Fortuna Silver Mines Inc. - Continuum Resources Ltd. - Fortuna Silver Mines to acquire Continuum Resources and 100% of San Jose Project, Mexico



    VANCOUVER, Aug. 14 /CNW Telbec/ - Fortuna Silver Mines Inc. and Continuum
Resources Ltd. are pleased to announce that an agreement has been reached
whereby Fortuna will acquire (the "Acquisition") all of the issued and
outstanding securities of Continuum. The shares of both companies are listed
on the TSX Venture Exchange.
    The companies currently hold jointly the San Jose Project in Mexico
(Fortuna 76%; Continuum 24%). As a result of the Acquisition, Fortuna will own
100% of the Project, thus strengthening its position in that country.
    Continuum has 124,052,503 shares outstanding, and Fortuna will issue to
the Continuum shareholders a total of 7.0 million shares, which is an exchange
ratio of approximately 0.0564 of a share of Fortuna for every one Continuum
share held. Stock options in Continuum held by non-insiders totaling
285,000 shares will be converted to options to purchase Fortuna shares, at the
same ratio. No other rights to purchase Continuum shares will be outstanding
at closing of the Acquisition.
    The Acquisition is subject to regulatory and other approvals on behalf of
both companies, and the recently announced private placement financing of
Continuum has been cancelled. There will be no change of control or management
of Fortuna.
    Management of Fortuna and Continuum believe that the single stronger
entity resulting from the Acquisition will be of significant benefit to the
shareholders of both companies.

    
    ON BEHALF OF THE BOARD                ON BEHALF OF THE BOARD
    OF FORTUNA SILVER MINES INC.          OF CONTINUUM RE

SOURCES LTD. "Simon Ridgway" "Warren MacIntyre" Simon Ridgway, Chairman Warren MacIntyre, Director Symbol: TSX.V : FVI / Lima: FVI Symbol: TSX.V : CNU CONTACT INFORMATION CONTACT INFORMATION ------------------- ------------------- 840 - 355 Burrard Street 600 - 595 Howe Street Vancouver, BC V6C 2G8 Vancouver, BC V6C 2T5 Vancouver office: Erin Ostrom - Vancouver office: (604) 484-4085 (604) 629-0000 Lima office: Carlos Baca - (511) 616-6060 ext. 300 Website: www.fortunasilvermines.com Website: www.continuumresources.com The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Warren MacIntyre, Director, (604) 629-0000

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CONTINUUM RESOURCES LTD.

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