Fortuna Announces Expansion of Its San Jose Mine From 2,000 to 3,000 tpd - Seite 2

The mine is well ahead of production with a 2.8 year projection of developed reserves by the end of 2015; sufficient to comfortably source 3,000 tpd. No major infrastructure projects are required at the mine.

Dry stack deposit and plant facility

The San Jose Mine will be shifting from conventional slurry tailings disposal to dry stack tailings. The capital projection is US$32 million based on basic engineering estimates prepared by M3 Engineering.

The project was initiated during the fourth quarter of 2014; US$1.0 million has been spent to-date with the balance to be expended in 2015. Purchase orders for filters and other major equipment have already been placed.

Direct capital costs of major items include:

• Filtration: US$13.7 million
• Dry stack deposit earthwork and preparation: US$2.3 million
• Thickening: US$1.3 million
• Backfill plant: US$1.4 million

The company is awaiting the approval of the environmental impact study of the project, pending the regularization of the change in land use of a single parcel. Completion of the dry stack tailings facility is projected for the fourth quarter of 2015.

The company will be providing comprehensive production, capital and cost guidance for 2015 in mid-January.

Cautionary note regarding Inferred Resources

Fortuna Silver Mines Inc. prepares its resource and reserve estimates in accordance with the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in the Canadian National Instrument 43-101. The economic evaluation of the proposed expansion from 2,000 to 3,000 tpd at San Jose Mine is based on existing Mineral Reserves (see Fortuna news release dated September 30, 2014) plus the inclusion of Inferred Resources which satisfied minimum technical requirements defined by the Company. The economic evaluation disclosed by this document provides only a preliminary indication of potential economic indicators (IRR, payback and AISCC). Investors are cautioned not to assume that any part of the Inferred Resources will ever be converted into economically mineable reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.