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FVI.TO ·

Early Warning Report

Corporate Actions

Early Warning Report

Vancouver, February 8, 2017: Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) announces that

on February 7, 2017 it acquired 10.0 million common shares (the “ Common Shares ”) of Medgold

Resources Corp. (“Medgold”), of 200 Burrard Street, Suite 650, Vancouver, BC V6C 3L6, at a price of

C$0.15 per Common Share . The Common Shares were acquired for a n aggregate purchase price of

C$1.5 million pursuant to the exercise of a commo n share purchase warrant (the “Warrant”) acquired by

Fortuna in a private placement.

Immediately following this exercise, Fortuna owns 20.0 million common shares of Medgold, representing

23.97% of the issued and outstanding common shares of Medgold, and own s no Warrants. Immediately

prior to this exercise, Fortuna owned 10.0 million common shares representing 13.62% of the issued and

outstanding common shares of Medgold, and 10.0 million Warrants.

The Common 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, precious metals producer focused on mining opportunities in Latin America.

Our primary assets are the Caylloma silver mine in southern Peru, the San Jose silver -gold mine in

Mexico and the Lindero gold project in Argentina . The company is selectively pursuing acquisition

opportunities throughout the Americas. For more information, please visit our website at

www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge A. Ganoza

President, CEO and Director

Fortuna Silver Mines Inc.

-2-

Trading symbols: NYSE: FSM | TSX: FVI

Investor Relations:

Carlos Baca- T (Peru): +51.1.616.6060, ext. 0

Forward looking Statements

This news release contains forward looking statements which constitute “forward looking information” within the

meaning of applicable Canadian securities legislation and “forward looking statements” within the meaning of the

“safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward looking

Statements”). All statements included herein, other than statements of historical fact, are Forward looking

Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual

events or results to differ materially from those reflected in the Forward looking Statements. The Forward looking

Statements in this news release include, without limitation, statements regarding the possible fu ture acquisition or

disposition by the Company of securities in Medgol d; and statements about acquisition opportunities in the

Americas. Often, but not always, these Forward looking Statements can be identified by the use of words such as

“estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”,

“detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”,

“remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and

similar expressions, including negative variations.

Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the

actual results, performance or achievement s of the Company to be materially different from any results,

performance or achievements expressed or implied by the Forward looking Statements. Such uncertainties and

factors include, among others, whether the Company will in the future acquire or dispos e of securities in Medgold;

changes in general economic conditions and financial markets; changes in prices for silver and other metals;

technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in

mineral ex ploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal

recoveries; governmental and other approvals; political unrest or instability in countries where Fortuna is active;

labor relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual

Information Form. Although the Company has attempted to identify important factors that could cause actual

actions, events or results to differ materially from those described in Forward looking Statements, there may be

other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of

management, including but not limited to expectations regarding the possible future acquisition or disposition by the

Company of securities in Medgold; mine production costs; expected trends in mineral prices and currency exchange

rates; the accuracy of the Co mpany’s current mineral resource and reserve estimates; that the Company’s activities

will be in accordance with the Company’s public statements and stated goals; that there will be no material adverse

change affecting the Company or its properties; that all required approvals will be obtained; that there will be no

significant disruptions affecting operations and such other assumptions as set out herein. Forward looking

Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward

looking Statements, whether as a result of new information, future events or results or otherwise, except as required

by law. There can be no assurance that Forward looking Statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated in such statements. Accordingly, investors should not

place undue reliance on Forward looking Statements.