Fortuna Provides San Jose Project Update

VANCOUVER, BRITISH COLUMBIA, May 25 (MARKET WIRE) --
Fortuna Silver Mines Inc. (TSX VENTURE: FVI)(BVLAC: FVI) is pleased to
provide an update on its 100% owned San Jose silver-gold project in
Oaxaca, Mexico.

The road blockade reported in a Company news release dated April 16th,
was brought to an end on May 6th by Federal and State police, as a result
of a call to action by local Municipal and Ejido authorities. The Company
and local authorities are engaged in dialogue with the fringe group of
demonstrators in order to ensure an equitable long term solution to their
concerns.

A police detachment remains on-site to assure there are no further
disruptions on the access road to the town and Project. The Company is in
the process of gradually reinstating its ground activities.

Project Update

Fortuna has been carrying out exploration and engineering work at San
Jose since 2006. This work has been fully permitted by the Mexican
authorities and the local communities have been kept fully informed about
the Project through regular community meetings and briefings. There has
been significant community support for the Project.

The San Jose Project has an approved Environmental Impact Statement for
all its current on-site activities granted by the "Secretaria de Medio
Ambiente y Recursos Naturales" (SEMARNAT, Mexican Environment Agency). As
San Jose is not currently in production, Fortuna's activities at the site
are not generating any industrial effluents. The Company's compliance
with environmental regulations was verified at the beginning of the year,
by the "Procuraduria Federal de Proteccion al Ambiente" (PROFEPA, Mexican
Federal Environmental Protection Entity) as part of the latest
environmental audit.

Exploration drilling concluded in January 2009 and the Project is
currently undergoing engineering studies. Some of the key design features
that Fortuna envisages are:

- San Jose will be an underground operation. The Company plans to permit
a 1,500 tonnes per day underground mine. There are no plans for
development of an open pit mine.

- San Jose will not use cyanide to process its precious metal ore. The
metallurgical process will use conventional flotation to recover silver
and gold from sulphide ore in the form of a concentrate. This is the
process route that was used by previous local operators at San Jose who
were in production for many years until Fortuna purchased the mine in
October 2006.

- Since the start of the project, the Company has been very conscious of
the sensitive situation of the hydrologic resource in the Ocotlan Valley
area. For this reason, water sourcing alternatives for the project are
being developed around the treatment and use of sewage from neighboring
towns. The San Jose mine will most likely draw much of its water from
sewage, rather than from ground water sources, in day-to-day mining and
processing operations. This will also benefit local communities and
reduce the negative impact caused by pumping raw sewage into the Atoyac
River.

- The San Jose mine will likely back-fill old workings with waste rock.
Much of the waste rock produced from the mine will be returned to the
underground workings, reducing the footprint of the project and its
visual impact.

In accordance with Mexican laws and Ejido authorities, the Company has
signed agreements with the land-parcel owners for the surface rights,
covering the approximately forty-five hectares required for future
on-site infrastructure.

On April 28th, the "Comision Federal de Electricidad" (Mexican Federal
Energy Commission) approved the feasibility study for power consumption
at the San Jose Project, allowing for connection to the national power
grid for up to five megawatts.

Fortuna Silver Mines Inc.

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 selectively pursuing additional
acquisition opportunities. For more information, please visit our website
at www.fortunasilver.com.

ON BEHALF OF THE BOARD

Jorge Ganoza, President, CEO and Director

Fortuna Silver Mines Inc.

Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.

Contacts:
Fortuna Silver Mines Inc. - Lima office
Carlos Baca
Investor Relations
51.1.616.6060

Fortuna Silver Mines Inc. - Vancouver office
Erin Ostrom
Investor Relations
604.484.4085
604.484.4029 (FAX)
info@fortunasilver.com
www.fortunasilver.com

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