Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

January 16, 2008 09:15 ET

Fortuna Drills 7.95 Meters With 9.37 g/t Au and 487 g/t Ag at San Jose, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI) is pleased to announce additional drill results from the 2007 drill program at the San Jose silver-gold deposit located in Oaxaca, Mexico. The San Jose Project is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd (24%).

Assay results have been received and accepted for 5 drill holes located in the Trinidad Zone and for 6 drill holes located in the San Ignacio Zone (southern extension of the San Jose vein system). Highlights of the current results in the Trinidad and San Ignacio Zones include:

- Drill hole SJO-084 cut multiple mineralized zones within the San Jose vein system including:

- 3.07 g/t Au and 446 g/t Ag (603 g/t Ag eq.) over 5.23m from 490.92m
in the Paloma Vein, and
- 9.37 g/t Au and 487 g/t Ag (965 g/t Ag eq.) over 7.95m from 503.35m
in the Bonanza Vein

(The mineralized intercepts extend from 460m to 525m below the current surface and are open-to-depth.)

- Drill hole SJO-090 cut the vein system in the northern portion of the San Ignacio zone returning 2.13 g/t Au and 276 g/t Ag (385 g/t Ag eq) over 1.0m from 167.37m

Assay results from the 5 drill holes in the Trinidad Zone are summarized below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag-equivalent. True widths of the mineralized veins are estimated at approximately 75 to 90% of the drill intervals. An updated longitudinal section showing the location of the drill holes will be posted shortly on Fortuna's website at www.fortunasilver.com.



---------------------------------------------------------------------
From To Interval Au Ag Ag eq
Hole No. (m) (m) (m) (g/t) (g/t) (g/t)
---------------------------------------------------------------------
SJO-082 567.61 570.60 2.99 0.70 134 170
SJO-083 224.40 225.40 1.00 0.52 112 139
SJO-084 490.92 496.15 5.23 3.07 446 603
SJO-084 503.35 511.30 7.95 9.37 487 965
Including 506.52 506.82 0.30 164.0 5660 14024
SJO-084 517.64 518.77 1.13 1.13 258 316
SJO-084 578.90 583.60 4.70 0.40 110 130
SJO-085 388.90 390.35 1.45 1.49 199 275
SJO-092 No significant mineralized intervals
---------------------------------------------------------------------
(i) Silver equivalency estimates were derived using a silver-to-gold ratio
of 51:1.Metallurgical recoveries and net smelter returns are assumed
to be 100% for purposes of estimating silver equivalency.


Twenty-three drill holes totaling 8910.2m were completed in the 2007 drill program to test an 800 meter long interval of the San Ignacio Zone, the southern extension of the San Jose vein system. To-date, assay results have been received and accepted for 6 drill holes and are summarized below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag-equivalent.



---------------------------------------------------------------------
From To Interval Au Ag Ag eq
Hole No. (m) (m) (m) (g/t) (g/t) (g/t)
---------------------------------------------------------------------
SJO-090 167.37 168.37 1.00 2.13 276 385
SJO-095 No significant mineralized intervals
SJO-099 140.40 142.00 1.60 1.15 49 108
SJO-100 No significant mineralized intervals
SJO-103 68.65 70.45 1.80 1.26 194 258
SJO-103 76.83 78.23 1.40 0.72 113 150
SJO-104 No significant mineralized intervals
---------------------------------------------------------------------


Assay Delays

Final assay results remain pending for 9 drill holes in the Trinidad Zone and 17 drill holes in the San Ignacio Zone. Due to increased industry activity, assay turn-around times at ALS Chemex have increased dramatically since September of 2007 and currently are greater than two months. In addition, a significant number of samples have been sent for re-assay due to failure to pass Fortuna's internal QA/QC criteria, resulting in further delays in obtaining final assay results.

Background

The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by mineralized multiphase quartz-carbonate-sulfide veins, hydrothermal breccias and stockwork veining within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks. Using a cut-off grade of 150 g/t Ag equivalent, 43-101 compliant indicated and inferred mineral resources for the Trinidad zone at San Jose are currently estimated at (see Fortuna News Release dated March 12, 2007):

Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag + 2.19 g/t Au containing 17.7 million Ag equivalent oz

Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag + 2.57 g/t Au containing 49.1 million Ag equivalent oz.

The Fortuna-Continuum joint venture controls mining concessions covering approximately 47,500 hectares in the Taviche Mining District. Detailed geologic interpretation and modeling of the Trinidad deposit are being carried out and will lead to an updated resource estimate currently projected for completion in the 2nd quarter of 2008. The joint venture is advancing with various engineering studies including preliminary design work, metallurgical testing and initiation of an Environmental Impact Study. Underground development of the main access ramp to the Trinidad Zone began in the 4th quarter of 2007.

Quality Assurance & Quality Control

Following detailed geological and geotechnical logging, drill core samples are split on-site by diamond saw. One half of the core is submitted to the ALS Chemex sample preparation facility in Guadalajara, Mexico. The remaining half core is retained on-site for verification and reference purposes. Following preparation, sample pulps are sent to ALS Chemex in Vancouver where they are assayed for gold and silver by standard fire assay methods using a gravimetric finish. Multi-element analyses are also completed for each sample by ICP methods. The QA-QC program at San Jose includes the blind insertion of certified reference standards for silver and gold at a frequency of approximately 1 per 15 normal samples and the insertion of assay blanks at a frequency of approximately 1 per 15 normal samples. All sample results reported in this news release correspond to HQ- or NQ-diameter core.

Qualified Person

Mr. Gregory Smith, P.Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of this news release.

Background

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 Project in Mexico. The Company is aggressively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge Ganoza, President

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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