Sierra Metals Declares Majority of Shareholders Reject Proposed Takeover Bid from Alpayana as Inadequate

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Toronto – Company Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) (“Sierra Metals” or the “Company”) today announced that the majority of its shareholders have committed not to tender their shares in the event that Alpayana SAC (“Alpayana”) formally makes its bid to take all of the proposed unsolicited cash to acquire all of the issued and outstanding common shares of Sierra Metals at C$0.85 per share.

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Following the press release issued by Alpayana on December 16, 2024, members of the Company’s Board of Directors (“Board”) and the management team have engaged in discussions with a number of the Company’s affected shareholders. Stockholders holding more than 50% of the Company’s common stock have each told the Company that the $0.85 per share bid price is insufficient and that they do not intend to support Alpayana’s unsolicited bid.

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Based on the clear consensus among the majority of shareholders, the Company and its advisors believe that the takeover bid as announced will not be successful, and that proceeding with a formal bid would be an unprofitable use of time and resources for both Alpayana. and Sierra Metals.

Ernesto Balarezo, CEO of Sierra Metals, said:
“We have been very encouraged by the overwhelming support shown by our shareholders. They have been very clear in their view that the proposed bid price of $0.85 significantly undervalues ​​the Company. We are confident that our shareholders recognize the great progress we have made over the past two years and the great potential to continue to improve the value of our core assets based on the initiatives already underway.”

The Company engaged BMO Capital Markets as financial advisor, Mintz LLP as legal advisor and Carson Proxy Advisors as communications advisor. The Board’s special committee of independent directors engaged Bennett Jones as legal counsel. The Company, together with its advisors, will review the formal offer if accepted and consider other strategic options to maximize long-term value for all shareholders and stakeholders.

The Company advises shareholders that NO action is being taken at this time.

About Sierra Metals
Sierra Metals is a Canadian mining company focused on producing additional base copper and precious metal credits by product at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The company aims to safely increase production capacity and increase mineral resources. Sierra Metals has recently made several key discoveries and has many brownfield exploration opportunities in Peru and Mexico adjacent to existing mines. In addition, the Company has large land holdings in each of its mines with several regional targets that provide long-term exploration and mineral growth potential.

Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities law. Forward-looking information relates to future events or expected performance of Sierra and reflects management’s expectations or beliefs about such future events and expected performance based on a set of assumed economic conditions and operating procedures. In some cases, statements that contain forward-looking information can be identified by using words such as “plans”, “anticipates”, “anticipates”, “budgets”, “planned”, “estimates”, “forecasts”, “intends”, “expects”, “believes”. ” or variations of such words and phrases or statements that certain actions, events or results “may”, “may”, “may”, “may”, or “will be taken”, “happen” or “accomplish” or a negative word these words or similar words. By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors that could cause Sierra’s actual performance to differ materially from any expected performance expressed or implied by such forward-looking information.

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Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ materially 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 15, 2024 for its fiscal year ended on 31 December 2023 and other risks noted in the Company’s safety controls of Canadian, available at www.sedarplus.ca.

The risk factors discussed above are not an exhaustive list of factors that could 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 various 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 undertake any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations. or opinions should change, except as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

View the source version on businesswire.com: https://www.businesswire.com/news/home/20241226993395/en/

Contacts

For more information about Sierra Metals, please visit www.SierraMetals.com or contact:

Investor relations
Company Sierra Metals Inc.
+1 (866) 721-7437
info@sierrametals.com

Media Relations
John Vincic
Principal, Oakstrom Advisors
+1 (647) 402-6375
john@oakstrom.com

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