Fortuna Silver Mines signs Acquisition and Option Agreement for the Taviche Oeste Concessions surrounding the San Jose Mine,

 Fortuna Silver Mines signs Acquisition and Option Agreement for the Taviche
           Oeste Concessions surrounding the San Jose Mine, Mexico

PR Newswire

VANCOUVER, Jan. 24, 2013

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.

Contact:

Investor Relations:
Management Head Office:Carlos Baca- Tel (Lima): +51.1.616.6060, ext. 0
Corporate Office:Holly Hendershot- Tel (Toronto): +1.647.725.0813 / Tel
(Vancouver): +1.604.484.4085

Media Contact, North America:

Christina Pagano
Breakstone Group
Phone: 212-213-2851
Mobile: 646-382-3871
E-mail:paganopr@aol.com
 
Press spacebar to pause and continue. Press esc to stop.