Goldrock Shareholders Approve Acquisition by Fortuna Silver Mines

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 25, 2016) - Fortuna Silver Mines Inc. (NYSE:FSM)(TSX:FVI) is pleased to announce that Goldrock Mines Corp. ("Goldrock") has received overwhelming shareholder approval at the special meeting held today to approve its previously announced acquisition by Fortuna by way of a plan of arrangement (the "Arrangement"). The Arrangement was approved by approximately 99.99% of the votes cast by Goldrock shareholders. On closing of the Arrangement, Goldrock's issued and outstanding common shares will be exchanged on the basis of 0.1331 of a Fortuna common share for each Goldrock share, and Goldrock's outstanding warrants will become exercisable for Fortuna shares based on the same exchange ratio.

Goldrock will seek the final order of the Supreme Court of British Columbia on July 26, 2016, to implement the Arrangement. The Arrangement is anticipated to become effective on or about July 28, 2016, subject to obtaining final regulatory and court approvals and other customary closing conditions.

"The acquisition of Goldrock and its Lindero gold deposit in the Salta province of Argentina is consistent with our strategy of delivering disciplined growth and value for our shareholders by building on our existing portfolio of high-quality assets," said Jorge Ganoza, President & CEO of Fortuna. "The long-life Lindero project with its potential to expand our low-cost production with significant free cash flow generation provides an opportunity to deliver long-term growth and significant sustainable value for our partners and stakeholders. Goldrock has established a solid foundation for us to build upon as the project enters the next phase of development."

Full details concerning the Arrangement are included in Goldrock's management information circular dated June 17, 2016 which is filed under Goldrock's SEDAR profile at www.sedar.com.

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 and in select other areas. For more information, please visit our website at www.fortunasilver.com.