VANCOUVER, Jan. 24, 2013 /PRNewswire/ – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (BVL: FVI) (Frankfurt:
F4S.F) is pleased to announce that Compania Minera Cuzcatlan S.A. de C.V.
(wholly owned subsidiary of Fortuna Silver Mines Inc.) and Plata Pan
American S.A. de C.V. (wholly owned subsidiary of Pan American Silver
Corp.) have entered into an acquisition and option agreement for the
6,254 hectare Taviche Oeste Concessions immediately surrounding the San
Jose Mine in Oaxaca, Mexico. Cuzcatlan will purchase a 55% undivided
interest in the Taviche Oeste Concessions for a cash payment of US$4.0
million. Once a production decision is made to develop ore from the
Taviche Oeste Concessions, Cuzcatlan will purchase the remaining 45%
undivided interest in the property for US$6.0 million. Plata Pan
American will retain a 2.5% net smelter royalty on ore production from
this property. The transaction is expected to close January 30^th 2013.

“This is an important acquisition for our company, not only does this
simplify the mineral tenure immediately surrounding our existing mine
and infrastructure, but the acquisition strengthens our exploration
portfolio along the trend of current production,” Jorge A. Ganoza,
President and CEO commented. “We will be planning an aggressive
exploration program to immediately follow up on targets that we have
developed.”

Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal producer focused on
mining opportunities in Latin America. Our primary assets are the
Caylloma silver mine in southern Peru and the San Jose silver-gold mine
in Mexico. The company is selectively pursuing additional acquisition
opportunities. For more information, please visit our 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 | BVL: FVI | Frankfurt: F4S.F

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. Forward-looking statements are
statements that are not historical facts and that are subject to a
variety of risks and uncertainties which could cause actual events or
results to differ materially from those reflected in the
forward-looking statements. When used in this document, the words such
as “anticipates”, “believes”, “plans”, “estimates”, “expects”,
“forecasts”, “targets”, “intends”, “advance”, “projects”, “calculates”
and similar expressions are forward-looking statements.

The forward-looking statements are based on an assumed set of economic
conditions and courses of actions, including estimates of future
production levels, expectations regarding mine production costs,
expected trends in mineral prices and statements that describe
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 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, the timing and
availability of financing, governmental and other approvals, political
unrest or instability in countries where Fortuna is active, labor
relations and other risk factors.

Although Fortuna has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements or information, there may be other factors
that cause results to be materially different from those anticipated,
described, estimated, assessed or intended. There can be no assurance
that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially
from those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking statements
or information.

SOURCE Fortuna Silver Mines Inc.