Mr. Jorge Ganoza reports

FORTUNA INTERCEPTS 487 G/T AG AND 4 G/T AU OVER 8.2 M AT TRINIDAD NORTH DISCOVERY, SAN JOSE MINE, MEXICO

Fortuna Silver Mines Inc. has released results for 12 additional surface drill holes at the Trinidad North high-grade silver-gold discovery at the San Jose mine in Mexico. With the exception of drill hole SJO-304, the reported drill holes are generally positioned to define the approximate limits of the Trinidad North ore shoot. The ore shoot remains open to depth and to the north with drilling from underground stations projected to start in early September.

                        TRINIDAD NORTH DRILLING HIGHLIGHTS

            From     To    Interval          Estimated      Ag      Au       AgEq 
Hole Id       (m)    (m)         (m)     true width (m)   (g/t)   (g/t)      (g/t)

SJO-299   526.00 534.00        8.00                4.7     178    1.26        245
SJO-303A  462.95 470.20        7.25                5.5     258    1.45        335
SJO-304   543.40 560.95       17.55               10.4     326    2.06        436
          580.00 593.80       13.80                8.2     487    4.00        700
SJO-308   503.55 511.10        7.55                4.3     226    1.28        294
SJO-315   445.85 451.00        5.15                3.3     399    2.10        511
SJO-321   533.75 537.75        4.00                1.5     850    4.48      1,089

Dr. Thomas I. Vehrs, vice-president of exploration, commented: "The latest drill results continue to confirm the importance of the Trinidad North discovery. The Trinidad North ore shoot is located proximal to the area of operations at San Jose allowing for development of the zone in 2014 and initiation of production in early 2015. Silver equivalent grades range from 200 g/t to over 2,300 g/t over estimated true vein widths ranging from two metres to over 19 metres." Dr. Vehrs continued: "Underground access is currently in development at the 1,300-metre level to allow for continued exploration of the ore shoot to the north and to depths below 1,000 m amsl. The first underground drill station is projected to be ready by the end of August with underground drilling scheduled to begin in early September."

Fortuna Silver news releases of Feb. 4, 2013, April 22, 2013, and May 22, 2013, contain the results of previously released drill holes from the Trinidad North zone.

Quality assurance and quality control

Following detailed geological and geotechnical logging, drill core samples are split on site by diamond sawing. One-half of the core is submitted to the ALS Chemex Laboratory in Guadalajara, Mexico. The remaining half core is retained on site for verification and reference purposes. Following preparation, the samples are assayed for gold and silver by standard fire assay methods and for silver and base metals by ICP and atomic absorption methods utilizing aqua regia digestion. The quality assurance/quality control program includes the blind insertion of certified reference standards and assay blanks at a frequency of approximately one per 15 normal samples as well as the inclusion of duplicate samples for verification of sampling and assay precision levels.

Qualified person

Dr. Thomas I. Vehrs, PhD, vice-president of exploration, is a 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 No. 3323430RM) 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.

                                          FULL DRILLING RESULTS
                        Inter-
           From     To    val         Estimated      Ag      Au      Pb       Zn      Cu       AgEq
Hole Id      (m)    (m)    (m)    true width (m)   (g/t)   (g/t)   (ppm)    (ppm)   (ppm)      (g/t)

SJO-299  513.00 514.00   1.00               0.6     620    4.17     542      860      73        843
         526.00 534.00   8.00               4.7     178    1.26     738    1,246     136        245
         536.80 544.00   7.20               4.2     102    0.74   1,703    3,408     181        141
SJO-303A 415.00 417.00   2.00               1.5     304    3.10      62      125      45        469
         455.60 459.20   3.60               2.7     168    1.10     215      466      24        227
         462.95 470.20   7.25               5.5     258    1.45     365      680      46        335
SJO-304  535.85 540.70   4.85               2.9     381    1.99     829    1,872     127        487
         543.40 560.95  17.55              10.4     326    2.06     510    1,235     102        436
         565.00 566.50   1.50               0.9     294    1.32     295      791     142        364
         572.70 575.00   2.30               1.4     249    1.86   1,823    4,127     512        348
         580.00 593.80  13.80               8.2     487    4.00   2,121    3,811     401        700
SJO-308  475.65 477.25   1.60               0.9     655    3.66     318      680      60        850
         499.50 501.70   2.20               1.3     421    2.81     204      377      44        571
         503.55 511.10   7.55               4.3     226    1.28     154      376      38        294
         550.50 552.10   1.60               0.9     491    4.74   1,946    4,696     919        744
SJO-310  286.90 288.00   1.10               0.6     152    0.68     157      184      10        189
         329.00 332.00   3.00               1.5      66    0.38     166      332      30         86
SJO-311  149.15 150.00   0.85               0.5     183    6.11       7       60      60        509
         429.50 431.00   1.50               0.9     825    3.74     504      939      47      1,025
SJO-313  351.00 351.50   0.50               0.3     187    0.89     109      342      33        234
         353.00 356.75   3.75               2.4     341    1.73     312      635      35        433
SJO-315  445.85 451.00   5.15               3.3     399    2.10     327      567      46        511
SJO-316  347.30 351.00   3.70               1.4     325    1.63     232      262      19        412
         357.00 361.00   4.00               1.5     149    0.89     175      466      20        196
         415.50 417.55   2.05               0.8     602    3.19   1,377    2,263      59        772
         435.50 437.00   1.50               0.6     204    1.08     397      969      21        262
         445.90 452.20   6.30               2.4      88    0.51     213      465      23        115
SJO-320                            No significant mineralized intervals                           
SJO-321  492.20 500.45   8.25               3.1      88    0.43     900    1,596     104        111
         502.10 508.80   6.70               2.5     130    0.68     792    1,931     104        166
         533.75 537.75   4.00               1.5     850    4.48   1,076    2,353      78      1,089
SJO-325A 568.10 569.60   1.50               0.7     137    0.74     761    1,593      61        176
         573.70 575.55   1.85               0.9     181    0.78     884    2,368      34        223
         606.05 607.00   0.95               0.4     111    1.48  13,870   27,820   1,373        190

*AgEq values calculated at gold-to-silver ratio of 53.37 based on metal prices as of Dec. 31, 2012
(Au: $1,572.19 (U.S.); Ag: $29.46 (U.S.)), metallurgical recoveries of 89 per cent for both Au and 
Ag, and a lower cut-off of 70 g/t AgEq.