Fortuna Advances San Jose Silver-Gold Project, Mexico

VANCOUVER, BRITISH COLUMBIA, Feb 05 (MARKET WIRE) --
Fortuna Silver Mines Inc. (TSX VENTURE: FVI) is pleased to provide a
progress update on the engineering and development work underway at the
San Jose silver-gold deposit located in Oaxaca, Mexico. Development of
the project, which is being explored and developed under a joint venture
between Fortuna (76%) and Continuum Resources Ltd. (24%), is moving
forward at a rapid pace.

Jorge Ganoza, the President of Fortuna, commented: "We have an aggressive
engineering and development program for 2008. We plan to have the project
fully permitted by the end of the year with underground access in place
and all of the necessary resources, such as water and power, in place or
identified. Together with our joint venture partner, Continuum Resources,
we are moving forward to develop San Jose into a producing silver-gold
mine."

Engineering Study

AMEC has been retained to conduct a Scoping Study that will lead to a
Prefeasibility Study to be concluded by year end, including an updated
resource estimate, mine design work, and site selection for plant
facilities, mine infrastructure and waste and tailings disposal areas.
AMEC is an international project management and engineering services
company with extensive global experience in the design of mining projects.

The mine at San Jose was in production at a scale of 150 tpd up until
December 2006, providing a high level of confidence regarding the
technical viability of the project.

Environmental Impact Statement (MIA)

Clifton Associates, Ltd. has started work on the MIA and other permitting
activities. The Joint Venture anticipates presenting the MIA to the
Mexican environmental authorities by mid-2008 and plans to have the
project fully permitted by the end of the year. Clifton Associates has
extensive mining industry experience and has successfully permitted
projects in Mexico for Goldcorp, Pan American Silver, Teck Cominco and
Capstone Mining among others.

Water Source

Water Management Consultants has been retained to conduct hydrogeologic
studies to identify water sources required for the development of project.

Metallurgical Studies

The Joint Venture is in the process of retaining a senior metallurgical
consultant to oversee the metallurgical test work and to produce a final
plant flow sheet.

Underground Development

JOMARGO, a leading tunneling contractor for the mining industry in
Mexico, has been retained for the development and construction of the
main access ramp to the Trinidad deposit. This ramp will facilitate
underground drilling, sampling, and testing of bulk mining methods being
considered in the design. Two-thousand meters of ramp have been budgeted
for 2008. The entrance portal of the ramp has been cemented and the ramp
is advancing steadily.

San Jose Overview

The San Jose deposit is a low sulfidation epithermal system located
within the Taviche Mining District in southern Oaxaca and is
characterized by mineralized multiphase quartz-carbonate-sulfide veins,
hydrothermal breccias and stockwork veining within a sequence of Tertiary
andesitic volcanic and volcaniclastic rocks. Using a cut-off grade of 150
g/t Ag equivalent, 43-101 compliant indicated and inferred mineral
resources for the Trinidad zone at San Jose are estimated at (see Fortuna
News Release dated March 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.

A new resource estimation incorporating 26,600 meters of drilling
conducted during the 2007 exploration program is planned to be completed
during the second quarter. The Fortuna-Continuum Joint Venture controls
mining concessions covering approximately 47,440 hectares in the Taviche
Mining District.

Surface geochemical and reconnaissance programs are being conducted
throughout the district to identify and evaluate new target areas and the
Joint Venture has budgeted for more than 12,000m of drilling for 2008.

Qualified Person

The March 2007 resource estimate was prepared by Independent Mining
Consultants, Inc. of Tucson, Arizona. Mike Hester acted as the
independent Qualified Person as defined by Canadian National Instrument
43-101.

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 contained in this news release.

Background

Fortuna is a growth oriented, silver and base metal producer focused on
mining opportunities in Latin America. Primary 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, President

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

Contacts:
Fortuna Silver Mines Inc.
Jorge Ganoza
President
(604) 484-4085
(604) 484-4029 (FAX)
Email: info@fortunasilver.com
Website: www.fortunasilver.com

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