Mr. Jorge Ganoza reports

FORTUNA REPORTS UPDATED MINERAL RESERVES AND MINERAL RESOURCES

Fortuna Silver Mines Inc. has provided its updated mineral reserve and mineral resource estimates as of Dec. 31, 2023, for its five operating mines in West Africa and the Americas, and the Arizaro project located at the Lindero mine in Salta, Argentina. All references to dollar amounts in this news release are expressed in United States dollars.

Highlights of mineral reserve and mineral resource update

• Consolidated proven and probable mineral reserves are reported containing 3.1 million ounces AuEq (gold equivalent) representing a year-over-year decrease of 11 per cent.
• Consolidated measured and indicated resources exclusive of mineral reserves are reported containing 1.1 Moz AuEq representing a year-over-year decrease of 19 per cent.
• Consolidated inferred mineral resources are reported containing 1.7 Moz AuEq representing a year-over-year decrease of 22 per cent.
• Primary drivers for changes in mineral reserves and mineral resources are production related depletion in 2023 of 452,000 oz AuEq and the application of higher cut-off values as a result of increased operational costs.
• Technical reports to support the disclosure of mineral reserves and mineral resources for the Seguela, Caylloma and San Jose mines will be filed within the next 45 days.
• The Diamba Sud gold project JORC (Joint Ore Reserves Committee) historical estimate of 625,000 oz Au of indicated resources and 235,000 oz Au of inferred resources has not been incorporated into this consolidated mineral resources and mineral reserves update. Confirmatory drilling to update the historical resources is continuing and planned for completion later in 2024.

This estimate was prepared in accordance with the JORC code; refer to the scoping study report entitled "Diamba Sud Project, Senegal," prepared by Chesser Resources Ltd. and published on March 15, 2022, and subsequently amended on Oct. 27, 2022, and Dec. 12, 2022.

Diamba Sud gold project, Senegal

Fortuna plans to prepare a mineral resource estimate in accordance with the disclosure requirements of Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects upon the completion of the current Brownfields exploration program that includes 42,700 metres of drilling, including extension and resource development, in addition to the testing and advancement of previously identified geochemistry anomalies (refer to Fortuna news release dated Jan. 18, 2024). The program is expected to finish by the end of August, 2024, with the updated evaluation planned for completion by the end of 2024.

Caylloma mine, Peru

As of Dec. 31, 2023, the Caylloma mine has proven and probable mineral reserves of 2.3 Mt containing 6.1 Moz Ag (silver), 10,000 oz Au (gold), 64,000 t Pb (lead) and 93,000 t Zn (zinc) in addition to inferred resources of 4.5 Mt containing 14.4 Moz Ag, 63,000 oz Au, 110,000 t Pb, and 162,000 t Zn.

Year over year, mineral reserve tonnes decreased by 28 per cent, while silver grade increased 2 per cent to 83 grams per tonne, lead grade increased 5 per cent to 2.78 per cent and zinc grade increased 4 per cent to 4.04 per cent. Changes are due to mining-related depletion of 544,000 tonnes, a decrease by 51,000 tonnes due to higher cut-off values related to increases in operating costs, a decrease of 188,000 tonnes as a result of changes in commercial terms and metal price, a decrease of 218,000 tonnes due to adjustments in the estimation parameters and geologic interpretation, and conversion of 23,000 tonnes of inferred resources to mineral reserves.

Measured and indicated resource tonnes, exclusive of mineral reserves, decreased by 37 per cent year over year to 1.8 Mt with silver and lead grades increasing slightly by 9 and 1 per cent, respectively, and zinc grades decreasing by 12 per cent, due to an increase in cut-off value as a result of higher operating costs and the application of operational dilution based on minable shape optimizer evaluation to remove isolated and narrow mineralized structures from the inventory.

Inferred resource tonnes decreased by 10 per cent year over year. Silver grades decreased 6 per cent, whereas lead and zinc grades increased by 9 and 8 per cent, respectively. The decrease in inferred mineral resources is a result of an increase in cut-off values used for reporting mineral resources from $65/t to $75/t resulting in a decrease of 416,000 tonnes and adjustments in the geologic interpretation, changes in commercial terms and sterilization of material associated with isolated or narrow mineralization resulting in a decrease of 929,000 tonnes, offset by the discovery of 900,000 tonnes through exploration drilling of the Animas and Animas NE veins.

The Brownfields exploration program budget for 2024 at Caylloma is $2.0-million, supporting field exploration, regional geophysics and continuing studies of the structural controls to mineralization on the Animas vein (refer to Fortuna news release dated Jan. 18, 2024).

San Jose mine, Mexico

As of Dec. 31, 2023, the San Jose mine has proven and probable mineral reserves of 0.7 Mt containing 3.7 Moz Ag and 23,000 oz Au, in addition to inferred resources of 1.0 Mt containing a further 4.9 Moz Ag and 35,000 oz Au.

Year over year, mineral reserves decreased 66 per cent in terms of tonnes, while silver grade decreased 9 per cent and gold grade decreased 16 per cent after net changes of minus one Mt resulting from production-related depletion, and a further decrease of 400,000 t due to the application of higher cut-off grades as a result of significant cost increments related to the appreciation of the Mexican peso, higher contractor costs for transportation, distribution, shotcrete, maintenance and mining services, higher labour costs and new labour reform mandates, change from owner's mining fleet to contractor fleet for mine development, and higher costs in fuel, energy, materials and consumables related to 2023 inflation.

Measured and indicated resource tonnes exclusive of mineral reserves increased by 15 per cent year over year, while silver and gold grades increased 35 and 54 per cent, respectively. The change is due to an increase in cut-off grade from 110 g/t to 130 g/t AgEq due to cost increases as detailed herein combined with the upgrading of inferred resources to indicated resources in the Victoria mineralized zone. An evaluation is continuing as to whether sufficient tonnage at a high enough grade is located in localized areas of the Victoria mineralized zone to cover development and infrastructure costs allowing conversion of inferred resources to mineral reserves and inclusion in the mine plan.

Year over year, inferred resources decreased 59 per cent in terms of tonnes, with grades increasing for silver and gold by 25 per cent. The net variation is due primarily to the increase in cut-off grade used for reporting, as described herein, the upgrading of inferred resources to indicated resources through infill drilling of the Victoria mineralized zone and changes in the geologic interpretation and removal of isolated mineralization through the application of a minable stope optimizer.

The Brownfields exploration program budget for 2024 at San Jose is $4.9-million, which includes 13,900 metres of diamond drilling, focused on testing and extending the Yessi vein, as well as exploring additional targets within the mine area (refer to Fortuna news release dated Jan. 18, 2024).

Lindero mine, Argentina

As of Dec. 31, 2023, the Lindero mine has proven and probable mineral reserves of 71.5 Mt containing 1.3 Moz Au, in addition to measured and indicated resources, exclusive of mineral reserves, of 30.5 Mt containing 412,000 oz Au, and inferred resources of 25.3 Mt containing 386,000 oz Au.

Since Dec. 31, 2022, mineral reserve tonnes decreased by 10 per cent, while gold grade remained relatively unchanged at 0.56 g/t Au. Changes are primarily due to mining related depletion and sterilization of 6.5 Mt of material containing 122,000 oz Au delivered to the heap leach pad in 2023 and an increase in the reporting cut-off grade due to higher operating costs resulting in a decrease of 2.3 Mt containing 21,000 oz Au.

Measured and indicated resource gold ounces, exclusive of mineral reserves, remained relatively unchanged year over year.

Inferred resource tonnes increased by 1.1 Mt or 5 per cent, to 25.3 Mt since Dec. 31, 2022, with the gold grade remaining unchanged at 0.47 g/t. The slight increase in inferred resources is due to minor adjustments in the optimization of the pit shell.

Yaramoko mine, Burkina Faso

As of Dec. 31, 2023, the Yaramoko mine has proven and probable mineral reserves of 900,000 t containing 219,000 oz Au, in addition to measured and indicated resources, exclusive of mineral reserves, of 500,000 t containing 43,000 oz Au, and inferred resources of 160,000 t containing 18,000 oz Au.

Year over year, mineral reserve tonnes decreased 26 per cent, while gold grades increased 34 per cent to 7.90 g/t Au. The changes are due to mining related depletion in 2023 of 500,000 t of material containing 118,000 oz Au offset by successful underground exploration and delineation drilling of the Zone 55 and Bagassi South QV Prime veins that, after the application of modifying factors, resulted in an increase of 300,000 t containing 124,000 oz Au of new probable reserves.

Measured and indicated resource gold ounces, exclusive of mineral reserves, decreased by 46,000 oz and inferred resources by 7,000 oz as a result of the application of updated cut-off grades and operational dilution based on minable stope optimizer evaluation to remove isolated non-economic mineralization.

The Brownfields exploration program budget for 2024 at Yaramoko is $6.1-million, which includes 41,450 metres of exploration drilling, with underground drilling testing western and depth extensions to the Zone 55 deposit, surface drilling testing several anomalies along the Boni shear, Bagassi South surface extensions and other surface targets (refer to Fortuna news release dated Jan. 18, 2024).

Seguela mine, Ivory Coast

As of Dec. 31, 2023, the Seguela mine has proven and probable mineral reserves of 11.8 Mt containing 1.2 Moz Au, in addition to indicated resources of 4.7 Mt containing 381,000 oz Au and inferred resources of 3.1 Mt containing 245,000 oz Au.

Since Dec. 31, 2022, mineral reserve tonnes decreased by 3 per cent, while gold grade increased by 9 per cent to 3.05 g/t Au. Changes are primarily due to mining related depletion of 800,000 t of material containing 79,000 oz Au since operations commenced in May, 2023, an increase in the reporting cut-off grade due to higher processing and service costs resulting in a decrease of 1.6 Mt containing 53,000 oz Au offset by the reclassification of 2.1 Mt containing 206,000 oz from indicated resources to probable reserves related to delineation drilling and definition of the updated pit shell at the Sunbird deposit.

Measured and indicated resource gold ounces, exclusive of mineral reserves, decreased 34 per cent by 142,000 oz, year over year, in relation to the reclassification of the Sunbird deposit open pit resources from indicated resources to probable reserves and a reduction in pit size based on updated contractor costs and geologic interpretation, a decrease of 339,000 oz Au. This reduction was offset by the inclusion of underground indicated resources for the Koula, Ancien and Sunbird deposits totalling 233,000 oz Au. The application of higher cut-off grades in relation to an increase in processing and service costs accounted for a further decrease of 36,000 oz Au.

Inferred resources decreased 2.6 Mt or 365,000 oz Au in relation to the reduction in the size of the Sunbird pit shell due to the results of the infill drilling and increased costs as described herein resulting in a decrease of 203,000 oz, and upgrading to indicated resources of underground mineralization, previously planned for open pit mining of 233,000 oz Au. These decreases were offset by the inclusion of underground inferred resources for the Koula, Ancien and Sunbird deposits totalling 98,000 oz Au. Adjustments to the estimation parameters and pit optimization for the other deposits resulted in a further decrease of 27,000 oz Au.

The Brownfields exploration program budget for 2024 at Seguela is $7.8-million, which includes 41,750 metres of exploration drilling, focused on testing and extending underground targets associated with the Sunbird, Ancien and Koula deposits, as well as advancing emerging prospects such as Barana, Badior and Kestral, and continuing to explore for additional prospects (refer to Fortuna news release dated Jan. 18, 2024).

Arizaro gold project, Lindero property, Argentina

As of Dec. 31, 2023, the Arizaro gold project has inferred mineral resources of 24.1 Mt averaging 0.40 g/t Au containing 310,000 oz Au, remaining relatively unchanged from last year other than minor adjustments in the pit shell. Mineralization remains open at depth and along the trend of the northeast to southwest striking porphyry.

Qualified person

Eric Chapman, Fortunas senior vice-president of technical services, is a professional geoscientist of the Engineers and Geoscientists of British Columbia (registration No. 36328) and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.

About Fortuna Silver Mines Inc.

Fortuna Silver Mines is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Ivory Coast, Mexico and Peru. Sustainability is integral to all its operations and relationships. The company produces gold and silver, and generated shared value over the long term for its stakeholders through efficient production, environmental protection and social responsibility.

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