Fortuna discovers second mineralized shoot at San Jose Project, Mexico: drills 868 g/t Ag, 8.5 g/t Au over 1.8 meters.

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San Ignacio DH
Location Map

Trinidad DH
Location Map

December 7, 2006: Fortuna Silver Mines Inc. (FVI:TSX-V). Mr. Jorge Ganoza, President of Fortuna, is pleased to report that drilling at the 76 per cent owned San Jose project in Mexico has discovered a second high-grade mineralized shoot, known as the San Ignacio zone. San Ignacio is a zone of high-grade silver-gold mineralization located five hundred meters south and along strike from the Trinidad zone. Highlights from the recent drilling at San Ignacio include:

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                    San Jose Project - San Ignacio Zone Highlights
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                                                                     Ag eq.
Drill Hole    From           To   Interval     Au g/t    Ag g/t     oz/t(i)
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SJO-023      77.95        90.70      12.75       2.33       182       10.0
SJO-024      57.10        58.10       1.00       7.66      1265       54.2
SJO-026      58.55        59.80       1.25       2.52       225       11.7
            131.46       134.46       3.00       3.42       244       13.9
SJO-027      82.50        84.30       1.80       8.46       868       42.9
            157.60       158.80       1.20       3.38       395       18.7
SJO-029     178.70       180.20       1.50       1.91       319       13.6
SJO-036      50.15        51.17       1.02        6.3       112       14.8
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(i) Silver equivalents are based on a silver to gold ratio of 55:1, using
    metal prices of US$ 550/oz gold and US$ 10/oz silver. Metallurgical
    recoveries and net smelter returns are assumed to be 100%.

To date, the San Ignacio zone has been drill tested over a strike length of roughly 600m and to a maximum depth of 150m vertically below surface. The San Ignacio mineralization is open to depth and along strike to the north and south. A full table of results from this year's drilling and a drill collar plan will be available on the Company's website at www.fortunasilver.com.

The Trinidad zone hosts an inferred mineral resource of 527,283 tonnes at 396 g/t Ag + 3.5 g/t Au, based on previous drilling conducted in 2005. This resource estimate is compliant with NI 43-101 guidelines and the technical report is available on the Company's website at www.fortunasilver.com. Fortuna is working to produce a new resource estimate for Trinidad for release in early January 2007 that will incorporate the results of all the drilling conducted during 2006. The San Ignacio drill results are not incorporated in the existing Trinidad resource.

The San Jose deposit was mined for high-grade silver-gold ore by the former owner at a rate of 100 tonnes per day up until mid-November 2006. Mining was suspended when Fortuna and Continuum Resources acquired the project. All underground workings and production stopes are accessible. Fortuna plans to start development of the project in the first quarter of 2007 to access the high-grade resources identified in the underground workings and by the recent drilling in the Trinidad zone. The Company anticipates that in the short term, production will come from mining of vein extensions and from recovery of high-grade pillars from existing mine levels 2 through 6. The Company is also evaluating the possibility of using nearby processing facilities to treat the mineral production from San Jose.

Mr. Jorge Ganoza, President of the Company, commented: "San Jose has become a key project for Fortuna. With its persistent high grades, broad mineralized widths, excellent ground conditions and favorable metallurgy, it has the potential to rapidly increase Fortuna's production profile during 2007. We intend to fast-track San Jose to production."

The 2006 drill program, conducted from February through June 2006, included 11,904m of drilling in 37 diamond core holes in the San Ignacio and Trinidad zones of the San Jose Project. Results for the initial 24 drill holes on the Trinidad zone were released on September 5, 2006. This news release is available on the Company's web site at www.fortunasilver.com.

Highlights of the 2005 and 2006 drilling on the Trinidad zone include (these results were previously published in Fortuna News Release dated September 5, 2006):

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                       San Jose Project - Trinidad Zone Highlights
            --------------------------------------------------------------
Drill                             Interval               Ag g/t      Ag eq.
Hole       From (m)       To (m)        (m)    Au g/t       (ii)    oz/t(i)
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SJO-001     199.97       201.18       1.21       6.22      1775       68.1
            217.55       220.25       2.70       3.49       763       30.8
            251.00       255.34       4.34       2.29       332       14.7
SJO-002     214.60       217.40       2.80       1.41       348       13.8
            222.86       240.00      17.14       2.94       365       16.9
SJO-003     279.55       287.00       7.45       6.57       637       32.1
            294.90       308.95      14.05       7.36       703       35.6
            345.35       349.40       4.05       2.76       313       14.9
SJO-009     367.40       373.20       5.80       2.65       306       14.5
SJO-010     321.00       325.90       4.90       2.80       582       23.7
SJO-011     210.00       213.05       3.05       2.16       410       17.0
            214.55       217.35       2.80       1.76       349       14.7
SJO-014     262.00       265.45       3.45       2.38       589       23.3
SJO-015     236.25       247.00      10.75       2.02       217       10.5
SJO-018     240.92       257.62      16.70       6.17       525       27.8
SJO-020     368.90       373.93       5.03       8.70      1464       62.4
SJO-021     246.50       255.00       8.50       2.96       522       22.0
SJO-022     387.63       390.00       2.37       2.55       568       22.8
            414.17       415.97       1.80       3.61       394       19.1
SJO-039      42.75        47.65       4.90       5.90       843       37.5
SJO-046     371.00       373.30       2.30       5.64       869       37.9
            401.66       404.59       2.93       1.20       272       10.9
            414.60       424.82      10.22       5.33       347       20.6
            480.31       488.02       7.71       3.72       373       18.6
SJO-051     328.50       352.41      23.91       2.00       245       11.4
            424.20       440.16      15.96      14.65      1483       73.6
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(i)  Silver equivalents are based on a silver to gold ratio of 55:1, using
     metal prices of US$ 550/oz gold and US$ 10/oz silver. Metallurgical
     recoveries and net smelter returns are assumed to be 100%.
(ii) Mineralized intervals were calculated based on a minimum 3 opt silver
     equivalent cut-off.

All 2006 drill samples were analyzed for silver and gold using fire assay methods with a gravimetric finish and for 31 elements using ICP techniques by ALS Chemex of North Vancouver BC. Core samples were logged and halved on site at San Jose, air freighted to Chemex's sample preparation facility in Guadalajara, Mexico for preparation, and then forwarded to Chemex's North Vancouver laboratory for assaying. A comprehensive QA-QC program was conducted using blanks and standards to ensure accuracy in the sampling and assaying program.

Qualified Person: Mr. Peter Thiersch, M.Sc. P.Geo., exploration consultant, is the Qualified Person for Fortuna, as defined by National Instrument 43-101, and was responsible for the design and management of the San Jose drill program.

Fortuna is a growth-oriented silver 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. Fortuna is 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

Jorge Ganoza, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI

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