September 23, 2009: Fortuna Silver Mines Inc. (TSX.V: FVI / Lima Exchange: FVI) - The Company is pleased to announce that it has been granted the option to acquire a 60% interest in the Tlacolula silver project in Oaxaca, Mexico from Radius Gold Inc. ("Radius"). Fortuna can earn the interest by spending US$2 million, which includes a commitment to drill 1,500 meters within 3 years, and making staged annual payments of US$250,000 cash and US$250,000 in common stock to Radius according to the following schedule:

• $20,000 cash and $20,000 cash equivalent in shares upon signing.
  
  
• $30,000 cash and $30,000 cash equivalent in shares by the first year anniversary.
  
  
• $50,000 cash and $50,000 cash equivalent in shares by the second year anniversary.
  
  
• $50,000 cash and $50,000 cash equivalent in shares by the third year anniversary.
  
  
• 100,000 cash and $100,000 cash equivalent in shares by the fourth year anniversary.

The 12,000 ha Tlacolula property is located 14km E-SE of the city of Oaxaca, 20km north of the Taviche District, where high-grade silver has been mined since Spanish colonial times, and is 30km northeast of Fortuna's 100% owned San Jose silver-gold development project.

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.

ON BEHALF OF THE BOARD

Jorge Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.

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

Investor Relations:
Lima office: Carlos Baca - Tel: 51.1.616.6060
Vancouver office: Erin Ostrom - Tel: 604.484.4085