Fortuna Provides Update on Regulatory Review
Fortuna Provides Update on Regulatory Review
Vancouver, May 1, 2017: Fortuna Silver Mines Inc. (“Fortuna” or the “ Company”) (NYSE: FSM)
(TSX: FVI) today provided an update on the regulatory review of the Company’s 2015 annual filings by
the United States Securities and Exchange Commission (the “SEC”).
As previously announced, Fortuna is delayed in filing its annual audited financial statements and related
MD&A for the years ended December 31, 2016 and 2015, the related Chief Executive Officer and Chief
Financial Officer certificates, and its annual information form for the year ended December 31, 2016
(collectively, the “Annual Financial Documents”) due to a review by the SEC of the Company’s use of
inferred resources for the calculation of depletion expense in its audited financial statements contained in
the Annual Report on Form 40 -F for the year ended December 31, 2015 (the “SEC Comments ”). In
connection w ith the delayed filing of the Annual Financial Documents, the Company applied for and
received a management cease trade order (“ MCTO”) from the British Columbia Securities Commission
and other Canadian provincial securities regulatory authorities (collecti vely, the “ Securities
Regulators”). The MCTO prohibits certain executive officers of the Company from trading in securities
of the Company until the Company completes the required filing of the Annual Financial Documents.
The Company reports today that the SEC has verbally communicated it will accept the Company’s use of
inferred resources for the calculation of depletion expense, provided that the Company includes additional
disclosure regarding these calculations. The Company will work diligently to conclude the SEC’s review
process, which will include receiving the S EC’s comments on the additional disclosure , and anticipates
that it will file its Annual Financial Documents, and its interim financial statements and related MD&A
for the three months ended March 31, 2017 and 2016, and the related Chief Executive Officer and Chief
Financial Officer certificates (collectively, the “ Interim Financial Documents ”) in the coming weeks,
but no later than May 30, 2017.
This status update is provided pursuant to the alternative information guidelines in National Policy 12 -
203 Management Cease Trade Orders (“NP 12-203”), which require the Company to provide bi -weekly
updates on its affairs during the period of the MCTO. In accordance with such requirements, the
Company advises that: (i) except as previously disclosed and as disclosed herein, there have not been any
material changes to the information contained in the Company’s March 20, April 3 and April 17, 2017
news releases; (ii) there has not been any failure by the Company in fulfilling its stated intentions with
respect to satisfying the provisions of the alternative information guidelines of NP 12 -203; and (iii) other
than described herein, no (actual or anticipated) specified defaults have occurred subsequent to the
Company’s March 20, 2017 news release or the default of the Company resulting from its delay in filing
the Annual Financial Documents. Other than as described herein and the related news releases of the
Company on March 20, April 3 and April 17, 2017, there is no other material information concerning
Fortuna and its affairs that has not been generally disclosed as of the date of this update. Fortuna intends
to satisfy the provisions of the alternati ve information guidelines of NP 12- 203 so long as it remains in
default of filing the Annual Financial Documents.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented precious metals producer focused on mining opportunities in Latin America.
The Company’s 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 and in select other areas.
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ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
For further information please contact:
Fortuna Investor Relations:
Carlos Baca- T (Peru): +51.1.616.6060, ext. 0
The Toronto Stock Exchange and the New York Stock Exchange have not reviewed and do not accept responsibility
for the accuracy or adequacy of this news release, which has been prepared by management.
Forward looking Statements
This news release contains forward looking statements which constitute "forward looki ng 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 about the finalization and filing of the
Company’s Annual Financial Documents and Interim Financial Documents, and the MCTO issued by the Securities
Regulators. Often, but not always, these Forward looking Statements can be identified by the use of words such as
"estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain",
"planned", "reflecting", "will", "co ntaining", "remaining", "to be", 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 achievements of the Company to be materially different from any results,
performance or achievements expressed or implied by the F orward looking Statements. Such uncertainties and
factors include, among others, changes in the Company's plans for its mines and mineral properties; changes in
general economic conditions and financial markets; changes in prices for silver and other metal s; technological and
operational hazards in Fortuna's mining and mine development activities; risks inherent in mineral exploration;
uncertainties inherent in the estimation of mine ral 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 events, actions or results to differ
materially from those described in the Forward looking Statements, there may be other factors that cause events,
actions or results to differ from those anticipated, estimated or intended.
Fortuna believes that the assumptions and expectations reflected in the F orward looking Statements in this news
release are reasonable, but no assurance can be given that these expectations wi ll prove to be correct. Forward
looking Statements should not be unduly relied upon. These Forward looking Statements speak only as of the date of
this news release, and Fortuna will not necessarily update these statements unless required to do so by securities
laws.