Fortuna Acquires Additional Silver-Gold Prospects in the Caylloma Camp

View Julia Au-Ag Vein Map in PDF Format
View Caylloma Concession Map in PDF Format

December 5, 2005: Fortuna Silver Mines Inc. (TSX-V : FVI; "Fortuna") is pleased to announce it has signed letters of intent to acquire 100% interest in five mineral concessions controlled by two private Peruvian companies, Minera Ares and Minera Condor. The concessions are located within ten kilometers of the Caylloma Silver Mine, and cover several silver-gold prospects and historic workings.

The first group of concessions, optioned from Minera Condor, totals 888 hectares in surface area and was explored during 2004 by Mauricio Hochschild & Cia (MHC). Mapping and trench sampling conducted by MHC outlined a low sulfidation vein system hosted by Tertiary volcanic rocks. This epithermal system is best represented by the Julia vein, which has returned trench samples grading up to 16.87 g/t Au and 64 gpt Ag over 2.31 meters. The vein has been traced over at least 500m in outcrop and is open along strike.

The second concession package, optioned from Minera Ares, totals 3,000 hectares in surface area, and is located around the historic Sukuytambo Silver-Gold Mine, which ceased operations in the early 80's. The concessions cover a largely under-explored sequence of Tertiary volcanic rocks with multiple color anomalies, which are commonly associated with epithermal style alteration and mineralization.

Fortuna plans to mobilize a field crew to the area in early January. With the addition of these concessions to Fortuna's portfolio, the company is moving towards its objective of consolidating a controlling position in one of the most productive silver-gold vein camps in Peru. Most importantly, these new concessions are located within trucking distance of the company's Caylloma processing plant, and any exploration success on these properties could be quickly capitalized on by trucking ore to Caylloma.

Chip Samples

At total of 90 continuous chip samples were collected by MHC across the Julia vein, and prepared and analyzed at the MHC assay lab facilities at the Arcata Mine in southern Peru. MHC is an international mining company and all its laboratories operate to international Quality Assurance & Quality Control standards. The results reported here however should be considered historic in nature, have not been verified by a Qualified Person as defined by Canadian National Instrument 43-101, and should therefore not be relied upon.

Significant trench results are tabulated below and trench sample and concession location maps are available on the Fortuna website at www.fortunasilver.com.

Table of Trench Sample Results
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Trench            Sample      Width (m)      Au (g/t)    Ag (g/t)
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                            JULIA VEIN I
TR 26352-57        26353          0.54           5.5          47
                   26354          0.66            19         118
                   26355          0.55          5.51          41
                   26356          0.58          8.86          23
                   26357           0.4          6.21          26
                              ----------------------------------
                              ----------------------------------
  Trench average                  2.73          9.58          55

TR 26344-51        26347           0.3          50.9          62
                   26348          0.35          7.73          32
                   26349          0.48          7.73           9
                   26350          0.62          19.6         148
                   26351          0.56          9.17          39
                              ----------------------------------
                              ----------------------------------
  Trench average                  2.31         16.87          64

TR 26338-43        26340          0.88            21         358
                   26341          0.56          19.6         179
                              ----------------------------------
                              ----------------------------------
  Trench average                  1.44         20.46         288

TR 26332-37        26332           0.4          16.6          56
                   26333          0.28          4.11         130
                   26334          0.38         13.45          15
                   26335          0.55          7.43           7
                              ----------------------------------
                              ----------------------------------
  Trench average                  1.61         10.55          42


                         JULIA VEIN II (splay)
TR 27632-39        No significant results

TR 27623-30        No significant results

TR 27618-22        No significant results

TR 27612-17        27614           0.4           1.6          12
                   27615          0.43           0.9           2
                   27616          0.33         0.115           1
                   27617          0.55           2.7           1

TR 26602-20        26606          0.52          2.17           1
                   26607           0.4           1.6           2

TR 26376-88        26376           0.4          3.24           0
                   26377           0.6          2.29           0
                   26378           0.6             1           0
                   26379           0.8          2.64           0
                   26380           0.6          2.95           0

TR 26367-71        26370          0.45          2.53           9
                   26371           0.5          26.6          55

TR 26374-75        26374          0.15          96.2         173
                   26375          0.44          1.83           3

TR 26364-66        26364           0.2          1.42           5
                   26365          0.12         121.5         519
                   26366           0.4          0.95           6

TR 26348-60        26358           0.5          1.43           2
                   26359           0.3          57.5         150
                   26360          0.54          2.23           2

TR 26361-63        26361          0.15          62.4         460
                   26362          0.55          0.28           1
                   26363          0.33          1.05           0

TR 26329-31        No significant results

TR 26327-28        No significant results

The Agreements

The letter of intent between Fortuna and Minera Ares gives Fortuna the option to acquire 100% of the Ares concessions by paying US$15,000 at signing and US$30,000 on the 12 month anniversary. Fortuna may exercise the option at any time during a 2 year period, at which time it will issue 250,000 shares of Fortuna to Minera Ares.

The letter of intent between Fortuna and Minera Condor gives Fortuna the option to acquire 100% of the Condor concessions by paying US$15,000 at signing and US$20,000 in July 2006. Fortuna may then exercise the option in January 2006, by making additional payments of US$200,000 over three years.

Qualified Person

Mr. Peter Thiersch, M.Sc. P.Geo., President of Fortuna, is the Qualified Person for the Company, as defined by National Instrument 43-101, and is responsible for the accuracy of this press release.

Fortuna is a growth oriented, near term silver producer focused on Latin America. Our primary assets include the Caylloma Silver Mine in southern Peru and the San Jose Silver- Gold Project in Mexico, and we are aggressively pursuing additional acquisitions.

For more information, please visit our website at www.fortunasilver.com.

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

ON BEHALF OF THE BOARD
Peter Thiersch, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI

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