FVI.TO · 2019-03-27 12:00:00

Fortuna Updates Mineral Reserves and Mineral Resources for the San Jose and Caylloma Mines

Resource Estimates

Fortuna Updates Mineral Reserves and Mineral Resources

for the San Jose and Caylloma Mines

Vancouver, March 27, 201 9-- Fortuna Silver Mines, Inc. (NYSE: FSM ) ( TSX: FVI ) is pleased to report

updated Mineral Reserve and Mineral Resource estimates as of December 31, 201 8 for the Cay lloma

Mine located in Peru and the San Jose Mine located in Mexico.

Jorge A. Ganoza, President and CEO, commented: “For the second successive y ear, our infill drill

programs at both San Jose and Caylloma were successful at replenishing Mineral Reserves mined.” Mr.

Ganoza added, “In addition, the exploration programs executed last year resulted in the definition of a

maiden Inferred Mineral Resource for the Victoria mineralized zone at San Jose, as well as the expansion

of resources at Animas NE.” Mr. Ganoza concluded, “Both targets remain open at depth and along strike

for further exploration.”

Highlights of Reserve and Resource Update

• Combined Proven and Probable Mineral Reserves for the Caylloma and San Jose mines are

reported at 7 .8 Mt containing 4 5.6 Moz silver and 27 2 koz gold, representing a year-over-year

increase of 17 percent in tonnes, a 2 percent increase in contained silver ounces and no change

in gold ounces

• Combined Inferred Mineral Resources for the Caylloma and San Jose mines are reported at

8.8 Mt containing an estimated 3 2.8 Moz silver and 1 68 koz gold, reflecting a year- over-year

decrease of 17 percent and 13 percent in contained silver and gold ounces respectively

Mineral Reserves - Proven and Probable

Contained

Metal

Property Classification Tonnes

(000)

(g/t)

(%)

(Moz)

(koz)

Mines

Caylloma,

Peru

Proven 149 85 0.26 2.09 3.23 0.4 1

Probable 2,477 77 0.18 2.12 3.71 6.1 14

Proven + Probable 2,626 77 0.18 2.11 3.69 6.5 15

San Jose,

Mexico

Proven 393 237 1.97 N/A N/A 3.0 25

Probable 4,779 235 1.51 N/A N/A 36.0 232

Proven + Probable 5,172 235 1.55 N/A N/A 39.0 257

Total Proven + Probable 7,798 182 1.09 N/A N/A 45.6 272

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Mineral Resources - Measured and Indicated Contained

Metal

Property Classification Tonnes

(000)

(g/t)

(%)

(Moz)

(koz)

Mines Caylloma,

Peru

Measured 524 73 0.32 1.16 2.23 1.2 5

Indicated 1,633 77 0.29 1.23 2.25 4.1 15

Measured + Indicated 2,157 76 0.30 1.22 2.24 5.3 21

San Jose,

Mexico

Measured 49 77 0.56 N/A N/A 0.1 1

Indicated 272 84 0.59 N/A N/A 0.7 5

Measured + Indicated 321 83 0.59 N/A N/A 0.9 6

Total Measured + Indicated 2,478 77 0.34 N/A N/A 6.1 27

Mineral Resources – Inferred Contained

Metal

Property Classification Tonnes

(000)

(g/t)

(%)

(Moz)

(koz)

Mines Caylloma,

Peru Inferred 5,345 102 0.32 2.40 3.83 17.6 56

San Jose,

Mexico Inferred 2,415 196 1.44 N/A N/A 15.2 112

Total Inferred 7,760 132 0.67 N/A N/A 32.8 168

1. Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and

Mineral Reserves

2. Mineral Resources are exclusive of Mineral Reserves

3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability

4. Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and

exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries,

mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights

titles, maintain environmental and other regulatory permits, and maintain the social license to operate

5. Mineral Resources and Mineral Reserves are estimated as of June 30, 201 8 for the San Jose Mine and as of August 31, 2018 for

the Caylloma Mine and reported as of December 31, 201 8 taking into account production- related depletion for the period

through December 31, 2018.

6. Mineral Reserves for the San Jose Mine are estimated using a n NSR break-even cut -off grade of 1 31 g/t Ag Eq based on

assumed metal prices of US$1 8.25/oz Ag and US$1, 320/oz Au; estimated metallurgical recovery rates of 9 2 % for Ag and 9 1 %

for Au and mining costs of US$31.38/t; processing costs of US$ 16.55/t; and refining, distribution and general service costs of

US$15.27/oz based on actual operating costs. Mining recovery is estimated to average 89 % and mining dilution 12 %. Mineral

Resources are estimated at a 100 g/t Ag Eq cut -off grade using the same met al prices and metallurgical recoveries as for

Mineral Reserves and a mine to mill operating cost of US$52.50/t . Proven and Probable Mineral Reserves include 3. 20 Mt

containing 26.9 Moz of silver and 1 64 koz of gold reported at a 1 34 g/t Ag Eq cut -off grade and Inferred Resources totaling

1.32 Mt containing 7.1 Moz of silver and 49 koz of gold reported at a 100 g/t Ag Eq cut -off grade located in the Taviche Oeste

concession and subject to a 2.5 % royalty

7. Mineral Reserves for the Caylloma Mine are reported above NSR breakeven cut -off values based on the proposed mining

method for extraction including; mechanized (breasting) at US$ 82.90/t; mechanized (enhanced) at US$ 70.30/t; semi -

mechanized at US$93.10/t; and conventional at US$173.70/t using assumed metal prices of US$1 8.25/oz Ag, US$1,320/oz Au,

US$2,270/t Pb and US$2,750/t Zn; metallurgical recovery rates of 84 % for Ag, 17 % for Au, 91 % for Pb and 90 % for Zn with the

exception of high zinc oxide areas that use metallurgical recovery rates of 57 % for Ag, 17 % for Au, 57 % for Pb and 35 % for Zn;

and the Ramal Piso Carolina vein that uses a metallurgical recovery rate of 75 % for Au. Mining, processing and administrative

costs used to determine NSR cut-off values were estimated based on first half of 2018 actual operating costs. Mining recovery is

estimated to average 92 % with mining dilution ranging from 10 % to 40 % depending on the mining methodology. Mineral

Resources are reported based on estimated NSR values using the same metal prices and metallurgical recovery rates as detailed

for Mineral Reserves; and an NSR cut -off grade based on mine to mill operational costs of US$50/t for veins classified as wide

(Animas, Animas NE, Nancy, San Cristobal) and US$135/t for veins classified as narrow (all other veins)

8. Eric Chapman, P.Geo. (APEGBC #36328) is the Qualified Person for resources and Amri Sinuhaji (APEGBC #48305) is the

Qualified Person for reserves, both being employees of Fortuna Silver Mines Inc.

9. Totals may not add due to rounding procedures

10. N/A = Not Applicable

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San Jose Mine, Mexico

As of December 31, 201 8, the San Jose Mine has Proven and Probable Mineral Reserves of 5. 2 Mt

containing 39.0 Moz of silver and 257 koz of gold, in addition to Inferred Resources of 2 .4 Mt containing

a further 15.2 Moz of silver and 112 koz of gold.

Year-over-year, Mineral Reserves increased 3 percent in tonnes while decreasing 3 percent and 1

percent in contained silver and gold, respectively, after net changes resulting from production -related

depletion and the upgrading and conversion of Inferred Mineral Resources to Mineral Reserves due to a

successful infill drill program focused primarily on the Stockwork zones.

Measured and Indicated Resources exclusive of Mineral Reserves remained constant year-over-year at

0.3 Mt although average silver and gold grades increased by 29 percent and 23 percent, respectively,

due to changes in operating costs and commercial terms resulting in the breakeven cut- off grade for

Mineral Reserves increasing from 117 g/t to 131 g/t Ag Eq.

Year-over-year, Inferred Resources decreased 24 percent and 12 percent in contained silver and gold

ounces, respectively. Silver and gold grades decreased 19 percent and 6 percent respectively. The net

variation is due to reductions resulting from the upgrading of Inferred Mineral Resources by infill drilling

in the Stockwork zones.

Inferred Resources include the first time estimate of the recently discovered Victoria mineralized zone

comprising 810,000t averaging 137 g/t Ag and 1.14 g/t Au reported above a 100 g/t Ag Eq cut -off (refer

to footnote #6 on page 2 of thi s news release ). The Victoria mineralized zone remains open in all

directions.

Brownfields exploration program budget for 2019 at the San Jose Mine is US$4.5 million, which includes

11,500 meters of diamond drilling and 45 0 meters of underground development for drilling access and

platforms. Exploration drilling will focus on the sub -parallel Victoria mineralized zone and Trinidad

Central Deep.

A 2019 infill drilling program of 2,780 meters is underway at the San Jose Mine. The budget of the infill

drill program is US$0.4 million.

An updated Technical Report for the San Jose Mine will be filed on SEDAR this week.

Caylloma Mine, Peru

As of December 31, 201 8, the Caylloma Mine has Proven and Probable Mineral Reserves of 2 .6 Mt

containing 6.5 Moz of silver; in addition to Inferred Mineral Resources of 5.3 Mt containing 17.6 Moz of

silver.

Year-over-year, Mineral Reserve tonnes increased 64 percent while contained silver, lead and zinc

content increased 39 percent, 54 percent, and 69 percent respectively. Changes are primarily due to

mining related depletion and the upgrading and conversion of Inferred Mineral Resources to Mineral

Reserves due to a successful infill drill program focused on the Animas NE vein.

Measured and Indicated Resources, exclusive of Mineral Reserves, increased by 14 percent year-over-

year to 2.2 Mt.

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Inferred Mineral Resources year-over-year decreased by 7 percent to 5.3 Mt. Contained silver, lead and

zinc content decreased by 10 percent, 21 percent and 12 percent respectively. The decrease in Inferred

Mineral Resources is primarily due to a successful infill drill program of the Animas NE vein resulting in

the upgrading of Inferred Mineral Resources to Mineral Reserves counteracted by Brownfields

exploration drilling discovering new resources in the Animas NE vein.

The Brownfields exploration program budget for 2019 at the Caylloma Mine is $0.8 million. Work

planned includes mapping and sampling on additional mineralized silver-base metals structures.

A 2019 infill drilling program of 3 ,830 meters and 55 m eters development drift is being presently

executed at the Caylloma Mine. The budget of the program is US$0.48 million.

An updated Technical Report for the Caylloma Mine will be filed on SEDAR this week.

Qualified Person

Mr. Chapman is a Professional Geoscientist of the Association of Professional Engineers and

Geoscientists of the Province of British Columbia (Registration Number 36328) and has reviewed and

approved the scientific and technical information contained in this news release.

About Fortuna Silver Mines Inc.

Fortuna is a growth oriented, precious metal producer with its primary assets being the Caylloma silver

mine in southern Peru, the San Jose silver -gold mine in Mexico and the Lindero gold Project, currently

under construction, in Argentina. The Company is selectively pursuing acquisition opportunities

throughout the Americas and in select other areas. For more information, please visit its website at

www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge A. Ganoza

President, CEO and Director

Fortuna Silver Mines Inc.

Trading symbols: NYSE: FSM | TSX: FVI

Investor Relations:

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

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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 may include, without limitation, statements about the Company’s plans for its

mines and mineral properties; the Company’s business strategy, plans and outlook; the merit of the Company’s

mines and mineral properties; mineral resource and reserve estimates; timelines; production at the mines; the

future financial or operating performance of the Company; expenditures; approvals and other matters. 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”, “containing”, “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 impl ied by the Forward looking Statements. Such uncertainties and

factors include, among others, whether the Company’s activities at its properties will proceed as planned; changes

in general economic conditions and financial markets; changes in prices for sil ver, gold and other metals;

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

mineral exploration; 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: that the Company’s activities at its properties will proceed as planned;

expectations regarding mine production costs; expected trends in mineral prices and currency exchange rates; the

accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be in

accordance with the Compan y’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.

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Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

Reserve and resource estimates included in this news release have been prepared in accordance with National

Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43 -101") and the Canadian Institute of Mining,

Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43 -101 is a rule

developed by the Canadian Secur ities Administrators that establishes standards for public disclosure by a Canadian

company of scientific and technical information concerning mineral projects. Equivalent U.S. reporting

requirements are currently governed by the United States Securities and Exchange Commission ("SEC") Industry

Guide 7 (“Industry Guide 7”) under the U.S. Securities Act of 1933, as amended. Canadian standards, including NI

43-101, differ significantly from the requirements of the SEC currently in effect under Industry Guide 7, and reserve

and resource information contained in this news release may not be comparable to similar information disclosed by

U.S. companies. In particular, the term "resource" does not equate to the term "reserves". Under the SEC's

disclosure standards currently in effect under Industry Guide 7, mineralization may not be classified as a "reserve"

unless the determination has been made that the mineralization could be economically and legally produced or

extracted at the time the reserve determination is made. The SEC has not recognized the reporting of mineral

deposits which do not meet the Industry Guide 7 definition of “reserve” prior to the adoption of the Modernization

of Property Disclosures for Mining Registrants, which rules will be required to be complied with in the first fiscal

year beginning on or after January 1, 2021. As a result, the SEC's disclosure standards currently in effect normally

do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral r esources"

or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do

not constitute "reserves" by U.S. standards in documents filed with the SEC. You are cautioned not to assume that

resources will ever be converted into reserves. You should also understand that "inferred mineral resources" have a

great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.

You should also not assume that all or any part of an "inferred mineral resource" will ever be upgraded to a higher

category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-

feasibility studies except in rare cases. You are cautioned not to assume that all or any part of an "inferred mineral

resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted

disclosure under Canadian regulations; however, the SEC's disclosure standards current ly in effect under Industry

Guide 7 normally only permit issuers to report mineralization that does not constitute "reserves" by such standards

as in-place tonnage and grade without reference to unit measures. The requirements of NI 43 -101 for identification

of "reserves" are also not the same as those of the SEC's disclosure standards currently in effect under Industry

Guide 7, and reserves reported in compliance with NI 43 -101 may not qualify as "reserves" under such SEC

standards. Accordingly, informatio n concerning mineral deposits set forth in this news release may not be

comparable with information made public by companies that report in accordance with U.S. standards.

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