Sierra Metals Inc. (TSX:SMT)'s board of directors, supported by its management team and with the full support of Arias Resource Capital Fund LP, Arias Resource Capital Fund II LP (the company's two largest shareholders) and Arias Resource Capital Fund II (Mexico) LP, has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value. These alternatives could include, among other things, the sale of part or all of the Company, a sale of some of the assets of the Company, a merger or other business combination with another party, or other strategic transactions. The Company has engaged CIBC World Markets Inc. to assist the Board of Directors in its review of strategic alternatives. The Company has not made any decisions related to any specific strategic alternatives at this time and there can be no assurance that the exploration of strategic alternatives will result in a transaction. The Company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary.