Mr. Jorge Ganoza reports

FORTUNA REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2023

Fortuna Silver Mines Inc. has released its financial and operating results for the fourth quarter and full-year 2023. (All amounts are expressed in U.S. dollars, and tabular amounts are in thousands, unless otherwise stated.)

Fourth quarter and full-year 2023 highlights

Financial:

• Attributable net loss for the quarter of $92.3-million or 30 cents per share after non-cash impairment charges of $90.6-million in Q4 2023, totalling an attributable net loss of $50.8-million for full-year 2023;
• Attributable adjusted net income of $20.6-million or seven cents per share in Q4 2023, totalling $64.9-million, or 22 cents per share for full-year 2023;
• Net cash generated by operations for the quarter was $105.1-million or 36 cents per share in Q4 2023, totalling $296.3-million or $1 per share for full-year 2023;
• Free cash flow from continuing operations of $66.2-million in Q4 2023, totalling $153.5-million for full-year 2023;
• The company repaid $41.0-million of its corporate credit facility in the fourth quarter, and the total net debt at year-end stands at $83.0-million; an additional payment of $25.0-million was made subsequent to year-end;
• Liquidity as at Dec. 31, 2023, was $213.1-million.

Operational:

• Record gold equivalent production of 136,154 ounces in Q4 2023 and record annual gold equivalent production of 452,389 ounces, representing increases of 6 and 13 per cent compared with the respective periods in 2022;
• Record gold production of 107,376 ounces in Q4 2023 and 326,638 ounces for full-year 2023;
• Silver production of 1,354,003 ounces in Q4 2023 and 5,883,691 ounces for full-year 2023;
• Consolidated cash cost per gold equivalent ounce of $840 in Q4 2023 and $874 for full-year 2023;
• Consolidated all-in sustained cost per gold equivalent ounce of $1,509 for Q4 2023 and $1,508 for full-year 2023;
• Continuous trend of improvement in annual safety performance across the business with a total recordable injury frequency rate of 1.22 and a lost-time injury frequency rate of 0.36, compared with 2.32 and 0.39 in 2022.

Growth and development:

• During the fourth quarter of 2023, the company initiated a 45,000-metre drill program at its newly acquired Diamba Sud project in Senegal. Subject to results, the company plans to produce a preliminary economic assessment by the end of 2024.
• At the end of December, 2023, the Seguela mine processing facility was performing 26 per cent above nameplate capacity. For 2024, management has identified opportunities to further optimize and debottleneck throughput.

Jorge A. Ganoza, president and chief executive officer, commented: "In the fourth quarter, Fortuna delivered strong free cash flow from ongoing operations of $65-million compared to $70-million in the third quarter. The company also achieved record gold equivalent production of 136,154 ounces and record sales of $265.3-million, representing increases of 6 per cent and 9 per cent, respectively, compared to [third quarter]."

Mr. Ganoza added: "Fourth quarter net earnings were impacted by non-cash writedowns and the remaining short life of reserves at San Jose, where we have recorded a non-cash impairment charge of $90.6-million. At San Jose, our exploration continues, pursuing the discovery of new resources with the aim of extending production beyond 2024."

Mr. Ganoza continued: "Fortuna had a strong close to 2023, with record annual gold production exceeding guidance and silver falling short by 7 per cent. Gold equivalent production increased 13 per cent to a record 452,389 gold equivalent ounces compared to 2022, and we have guided further growth in 2024. Record annual sales of $842.4-million were 24 per cent above 2022. All our mines met or improved site AISC guidance for the year with the only exception being the San Jose mine, which is operating on the tail end of reserves and had to contest with an illegal blockade at the beginning of the year."

Mr. Ganoza concluded: "For 2024, our capital allocation priorities continue to be centred on providing maximum balance sheet flexibility through further debt reduction and funding of aggressive organic growth programs with approximately 200,000 metres of exploration drilling planned across the portfolio. The Diamba Sud project in Senegal and the Seguela mine in Cote d'Ivoire are priorities for our exploration programs during the year."

Qualified person

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

Additional information regarding the company's financial results and activities under way is available in the company's audited consolidated financial statements for the year ended Dec. 31, 2023, and accompanying 2023 management's discussion and analysis, which are available for download on the company's website, on SEDAR+ and on EDGAR.

Conference call and webcast

A conference call to discuss the financial and operational results will be held on Thursday, March 7, 2024, at 9 a.m. Pacific Time or 12 p.m. Eastern Time. Hosting the call will be Mr. Ganoza; Luis D. Ganoza, chief financial officer; Cesar Velasco, chief operating officer -- Latin America; and David Whittle, chief operating officer -- West Africa.

Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast or over the phone by dialling in just prior to the starting time.

Conference call details

Date:  Thursday, March 7, 2024

Time:  9 a.m. Pacific Time or 12 p.m. Eastern Time

Dial-in number (toll-free):  1-888-506-0062

Dial-in number (international):  1-973-528-0011

Entry code:  866537

Replay number (toll-free):  1-877-481-4010

Replay number (international):  1-919-882-2331

Replay passcode:  49929

Playback of the earnings call will be available until Thursday, March 21, 2024. Playback of the webcast will be available until Thursday, March 6, 2025. In addition, a transcript of the call will be archived on the company's website.

About Fortuna Silver Mines Inc.

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

We seek Safe Harbor.