Fortuna receives approval of Environmental Impact Study for San Jose Mine

VANCOUVER, Oct. 27 /CNW/ - Fortuna Silver Mines Inc. (TSX.V: FVI / Lima Exchange: FVI) is pleased to inform that on October 23rd, 2009, the "Secretaria de Medio Ambiente y Recursos Naturales" (Mexican Environmental Agency) delivered the authorization of the Environmental Impact Study for full mine and mill construction and operation at the San Jose silver-gold project, located in the southern State of Oaxaca, Mexico.

The Environmental Impact Study authorizes the construction and future operation of the San Jose Mine, including the underground workings, processing plant, tailings facility and other surface infrastructure for a 1,500 tonne per day operation within an area of ninety-two hectares.

The permit contemplates a processing plant that will use conventional flotation for production of high grade silver- and gold- bearing concentrates. Test work indicates this metallurgical process allows for recoveries of 88% for both metals (see Fortuna release dated January 15, 2009) without the use of cyanide. The primary source of industrial water for the project will be from a gray-water treatment facility located thirteen kilometers from the mine site.

Other Permits

On April 28, 2009, the "Comision Federal de Electricidad" (Mexican Federal Energy Commission) issued the permit to connect to the national power grid for up to five megawatts; sufficient power to cover the requirements of a 1,500 tonnes per day mine operation. The future transformer sub-station site will be located within five hundred meters of the main high voltage power line which runs through the Company's property.

Management now looks forward to the approval of the "Estudio Técnico Justificativo" (change of land use) in the coming days; this permit will allow the commencement of construction activities.

Jorge Ganoza, CEO and Director, commented, "I would like to acknowledge our project team and consultants for achieving this milestone. This is an immense step towards bringing the San Jose project into construction. Our staff has obtained this critical authorization within the planned time frame and we keep moving towards breaking ground early next year."

Qualified Person

Mr. Miroslav Kalinaj, P. Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of the technical information in this news release.

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.

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

    ON BEHALF OF THE BOARD
    Jorge Ganoza
    President, CEO and Director
    Fortuna Silver Mines Inc.

    Symbol: TSX.V: FVI / Lima Exchange: FVI
    

SOURCE Fortuna Silver Mines Inc.

For further information: For further information: Investor Relations: Lima office: Carlos Baca - Tel: 51.1.616.6060; Vancouver office: Erin Ostrom - Tel: (604) 484-4085

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Fortuna Silver Mines Inc.

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