VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 3, 2017) - Fortuna Silver Mines Inc.
("Fortuna" or the "Company") (NYSE:FSM)(TSX:FVI) today provided an update on
the ongoing regulatory review of the Company's 2015 annual filings by the United States Securities and Exchange Commission (the
"SEC"), and announced the issuance of a management cease trade order ("MCTO") by the British
Columbia Securities Commission and other Canadian provincial securities regulatory authorities (collectively, the
"Securities Regulators").
As anticipated in its March 20, 2017 announcement (the "March 20 Announcement"), Fortuna is delayed in filing
its annual audited financial statements and related MD&A for the years ended December 31, 2016 and 2015, the related Chief
Executive Officer and Chief Financial Officer certificates, and its annual information form for the year ended December 31, 2016
(collectively, the "Annual Financial Documents") while it responds to comments from the SEC on the Company's use
of inferred resources for the calculation of depletion expenses in its audited financial statements contained in the Annual
Report on Form 40-F for the year ended December 31, 2015 (the "SEC Comments"). The SEC is currently reviewing a
response letter provided by the Company.
Once resolution is reached with the SEC, the Company will proceed with the finalization and filing of the Annual Financial
Documents as soon as practicable. The Company expects to be in a position to complete the filing by May 5, 2017.
In connection with the delayed filing of the Annual Financial Documents, the Company applied for and received an MCTO from the
Securities Regulators. The MCTO prohibits certain executive officers of the Company from trading in securities of the Company
until the Company completes the required filing of the Annual Financial Documents. The MCTO does not affect the ability of other
persons to trade in securities of the Company.
This status update is provided pursuant to the alternative information guidelines in National Policy 12-203 Management
Cease Trade Orders ("NP 12-203"), which require the Company to provide bi-weekly updates on its affairs
during the period of the MCTO. In accordance with such requirements, the Company advises that: (i) since March 20, 2017, except
as disclosed herein, there have not been any material changes to the information contained in the March 20 Announcement; (ii)
there has not been any failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of
the alternative information guidelines of NP 12-203; and (iii) no (actual or anticipated) specified defaults have occurred
subsequent to the March 20 Announcement or the default of the Company resulting from its delay in filing the Annual Financial
Documents. Other than as described herein and the related press release of the Company on March 20, 2017, there is no other
material information concerning Fortuna and its affairs that has not been generally disclosed as of the date of this update.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented precious metals producer focused on mining opportunities in Latin America. The Company's primary
assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in
Argentina. The Company is selectively pursuing acquisition opportunities throughout the Americas and in select other areas.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
The Toronto Stock Exchange and the New York Stock Exchange have not reviewed and do not accept responsibility for the accuracy
or adequacy of this news release, which has been prepared by management.
This news release contains forward looking statements which constitute "forward looking information" within the meaning of
applicable Canadian securities legislation, and "forward looking statements" within the meaning of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995 (collectively, "Forward looking Statements"). All
statements included herein, other than statements of historical fact, are Forward looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected
in the Forward looking Statements. The Forward looking Statements in this news release include, without limitation, statements
about the SEC Comments and anticipated resolution thereof, the finalization and filing of the Company's Annual Financial
Documents, and the MCTO issued by the Securities Regulators. Often, but not always, these Forward looking Statements can be
identified by the use of words such as "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed",
"has been", "gain", "planned", "reflecting", "will", "containing", "remaining", "to be", or statements that events "could" or
"should" occur or be achieved, and similar expressions, including negative variations.
Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different from any results, performance or achievements
expressed or implied by the Forward looking Statements. Such uncertainties and factors include, among others, risks that the SEC
Comments will not be resolved in a timely fashion or in a manner that is satisfactory to the Company, which could delay the
filing of the Annual Financial Documents for longer than the Company anticipates or could require the Company to amend its prior
disclosures and revise its draft disclosures in the Annual Financial Documents; changes in the Company's plans for its mines and
mineral properties; changes in general economic conditions and financial markets; changes in prices for silver and other metals;
technological and operational hazards in Fortuna's mining and mine development activities; risks inherent in mineral exploration;
uncertainties inherent in the estimation of mineral reserves, mineral resources and metal recoveries; governmental and other
approvals; political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors
discussed under "Risk Factors" in the Company's Annual Information Form. Although the Company has attempted to identify important
factors that could cause actual events, actions or results to differ materially from those described in the Forward looking
Statements, there may be other factors that cause events, actions or results to differ from those anticipated, estimated or
intended.
Fortuna believes that the assumptions and expectations reflected in the Forward looking Statements in this news release are
reasonable, but no assurance can be given that these expectations will prove to be correct. Forward looking Statements should not
be unduly relied upon. These Forward looking Statements speak only as of the date of this news release, and Fortuna will not
necessarily update these statements unless required to do so by securities laws.