Mr. Jorge Ganoza reports

FORTUNA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER 2019

Fortuna Silver Mines Inc. had a net loss of $7.7-million, adjusted net income of $1.9-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $19.2-million for the third quarter of 2019.

Jorge A. Ganoza, President and CEO, commented, "On the strength of our two operating mines and improved metal prices, we generated adjusted EBITDA of $19.2 million with strong free cash flow from ongoing operations of $10.6 million in the third quarter of 2019. These financial metrics are in spite of a challenging quarter from an operating perspective as our mine sequencing at San Jose yielded lower grades and we experienced a peak in our quarterly cash cost for the year. Both our production and costs are expected to be aligned with our plan in Q4 and we confirm our full-year production and cost guidance." Mr. Ganoza continued, "In Argentina, the lower Peso created an unrealized foreign exchange loss of $8.3 million relating to our VAT construction receivable. This was a key factor in our net loss of $7.7 million for the quarter." Mr. Ganoza further indicated, "As of the end of October, Lindero overall construction is 81 percent complete, with 99 percent of direct capital expenditures committed, and over 85 percent of the total projected construction capital spent." Mr. Ganoza concluded, "Pre-production mining at Lindero commenced in early September and placing of ore on the leach pad is scheduled to commence in December 2019."

Third quarter 2019 highlights:

• Sales of $61.3 million, compared to $59.6 million in Q3 2018
• Net loss of $7.7 million, compared to net income of $6.9 million in Q3 2018
• Adjusted net income1 of $1.9 million, compared to $9.6 million in Q3 2018
• Adjusted EBITDA1 of $19.2 million, compared to $24.2 million in Q3 2018
• Free cash flow from ongoing operations1 of $10.6 million, compared to $13.6 million in Q3 2018
• Silver and gold production of 1,937,293 ounces and 11,436 ounces, respectively
• AISC per silver equivalent ounce of payable silver was $13.2

Overview of financial and operating results

The Company's financial results for the quarter were impacted by an $8.3 million foreign exchange loss related to the VAT construction receivable in Argentina resulting in a net loss of $7.7 million. After adjusting for non-cash and non-recurring items, the adjusted net income for the quarter was $1.9 million compared to $9.6 million in Q3 2018 and $7.2 million in Q2 2019. The lower adjusted net income in the context of higher precious metal prices was mostly as a result of lower silver and gold metal production of 13% and 9%, respectively, compared to Q3 2018 that prevented us from realizing the full benefit of rising metal prices in the quarter. The lower metal output was related to mine production sequencing at the San Jose Mine in the quarter. Management expects production in the fourth quarter to be aligned with the mine plan and management continues to confirm production guidance for the year. Compounding the effect of lower production, cash costs at San Jose were slightly above the high end of our annual cash cost guidance range and 5% above for Caylloma. Compared to Q3 2018 cash cost per tonne at San Jose and Caylloma were 11% and 5% higher, respectively. Although some components of the higher costs are of a non-recurring nature, management anticipates costs in Q4 to remain at the high end of our annual cash cost guidance.

Capital resources and liquidity

Total liquidity available to the Company as of September 30, 2019 was $112.2 million, which includes $40.0 million of available credit under our $150.0 million credit facility. At the end of the quarter, the Company had cash, cash equivalents, and short-term investments of $72.2 million (December 31, 2018 {&#A A ; –} $163.3 million), a decrease of $91.1 million since the beginning of the year. The decrease reflects the increased spending on construction of the Lindero project. Subsequent to the end of the quarter, the Company closed a bought deal public offering of senior subordinated, unsecured convertible debentures which raised aggregate gross proceeds of $46 million.

Lindero gold Project

Construction at the Lindero open pit heap leach gold mine located in Salta Province; Argentina is 81% complete as of the end of October 2019. Net construction spending for the third quarter of 2019 was $37.6 million (YTD spending - $131.0 million) of which $27.0 million was unpaid as of the end of September. Cumulative construction spending to date was $253.8 million, including advances to contractors, representing 85% of the total expected construction costs. The total cost of construction is expected to be $298.0 million. In addition, the Company expects to incur approximately $25.0 million of pre-production costs and working capital at Lindero and approximately $12.0 million of recoverable value added taxes through to the end of construction.

Financial Results

Sales for the quarter were $61.3 million, a 3% increase from the $59.6 million reported in the same quarter in 2018. The increase in sales was due primarily to higher metal prices for silver and gold of 17% and 23%, respectively, but was partially offset by a decrease in the volume of silver and gold ounces sold of 10% and 6% respectively, as well as a 10% decrease in the volume of lead sold and lower zinc prices of 8%.

The operating loss for the quarter was $1.5 million, compared to operating income of $10.5 million in the same quarter in 2018. The loss was due to an $8.3 million foreign exchange loss on the value added tax receivable at our Lindero project in Argentina. Other items impacting the quarter were $1.3 million in non-cash impairment charges related to our exploration initiatives.

Excluding the foreign exchange loss in Argentina and the non-cash impairment charges, on an adjusted basis, operating income was $8.1 million, compared to $12.0 million in Q3 2018. The decrease was mainly due to higher share-based payments expense of $1.9 million ($1.5 million in Q3 2019 compared to $0.4 million credit in Q3 2018), higher production costs of $1.8 million, and higher spending in exploration and evaluation activities of $1.3 million.

Net loss for the quarter was $7.7 million or ($0.05) per share compared to $6.9 million net income or $0.04 per share reported in the same quarter in 2018. Adjusted net income for the quarter was $1.9 million compared to $9.6 million in Q3 2018. On an adjusted basis, the effective tax rate for the quarter was 76% due to the volatility of foreign exchange rates, lower pre-tax income, and withholding taxes. The effective tax rate on an adjusted basis for the nine-month period was 54%, which was slightly above our expected range of 48% to 50%.

Adjusted EBITDA for the period was $19.2 million compared to $24.2 million in the comparable period in 2018. The decrease in adjusted EBITDA was due primarily to higher share-based payments, higher operating costs and higher spending in exploration and evaluation activities.

Net cash provided by operating activities for the quarter was $18.2 million compared to $21.9 million reported in 2018. Free cash flow from ongoing operations was $10.6 million, compared to $13.6 million in 2018. For the nine months free cash flow from ongoing operations was $28.2 million compared to $42.2 million in 2018.

Quarterly Results

The San Jose Mine produced 1,709,125 ounces of silver and 10,942 ounces of gold in the third quarter of 2019, which were 14% and 12% below the comparable quarter in 2018. The lower metal output was related to mine production sequencing in the quarter. The Company expects silver and gold production to be in accordance with the mine plan in the fourth quarter and annual production will be within the 2019 annual production guidance.

Cash cost per tonne of processed ore for the third quarter ended September 30, 2019 increased 11% to $70.5 per tonne compared to $63.3 per tonne for the comparable quarter in 2018. The increased cash cost was due to higher contractor costs and mine support costs and was partially offset by lower dry-stack tailings operating and energy costs. The cash cost for the quarter was slightly above the annual cost guidance. The fourth quarter and annual cash cost are expected to be within the annual cash cost guidance.

Quarterly Results

The Caylloma Mine produced 7.2 million pounds of lead and 11.5 million pounds of zinc in the third quarter of 2019, which were 6% lower and in line with the production for the comparable quarter in 2018. The lower lead production was due primarily to a combination of marginally lower ore production and a 2% lower head grade and recovery. Zinc production was in line with production from the same quarter in 2018. Silver production totaled 228,168 ounces or 5% lower than the production for the comparable quarter in 2018.

Cash cost per tonne of processed ore was $93.0 which was 5% higher than the $88.5 cash cost per tonne for the comparable quarter in 2018 and 5% higher than the high end of our annual guidance range. The higher cash cost was due primarily to higher indirect costs related mainly to on-site camp maintenance and personnel transportation, higher mine support costs, timing of maintenance of the processing plant, and higher zinc concentrate transportation costs as a result of road blockades unrelated to Caylloma's operations that took place during the quarter. Cash cost for the fourth quarter is expected to be at the high end of the annual guidance range while annual cash cost is expected to be within guidance.

Non-GAAP Financial Measures

An attached table represents the calculation of certain Non-GAAP Financial Measures as referenced in this news release.

The financial statements and MD&A are available on SEDAR and on the Company's website.

Conference call to review third quarter 2019 financial and operational results

A conference call to discuss the financial and operational results will be held on Monday, November 18, 2019 at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, and Luis D. Ganoza, Chief Financial Officer. Shareholders, analysts, media and interested investors are invited to listen to the live conference call by dialling just prior to the starting time.

Conference call details:

Date: Monday, November 18, 2019

Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time

Dial in number (Toll Free): +1.844.369.8770

Dial in number (International): +1.862.298.0840

Replay number (Toll Free): +1.877.481.4010

Replay number (International): +1.919.882.2331

Replay Passcode: 56572

Playback of the conference call will be available until December 2, 2019 at 12:00 a.m. Eastern time. Playback of the webcast will be available until November 18, 2020. In addition, a transcript of the call will be archived on the company's website.

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.

We seek Safe Harbor.