N@N

Fortuna Silver Mines Inc.: Fortuna Increases Silver Production By 85% in 2008 and Issues Production Guidance for 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 26, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI)(BVLAC:FVI) is pleased to report 2008 production performance figures and provide a 2009 production guidance for its Caylloma Mine, located in southern Peru. The Mine produced 889,782 ounces of silver, an increase of 85% compared to 2007. For 2009 the Company anticipates silver production of 1.6 million ounces, an expected increase of 80% compared to 2008:

---------------------------------------------------------------------------
 Q I - 2008 Q II - 2008 Q III - 2008 Q IV - 2008 2008
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Processed
 ore (t) 70,408 80,121 89,827 91,025 331,380
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Head grade
---------------------------------------------------------------------------
Ag (g/t) 74.7 85.5 97.7 114.8 94.5
---------------------------------------------------------------------------
Zn (%) 3.4 3.7 3.6 3.7 3.6
---------------------------------------------------------------------------
Pb (%) 1.9 2.3 2.6 2.9 2.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Recovery
---------------------------------------------------------------------------
Ag (1) 76.4 78.1 80.0 82.4 79.9
---------------------------------------------------------------------------
Zn 86.5 87.6 88.1 87.3 87.4
---------------------------------------------------------------------------
Pb 87.3 88.9 92.1 93.4 91.1
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Metal produced
---------------------------------------------------------------------------
Ag (oz) 140,239 186,276 243,280 291,381 861,176
---------------------------------------------------------------------------
Zn (lb) 4,582,116 5,794,316 6,340,908 6,559,104 23,276,444
---------------------------------------------------------------------------
Pb (lb) 2,620,556 3,599,132 4,714,356 5,562,896 16,496,940
---------------------------------------------------------------------------

(1) Silver recovery in lead concentrate.


2009 Production Guidance

--------------------------------------------------------------------
Metal production 2009 (Forecast) 2008 2007
--------------------------------------------------------------------
Silver (oz) 1,600,000 860,000 480,000
--------------------------------------------------------------------
Zinc (lb) 26,900,000 23,300,000 13,900,000
--------------------------------------------------------------------
Lead (lb) 21,200,000 16,500,000 8,300,000
--------------------------------------------------------------------
Copper (lb) 1,200,000 -- --
--------------------------------------------------------------------

A Technical report on Reserves and Resources for the Caylloma mine is available on the Company's website at [ www.fortunasilver.com ].

Mr. Jorge Ganoza, CEO of the Company, commented: "Our team at Caylloma has done a superb job in delivering sustained metal production growth since the start of mining in late 2006. For 2009 we plan this growth to continue. The expected increase in silver is the result of our successful investments in exploration and development of new bonanza style silver veins which began contributing to production in the fourth quarter of 2008."

Fortuna Silver Mines Inc.

Fortuna is a growth oriented, silver and base metal 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. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at [ www.fortunasilver.com ].

Forward-Looking Statements

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 calculation 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.

ON BEHALF OF THE BOARD

Jorge Ganoza, President, CEO and Director

Fortuna Silver Mines Inc.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.