Feasibility Study - Life of Mine Highlights

Production
Mine life1 (years)15
Annual ore placed in leach pad (Mt)6.75
Strip ratio (waste to ore)1.2
Head grade (g/t)0.62
Recovery (%)75
Gold recovered to doré (Moz)1.3
Average annual gold recovered to doré2 (koz)96
Peak annual gold recovered to doré (koz)138
AISC3 ($/oz Au)802
Initial capital ($ M)239
Sustaining capital ($ M)105
Base Case Economics
Gold price ($)1,250
Exchange rate (ARS4:USD)17.80
After-tax NPV5 @ 5% ($ M)130
After-tax IRR6 (%)18
Payback period7 (years)3.6

Notes:

  1. Includes 20 months of heap rinsing of gold inventory
  2. Average over years 1 – 13. Does not include gold from heap rinsing.
  3. All-In Sustaining Cash Cost
  4. Argentine Peso
  5. Net Present Value; considers initial capital in one single annual period; excludes High-Pressure-Grinding-Roller (HPGR) acquired upon the acquisition of Goldrock Mines Corp.
  6. Considers initial capital in one single annual period; excludes High-Pressure-Grinding-Roller (HPGR) acquired upon the acquisition of Goldrock Mines Corp.
  7. Payback based on undiscounted cash flow

For more detail, please see news release dated September 21, 2017: https://www.fortunasilver.com/investors/news/2017/fortuna-announces-positive-construction-decision-for-its-lindero-gold-project-in-salta-argentina/

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