Production Figures Reported For San Jose Mine In Mexico And The Caylloma Mine In Peru

VANCOUVER, BC - Fortuna Silver Mines Inc. President and CEO Jorge A. Ganoza, said, "With San Jose operating at the new throughput rate of 2,000 tpd successfully behind us, we are now focusing on our next phase of organic growth. We are already working with our consultants conducting engineering and trade-off studies to assess the economic robustness of a potential expansion of San Jose to 3,000 tpd. Mineralization at both the Trinidad North discovery and the central portion of the main Trinidad deposit remains wide open in multiple directions. Management continues to feel very excited with the prospective resource growth opportunities. With respect to the unit costs at both our mines, we are pleased with the positive results of the cost cutting measures implemented in mid-2013. We are on track to deliver on our all-in sustaining cash cost per ounce of silver guidance for 2014 of US$17.14, a 16 percent reduction compared to 2013."

The company reported second quarter production figures from its two 100 percent owned operating mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru. The company produced 1.6 million ounces of silver, 8,519 ounces of gold and significant base metal by-products. Silver and gold productions for the first six months of the year totaled 3.2 million and 16,669 ounces respectively; reflecting 53 and 52 percent of the company's annual guidance. Fortuna is on schedule to produce 6 million ounces of silver and 32,300 ounces of gold or 7.9 million ounces of Ag Eq in 2014.

At the San Jose Mine, Mexico silver and gold productions for the quarter were 9% and 4% above budget respectively. Average head grade for silver was 229 g/t or 14% above plan and for gold was 1.65 g/t or 9% above budget. The variance in silver head grade with respect to the budget is due to higher grades from mining of the inferred resource extension to the south of the stockwork zone at level 1200. Metallurgical recovery for silver and gold was 89.50% and 89.32% respectively, in line with budget.

The expansion of the processing plant from 1,800 to 2,000 tpd was completed in early April of this year; mill and mine have already achieved the new production rate. Last June, the company engaged engineering consultancy firms to evaluate the different options for expanding mill and mine facilities to potentially produce at 3,000 tpd.

Silver production at the Caylloma Mine, Peru for the quarter was 7% above budget and average head grade was 170 g/t or 5% above plan. Metallurgical recovery for silver was 83.50% or 2% above budget.