Early Warning Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 20, 2016) - Fortuna Silver Mines Inc. (NYSE:FSM)(TSX:FVI) announces that it acquired for a purchase price of C$1.5 million, direct ownership of 10.0 million units (the "Units") of Medgold Resources Corp. ("Medgold"), of 200 Burrard Street, Suite 650, Vancouver, BC V6C 3L6, at a price of C$0.15 per Unit on June 17, 2016. Each Unit consists of one common share of Medgold and one warrant ("Warrant") to purchase an additional common share of Medgold exercisable at a price of C$0.15 per share for one year.

Immediately following this transaction, Fortuna owned 10.0 million common shares of Medgold, representing 15.65% of the issued and outstanding common shares of Medgold, and 10.0 million Warrants. Assuming the exercise of the Warrants in full, Fortuna would own 20.0 million common shares, which would represent 27.07% of the then issued and outstanding common shares of Medgold. However, the warrants have a restriction on exercise such that Fortuna may only exercise at any given time the number of Warrants that will not result in Fortuna owning 20% or more of Medgold's outstanding common shares, unless and until a resolution approving such exercise of the Warrants has been passed by the shareholders of Medgold in accordance with the applicable rules and policies of the TSX Venture Exchange. Immediately prior to the transaction, Fortuna owned no Common Shares and no Warrants.

The shares were acquired by Fortuna for investment purposes, and depending on market and other conditions, it may from time to time in the future increase or decrease its ownership, control or direction over securities of Medgold through market transactions, private agreements, or otherwise. Fortuna has filed on www.sedar.com a report in accordance with NI 62-103, and a copy of the report may be obtained by contacting Sally Whittall, the Corporate Secretary of Fortuna, at 604-484-4085.

About Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma silver Mine in southern Peru and the San Jose silver-gold Mine in Mexico. The company is selectively pursuing acquisition opportunities throughout the Americas. For more information, please visit our website at www.fortunasilver.com.