation.

What is Sierra Metals' focus following the mudslide at its mine?

Despite the incident, Sierra Metals continues to focus on increasing production volume and exploring mineral resources across its mining operations.