Fortuna Silver Mines Inc.
TSX VENTURE : FVI

Fortuna Silver Mines Inc.

August 21, 2007 11:31 ET

Fortuna's Liquidity and Solvency Unharmed by Market Turmoil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI): In light of the recent turmoil in the financial markets, Fortuna wishes to inform market observers and investors of the following:

- Its cash position as at July 31, 2007 was approximately US$30 million.

- The cash is held on deposit with major bank institutions.

- Under Fortuna's investment management policy, safety is a priority, where investments are not exposed to the risk of unacceptable losses in capital value.

- Fortuna does not currently hold directly or indirectly any type of derivative contracts.

Additional information on the Company's financial position may be found in our financial statements for the six months ended June 30, 2007, filed on SEDAR August 15. These are have also been posted on the Company's website at www.fortunasilver.com.

Background

Fortuna is a growth-oriented silver and base metal producer focused on mining opportunities in Latin America. The Company's primary assets are the Caylloma Silver-Base Metals Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is aggressively pursuing additional acquisition opportunities.

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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