Mr. Jorge Ganoza reports

FORTUNA REPORTS 2015 PRODUCTION OF 9 MILLION SILVER EQUIVALENT OUNCES AND ISSUES GUIDANCE FOR 2016

Fortuna Silver Mines Inc. has released 2015 production figures from its two underground operating silver mines, the San Jose mine in Mexico and the Caylloma mine in Peru. The company produced 6.6 million ounces of silver and 39,700 ounces of gold or nine million silver equivalent ounces.

Jorge A. Ganoza, president and chief executive officer, commented: "We once again exceeded annual production guidance and continue to provide year-over-year growth into 2016. I want to highlight that our silver and gold production growth comes with industry-leading low costs. This, added to the strength of our balance sheet, positions the company to continue thriving through the phases of the metals cycle."

2015 consolidated production highlights

• Silver and gold production was 2 per cent and 13 per cent, respectively, above 2015 production guidance.
• Silver production of 6,624,635 ounces; 0.4-per-cent increase over 2014.
• Gold production of 39,689 ounces; 12-per-cent increase over 2014.
• Zinc production of 35,828,558 pounds; 31-per-cent increase over 2014.
• Lead production of 23,834,964 pounds; 48-per-cent increase over 2014.

                                  2015 OPERATING RESULTS

                                          Q4 2015                                  2015
                 Caylloma,   San Jose,    Consol-    Caylloma, San Jose,        Consol-
                      Peru      Mexico     idated         Peru    Mexico         idated

Processed ore
Tonnes milled      117,776     172,789                 466,286   717,505
Average tpd
milled               1,309       2,071                   1,306     2,072
Silver
Grade (g/t)         103.31       244.7                     136       234
Recovery (%)         82.78       92.79                   83.03     91.40
Production
(oz)               323,820   1,261,495  1,585,315    1,695,742 4,928,893      6,624,635
Gold
Grade (g/t)           0.22        1.90                    0.26      1.83
Recovery (%)         23.23       92.55                   30.28     91.26
Production
(oz)                   193       9,762      9,955        1,163    38,526         39,689
Lead
Grade (%)             3.38                                2.47
Recovery (%)         95.27                               93.98
Production
(lb)             8,361,240              8,361,240   23,834,964               23,834,964
Zinc
Grade (%)             4.09                                3.84
Recovery (%)         90.39                               90.79
Production
(lb)             9,598,503              9,598,503   35,828,558               35,828,558

San Jose mine, Mexico

Silver and gold annual production was 15 per cent and 16 per cent above 2015 guidance, respectively. Annual average head grades for silver and gold were 234 g/t and 1.83 g/t or 9 per cent and 10 per cent above plan.

Increase in silver and gold production was the result of higher contributions in ore tonnage and grade from level 1100 relative to the mine plan, and 3-per-cent-higher metallurgical recoveries and mill throughput.

Caylloma mine, Peru

Silver annual production was 1.7 million ounces or 11 per cent below revised guidance of 1.9 million ounces. Decrease in silver production was the result of the decision to redirect mining to focus on base metal-rich zones of the polymetallic Animas vein. Mining at the high-grade Bateas vein stopped in the fourth quarter of 2015.

Zinc and lead annual production was 12 per cent and 22 per cent above revised 2015 guidance of 32.1 million pounds and 19.5 million pounds, respectively.

                   2016 PRODUCTION AND CASH COST GUIDANCE

                                                        Cash              
                    Silver        Gold Investments      cost   AISCC ($/oz
Mine                 (moz)       (koz)       ($ m)     ($/t)           Ag)
San Jose,                                                                 
Mexico                 5.9        42.0        46.0      57.4           9.1
Caylloma, Peru         1.2         0.9        12.9      79.4          12.5
Total                  7.0        42.8        58.9                        
                                                                          

• The 2016 San Jose mine AISCC of $9.1 per ounce Ag includes $2.5 per ounce Ag or $13.9-million in sustaining capital investments mainly related to mine development and the expansion of the dry stack tailings deposit.
• Consolidated AISCC of $11.1 per ounce Ag.
• Caylloma mine zinc and lead production forecast at 43.7 million pounds and 42.5 million pounds, respectively.

2016 outlook

San Jose mine, Mexico

San Jose plans to process 875,000 tonnes of ore averaging 230 g/t Ag and 1.65 g/t Au. Increase of mill throughput from 2,000 tonnes per day to 3,000 tonnes per day is planned for July. Capital investment is estimated at $46-million.

Major capital investments include:

• 3,000 tpd mill expansion: $21.9-million.
• Mine development: $7.0-million.
• Dry stack tailings deposit expansion: $4.5-million.
• Brownfields exploration: $8.2-million.

Caylloma mine, Peru

Caylloma plans to process 503,100 tonnes of ore averaging 89 g/t Ag, 4.08 per cent lead and 4.37 per cent zinc. A 10-per-cent increase in mill throughput from 1,300 tpd to 1,430 tpd is planned for March. Capital investment is estimated at $12.9-million.

Major capital investments include:

• Mine development: $6.4-million.
• Processing plant optimization: $1.0-million.
• Brownfields exploration: $2.9-million.

Brownfields exploration highlights

San Jose mine, Mexico

Brownfields exploration program budget for 2016 at the San Jose Mine is $8.2-million, which includes 22,000 metres of diamond drilling and the development of a 1,500-metre underground exploration drift that will allow better access to test the northern extension of the Trinidad North vein system. Exploration drilling is in progress at the Trinidad Central zone in the San Jose mine and at La Noria/San Antonio vein system, a parallel vein system located two kilometres to the west of the San Jose mine area. The company disclosed further details of San Jose's brownfields exploration program on Dec. 16, 2015.

Caylloma mine, Peru

Brownfields exploration program budget for 2016 at the Caylloma mine is $2.9-million, which includes 17,000 metres of diamond drilling. Drilling will be focused on testing new exploration targets in the northern portion of the Caylloma district and in the Pisacca prospect area located a short distance to the southwest of the plant as well as further exploring the northeastern extension of the Animas vein.

Qualified person

Edwin A. Gutierrez, technical services corporate manager, is the qualified person for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Mr. Gutierrez is a registered member of the Society for Mining, Metallurgy and Exploration Inc. (SME-registered member No. 4119110RM) and is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.

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