Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

March 10, 2008 09:01 ET

Fortuna Drills 6,231 g/t Silver Over 1.6m at the Caylloma Mine, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2008) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI) is pleased to announce the discovery of high grade silver mineralization along the extension of the Bateas Vein located in the central portion of the Caylloma District, Arequipa, Peru. Fortuna operates the 100% owned Caylloma Zn-Pb-Ag Mine at a nominal rate of 820 tpd with production currently sourced primarily from the Animas and Santa Cata veins.

Eleven drill holes totaling 4,380m have been completed to-date in the eastern extension of the Bateas Vein, one of several silver-rich veins located in the central portion of the Caylloma District. Highlights of the current results include:

- Hole BATS001707 cut 6,231 g/t Ag, 3.56% Pb, 4.85% Zn and 3.08% Cu over 7.35m from 340.55m (est. true thickness of 1.57m), including:

- 30,170 g/t Ag, 5.95% Pb, 6.68% Zn and 9.01% Cu over 0.45m from 343.55m, and

- 11,029 g/t Ag, 5.12% Pb, 6.96% Zn and 6.46% Cu over 0.90m from 344.70m, and

- 24,487 g/t Ag, 8.43% Pb, 9.98% Zn and 9.45% Cu over 0.65m from 346.05m.

- Hole BATS000207 intersected 1,008 g/t Ag over 1.35m from 200m (est. true thickness 0.46m).

Assay results from the drill holes are summarized in the table below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag. Estimated true widths of the veins are indicated in the table for each of the major intercepts. A longitudinal section showing the location of the drill hole intercepts will be posted on Fortuna's website at www.fortunasilver.com.


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Estim-
ated
True
Thick-
From Interval ness Ag Au Pb Zn Cu
Hole No. (m) To (m) (m) (m) (g/t) (g/t) (%) (%) (%)
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BATS001707 334.15 335.30 1.15 0.25 497 0.03 1.56 2.63 1.02
340.55 347.90 7.35 1.57 6,231 0.14 3.56 4.85 3.08
including 343.55 344.00 0.45 30,170 0.18 5.95 6.68 9.01
and 344.70 345.60 0.90 11,029 0.29 5.12 6.96 6.46
and 346.05 346.70 0.65 24,487 0.53 8.43 9.98 9.45
BATS001607 133.30 133.70 0.40 0.19 188 0.09 0.01 0.01 -
189.60 189.95 0.35 0.16 295 0.01 0.01 0.03 0.16
BATS000908 323.90 325.60 1.70 1.16 259 0.02 1.31 1.46 0.58
BATS000808 381.38 384.40 3.02 0.72 133 0.02 0.26 0.18 0.11
BATS000707 293.05 294.70 1.65 1.19 131 0.03 0.21 0.21 0.23
296.30 296.60 0.30 0.22 494 0.20 0.16 0.12 0.13
BATS000607 No significant mineralized intervals
BATS000507 258.10 258.40 0.30 0.15 104 0.31 4.84 2.40 0.01
BATS000407 235.95 236.50 0.55 0.26 91 0.05 0.01 0.01 0.00
BATS000307 365.20 366.15 0.95 0.35 840 0.06 0.42 0.85 0.35
BATS000207 200.00 201.35 1.35 0.46 1,008 0.27 0.01 0.02 0.04
BATS000107 246.55 247.35 0.80 0.23 138 0.04 0.01 0.02 0.01
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Drilling on the Bateas vein will continue during the first half of 2008, one of several drill targets the company will be advancing during the year. The Company anticipates delineating a new high-grade silver resource on the Bateas vein that can contribute additional ore to the short term mine plan this year. Mining in the Bateas vein will use selective narrow vein mining methods successfully used at Caylloma in the recent past by the previous owner.

Background

The silver and base metal-rich Caylloma district is located in the Tertiary volcanic belt of southern Peru. Intermediate-sulfidation epithermal mineralization is present in vein systems hosted by andesitic volcanic and volcaniclastic rocks overlying a Jurassic-age sedimentary basement. The Caylloma Mine was purchased by Fortuna Silver in 2005 and returned to production in October of 2006.

Fortuna holds exploration and mining rights to concessions covering approximately 26,700 hectares in the Caylloma area. Exploration activities include testing of opportunities for high grade silver and base metal mineralization within the Caylloma District and reconnaissance evaluation of surrounding properties to identify opportunities warranting more advanced exploration.

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 Lima, Peru. 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 base metals by atomic absorption methods utilizing an aqua regia digestion. Multi-element analyses are also completed for each sample by ICP methods. The QA-QC program at Caylloma includes the blind insertion of certified reference standards 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 the technical information in this news release.

Fortuna Silver

Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Principal assets include 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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