Investor HighlightsSolid Financial Position New $10M annual dividend

Three Low-Cash-Cost Producing Assets 70% of production revenue from copper, silver and gold

Strong Track Record of Delivering Growth Applying to graduate to TSX main board

Aggressive Program to Increase Resources and Production $28 million exploration budget 2013-2016

HEAD OFFICE595 Burrard St. Suite 3083P.O.Box 49298Vancouver, British Columbia V7X 1L3T 866.493.9646F 604.566.9050

LIMA OFFICEAv. Pedro de Osma450 BarrancoLima, PeruT +51.1.710.2400F +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 RELATIONST 866.493.9646F 604.566.9050E-mail: info@sierrametals.com

Share Capital At March 1st, 2013

Total issued and outstanding shares 157,737,476

Total fully diluted shares 161,753,848

Trading At March 1st, 2013

52 week High: CDN $3.10

52 Week Low: CDN $2.22

Market Capitalization US $394 Million

Selected Financial Highlights Figures in C$000 2010 2011 YTD-20121

Revenue 19,744 100,664 136,369 EBITDA 922 44,611 70,878 Operating Cash Flow (2,620) 38,788 37,295 Capex (13,575) (23,704) (16,812) Op. Cash Flow after Capex (16,195) 15,084 20,483 Cash & Equivalents 14,957 20,156 92,5651 For the nine month period ending Sept.30, 2012

TSX-V: SMT BVL: SMT

YAURICOCHA MINE PERU

BOLIVAR MINE MEXICO

CUSI PROJECT MEXICO

Newest Latin American Mid-Tier Metal Producer

Sierra Metals Inc. is a growing mid-tier precious and base metals producer in Latin America. The Company owns two low-cost mines in commercial production: the Yauricocha mine in Peru and the Bolivar mine in Mexico.

Formerly known as Dia Bras Exploration Inc., the company is focused on expanding production at its Yauricocha and Bolivar mines and advancing its Cusi Property into commercial production. The Company is currently completing an aggressive exploration and development program to expand global reserves and resources and advance its projects towards production.

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 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 www.sedar.com under the Company's profile) and elsewhere in documents filed from time 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 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. 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 Looking Statements, 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 for Sierra 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 technical reports, each of which is available on SEDAR at www.sedar.com and at www.sierrametals.com.

Copper25%

Gold8%

Silver37%

Lead13%

Zinc17%

Production Summary

Overview

Yauricocha 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 costs1 Ag $(22.63)/oz Cu $1.25/lb N/A

1For the 9 months ended September 30, 2012

Metal 2010 2011 2012 2013 (projected) Low High

Silver (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 7,000

Project Capex Expected Benefits 2013-2016

Peru $60M

New underground $27M Have access to mineralized ore mine infrastructure bodies at depth

Oxides tailings lixiviation plant $10M Increase gold and silver production

Expansion and improvements $14M Increase production, recoveries, at Chumpe Mill revenue and EBITDA

Exploration $9M Advance high-priority regional exploration targets

Mexico $30M

Increase production x 2 at $11M Increase production, revenue Piedras Verdes Mill and EBITDA

Exploration $19M Advance high-priority regional exploration targets

Main Projects Capex $90M

25

20

15

10

5

0

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.02010 20111 20121

1Measured & Indicated includes Proven & Probable Reserves, based on Gustavson Associates’ NI 43-101 Technical Reports

1.3

1.0

0.1

M&I Resources P&P Reserves Annual Production

1.4 4.2

1.1

15.4

4.2

(mill

ion

tonn

es p

er y

ear)

(mill

ion

tonn

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Yauricocha Mine, Peru

Bolivar Mine, Mexico

Cusi Project, Mexico

Well Positioned for GrowthIncreasing Reserves and Resources

Reserves and Resources1,2

Contained 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 Reserves Yauricocha 4,163 119.70 0.93 0.70 2.81 2.58 414.56 N/A 16.0 64.3 257.2 235.4 123,156 55.5 N/AMeasured & Indicated Yauricocha 4,181 121.28 0.93 0.72 2.91 2.54 420.78 N/A 16.3 66.6 268.0 233.3 125,026 56.6 N/A Bolivar 15,404 19.40 N/A 0.79 N/A 1.01 N/A 1.26 9.6 266.7 N/A 342.2 N/A N/A 428.9Inferred Yauricocha 1,794 58.62 1.10 0.64 1.57 1.07 276.38 N/A 3.4 25.1 61.9 42.4 63,678 15.9 N/A Bolivar 6,164 18.1 N/A 0.73 N/A 0.93 N/A 1.17 3.6 99.8 N/A 106.4 N/A N/A 158.41NI 43-101 compliant mineral reserves and resources estimate announced September 6, 2012 and August 30, 2012 2Please refer to the website for more information on Reserves and Resources

www.sierrametals.com

TSX-V: SMT BVL: SMT