Fortuna Silver Mines owns and operates two silver mines - the San Jose mine in Mexico and the Caylloma mine in Peru. It is establishing itself as a leading silver mining company in Latin America through reserve and resource growth at its core assets. Fortuna has a proven management team with experience building and operating mines in the region and is pursuing further growth through brownfields exploration.
2. Regulatory Disclaimer
Certain statements in this presentation constitute forward‐looking statements and as such are based on an
assumed set of economic conditions and courses of action. These include 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.
Thomas I. Vehrs, Ph.D., Vice President of Exploration, is the Qualified Person for Fortuna Silver Mines Inc. as
defined by National Instrument 43‐101. Dr. Vehrs is a Founding Registered Member of The Society for
Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and is responsible
for ensuring that the information contained in this presentation is an accurate summary of the original
reports and data provided to or developed by Fortuna Silver Mines.
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3. Corporate Objective
To create value through the rational
acquisition, exploration, development and
mining of silver in Latin America
Caylloma Mine,
Peru
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5. Company Snapshot
Strong Balance Sheet Share Structure Exchanges
US$56 million in cash (end 2011) Outstanding: 123.1 million
US$20 million undrawn Fully diluted: 128.8 million
credit facility
No long term debt
No hedging
Frankfurt: F4S.F
Fortuna´s Share Price vs Silver Price (April 2011 – April 2012 )
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7. Key Milestones
Foundations of a Leading Silver Mining Company
Shares begin
trading on
Shares begin NYSE
trading on TSX >>
Acquired 100% >> Signed option
interest in San Reported agreement to
Shares begin Jose positive pre‐ acquire 100%
trading >> feasibility study stake in Mario
Successful on BVL
drilling at San Received EIS at San Jose Property
Commenced Jose >> approval and >> >>
production at significantly Increased silver permits for San Started Commenced
Company Caylloma on increased Ag Eq production Jose construction of commercial
established time and on resources by 85% >> San Jose Mine production at
>> budget Increased silver >> San Jose, on
Shares trade on >> production by Increased silver time and on
the TSX.V Acquired stake 96% production budget
>> in by 13%
Acquired San Jose
Caylloma Mine
2005 2006 2007 2008 2009 2010 2011
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8. Investment Highlights
1 Emergence of a leading silver mining company in Latin America
2 Proven mine builders and operators
3 Strong cash flow and sustainable growth from existing mines
4 Brownfields exploration upside
5 Disciplined acquisition strategy
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10. Emergence of a Leading Silver Mining Company
Increasing Exposure to Silver
2014E consolidated production:
8.0 6.4M Ag Eq oz + base metals
Caylloma Mine BM Ag Eq (Pb + Zn)
7.0
San Jose Mine Ag Eq (Ag + Au)
Caylloma Mine Ag Eq (Ag + Au)
6.0
5.0
Ag Eq (Moz)*
4.0
3.0
2.0
1.0
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015
PRODUCTION FORECAST
* Ag Eq calculated using Ag = US$30/oz, Au = US$1,660/oz , Pb = US$2,300/t and Zn = US$2,000/t
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11. Proven Mine Builders and Operators
Senior Management
Jorge A. Ganoza Dr. Thomas I. Vehrs Cesar Pera Luis Dario Ganoza Manuel Ruiz‐Conejo
President, Vice President, Vice President, Chief Financial Officer Vice President,
CEO and Director Exploration Human & Organizational Operations
Development
Co‐founder of Over 35 years Over 25 years Over 15 years Over 25 years
Fortuna Silver. experience managing experience in experience in experience in the
Peruvian geological exploration programs organizational the operations execution of multi‐
engineer. Identified in the Americas. development and and financial million dollar
and negotiated change in Latin management of mining projects
purchase of American public mining and the
Caylloma, built the companies. companies. implementation
Fortuna Silver of community
Mine´s team. relations programs.
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12. Proven Mine Builders and Operators
Board of Directors
Simon Ridgway
Chairman
of the Board Robert R. Gilmore Mario Szotlender Tomas Guerrero
Co‐founder of Fortuna 30 years of experience working Co‐founder of Fortuna Geological engineer with
Silver. Vancouver‐based with resource companies and Silver. Financier, over 30 years experience.
mining financier. Also currently serves as Chairman of businessman and Director Served as Director of
founded Focus Ventures, the Board for Eldorado Gold of Radius Gold, Endeavour Explorations for the
Radius Gold, Mar West Corporation and as a Director for Silver, Magellan, Focus Hochschild Group.
Resources and Northland Layne Christensen Company. Ventures and Iron Creek.
Resources.
Jorge A. Ganoza
President and CEO Thomas Kelly Michael Iverson
Co‐founder of Fortuna 36 years of experience in mine Chief Executive Officer of Fortuna
Silver. Peruvian geological production, minerals industry from 1998 to January 2005.
engineer. Identified and consulting and corporate President and Director of Niogold
negotiated purchase of management in various Latin Mining Corp. since 1998.
Caylloma, built the Fortuna American countries; currently
Silver Mine´s team. serves as Chief Executive Officer of
Apurimac Ferrum, a private
company developing iron ore
assets in Peru.
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14. Caylloma Mine, Peru
Solid Reserve and Resource Base
Contained Metal
Tonnes Ag Au Pb Zn
Classification (000) (g/t) (g/t) (%) (%) Ag Au
(Moz) (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 to www.fortunasilver.com for full disclosure
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16. San Jose Mine, Mexico
Solid Reserve and Resource Base
Contained Metal
Tonnes Ag Au
Classification (000) (g/t) (g/t) Ag Au
(Moz) (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 to www.fortunasilver.com for full disclosure
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18. San Jose Mine, Mexico
Underground Mine Design
North South
Service Raise
L 1540
Main Ramp
Auxiliary Branch
Auxiliary Ramp L 1400
Ventilation Raise
L 1360
L 1300
LEGEND
Main Levels
Projected Ramp
Ore Pass
Projected Level
L 1200
Indicated Resources
Inferred Resources
Waste Pass
Production block
L 1100
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19. San Jose Mine, Mexico
Ag Eq Production Forecast
6,000
Au (Ag Eq) 5,155
5,000 4,861
4,471 4,634
Ag 4,309
4,000
Ag Eq (´000s oz)*
3,261
3,000 2,603
2,000
1,000 783
0
2011 2012 2013 2014 2015 2016 2017 2018
* Ag Eq calculated using Ag = US$ 23.60/oz, Au = US$ 1,350/oz; metallurgical recoveries of 88% & 90% for Ag and Au respectively
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27. Growth Strategy
Three‐Pronged Approach to Create Shareholder Value
Maximize production, Execute on production ramp‐up at San Jose by 4Q 2013
profitability and cash Focus on operational efficiencies to reduce cash costs
flow of current mines Off‐site Ag ‐ Au concentrate leaching facility at San Jose
Capitalize on 44,000 meter exploration program between Peru and Mexico
brownfields
Two crews evaluating multiple Ag ‐ Au anomalies at San Jose
exploration
opportunities Commanding land packages in Peru and Mexico
Post discovery, pre‐development opportunities in Latin America
Pursue selective
Silver contribution of >50% of revenue
M&A opportunities
Below industry median for cash cost
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