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San Jose Mine, Mexico
APRIL 2012www.fortunasilver.com
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Certain statements in this presentation constitute forward‐looking statements and as such are based on anassumed set of economic conditions and courses of action. These include estimates of future productionlevels, expectations regarding mine production costs, expected trends in mineral prices and statements thatdescribe Fortuna’s future plans, objectives or goals. There is a significant risk that actual results will vary,perhaps materially, from results projected depending on such factors as changes in general economicconditions and financial markets, changes in prices for silver and other metals, technological and operationalhazards in Fortuna’s mining and mine development activities, risks inherent in mineral exploration,uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, thetiming and availability of financing, governmental and other approvals, political unrest or instability incountries where Fortuna is active, labor relations and other risk factors.
Thomas I. Vehrs, Ph.D., Vice President of Exploration, is the Qualified Person for Fortuna Silver Mines Inc. asdefined by National Instrument 43‐101. Dr. Vehrs is a Founding Registered Member of The Society forMining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsiblefor ensuring that the information contained in this presentation is an accurate summary of the originalreports and data provided to or developed by Fortuna Silver Mines.
Regulatory Disclaimer
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To create value through the rational acquisition, exploration, development and
mining of silver in Latin America
To create value through the rational acquisition, exploration, development and
mining of silver in Latin AmericaCayllomaMine,
Peru
Corporate ObjectiveCorporate Objective
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Core AssetsOperating and Exploring in Latin America
Production San Jose Mine, Mexico Caylloma Mine, Peru
Exploration Exploring in Mexico and Peru; two largest silver producing countries in the world 44,000 meter drill program for 2012
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Company Snapshot
Fortuna´s Share Price vs Silver Price (April 2011 – April 2012 )
Share Structure Outstanding: 123.1 million Fully diluted: 128.8 million
Strong Balance Sheet US$56 million in cash (end 2011) US$20 million undrawn credit facility
No long term debt No hedging
Exchanges
Frankfurt: F4S.F
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Financial SnapshotStrong Revenue and Margin Growth
44% 49%
64%
29% 23%
15%
23% 21%14%
4%3% 7%
1% 4%
2009 2010 2011
Copper Revenue
Gold Revenue
Zinc Revenue
Lead Revenue
Silver Revenue
51,42874,056
110,004
2009 2010 2011
* Net of by product credits
18.6124.04
30.74
US$/oz
RevenueUS$ 000s
Silver and Gold Revenue Mix
(4.86) (5.86)0.37
13.75 18.18
31.11
(10.00)
(5.00)
‐
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2009 2010 2011
Cash Cost*Silver Net Realized Price
Margins
18.6124.04
30.74
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Key MilestonesFoundations of a Leading Silver Mining Company
Shares begin trading on
NYSE>>
Signed option agreement to acquire 100% stake in Mario
Property>>
Commenced commercial production at San Jose, on time and on
budget
Shares begin trading on TSX
>>Reported
positive pre‐feasibility study at San Jose
>>Started
construction of San Jose Mine
>>Increased silver productionby 13%
Acquired 100% interest in San
Jose>>
Received EIS approval and permits for San
Jose>>
Increased silver production by
96%
Shares begin trading on BVL>>
Increased silver productionby 85%
Successful drilling at San
Jose significantly
increased Ag Eq resources
Commencedproduction at Caylloma on time and on
budget >>
Acquired stake in
San Jose
Company established
>>Shares trade on
the TSX.V>>
AcquiredCaylloma Mine
2005 2006 2007 2008 2009 2010 2011
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Investment Highlights
Proven mine builders and operators
Strong cash flow and sustainable growth from existing mines
Disciplined acquisition strategy
Brownfields exploration upside
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22
33
55
44
Emergence of a leading silver mining company in Latin America
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Emergence of a Leading Silver Mining CompanySustainable Mineral Reserve and Resource Growth
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2005 2006 2007 2008 2009 2010 2011
Containe
d Metal ‐Ag
Eq (M
oz) *
Inferred Resources
Measured & Indicated Resources
Proven & Probable Reserves
* Ag Eq calculated using Ag = US$25.14/oz and Au = US$1,391.63/oz
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0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2007 2008 2009 2010 2011 2012 2013 2014 2015
Caylloma Mine BM Ag Eq (Pb + Zn)
San Jose Mine Ag Eq (Ag + Au)
Caylloma Mine Ag Eq (Ag + Au)
Ag Eq (M
oz)*
PRODUCTION FORECAST
Emergence of a Leading Silver Mining CompanyIncreasing Exposure to Silver
* Ag Eq calculated using Ag = US$30/oz, Au = US$1,660/oz , Pb = US$2,300/t and Zn = US$2,000/t
2014E consolidated production: 6.4M Ag Eq oz + base metals
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Proven Mine Builders and OperatorsSenior Management
Manuel Ruiz‐ConejoVice President, Operations
Dr. Thomas I. VehrsVice President, Exploration
Cesar PeraVice President,
Human & Organizational Development
Luis Dario GanozaChief Financial Officer
Jorge A. GanozaPresident,
CEO and Director
Co‐founder of Fortuna Silver. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna Silver Mine´s team.
Over 35 years experience managing exploration programs in the Americas.
Over 25 years experience in organizational development and change in Latin American companies.
Over 15 years experience in the operations and financial management of public mining companies.
Over 25 years experience in the execution of multi‐million dollar mining projects and the implementation of community relations programs.
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Proven Mine Builders and OperatorsBoard of DirectorsSimon Ridgway
Chairmanof the Board
Co‐founder of Fortuna Silver. Vancouver‐based mining financier. Also founded Focus Ventures, Radius Gold, Mar West Resources and Northland Resources.
Robert R. Gilmore
30 years of experience working with resource companies and currently serves as Chairman of the Board for Eldorado Gold Corporation and as a Director for Layne Christensen Company.
Mario Szotlender
Jorge A. GanozaPresident and CEO
Co‐founder of Fortuna Silver. Financier, businessman and Director of Radius Gold, Endeavour Silver, Magellan, Focus Ventures and Iron Creek.
Tomas Guerrero
Thomas Kelly Michael Iverson
36 years of experience in mine production, minerals industry consulting and corporate management in various Latin American countries; currently serves as Chief Executive Officer of Apurimac Ferrum, a private company developing iron ore assets in Peru.
Chief Executive Officer of Fortuna from 1998 to January 2005. President and Director of Niogold Mining Corp. since 1998.
Geological engineer with over 30 years experience. Served as Director of Explorations for the Hochschild Group.
Co‐founder of Fortuna Silver. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna Silver Mine´s team.
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Caylloma Mine, PeruOverview
100% owned
1,300 tpd underground operation
Ag ‐ Pb & Zn concentrates
Reserve life = 8 years
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Caylloma Mine, Peru Solid Reserve and Resource Base
Classification Tonnes (000)
Ag(g/t)
Au(g/t)
Pb(%)
Zn(%)
Contained Metal
Ag(Moz)
Au(koz)
Proven & Probable Reserves 4,642 135 0.33 1.33 1.93 20.2 49.5
Measured & Indicated Resources 2,258 123 0.30 0.85 1.28 8.9 21.8
Inferred Resources 3,258 112 0.36 0.99 1.50 11.8 37.9
Notes to Mineral Reserve and Mineral Resource tables prepared in accordance with NI 43 ‐ 101: Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on
Mineral Resources and Mineral Reserves Mineral Resources are exclusive of Mineral Reserves Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Caylloma Mineral Resources and Mineral Reserves are estimated as of June 30, 2011 and
reported as of December 31, 2011 Refer towww.fortunasilver.com for full disclosure
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San Jose Mine, MexicoOverview
100% owned 1,000 tpd underground operation High grade Ag ‐ Au concentrate Reserve life = 9 years
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San Jose Mine, MexicoSolid Reserve and Resource Base
Classification Tonnes (000)
Ag(g/t)
Au(g/t)
Contained Metal
Ag(Moz)
Au(koz)
Probable Reserves 3,600 204 1.59 23.6 183.7
Indicated Resources 376 243 2.12 2.9 25.6
Inferred Resources 3,072 223 1.80 22.0 178.1
Notes to Mineral Reserve and Mineral Resource tables prepared in accordance with NI 43 ‐ 101: Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on
Mineral Resources and Mineral Reserves Mineral Resources are exclusive of Mineral Reserves Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Mineral Reserves and Mineral Resources reported as of December 31st, 2011 Refer towww.fortunasilver.com for full disclosure
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San Jose Mine, MexicoCommercial Production Declared in September 2011 Construction and commissioning on‐time and on‐budget Construction CAPEX of US$55 million Plant expansion to 1,500 tpd initiated in 2012 LOM average cash cost per Ag Eq oz = US$7.84
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San Jose Mine, MexicoUnderground Mine Design
Indicated Resources
Inferred Resources
Projected Ramp
Projected Level
LEGEND
Production block
L 1400L 1400Auxiliary Ramp
Ore Pass
Ventilation Raise
Main Levels
L 1300L 1300
L 1200L 1200
L 1100L 1100
Waste Pass
Service RaiseL 1540L 1540
L 1360L 1360
SouthSouthNorthNorth
Main Ramp
Auxiliary Branch
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San Jose Mine, MexicoAg Eq Production Forecast
* Ag Eq calculated using Ag = US$ 23.60/oz, Au = US$ 1,350/oz; metallurgical recoveries of 88% & 90% for Ag and Au respectively
783
2,603
3,261
4,309 4,471 4,6345,155
4,861
0
1,000
2,000
3,000
4,000
5,000
6,000
2011 2012 2013 2014 2015 2016 2017 2018
Ag Eq(´0
00s o
z)*
Au (Ag Eq)
Ag
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Brownfields Upside, CayllomaProlific Mining District
Source: INGEMMET
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11,000 ha concession package Expand resource base through
exploration of veins with potential for high‐grade silver mineralization
Brownfields Upside, CayllomaExploration SuccessFueling Growth
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Brownfields Upside, San JoseUnder‐Explored Mining District
Source: Mexican Geological Society
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Brownfields Upside, San JoseCommanding Land Position
58,000 ha concession package Soil and stream sediment sampling
identified multiple geochemical gold anomalies
Significant resource growth potential within trucking distance to processing plant
Stream Sediment Results
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Mario Project, PeruCentral Peru Silver‐Base Metal Belt
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Mario Project, PeruCommitment to Growth
Hole ID From (m)
To(m)
Drill Int. (m)
Ag(g/t)
Au (ppb)
Pb(%)
Zn(%)
FO‐06‐02 1.45 8.90 7.45 192 440 1.21 1.77
FO‐06‐03 111.00 129.75 18.75 265 554 2.57 12.61
FO‐06‐05 59.20 131.40 72.20 44 974 0.55 0.66
FO‐06‐07 39.30 56.15 16.85 390 483 4.86 6.90
FO‐07‐25 174.30 177.70 3.40 309 119 0.36 0.52
FO‐08‐29 70.30 81.80 8.75 658 229 6.04 1.32
FO‐08‐29 111.10 117.00 5.90 523 875 5.56 6.85
O‐08‐29 125.80 133.05 7.25 176 694 2.93 4.77
FO‐08‐34 107.10 149.85 42.75 31 1,047 0.54 0.55
PU‐00‐01 143.90 152.60 8.70 404 NA 3.16 11.34
PU‐00‐03 89.45 91.00 1.55 1,021 NA 13.96 2.98
PU‐00‐08 29.45 38.60 9.15 560 NA 6.35 26.10
PU‐00‐09 50.70 54.55 3.85 486 NA 4.91 7.87
PU‐03‐24 10.30 18.80 8.50 283 315 2.56 3.14
PU‐03‐28 72.20 85.80 13.60 303 2,918 3.96 11.05
PU‐03‐29 23.00 27.00 4.00 434 315 2.65 3.44
PU‐03‐38 141.70 145.90 4.20 475 417 4.24 1.88
Highlights of Historic Drilling
Located in Junin, central Peru 4,900 contiguous hectares Highly prospective silver‐gold‐
base metal mineralization US$4 million purchase option
agreement + NSR royalties with buyback provisions
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Community Relations ProgramForging Strategic Partnerships Programs are based on respect for ethno‐cultural diversity, open communication
and effective interaction with all stakeholders We work with communities towards self‐development of economically sustainable
activities to improve their quality of life
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Growth StrategyThree‐Pronged Approach to Create Shareholder Value
Execute on production ramp‐up at San Jose by 4Q 2013 Focus on operational efficiencies to reduce cash costs Off‐site Ag ‐ Au concentrate leaching facility at San Jose
Maximize production, profitability and cash flow of current mines
44,000 meter exploration program between Peru and Mexico Two crews evaluating multiple Ag ‐ Au anomalies at San Jose Commanding land packages in Peru and Mexico
Capitalize on brownfields exploration opportunities
Post discovery, pre‐development opportunities in Latin America Silver contribution of >50% of revenue Below industry median for cash cost
Pursue selectiveM&A opportunities
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Proven operators and mine builders in Latin America Organic growth potential Consistent cash generation
Caylloma MinePeru
Management Head OfficeCarlos BacaT: +51.1.616.6060, ext. 0
Corporate OfficeHolly HendershotT (Toronto): +1.647.725.0813T (Vancouver): +1.604.484.4085
APRIL 2012www.fortunasilver.com