VANCOUVER, Dec. 1 /CNW/ - Fortuna Silver Mines Inc. (TSX:FVI / Lima Stock Exchange:FVI or the
"Company") is pleased to announce that, in connection with its previously
announced bought deal offering (the "Offering") led by Canaccord
Genuity Corp. and including CIBC World Markets, BMO Capital Markets and
Cormark Securities Inc. (the "Underwriters"), it has increased the
Offering from $35,000,000 to $40,000,000. If the over-allotment option
is fully exercised, the gross proceeds from the Offering will be
$46,000,000.

Closing of the Offering is anticipated to occur on or before December
23, 2010 and is subject to certain conditions including, but not
limited to, the completion of satisfactory due diligence by the
Underwriter and the receipt of applicable regulatory approvals
including approval of the Toronto Stock Exchange.

The proceeds of the financing will be used to fund ongoing exploration
activities at the San Jose Project, development costs of its operations
and for general corporate purposes.

The Toronto Stock Exchange has not reviewed and does not take
responsibility for the accuracy of this release.

This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S Securities Act") or
any state securities laws and may not be offered or sold within the
United States or to U.S Persons unless registered under the U.S
Securities Act and applicable state securities laws or an exemption
from such registration is available.

Fortuna Silver Mines Inc. Is a growth-oriented silver 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. Fortuna
is selectively pursuing additional acquisitions 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 the completion of the
Offering. 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, labour relations and other risk factors.

ON BEHALF OF THE BOARD

Jorge Ganoza

President, CEO and Director

Fortuna Silver Mines Inc.