Fortuna Silver Mines Inc.: Lindero Property, Salta Province, Argentina Technical Report Effective Date: October 31, 2017 Prepared by Eric Chapman, P.Geo. Vice President of Technical Services - Fortuna Silver Mines Inc. Edwin Gutierrez, SME Registered Member Technical Services Manager – Fortuna Silver Mines Inc. Geoff Allard, PE Consultant – Allard Engineering Services LLC Denys Parra Murrugarra, SME Registered Member General Manager – Anddes Asociados S.A.C. Suite 650, 200 Burrard Street, Vancouver, BC, V6C 3L6 Tel: (604) 484 4085, Fax: (604) 484 4029 Fortuna Silver Mines Inc.: Lindero Property Technical Report Date and Signature Page Technical Report Fortuna Silver Mines Inc.: Lindero Property, Salta Province, Argentina Effective date of this report is October 31, 2017 Issued by: Fortuna Silver Mines Inc. Eric Chapman 31st October 2017 [signed and sealed] Date Edwin Gutierrez 31st October 2017 [signed] Date Geoff Allard 31st October 2017 [signed] Date Denys Parra Murrugarra 31st October 2017 [signed] Date October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report Contents 1  Summary ......................................................................................................................... 22    Introduction .................................................................................................... 22    Property description, location and ownership ................................................ 22    History ............................................................................................................ 23    Geology and mineralization ............................................................................ 24    Exploration, drilling and sampling ................................................................. 26    Data verification ............................................................................................. 28    Mineral processing and metallurgical testing ................................................. 28    Mineral Resources and Mineral Reserves ...................................................... 30    Mining methods .............................................................................................. 31    Recovery methods .......................................................................................... 32    Project infrastructure ...................................................................................... 33    Market studies and contracts .......................................................................... 33    Environmental studies and permitting ............................................................ 34    Capital and operating costs ............................................................................. 35    Economic analysis .......................................................................................... 35    Other relevant data and information ............................................................... 36    Conclusions, risks, and opportunities ............................................................. 36    Recommendations .......................................................................................... 38  2  Introduction .................................................................................................................... 40    Report purpose ................................................................................................ 40    Previous technical reports ............................................................................... 40    Scope of personal inspection .......................................................................... 41    QP responsibilities .......................................................................................... 41    Effective dates ................................................................................................ 42    Information sources and references ................................................................ 42  3  Reliance on Other Experts .............................................................................................. 44  4  Property Description and Location ................................................................................. 45    Property and title in Argentina ....................................................................... 45    Mineral title administration ........................................................................ 45    Mineral title types ....................................................................................... 47    Surface rights .............................................................................................. 47    Environmental regulations .......................................................................... 47    Tenure ............................................................................................................. 49  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report   Surface rights .................................................................................................. 50    Royalties ......................................................................................................... 51    Environmental aspects .................................................................................... 51    Permits ............................................................................................................ 52    Comment on Section 4 ................................................................................... 52  5  Accessibility, Climate, Local Resources, Infrastructure and Physiography ................... 53    Access ............................................................................................................. 53    Climate ............................................................................................................ 53    Topography, elevation and vegetation ............................................................ 54    Infrastructure .................................................................................................. 54    Sufficiency of surface rights ........................................................................... 55    Comment on Section 5 ................................................................................... 56  6  History ............................................................................................................................ 57    Ownership and exploration history ................................................................. 57    Prior Mineral Resources and Mineral Reserve estimates ............................... 58  7  Geological Setting and Mineralization ........................................................................... 59    Regional geology ............................................................................................ 59    Local geology ................................................................................................. 60    Lindero Deposit .............................................................................................. 61    Lithology .................................................................................................... 61    Alteration .................................................................................................... 65    Structural setting ......................................................................................... 66    Mineralization ............................................................................................. 66    Hypogene mineralogy................................................................................. 67    Vein types ................................................................................................... 68    Relationship between intrusive phases and mineralization ........................ 69    Oxidation and supergene effects ................................................................. 70    Evolution of the system .............................................................................. 71    Arizaro Deposit ............................................................................................... 75    Local geology ............................................................................................. 75    Lithology .................................................................................................... 77    Alteration .................................................................................................... 78    Mineralization ............................................................................................. 79    Comment on Section 7 ................................................................................... 80  8  Deposit Types ................................................................................................................. 81    Mineral deposit type ....................................................................................... 81  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report   Tectonic setting and age ............................................................................. 82    Host rocks ................................................................................................... 82    Ore and gangue mineralogy and texture ..................................................... 82    Wall rock alteration .................................................................................... 82    Structural setting ......................................................................................... 82    Typical size and dimensions ....................................................................... 82    Weathering effects ...................................................................................... 83    Geochemical and geophysical signature ..................................................... 83    Mineralization controls and exploration guides ......................................... 83    Fluid inclusions .......................................................................................... 83    Comparison with Maricunga belt deposits ..................................................... 83    Comment on Section 8 ................................................................................... 84  9  Exploration ..................................................................................................................... 85    Goldrock campaign (2000 to 2001) ................................................................ 85    Geological mapping .................................................................................... 85    Soil (talus fines) geochemistry ................................................................... 86    Trenching .................................................................................................... 86    Rio Tinto campaign (2002 to 2003) ............................................................... 87    Geological mapping .................................................................................... 87    Geophysics ................................................................................................. 88    Road-cut sampling ...................................................................................... 88    Drilling and core logging ............................................................................ 88    Goldrock campaign (2005 to 2008) ................................................................ 89    Geological mapping .................................................................................... 89    Trenching .................................................................................................... 89    Topographic survey .................................................................................... 90    Goldrock campaign (2010) ............................................................................. 90    Fortuna campaign (2016 to 2017) .................................................................. 92    Geological mapping and relogging ............................................................. 92    Soluble copper investigation ...................................................................... 92    Heterogeneity test ....................................................................................... 93    Geotechnical studies ....................................................................................... 94    Hydrogeological studies ................................................................................. 95    Petrography ..................................................................................................... 95    Exploration potential ...................................................................................... 96    Lindero Deposit .......................................................................................... 96    Arizaro Deposit and other prospects .......................................................... 96    Comment on Section 9 ................................................................................... 98  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report 10  Drilling ............................................................................................................................ 99    Introduction .................................................................................................... 99    Rio Tinto campaign (2002) ........................................................................... 100    Goldrock campaign (2005 to 2010) .............................................................. 101    Fortuna campaign (2016) .............................................................................. 101    Geological and geotechnical logging procedures ......................................... 102    Mansfield lithological core logging (2005 to 2010) ................................. 102    Fortuna relogging and drilling (2016) ...................................................... 103    Drill core recovery ........................................................................................ 104    Extent of drilling ........................................................................................... 104    Drill hole collar surveys ............................................................................... 104    Downhole surveys ........................................................................................ 105    Drill sections ................................................................................................. 105    Sample length versus true thickness ............................................................. 111    Summary of drill intercepts .......................................................................... 111    Comment on Section 10 ............................................................................... 114  11  Sample Preparation, Analyses, and Security ................................................................ 115    Sample preparation prior to dispatch of samples .......................................... 115    Core samples ............................................................................................ 115    Trench samples ......................................................................................... 116    Bulk density determination ....................................................................... 116    Dispatch of samples, sample preparation, assaying and analytical procedures ..................................................................................................... 117    Sample dispatch ........................................................................................ 117    Sample preparation and assaying ............................................................. 117    Laboratory accreditation ............................................................................... 119    Sample security and chain of custody .......................................................... 119    Quality control measures .............................................................................. 120    Rio Tinto ................................................................................................... 120    Goldrock ................................................................................................... 120    Fortuna ...................................................................................................... 121    Standard reference materials .................................................................... 121    Blank samples ........................................................................................... 123    Duplicate samples ..................................................................................... 124    Conclusions regarding quality control results .......................................... 130    Comment on Section 11 ............................................................................... 131 October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report 12  Data Verification .......................................................................................................... 132    Introduction .................................................................................................. 132    Database ........................................................................................................ 132    Collars and downhole surveys ...................................................................... 133    Collars....................................................................................................... 133    Downhole surveys .................................................................................... 133    Lithological logs ........................................................................................... 134    Assays ........................................................................................................... 134    Rio Tinto ................................................................................................... 134    Goldrock ................................................................................................... 134    Fortuna ...................................................................................................... 136    Density measurements .................................................................................. 136    Metallurgical results ..................................................................................... 137    Geotechnical parameters ............................................................................... 137    Comment on Section 12 ............................................................................... 137  13  Mineral Processing and Metallurgical Testing ............................................................. 139    Prior metallurgical testwork ......................................................................... 139    Samples ..................................................................................................... 139    Gold extraction ......................................................................................... 140    Copper/silver extraction ........................................................................... 144    Cyanide consumption ............................................................................... 144    Additional information ............................................................................. 147    Current metallurgical testwork ..................................................................... 147    Samples ..................................................................................................... 148    Sample preparation ................................................................................... 149    Physical testing ......................................................................................... 152    Leach testing ............................................................................................. 154    Gold extraction ......................................................................................... 156    Copper/silver extraction ........................................................................... 158    Cyanide consumption ............................................................................... 158    Weakly acid dissociable (WAD) cyanide determinations ........................ 158    SART laboratory testwork ........................................................................ 159    Carbon adsorption .................................................................................... 159    Heap leach modeling .................................................................................... 161    Conclusions .................................................................................................. 161    Additional work ............................................................................................ 162    Comments on Section 13 .............................................................................. 162  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report 14  Mineral Resource Estimates ......................................................................................... 164    Introduction .................................................................................................. 164    Disclosure ..................................................................................................... 164    Known issues that materially affect Mineral Resources ........................... 164    Assumptions, methods and parameters ........................................................ 165    Supplied data, data transformations and data validation .............................. 166    Data transformations ................................................................................ 166    Software .................................................................................................... 166    Data preparation ....................................................................................... 166    Data validation .......................................................................................... 166    Geological interpretation and domaining ..................................................... 167    Probabilistic grade shells .......................................................................... 169    Exploratory data analysis .............................................................................. 170    Compositing of assay intervals ................................................................. 170    Statistical analysis of composites ............................................................. 170    Contact analysis ........................................................................................ 171    Extreme value treatment ........................................................................... 172    Grade correlation ...................................................................................... 175    Unfolding .................................................................................................. 175    Continuity analysis ................................................................................... 175    Variogram modeling ................................................................................. 176    Opinion on the quality of the modeled variograms .................................. 178    Block model .............................................................................................. 178    Grade estimation ........................................................................................... 179    Dynamic anisotropy .................................................................................. 180    Density .......................................................................................................... 181    Block model validation ................................................................................. 182    Global bias ................................................................................................ 182    Local bias .................................................................................................. 182    Mineral Resource classification .................................................................... 185    Geological continuity ............................................................................... 185    Data density and orientation ..................................................................... 185    Data accuracy and precision ..................................................................... 186    Spatial grade continuity ............................................................................ 186    Classification ............................................................................................ 186    Comments regarding classification .......................................................... 187    Mineral Resource reporting .......................................................................... 189    Reasonable prospects for eventual economic extraction .......................... 189    Mineral Resource statement ..................................................................... 189  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report   Mineral Resources by key geologic attributes .......................................... 190    Comparison to previous estimate ............................................................. 193    Comment on Section 14 ............................................................................... 194  15  Mineral Reserve Estimates ........................................................................................... 195    Mineral Reserve methodology ...................................................................... 195    Mineral Resource handover .......................................................................... 196    Key mining parameters ................................................................................. 196    Dilution and mining loss........................................................................... 196    Pit slope parameters .................................................................................. 196    Metallurgical recoveries ........................................................................... 196    LG optimization parameters ..................................................................... 197    Mineral Reserves .......................................................................................... 198    Comparison to previous reserve estimate ................................................. 198    Comments on Section 15 .............................................................................. 198  16  Mining Methods ........................................................................................................... 199    Material types ............................................................................................... 199    Waste material .......................................................................................... 199    Ore material types ..................................................................................... 199    Mining methods ............................................................................................ 199    Pit designs ................................................................................................. 199    Bench height ............................................................................................. 200    Ultimate pit and pit phase design slopes................................................... 200    Haulage considerations ............................................................................. 202    Ultimate pit and pit phasing ...................................................................... 202    Mine waste dump.......................................................................................... 209    Mine production schedule ............................................................................ 211    Equipment selection and productivities ........................................................ 213    Mine personnel ............................................................................................. 214    Comments on Section 16 .............................................................................. 215  17  Recovery Methods ........................................................................................................ 216    Proposed process description ........................................................................ 216    Fundamental design criteria ...................................................................... 217    Flowsheets ................................................................................................ 218    Crushing ................................................................................................... 221    Flake breaker ............................................................................................ 221    Agglomeration .......................................................................................... 221    Stacking .................................................................................................... 222  October 31, 2017 Fortuna Silver Mines Inc.: Lindero Property Technical Report   Heap leaching and solution handling ........................................................ 224    Leach pad .................................................................................................. 224    Solution collection system ........................................................................ 225    Overliner ................................................................................................... 225    Ponds ........................................................................................................ 225    SART plant ............................................................................................... 226    Carbon-in-column ..................................................................................... 227    Acid washing ............................................................................................ 227    Cold cyanide wash .................................................................................... 228    Elution ...................................................................................................... 228    Electrowinning ......................................................................................... 229    Refinery .................................................................................................... 229    Carbon handling ....................................................................................... 229    Cyanide preparation .................................................................................. 230    Reagents ................................................................................................... 230    Utilities ..................................................................................................... 231    Water ........................................................................................................ 231    Water balance ........................................................................................... 232    Requirements for energy, water, and process materials ............................... 236    Other Considerations .................................................................................... 236    Comment on Section 17 ............................................................................... 237  18  Project Infrastructure .................................................................................................... 238    Access roads and site access ......................................................................... 239    Power supply ................................................................................................ 239    Power requirements .................................................................................. 239    Construction and emergency power ......................................................... 240    Water supply ................................................................................................. 240    Water source – wells................................................................................. 241    Raw water and fire water distribution ...................................................... 243    Potable water system ................................................................................ 243    Sewage treatment system.......................................................................... 243    Process area buildings .................................................................................. 243    Administration building ............................................................................ 243    Guard house .............................................................................................. 244    Process shop ............................................................................................. 244    Warehouse ................................................................................................ 244    ADR plant building .................................................................................. 244    SART filter building ................................................................................. 244  October 31, 2017