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Company News: Fortuna Silver
Updated: 20 Sep 2010

Latin American Expertise
Fortuna's key strength is industry expertise in Latin America. Management's knowledge of regional mining, business practices, exploration, geology and regulatory environments has allowed Fortuna to identify and seize opportunities within the region. We are aggressively pursuing and evaluating further accretive acquisitions throughout the Americas.

Two Key Assets
The 100%-owned Caylloma silver-zinc-lead mine lies within the mineral-rich Caylloma Mining District in the southern highlands of Arequipa, Peru. It is a high grade epithermal vein system with significant untested potential within its over 12,000 hectare land package. Fortuna operates the mine at over 1,000 tpd and is working on the permitting to further increase throughput to 1,500 tpd. Exploration activities include testing of high grade silver and base metal targets within the Caylloma Mining District and evaluation of surrounding properties to identify opportunities warranting more advanced exploration and development.

The 100% owned San Jose silver-gold project is a low sulphidation epithermal system located within the Taviche Mining District located in southern Oaxaca, Mexico. Fortuna has completed over 64,000m of drilling in the Trinidad Area of the San Jose Project which has been incorporated into a new NI43-101 compliant resource estimation published in October 2009. Indicated Resources are 37.6 M ounces of silver equivalent at 295 g/t Ag + 2.27 g/t Au and Inferred Resources are 30.4 M ounces of silver equivalent with 262 g/t Ag + 2.11 g/t Au. Management expects to bring a construction decision to the Board of Directors during the fourth quarter of 2009, start construction in 2010 and production in 2011. Once San Jose enters production, Fortuna will deliver approximately 5 million ounces of silver equivalent per year from its operations in Peru and Mexico.

Rapid Growth
Fortuna is a growth oriented silver and base metal producer focused on mining opportunities in Latin America. We acquired both Caylloma and San Jose in late 2005. In Peru, Caylloma is currently producing at a rate of roughly 1,200 tpd. In Mexico, management is fast tracking development of the San Jose silver-gold project. We are also aggressively pursuing additional accretive acquisition opportunities.

Exchange/Symbol: TSXV:FVI
 

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