FORTUNA SILVER MINES (FVI.TSX, NYSE.FSM)

FORTUNA SILVER MINES HIGHLIGHTS

Corporate presentation
TSX: FVI
NYSE: FSM

Building a leading silver mining company in the Americas Fortuna Silver Mines is positioned for sustainable growth with two, 100%-owned underground operating silver mines and extensive property holdings in Peru and Mexico. Established in 2005, the company has built a reputation as an efficient mine builder and operator. Today, Fortuna is one of Latin America’s fastest-growing silver producers. Production is forecast to grow from 4.4 million ounces of silver and 23,300 ounces of gold, plus base metals, in 2013, to 5 million ounces of silver and 26,000 ounces of gold, plus base metals, in 2014.

SAN JOSE MINE, MEXICO The 100% owned high-grade, underground silver- gold mine achieved commercial production on time and on budget in September 2011 at a rate of 1,000 tpd. A ramp up to 1,500 tpd, design capacity, has been initiated; with expected completion mid-2013. At design capacity, San Jose will annually produce on average 3.2 million ounces of silver and 23,000 ounces of gold.

CAYLLOMA MINE, PERU Since acquiring the mine in 2006, Fortuna has expanded ore processing capacity from 500 tpd to 1,300 tpd. The 2013 production guidance is 2 million ounces of silver and 2,700 ounces of gold, plus base metal credits. With a healthy mine life projected at eight years, a brownfields exploration program is focused on expanding the resource base.

MANAGEMENT EXPERTISEFortuna’s key strength is industry expertise in the Americas. Management’s knowledge of regional mining, finance, exploration, geology and regulatory environments has allowed Fortuna to identify and capitalize on accretive opportunities within the region.

FORTUNA SILVER MINES RECENT DEVELOPMENTS

Fortuna reports record net income, operating cash flow
March 20, 2013FSM announces 2012 revenue of $161 million and net income of $31.5 million for the year. For the fourth quarter revenue totaled $37.9 million with net income of $8.5 million. Record silver and gold production for the year increased to a record 3,987,757 ounces and 20,699 ounces, respectively, at a consolidated cash cost per ounce, net of by-product credits, of $5.96.

Expands Presence in Mexico January 24, 2013 Fortuna Silver Mines announced that its wholly owned subsidiary, Compania Minera Cuzcatlan S.A. de C.V., and Plata Pan American S.A. de C.V. – a wholly owned subsidiary of Pan American Silver Corp. – have entered into an acquisition and option agreement for the 6,254 hectare Taviche Oeste Concessions immediately surrounding the San Jose Mine in Oaxaca, Mexico.

6th Straight Year of Production Growth January 14, 2013 Fortuna Silver Mines 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.

FORTUNA SILVER MINES SHARE PERFORMANCE

FSM HAS OUTPERFORMED

S&P 500Fortuna Silver Mines has surged higher in the last quarter, rising more than 35%.

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

FSM VS BENCHMARKS LAST 90D

Premier continues to outperform benchmarks

FORTUNA SILVER MINES IN THE NEWS

LOCATED IN TOP MINING JURISDICTIONS IN MEXICO AND AREQUIPA, PERU

KEY UPCOMING CATALYSTS

2013
San Jose Mine
Fortuna has initiated expansion of the processing plant and mine to design capacity of 1,500 tpd in 2012. Upon completion in mid-2013, San Jose is expected to annually produce at a rate of 3.2 million ounces of silver, 23,000 ounces of gold. Parallel to the processing plant expansion, the Company has also initiated the construction of an offsite dore plant to be completed in 2013.

2012 Ongoing EXPLORATION IN PERU AND MEXICO –CONTINUED GROWTH IN RESOURCES AND RESERVES
The company’s strategy is to grow organically by exploring and developing land packages in Peru and Mexico. Exploration in Mexico this year will continue to focus on the southern extension of the Bonanza and Trinidad veins at the San Jose Mine as well as exploration of other targets within the district. Exploration of the Caylloma property is ongoing, with expansion of the existing reserve and resource base being the main focus.

Growth Pursuing selective M&A opportunities
Fortuna is selectively pursuing the acquisition of post discovery, pre development silver rich opportunities in the Americas, with a focus on high-margin operations.