Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to report that the Company has paid down an additional $41 million of its revolving credit facility at the end of the fourth quarter of 2023, using cash on hand.

After the payment of $41 million, the Company expects to bring down the leverage ratio¹ below 0.5 times total net debt² to adjusted EBITDA³ (which was reported for the third quarter of 2023). At December 31, 2023, it is expected that Fortuna’s total outstanding debt balance will stand at approximately $165 million on its credit facility (excluding letters of credit), and approximately $46 million of convertible notes, for an estimated total net debt, after cash and cash equivalents, of $83 million as at December 31, 2023. This represents a reduction of approximately $50 million in total net debt in the period, reflecting cash flow contributions from the Séguéla Mine in its second full quarter of production.

The estimated total net debt and liquidity for Fortuna as at the end of the fourth quarter of 2023 is preliminary financial information and has been prepared by management and remains subject to final review by the Company’s audit committee and approval by the Company’s board of directors. Such preliminary financial information for the fourth quarter of 2023 is subject to the finalization and closing of Fortuna´s accounting books and records for the period and should not be viewed as a substitute for the Company’s annual financial statements prepared in accordance with accounting principles generally accepted under International Financial Reporting Standards (IFRS). The Company’s auditor has not audited the preliminary financial information contained in this news release, nor have they expressed any opinion or any other form of assurance on the preliminary financial information contained herein. Refer to the “Cautionary Statements” section at the end of this news release.

It is expected that Fortuna will release its financial statements and management’s discussion and analysis as at and for the three and twelve months ended December 31, 2023, as approved by its audit committee and board of directors, by mid-March, 2024.

Notes:

1. Total net debt to adjusted EBITDA is a non-IFRS ratio; refer to the “Non-IFRS Measures” section at the end of this news release for a description of this non-IFRS ratio and the reconciliation from debt, the most comparable IFRS measure
2. Total net debt is a non-IFRS measure; refer to the “Non-IFRS Measures” section at the end of this news release for a description of this non-IFRS measure and a reconciliation to debt, the most comparable IFRS measure
3. Adjusted EBITDA is a non-IFRS measure; refer to the “Non-IFRS Financial Measures” section in the Company’s management discussion and analysis for the three and nine months ended September 30, 2023 (“Q3 2023 MD&A”), for a description of the measure on page 28 and for a reconciliation to net income the most directly comparable IFRS measure on page 37, and which aforementioned sections are incorporated by reference herein. The Q3 2023 MD&A may be accessed on SEDAR+ at www.sedarplus.ca under the Company’s profile

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. Sustainability is integral to all our operations and relationships. We produce gold and silver and generate shared value over the long-term for our stakeholders through efficient production, environmental protection, and social responsibility.