FORTUNA SILVER MINES (FVI.TSX)

FORTUNA SILVER MINES HIGHLIGHTS

Flagship Caylloma Silver-Lead-Zinc Mine in Peru – Fortuna Silver purchased a 100% interest in the Caylloma Mine and related mining concessions in 2005 and returned the mine to production in October of 2006 following a significant upgrading and modernization of the ore processing plant. The mine is located in the mineral-rich Caylloma Mining District in the southern highlands of Arequipa, Peru.

Growing Production, Cash Flow, and Earnings – Fortuna is a growth-oriented silver and base metal producer focused on mining opportunities in Latin America. Since opening the Caylloma Mine in Peru, the company has become one of Latin America’s fastest-growing silver producers.

68 Million Silver-Equivalent Ounces at Fortuna’s Second Mine, San Jose – The 100% owned San Jose silver-gold project is a low sulphidation epithermal system located within the Taviche Mining District located in southern Oaxaca, Mexico. On April 26, 2010 a positive pre-feasibility study (PFS) was published setting the basis of construction of the Company’s second mine, a 1,500 tpd underground silver-gold mine.

Growing Institutional Shareholder Base – Fortuna has made its way onto institutional investors’ radar screens by delivering significant leverage to the silver price and growing production and earnings.

FORTUNA SILVER MINES RECENT DEVELOPMENTS

High-Grade Results at Bateas May 24, 2012 Fortuna Silver Mines announced the results of recently completed exploration drilling of the Bateas Vein at its Caylloma Mine in Arequipa, Peru . The Canadian-based silver producer reported that a 19 hole drill program was completed in late April to explore extensions of high-grade mineralization in the Bateas vein system. Production from the Bateas Vein is presently being sourced from the 12th level and represents approximately 18% of the silver ounces delivered to the mill.

Earnings Surge 132% May 9, 2012 Fortuna Silver Mines released its first quarter financial results, highlighted by a 132% increase in net income to $11.11 million. The Canadian-based silver producer also generated cash flow from operating activities before changes in working capital of $14.69 million, a 144% rise over the first quarter of 2011. Fortuna also produced a quarterly record 953,091 ounces of silver and 5,137 ounces of gold.

Affirms Production Guidance April 16, 2012 Fortuna Silver Mines announced first quarter 2012 production results from its two operations mines in Latin America – San Jose in Mexico and Caylloma in Peru. The Canadian-based precious metals company reported that both mines are performing above planned production levels and that the company is on pace to produce 3.7 million ounces of silver and 17,400 ounces of gold – or 4.6 million ounces of silver equivalent – plus significant base metal by-product this year.

FORTUNA SILVER MINES SHARE PERFORMANCE

FVI.TSX HAS OUTPERFORMED

S&P 500Fortuna Silver Mines has surged higher in 2010 by a factor of greater than 12 relative to the broader stock market.

SilverThe Canadian-based silver miner has provided investors with considerable leverage to the price of silver as it delivers growth in production, cash flow, and earnings.

XAUFortuna has posted gains far exceeding that of the precious metals sector this year

FVI.TSX VS BENCHMARKS IN 2010

Premier continues to outperform benchmarks

FORTUNA SILVER MINES IN THE NEWS

LOCATED IN TOP MINING JURISDICTION AREQUIPA, PERU

KEY UPCOMING CATALYSTS

2012
San Jose Mine Ramp-Up
San Jose is expected to produce 520,000 ounces of silver and 4,600 ounces of gold in 2011, and 1.7 million ounces of silver and 15,000 ounces of gold in 2012 at an estimated cash cost per silver ounce of $5.04, net of by-products.

2012 Ongoing Exploration at Caylloma – Growth in Resources and Reserves
Exploration of the Caylloma District is ongoing and Fortuna expects to further upgrade and expand the existing reserve and resource base in the coming years.

2012 Expanding Free Cash Flow as Caylloma and San Jose Provide Leverage to Silver Prices
By expanding and diversifying its suite of silver assets, Fortuna provide investors with enhanced leverage to the price of silver.