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Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
Fortuna Silver Mines December CP
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Fortuna Silver Mines December CP

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  1. San Jose Mine,  Mexicowww.fortunasilver.com December 2012
  2. Regulatory DisclaimerCertain statements in this presentation constitute forward‐looking statements and as such arebased on an assumed set of economic conditions and courses of action. These includeestimates of future production levels, expectations regarding mine production costs, expectedtrends in mineral prices and statements that describe Fortuna’s future plans, objectives orgoals. There is a significant risk that actual results will vary, perhaps materially, from resultsprojected depending on such factors as changes in general economic conditions and financialmarkets, changes in prices for silver and other metals, technological and operational hazards inFortuna’s mining and mine development activities, risks inherent in mineral exploration,uncertainties inherent in the estimation of mineral reserves, mineral resources, and metalrecoveries, the timing and availability of financing, governmental and other approvals, politicalunrest or instability in countries where Fortuna is active, labor relations and other risk factors.Thomas I. Vehrs, Ph.D., Vice President of Exploration, is the Qualified Person for Fortuna SilverMines Inc. as defined by National Instrument 43‐101. Dr. Vehrs is a Founding RegisteredMember of The Society for Mining, Metallurgy, and Exploration, Inc. (SME Registered MemberNumber 3323430RM) and is responsible for ensuring that the information contained in thispresentation is an accurate summary of the original reports and data provided to or developedby Fortuna Silver Mines. 2
  3. Vision To be valued by our workers, the community and our shareholders as a leading silver mining company in Latin America Caylloma Mine, Peru 3
  4. Core AssetsOperating and exploring in the AmericasProduction San Jose Mine, Mexico Caylloma Mine, PeruExploration Exploring in Mexico and Peru; two  largest silver producing countries in  the world 44,000 meter drill program for 2012  4
  5. Company SnapshotStrong balance sheet Share structure (as of Nov. 9 ) th Exchanges US$62.75 million in cash (Q3 2012)  Outstanding: 125.2 million US$20 million undrawn credit facility  Fully diluted: 131.3 million No long term debt No hedging FVI.T vs. Ag (JUN 30th – NOV 30th) FVI.T FVI‐T SLV Frankfurt: F4S.F 170%  5.70 Relative performance of FVI.T (%) & SLV (%) 160%  5.20 150%Share price 140%  4.70 132% 130% 121%  4.20 120% 110%  3.70 100%  3.20 90% 6/29/2012 7/29/2012 8/29/2012 9/29/2012 10/29/2012 11/29/2012 5
  6. Proven Mine Builders and Operators Senior Management Jorge A. Ganoza Dr. Thomas I. Vehrs Cesar Pera Luis Dario Ganoza Manuel Ruiz‐Conejo Robert Brown President,  Vice President,  Vice President,  Chief Financial Vice President,  Vice President,  CEO and Director  Exploration Human & Organizational  Officer Operations Corporate  Development DevelopmentCo‐founder of  Over 35 years  Over 25 years  Over 15 years  Over 25 years  20 years experience in Fortuna. Peruvian  experience managing  experience in  experience in the  experience in the  exploration, project geological engineer.  exploration  organizational  operations and  execution of multi‐ development and Identified and  programs in the  development  financial  million dollar  finance. Former CEO negotiated purchase  Americas. Tom also  and change in  management of  mining projects and  of Calibre Mining of Caylloma, built serves as an  Latin American  public mining  the implementation  Corp. and senior  the Fortuna team. independent director  companies. companies. Luis  of community  manager at Barrick Jorge also serves as  for AQM Copper Inc. also serves as a  relations programs. Gold in exploration Chairman of the  Director of Atico  and business Board of Atico  Mining Corporation,  development.Mining Corporation,  TSX.V: ATYTSX.V: ATY  6
  7. Proven Mine Builders and OperatorsBoard of Directors Simon Ridgway Chairman of the Board Robert R. Gilmore Mario Szotlender Tomas GuerreroCo‐founder of Fortuna.  30 years of experience working  Co‐founder of Fortuna.  Geological engineer with Vancouver‐based mining  with resource companies and  Financier, businessman  over 30 years experience.  financier. Also founded  currently serves as Chairman of  and Director of Radius  Served as Director of Focus Ventures, Radius  the Board for Eldorado Gold  Gold, Endeavour Silver,  Explorations for the Gold, Mar West Resources  Corporation and as a Director for  Magellan, Focus Ventures  Hochschild Group.and Northland Resources. Layne Christensen Company. and Iron Creek.Jorge A. GanozaPresident and CEO  Thomas Kelly Michael IversonCo‐founder of Fortuna.  36 years of experience in mine  Chief Executive Officer of Fortuna Peruvian geological  production, minerals industry  from 1998 to January 2005. engineer. Identified and  consulting and corporate  President and Director of Niogold negotiated purchase of  management in various Latin  Mining Corp. since 1998.Caylloma, built the Fortuna  American countries; currently team. Jorge also serves as  serves as CEO of Apurimac Ferrum, Chairman of the Board of  a private company developing iron Atico Mining Corporation,  ore assets in Peru.TSX.V: ATY 7
  8. Key Milestones Foundations of a Leading Silver Mining Company Commissioning  of 1,500 tpd Plant plant expansion to  expansion at  Shares begin  1,500 tpd at  San Jose   trading on  San Jose mine Shares begin  NYSE trading on TSX Commissioning  Acquired 100%  Off‐site dore of dore plant  Commenced  plant  interest in  Reported for San Jose  Shares begin  commercial  construction  San Jose  positive  mine  trading  production at  for San Jose  project pre‐feasibility Successful  on BVL San Jose mine,  mine drilling  at  study at  on time and  Commenced Received EIS  San Jose San Jose  Increased  on budget production at  approval and  significantly  silver  Company  Caylloma on  permits for  Started  increased  production established time and on  San Jose construction  Ag Eq  by 85%  budget  resources    of San Jose Shares trade  Increased  mineon the TSX.V Acquired stake  silver  in  production  Increased  Acquired San Jose  by 96%  silver Caylloma mine project production by 13% 2005 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013 8
  9. Emergence of a Leading Silver Mining CompanySustainable mineral reserve and resource growth   140.0 Inferred Resources Measured & Indicated Resources 120.0 Proven & Probable Reserves Contained Metal ‐ Ag Eq (Moz) * 100.0 80.0 60.0 40.0 20.0 0.0 2005 2006 2007 2008 2009 2010 2011 • Caylloma Mine Ag Eq calculated using Ag = US$26.59/oz and Au = US$1,279.31/oz • San Jose Mine Ag Eq calculated using Ag = US$15.12/oz and Au = US$897.51/oz 9
  10. Emergence of a Leading Silver Mining CompanyIncreasing Exposure to Precious Metals Ag Production 5.0 4.9 4.9 4.1 4.0 3.7 Moz 3.0 2.4 2.0 1.9 1.6 1.0 0.81 0.44 ‐ 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Au Production 30,000 27,000 26,000 25,000 21,100 20,000 17,400 oz 15,000 10,000 7,000 5,000 3,300 2,100 2,300 2,500 ‐ 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast 2012 base metal revenue estimate = US$26M; Pb = US$2,300/t & Zn = US$2,000/t 10
  11. Financial SnapshotStrong financial performance Revenue US$ [´millions’] Operating Income US$ [‘millions’] 160.4 45.9 38.1 110.0 27.7 74.151.4 14.42009 2010 2011 2012E 2009 2010 2011 2012E FORECAST FORECAST 2012 forecast:  Ag = US$29.91/oz, Au = US$1,655/oz, Pb = US$1,980/t and Zn = US$1,889/t 11
  12. Financial Snapshot Strong cash flow and sustainable growth Cash Flow Per Share US$ Earnings Per Share US$ 0.18  0.14 0.16  0.12 0.14  0.10 0.12 0.10  0.08 0.08  0.06 0.06  0.04 0.04  0.02 0.02  ‐  ‐ Q4 2011 Q1 2012 Q2 2012 Q3 2012  (0.02) Q4 2011 Q1 2012 Q2 2012 Q3 2012 12
  13. 2012 Production GuidanceConsolidated production for the first nine months  13
  14. Project Pipeline San Jose Mine PRODUCTION Caylloma Mine DEVELOPMENT PROJECTS Bateas Don Luis Tlacolula San Pedro, San Carlos,  Animas NE/  DRILL TARGETS El Toro, Apóstoles Nancy Cerro Vilafro,  Vilafro Sur Cailloma 6 El Pochotle EARLY STAGE Over 87,000 hectares LAND  PACKAGE 14
  15. San Jose Mine, Mexico Overview Commodities Silver, gold Operation 1,050 tpd underground mine  Reserve Life 9 Years Taviche Mining District,   Location Oaxaca, Mexico Ownership 100% High‐grade, low sulphidation Deposit type epithermal vein deposit 2012E cash cost/t  US$75.00 Ag Production Au Production  3,000  25,000  20,000  2,000  15,000k oz oz  10,000  1,000  5,000  ‐  ‐ 2011 2012 2013 2014 2011 2012 2013 2014 Forecasts Forecasts 15
  16. San Jose Mine, MexicoSolid reserve and resource base Contained Metal Tonnes  Ag Au Classification (000) (g/t) (g/t) Ag Au (Moz) (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 31st, 2011  Refer to www.fortunasilver.com for full disclosure 16
  17. North South Service Raise L 1540 Main Ramp Auxiliary BranchAuxiliary Ramp L 1400 Ventilation Raise L 1360 L 1300 LEGEND Main Levels Projected ramp Ore Pass Projected level L 1200 Waste Pass Production block L 1100 17
  18. Exploration SnapshotSan Jose land package, Mexico 58,000 ha concession package Soil and stream sediment sampling 3 drill rigs in operation  US$5.8 M 2012 exploration budget Significant resource growth  potential within trucking distance  to processing plant 18
  19. Exploration SnapshotBrownfields MexicoTlacolula  Option to acquire 60% interest from Radius  Large and untested low sulfidation epithermal vein system   Two main veins identified, Tlacolula and Guila:  ‐ CH 136366: 6.30 m avg. 19.34 g/t Au and  986 g/t Ag (open) [Guila Vein] ‐ CH 135709: 9.60 m avg.  0.13 g/t Au and  295 g/t Ag (open) [Tlacolula Vein]  Drill program in permit and preparation stageEl Pochotle  100% owned  High‐grade Ag – Au epithermal vein systems  Drill program in‐progress 19
  20. Caylloma Mine, Peru Overview Commodities Silver, gold, zinc, lead Operation 1,300 tpd underground mine  Reserve Life 8 Years Location Arequipa, Peru                                  Ownership 100% Intermediate sulfidation Deposit type epithermal deposit 2012E cash cost/t US$85.00 Ag Production  2,000  1,900  1,800k oz  1,700  1,600  1,500 2009 2010 2011 2012 Forecast 20
  21. Caylloma Mine, Peru  Solid reserve and resource base Contained Metal Tonnes  Ag Au Pb Zn Classification (000) (g/t) (g/t) (%) (%) Ag Au (Moz) (koz)Proven & Probable Reserves 4,642  135 0.33 1.33 1.93 20.2 49.5Measured & Indicated Resources 2,258 123 0.30 0.85 1.28 8.9 21.8Inferred Resources 3,258 112 0.36 0.99 1.50 11.8 37.9Notes 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 21
  22. Exploration SnapshotBrownfields Peru 29,000 ha land package 5 drill rigs in operation  US$7.2M 2012 exploration  budget Brownfields exploration  program oriented at  expanding resource base with  priority given to silver‐rich  veins 22
  23. Exploration SnapshotBrownfields PeruAnimas/Nancy Vein System  100% ownership  High‐grade polymetallic vein system with moderate Ag  values: ‐ ANIM022012: 5.05 m avg. 106 g/t Ag, 6.90% Pb and 7.54 % Zn [Animas vein] ‐ NANS002012: 9.55 m avg.  91 g/t Ag, 5.30% Pb and 7.62 % Zn [Nancy vein]  Generating updated resource modelCerro Vilafro  100%  ownership  Epithermal system with a NE‐SW trending vein swarm,  hosted by Cretaceous quartzites with potential to be a     bulk‐mineable, open‐pit target: ‐ CH 503715: 0.40 m avg. 3.23 g/t Au and 827 g/t Ag ‐ CH 503708: 0.40 m avg. 2.14 g/t Au and 2,440 g/t Ag 23
  24. Growth StrategyThree‐pronged approach to create shareholder valueMaximize production,   Execute on production ramp‐up at San Jose by 2Q 2013profitability and cash   Focus on operational efficiencies to reduce cash costs flow of current mines  Off‐site Ag ‐ Au concentrate leaching facility for San Jose mine Capitalize on   44,000 meter exploration program between Peru and Mexico brownfields   Two crews evaluating multiple Ag ‐ Au anomalies at San Jose exploration  opportunities  Commanding land packages in Peru and Mexico  Post discovery, pre‐development opportunities in the Americas      Pursue selective  Silver contribution of >50% of revenue M&A opportunities   Below industry median for cash cost  24
  25. 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 25
  26. Investment Highlights 1 Emergence of a leading silver mining company in the Americas 2 Proven mine developers and operators 3 Strong cash flow and sustainable growth from existing mines 4 Brownfields exploration upside 5 Disciplined acquisition strategy 26
  27. Management Head OfficeCarlos BacaT: +51.1.616.6060, ext. 0info@fortunasilver.comCorporate OfficeHolly HendershotT (Toronto): +1.647.725.0813T (Vancouver): +1.604.484.4085 www.fortunasilver.com December 2012

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