Fortuna Silver Mines Inc.: Fortuna provides update and sets construction milestones for its Lindero gold Project in Argentina

VANCOUVER, British Columbia, 2017-12-21 11:00 CET (GLOBE NEWSWIRE) --
Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) is pleased to provide an update
on construction activities at its 100 % owned Lindero gold Project located in
Salta, Argentina. 

Jorge A. Ganoza, President, CEO and Director, commented, "The start of
construction activities for a new mine is always an energizing event for an
organization." Mr. Ganoza continued, "We are fully funded, key positions in the
project team are in place and the Company feels very welcome in the Province of
Salta." Mr. Ganoza concluded, "We are looking forward to building and
commissioning on time and within budget the first modern large scale precious
metals mine in Salta." 

In September 2017, the Company announced a positive construction decision for
Lindero with commissioning expected in the second quarter of 2019 (see Fortuna
news release dated September 21, 2017).  Lindero has been designed as an 18,750
tpd1 owner operated open pit mine with a pit life of 13 years based on existing
reserves. Crushed ore will be placed on a leach pad with the pregnant solution
pumped to SART2 and ADR3 plants prior to electrowining and refining where gold
will be poured to doré bars. The technical report of the Lindero Project is
available on the Company's website at
https://fortunasilver.com/site/assets/files/4098/lindero-project-technical-repor
t-effective-date-31-oct-2017.pdf 

With Lindero in its first year of full production, Fortuna's consolidated
precious metals annual production is expected to increase to 190,000 ounces of
gold and 9 million ounces of silver or 340,000 gold equivalent4 ounces. 

Note:

  1. Tonnes per day
  2. Sulphidization-Acidification-Recycle-Thickening
  3. Adsorption, Desorption and Recovery
  4. Gold equivalent is calculated using a gold to silver ratio of 1 to 60 and
     does not include lead nor zinc

Project Update

In September 2017, the commencement of construction at Lindero was officially
launched. As of the end of November, initial contracts have been awarded for
approximately US$14 million or 6 percent of the project's capital expenditure. 

Detailed Engineering

Engineering, procurement, and construction management (EPCM) was awarded in
October 2017 to SAXUM Ingeniería, an Argentinian company with international
experience in infrastructure and mining. Detailed engineering work has been
launched, procurement packages are being prepared and the bidding process
initiated. 

Advanced basic engineering of the SART plant is being completed by Kestrel
Engineering, an American firm that will work under the direction of Mr. Mike
Botz, a qualified engineer with extensive experience of the SART process. 

The construction of the leach pad, a critical path of the project, is in the
bidding process. Mass earth moving activities are scheduled to commence in
February 2018 and are estimated to conclude with the commissioning of the pad
in March 2019. Detailed engineering and construction supervision has been
awarded to Anddes Argentina, a company specialized in geotechnical engineering
and leach pad design and construction. 

Mine Equipment

Mine fleet and other heavy equipment are in the process of being awarded. The
principal components of the initial mine fleet include six 100 ton trucks, two
17 cubic yard wheel loaders, two bulldozers and two drill rigs. 

The Company is evaluating a non-recourse vendor financing of US$15 million for
the purchase of mining equipment. 

Initial Site Activities

The project requires the upgrading of the existing exploration camp in order to
host the initial workforce who will be responsible for building the temporary
construction camp. On site activities commenced in November and the temporary
facilities will be ready to host the inflow of construction personnel in
January 2018. The construction workforce who will build the permanent
facilities is estimated to gradually increase and peak at 600 people. The
permanent camp facilities will accommodate 320 people. 

The Company is in the process of obtaining municipal approval from the town of
Tolar Grande for the start of construction activities on new infrastructure.
Formal authorization is expected in January 2018. 

Project Funding and Financing

The estimated fully scoped capital cost for the construction of Lindero is
US$239 million. Capital expenditures are estimated at US$200 million for 2018,
and US$36.5 million for 2019; amounts do not include VAT which is expected to
be recovered in the first 24 months from the start of mining operations. 

The Company plans to fund the construction from a combination of existing cash
reserves, projected cash flow generation and an upsized US$120 million credit
facility. 

Project Construction Milestones

The Company is providing the following selected milestones from the project
construction schedule: 

2018

  -- February: Start mass earthworks
  -- April: First concrete for permanent installations
  -- August: Start of equipment installation, including HPGR tertiary crusher
  -- November: Construction of roads and platforms in preparation for initiation
     of mining activities

2019

  -- January: Commissioning of power plant
  -- March: Placing of first ore on the leach pad
  -- May: First doré poured as part of commissioning

Construction updates will be provided on a regular basis throughout the
development of Lindero. 

Qualified Person

Eric N. Chapman, Vice President of Technical Services of Fortuna, is the
Qualified Person for Fortuna Silver Mines Inc. as defined by National
Instrument 43-101. Mr. Chapman is a Professional Geoscientist of the
Association of Professional Engineers and Geoscientists of the Province of
British Columbia (Registration Number 36328) and is responsible for ensuring
that the information contained in this news release is an accurate summary of
the original reports and data provided to or developed by Fortuna Silver Mines. 

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 in Argentina.  The company is
selectively pursuing acquisition opportunities throughout the Americas and in
select other areas.  For more information, please visit its website at
www.fortunasilver.com. 

ON BEHALF OF THE BOARD

Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.

Trading symbols: NYSE: FSM | TSX: FVI

Investor Relations:

Carlos Baca
T (Peru): +51.1.616.6060, ext. 0

                           Forward looking Statements

This news release contains forward looking statements which constitute "forward
looking information" within the meaning of applicable Canadian securities
legislation and "forward looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995
(collectively, "Forward looking Statements"). All statements included herein,
other than statements of historical fact, are Forward looking Statements and
are subject to a variety of known and unknown risks and uncertainties which
could cause actual events or results to differ materially from those reflected
in the Forward looking Statements. The Forward looking Statements in this news
release may include, without limitation, statements about the Company's plans
for its mines and mineral properties, including the Lindero gold Project; the
Company's business strategy, plans and outlook; the merit of the Company's
mines and mineral properties; mineral resource and reserve estimates;
timelines; the future financial or operating performance of the Company;
expenditures; approvals and other matters. Often, but not always, these Forward
looking Statements can be identified by the use of words such as "estimated",
"potential", "open", "future", "assumed", "projected", "used", "detailed", "has
been", "gain", "planned", "reflecting", "will",  "containing", "remaining", "to
be", or statements that events, "could" or "should" occur or be achieved and
similar expressions, including negative variations. 

Forward looking Statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any results, performance or
achievements expressed or implied by the Forward looking Statements. Such
uncertainties and factors include, among others, whether the Company's
activities at the Lindero gold Project will proceed as planned; changes in
general economic conditions and financial markets; changes in prices for silver
and other metals; technological and operational hazards 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; governmental and other approvals; political
unrest or instability in countries where Fortuna is active; labor relations
issues; as well as those factors discussed under "Risk Factors" in the
Company's Annual Information Form. Although the Company has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in Forward looking Statements, there
may be other factors that cause actions, events or results to differ from those
anticipated, estimated or intended. 

Forward looking Statements contained herein are based on the assumptions,
beliefs, expectations and opinions of management, including but not limited to:
that the Company's activities at the Lindero gold Project will proceed as
planned; expectations regarding mine production costs; expected trends in
mineral prices and currency exchange rates; the accuracy of the Company's
current mineral resource and reserve estimates; that the Company's activities
will be in accordance with the Company's public statements and stated goals;
that there will be no material adverse change affecting the Company or its
properties; that all required approvals will be obtained; that there will be no
significant disruptions affecting operations and such other assumptions as set
out herein. Forward looking Statements are made as of the date hereof and the
Company disclaims any obligation to update any Forward looking Statements,
whether as a result of new information, future events or results or otherwise,
except as required by law. There can be no assurance that Forward looking
Statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
investors should not place undue reliance on Forward looking Statements.