Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

July 16, 2007 09:30 ET

Fortuna Drills 25.1m Averaging 10.9 g/t Au + 588 g/t Ag at San Jose

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - 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. San Jose is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd (24%).

Analytical results have been received and verified for thirteen drill holes located in the southern and central portions of the Trinidad deposit. Highlights of the current drilling include:

- Hole SJO-060 averaging 10.9g/t Au + 588 g/t Ag (1141 g/t Ag Eq) over 25.1m.

- Hole SJO-057 averaging 6.1g/t Au + 588 g/t Ag (897 g/t Ag Eq) over 11.6m.

- Hole SJO-055 averaging 11.9g/t Au + 1151 g/t Ag (1756 g/t Ag Eq) over 2.5m.

- Hole SJO-063 averaging 4.4g/t Au + 1224 g/t Ag (1450 g/t Ag Eq) over 2.6m.

- Hole SJO-065 averaging 1.4g/t Au + 183 g/t Ag (256 g/t Ag Eq) over 20.9m.

Assay results from the thirteen drill holes 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 are estimated at between 70% to 90% of the drilled intervals.

Drill holes SJO-055, -057, -058, -059, -060, -061 and -062 extend mineralization beyond the limits of the resource estimate reported in Fortuna's March 12, 2007 release. Holes SJO-056, -063, -064, -066 and -067 are infill drill holes. Drill hole SJO-065 encountered mineralization in the Bonanza vein approximately 380m below the surface with the mineralization remaining open to depth. An updated long section showing the location of the drill holes is in preparation and will be posted shortly on Fortuna's website at www.fortunasilver.com.



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From To Interval Au Ag Ag Eq Ag Eq
Hole No. (m) (m) (m) (g/t) (g/t) (g/t)(i) (oz/T)(i)
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SJO-055(1) 173.60 176.10 2.50 11.9 1151 1756 51.2
SJO-056 426.23 427.28 1.05 1.5 260 334 9.7
442.50 443.65 1.15 2.6 415 549 16.0
550.45 551.20 0.75 8.4 577 1003 29.3
SJO-057(1) 149.90 161.45 11.55 6.1 588 897 26.1
SJO-058(1) 77.50 78.70 1.20 2.3 432 549 16.0
SJO-059(1) 131.70 144.90 13.20 1.6 222 305 8.9
SJO-060(1) 129.70 154.80 25.10 10.9 588 1141 33.3
including 129.70 135.05 5.35 32.5 2017 3674 107.2
and 143.60 147.40 3.80 17.6 637 1535 44.8
and 151.40 152.40 1.00 15.3 533 1313 38.3
SJO-061(1) 174.40 177.40 3.00 2.3 248 365 10.7
SJO-062(1) 156.20 156.90 0.70 6.5 1520 1850 54.0
SJO-063 215.35 234.63 19.28 0.6 71 104 3.0
292.70 295.30 2.60 4.4 1224 1450 42.3
SJO-064 486.15 491.05 4.90 1.3 117 181 5.3
SJO-065 423.50 444.40 20.90 1.4 183 256 7.5
SJO-066 312.00 319.60 7.60 1.0 109 160 4.7
333.70 340.07 6.37 0.8 124 166 4.9
SJO-067 207.70 210.05 2.35 1.7 220 307 9.0
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(i) Silver equivalency estimates were derived using US$10.30/oz for silver
and US$525/oz for gold yielding a Ag:Au ratio of 51:1. Metallurgical
recoveries and net smelter returns are assumed to be 100% for purposes of
estimating silver equivalency.
(1) These holes extend mineralization beyond the limits of the resource
estimate reported in Fortuna's March 12, 2007 release.


The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by multiphase, quartz-carbonate-sulfide stockwork veining and mineralized hydrothermal breccias within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks. Using a cut-off grade of 150 g/t Ag equivalent, the NI43-101 compliant indicated and inferred mineral resources for the Trinidad zone at San Jose are estimated at (see Fortuna News Release dated Mar. 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 47,440 hectares in the Taviche Mining District. A 25,000 meter drill program is underway at the Trinidad and San Ignacio zones with 3 diamond drill rigs. Concurrently, surface geochemical and reconnaissance programs are being conducted throughout the district to identify and evaluate new target areas.

Quality Control & Quality Assurance

For the current drill program, 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 20 normal samples and the insertion of assay blanks at a frequency of approximately 1 per 20 normal samples. All sample results reported in this news release correspond to HQ- or NQ-diameter core. Further drill results will be released as analytical data are received and validated.

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 Durant, President Fortuna Silver Mines Inc.

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

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