Fortuna Silver Mines (FVI.TSX, NYSE: FSM) announced record silver and gold production for 2012 from its San Jose mine in Mexico and its Caylloma mine in Peru.  The Company reported its sixth consecutive year of silver and gold production growth and sustained low cash costs.  Fortuna Silver Mines also forecasted 2013 production of 4.4 million ounces of silver and 23,300 ounces of gold or 5.7 million silver-equivalent ounces plus significant base metal credits.

Highlights:

* Silver and gold production was 8% and 19% above 2012 production guidance respectively

* Silver production of 4.0 million ounces; 59% increase over 2011

* Gold production of 20,699 ounces; 195% increase over 2011

* Estimated consolidated cash cost per ounce of silver, net of by-product credits, is $6.38

Jorge A. Ganoza, President and CEO of Fortuna Silver Mines:

“For 2013, we continue to project sustained low cost silver and gold production expansion driven by the San Jose ramp-up to be commissioned in early Q3 2013. Fortuna´s strategic objective is to target an annual production rate of 14 million silver and gold equivalent ounces by 2016 while maintaining cash costs at its operations below industry average.”

Graeme Jennings, Cormark Securities:

“We believe that the Company offers investors exposure to an undervalued ‘best in class’ mid-tier silver producer with a rapidly growing production profile supported by high quality in-situ resources and exploration assets.”