San Jose Mine, Mexico

JUNE 2012www.fortunasilver.com

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Certain statements in this presentation constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Fortuna’s future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Fortuna’s mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Fortuna is active, labor relations and other risk factors.

Thomas I. Vehrs, Ph.D., Vice President of Exploration and Founding Registered Member of The Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered Member Number 3323430RM) and Edgar Vilela, Corporate Manager of Technical Services of Fortuna, are the Qualified Persons for Fortuna Silver Mines Inc. as defined by National Instrument 43-101. Dr. Vehrs is responsible for ensuring that the geological and scientific information contained in this presentation are an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines. Mr. Vilela is responsible for ensuring that the information on reserves, production and costs contained in this presentation are an accurate summary of the original reports and data provided to or developed by Fortuna Silver Mines.

Regulatory Disclaimer

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To be valued by our workers, the community and our shareholders as a leading silver mining company in Latin America

To be valued by our workers, the community and our shareholders as a leading silver mining company in Latin America

Caylloma Mine,Peru

VisionVision

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Core AssetsOperating and Exploring in the Americas

Production San Jose Mine, Mexico Caylloma Mine, Peru

Exploration Exploring in Mexico and Peru; two

largest silver producing countries in the world

44,000 meter drill program for 2012

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Company Snapshot

FVI.TO vs. Ag (June 2011 – June 2012)

Share Structure Outstanding: 125.2 million Fully diluted: 131.0 million

Strong Balance Sheet US$54 million in cash (end Q1 2012) US$20 million credit facility No long term debt No hedging

Exchanges

Frankfurt: F4S.F

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Financial Snapshot

Revenue US$ [´000s]

Strong Revenue and Margin Growth

Operating Income US$ [´000s]

2012E estimated using Ag = US$30/oz, Au = US$1,660/oz, Pb = US$2,300/t and Zn = US$2,000/t

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Financial SnapshotRevenue by Metal

Copper

Gold

Zinc

Lead

Silver

2012E estimated using Ag = US$30/oz, Au = US$1,660/oz, Pb = US$2,300/t and Zn = US$2,000/t

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Commissioning of 1,500 tpd

plant expansion

Commissioning of dore plant

Plant expansion to 1,500 tpd at

San Jose

Off-site dore plant

construction at San Jose

Shares begin trading on

NYSE

Commenced commercial

production at San Jose, on time and on

budget

Shares begin trading on TSX

Reported positive

pre-feasibility study at San Jose

Started construction of San Jose

Mine

Increased silver

production by 13%

Acquired 100% interest in

San Jose

Received EIS approval and permits for

San Jose

Increased silver

production by 96%

Shares begin trading on BVL

Increased silver

production by 85%

Successful drilling at San Jose

significantly increased

Ag Eq resources

Commenced production at Caylloma on time and on

budget

Acquired stake in

San Jose

Company established

Shares trade on the TSX.V

Acquired Caylloma Mine

Key MilestonesFoundations of a Leading Silver Mining Company

2005 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013

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Investment Highlights

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22

33

55

44

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Emergence of a Leading Silver Mining CompanySustainable Mineral Reserve and Resource Growth

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Emergence of a Leading Silver Mining CompanyIncreasing Exposure to Precious Metals

• 2012 base metal revenue estimate = US$26M; Pb = US$2,300/t & Zn = US$2,000/t

Ag Production

Au ProductionProduction forecast

Production forecast

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Proven Mine Builders and OperatorsSenior Management

Manuel Ruiz-ConejoVice President,

Operations

Dr. Thomas I. VehrsVice President,

Exploration

Cesar PeraVice President,

Human & Organizational Development

Luis Dario GanozaChief Financial Officer

Jorge A. GanozaPresident,

CEO and Director

Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Jorge also serves as Chairman of the Board of Atico Mining Corporation, a TSX.V listed company.

Over 35 years experience managing exploration programs in the Americas. Tom also serves as an independent director for AQM Copper Inc.

Over 25 years experience in organizational development and change in Latin American companies.

Over 15 years experience in the operations and financial management of public mining companies. Luis also serves as a Director of Atico Mining Corporation, a TSX.V listed company.

Over 25 years experience in the execution of multi-million dollar mining projects and the implementation of community relations programs.

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Proven Mine Builders and OperatorsBoard of Directors

Simon RidgwayChairman of the Board

Co-founder of Fortuna. Vancouver-based mining financier. Also founded Focus Ventures, Radius Gold, Mar West Resources and Northland Resources.

Robert R. Gilmore

30 years of experience working with resource companies and currently serves as Chairman of the Board for Eldorado Gold Corporation and as a Director for Layne Christensen Company.

Mario Szotlender

Jorge A. GanozaPresident and CEO

Co-founder of Fortuna. Financier, businessman and Director of Radius Gold, Endeavour Silver, Magellan, Focus Ventures and Iron Creek.

Tomas Guerrero

Thomas Kelly Michael Iverson

36 years of experience in mine production, minerals industry consulting and corporate management in various Latin American countries; currently serves as CEO of Apurimac Ferrum, a private company developing iron ore assets in Peru.

Chief Executive Officer of Fortuna from 1998 to January 2005. President and Director of Niogold Mining Corp. since 1998.

Geological engineer with over 30 years experience. Served as Director of Explorations for the Hochschild Group.

Co-founder of Fortuna. Peruvian geological engineer. Identified and negotiated purchase of Caylloma, built the Fortuna team. Jorge also serves as Chairman of the Board of Atico Mining Corporation, a TSX.V listed company.

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Commodities Silver, gold, zinc, leadOperation 1,300 tpd underground mine

Reserve Life 8 YearsLocation Arequipa, Peru

Ownership 100%

Deposit type Intermediate-sulfidation epithermal deposit

2012 Cash Cost Estimate US$85.00/t

Caylloma Mine, PeruOverview

2012 Development Projects Phase 2 of new tailings facility Upgrading of the processing plant Mine development Mine camp improvements

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Caylloma Mine, Peru Solid Reserve and Resource Base

Classification Tonnes (000)

Ag(g/t)

Au(g/t)

Pb(%)

Zn(%)

Contained Metal

Ag (Moz)

Au(koz)

Proven & Probable Reserves 4,642 135 0.33 1.33 1.93 20.2 49.5

Measured & Indicated Resources 2,258 123 0.30 0.85 1.28 8.9 21.8

Inferred Resources 3,258 112 0.36 0.99 1.50 11.8 37.9

Notes to Mineral Reserve and Mineral Resource tables prepared in accordance with NI 43 - 101: Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on Mineral Resources

and Mineral Reserves Mineral Resources are exclusive of Mineral Reserves Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Caylloma Mineral Resources and Mineral Reserves are estimated as of June 30, 2011 and reported as of

December 31, 2011 Refer to www.fortunasilver.com for full disclosure

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San Jose Mine, MexicoOverview

2012 Development Projects Processing plant and mine

expansion to 1,500 tpd Construction of new off-site dore

plant Tailings dam expansion

Commodities Silver, gold

Operation 1,000 tpd underground mine Reserve Life 9 Years

Location Taviche Mining District, Oaxaca, Mexico

Ownership 100%Deposit type High-grade, low sulphidation

epithermal vein deposit2012 Cash Cost Estimate US$75.00/t

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San Jose Mine, MexicoSolid Reserve and Resource Base

Classification Tonnes (000)

Ag(g/t)

Au(g/t)

Contained Metal

Ag (Moz)

Au(koz)

Probable Reserves 3,600 204 1.59 23.6 183.7

Indicated Resources 376 243 2.12 2.9 25.6

Inferred Resources 3,072 223 1.80 22.0 178.1

Notes to Mineral Reserve and Mineral Resource tables prepared in accordance with NI 43 - 101: Mineral Reserves and Mineral Resources are as defined by the CIM Definition Standards on Mineral Resources

and Mineral Reserves Mineral Resources are exclusive of Mineral Reserves Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Mineral Reserves and Mineral Resources reported as of December 31 st, 2011 Refer to www.fortunasilver.com for full disclosure

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San Jose Mine, MexicoProven Mine Builders: Discovery to Production 2007- Resource expansion 2010- Positive pre-feasibility study 2011- Commissioning on-time and on-budget

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San Jose Mine, MexicoUnderground Mine Design

Indicated Resources

Inferred Resources

Projected Ramp

Projected Level

LEGEND

Production block

L 1400L 1400Auxiliary Ramp

Ore Pass

Ventilation Raise

Main Levels

L 1300L 1300

L 1200L 1200

L 1100L 1100

Waste Pass

Service Raise

L 1540L 1540

L 1360L 1360

SouthSouthNorthNorth

Main Ramp

Auxiliary Branch

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San Jose Mine, MexicoSilver and Gold Production Forecast

Ag Production

Au Production

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Brownfields Upside, CayllomaProlific Mining District

Source: INGEMMET

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11,000 ha concession package Expand resource base through

exploration of veins with potential for high-grade silver mineralization

US$7.1 M brownfields exploration program

Brownfields Upside, CayllomaExploration Success Fueling Growth

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Brownfields Upside, San JoseUnder-Explored Mining District

Source: Mexican Geological Society

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Brownfields Upside, San JoseCommanding Land Position 58,000 ha concession package

Soil and stream sediment sampling identified multiple geochemical gold anomalies

Significant resource growth potential within trucking distance to processing plant

US$5.8 M brownfields exploration program

Stream Sediment Results

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Community Relations ProgramForging Strategic Partnerships Programs are based on respect for ethno-cultural diversity, open communication

and effective interaction with all stakeholders We work with communities towards self-development of economically sustainable

activities to improve their quality of life

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Growth StrategyThree-Pronged Approach to Create Shareholder Value

Execute on production ramp-up at San Jose by 4Q 2013 Focus on operational efficiencies to reduce cash costs Off-site Ag - Au concentrate leaching facility at San Jose

Maximize production, profitability and cash flow of current mines

44,000 meter exploration program between Peru and Mexico Two crews evaluating multiple Ag - Au anomalies at San Jose Commanding land packages in Peru and Mexico

Capitalize on brownfields exploration

opportunities

Post discovery, pre-development opportunities in the Americas Silver contribution of >50% of revenue Below industry median for cash cost

Pursue selectiveM&A opportunities

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Proven operators and mine builders in the Americas Organic growth potential Consistent cash generation

Caylloma MinePeru

Management Head OfficeCarlos BacaT: +51.1.616.6060, ext. 0

Corporate OfficeHolly HendershotT (Toronto): +1.647.725.0813T (Vancouver): +1.604.484.4085

JUNE 2012www.fortunasilver.com