Sierra Metals Inc ( SMTSF ):

* SIERRA METALS INC. ( SMTSF ) ENTERS INTO A BINDING AGREEMENT WITH

SILVERCO

MINING CORP. TO SELL ITS CUSI PROJECT IN MEXICO

* SIERRA METALS INC ( SMTSF ): PROPOSED DEAL FOR US$2.5 MILLION IN

CASH

CONSIDERATION AT CLOSING

* SIERRA METALS SECURES 2% NET SMELTER ROYALTY ON CUSI MINE

* SIERRA METALS ( SMTSF ): SMC TO HAVE RIGHT TO PURCHASE HALF OF

ROYALTY

(BEING 1.0%) AT ANY TIME IN EXCHANGE FOR CASH PAYMENT TO SIERRA

METALS OF $5 MILLION

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