6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2022

Commission File Number 001-35297

Fortuna Silver Mines Inc.

(Translation of registrant’s name into English)

200 Burrard Street, Suite 650, Vancouver, British Columbia, Canada V6C 3L6

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

FORM 20-F   ◻ FORM 40-F  þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation

S-T Rule 101(b)(1):  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation

S-T Rule 101(b)(7):  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

3
	Fortuna Silver Mines Inc.
	(Registrant)
Date: November 9, 2022	By:	/s/ "Jorge Ganoza Durant"
		Jorge Ganoza Durant
		President and CEO

Exhibits:

99.1Interim Financial Statements for the period ended September 30, 2022

99.2Management’s Discussion and Analysis for the period ended September 30, 2022

99.3CEO Certification

99.4CFO Certification

99.5News release dated November 9, 2022

EX-99.1

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended

September 30, 2022 and 2021

(UNAUDITED)

Fortuna Silver Mines Inc.

Condensed Interim Consolidated Income Statements

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

		Three months ended September 30,					Nine months ended September 30,
	Note	2022		2021		2022		2021
Sales	19	$	166,568	$	162,569	$	516,768	$	400,917
Cost of sales	20		141,857		115,221		396,012		253,788
Mine operating income			24,711		47,348		120,756		147,129
General and administration	21		13,038		11,176		44,780		28,913
Exploration and evaluation			—		196		983		604
Foreign exchange loss			2,374		510		8,424		4,952
Write off of mineral properties			3,379		-		5,503		-
Other expenses			224		13,693		1,512		14,650
			19,015		25,575		61,202		49,119
Operating income			5,696		21,773		59,554		98,010
Interest and finance costs, net			(2,438)		(3,967)		(8,946)		(8,545)
(Loss) gain on derivatives			(1,630)		1,822		47		1,618
Roxgold transaction costs			-		(10,543)		-		(14,085)
			(4,068)		(12,688)		(8,899)		(21,012)
Income before income taxes			1,628		9,085		50,655		76,998
Income taxes
Current income tax expense			7,172		9,017		28,027		35,186
Deferred income tax recovery			(1,418)		(143)		(1,900)		(983)
			5,754		8,874		26,127		34,203
Net (loss) income for the period		$	(4,126)	$	211	$	24,528	$	42,795
Net (loss) income attributable to:
Fortuna shareholders		$	(3,754)	$	(453)	$	24,640	$	42,131
Non-controlling interest	25		(372)		664		(112)		664
		$	(4,126)	$	211	$	24,528	$	42,795
(Loss) earnings per share	18
Basic		$	(0.01)	$	–	$	0.08	$	0.19
Diluted		$	(0.01)	$	–	$	0.08	$	0.19
Weighted average number of common shares outstanding (000's)
Basic			291,429		289,122		291,652		219,962
Diluted			291,429		289,122		294,476		222,836

The accompanying notes are an integral part of these interim financial statements.

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Fortuna Silver Mines Inc.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

		Three months ended September 30,				Nine months ended September 30,
	Note	2022		2021		2022		2021
Net (loss) income for the period		$	(4,126)	$	211	$	24,528	$	42,795
Items that will remain permanently in other comprehensive income:
Changes in fair value of investments in equity securities, net of $nil tax			(105)		(93)		(269)		(197)
Items that may in the future be reclassified to profit or loss:
Currency translation adjustment, net of tax1			(3,660)		(1,929)		(8,914)		(1,929)
Changes in fair value of hedging instruments, net of $nil tax			-		261		70		749
Total other comprehensive loss for the period			(3,765)		(1,761)		(9,113)		(1,377)
Comprehensive (loss) income for the period		$	(7,891)	$	(1,550)	$	15,415	$	41,418
Comprehensive (loss) income attributable to:
Fortuna shareholders			(7,519)		(2,214)		15,527		40,754
Non-controlling interest	25		(372)		664		(112)		664
		$	(7,891)	$	(1,550)	$	15,415	$	41,418

¹ For the three and nine months ended September 30, 2022, the currency translation adjustment is net of tax expenses of $1.2 million and $1.5 million, respectively.

The accompanying notes are an integral part of these interim financial statements.

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Fortuna Silver Mines Inc.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

As at	Note	September 30, 2022		December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	90,914	$	107,097
Trade and other receivables	5		63,297		76,487
Inventories	6		82,727		85,819
Other current assets	7		14,913		11,679
			251,851		281,082
NON-CURRENT ASSETS
Restricted cash			3,468		2,056
Mineral properties and property, plant and equipment	8		1,730,473		1,712,354
Other assets	9		46,839		26,430
Total assets		$	2,032,631	$	2,021,922
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	10	$	105,341	$	133,805
Income taxes payable			12,879		20,563
Current portion of lease obligations	12		10,300		10,523
Current portion of closure and reclamation provisions	15		2,233		1,882
			130,753		166,773
NON-CURRENT LIABILITIES
Debt	13		204,223		157,489
Deferred tax liabilities			190,891		191,668
Closure and reclamation provisions	15		50,914		54,230
Lease obligations	12		13,729		18,882
Other liabilities	14		2,243		3,310
Total liabilities			592,753		592,352
SHAREHOLDERS' EQUITY
Share capital	17		1,076,342		1,079,746
Reserves			20,677		28,785
Retained earnings			291,257		266,617
Equity attributable to Fortuna shareholders			1,388,276		1,375,148
Equity attributable to non-controlling interest	25		51,602		54,422
Total equity			1,439,878		1,429,570
Total liabilities and shareholders' equity		$	2,032,631	$	2,021,922

Contingencies and Capital Commitments (Note 26)

/s/ Jorge Ganoza Durant	/s/ Kylie Dickson
Jorge Ganoza Durant	Kylie Dickson
Director	Director

The accompanying notes are an integral part of these interim financial statements.

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Fortuna Silver Mines Inc.

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

		Three months ended September 30,				Nine months ended September 30,
	Note	2022		2021		2022		2021
Operating activities:
Net (loss) income for the period		$	(4,126)		211	$	24,528	$	42,795
Items not involving cash
Depletion and depreciation			46,862		37,764		128,310		77,463
Accretion expense			1,269		1,147		3,575		2,710
Income taxes			5,754		8,873		26,127		34,203
Interest expense, net			1,167		2,820		5,373		5,835
Share-based payments, net of cash settlements			(1,139)		(175)		(2,962)		(5,371)
Inventory net realizable value adjustments			1,052		1,778		5,089		1,697
Write off of mineral properties			3,379		-		5,503		-
Unrealized foreign exchange (gain) loss			7,730		810		6,465		3,805
Unrealized (gain) loss on derivatives			1,023		(936)		(1,376)		(1,686)
Other			132		1,014		242		862
Closure and reclamation payments			(243)		(84)		(353)		(148)
Changes in working capital	24		11,576		727		(18,114)		(23,954)
Cash provided by operating activities			74,436		53,949		182,407		138,211
Income taxes paid			(8,625)		(12,607)		(34,871)		(43,609)
Interest paid			(1,748)		(2,063)		(4,099)		(5,449)
Interest received			589		100		1,191		915
Net cash provided by operating activities			64,652		39,379		144,628		90,068
Investing activities:
Cash consideration for acquisition of Roxgold			-		(25,333)		-		(25,333)
Cash acquired through acquisition of Roxgold			-		65,622		-		65,622
Promissory note receivable			-		-		-		(35,296)
Restricted cash			-		-		(1,412)		-
Additions to mineral properties, plant and equipment			(58,936)		(53,010)		(177,905)		(90,228)
Contractor advances on Séguéla construction			-		-		(3,194)		-
Proceeds from sale of investments			-		14		-		14
Recoveries of Lindero construction VAT			-		795		-		17,987
Cash used in investing activities			(58,936)		(11,912)		(182,511)		(67,234)
Financing activities:
Proceeds from credit facility	13		5,000		-		65,000		-
Repayment of credit facility	13		(20,000)		(4,076)		(20,000)		(4,076)
Repurchase of common shares	17		(2,920)		-		(5,929)		-
Proceeds from issuance of common shares			-		(44)		-		158
Payments of lease obligations			(3,024)		(3,675)		(9,220)		(8,514)
Dividend payment to non-controlling interest			(2,708)		(4,483)		(2,708)		(4,483)
Cash (used in) provided by financing activities			(23,652)		(12,278)		27,143		(16,914)
Effect of exchange rate changes on cash and cash equivalents			(7,276)		(1,217)		(5,443)		(2,053)
(Decrease) increase in cash and cash equivalents during the period			(25,212)		13,972		(16,183)		3,867
Cash and cash equivalents, beginning of the period			116,126		121,793		107,097		131,898
Cash and cash equivalents, end of the period		$	90,914	$	135,765	$	90,914	$	135,765
Cash and cash equivalents consist of:
Cash		$	64,162	$	72,190	$	64,162	$	72,190
Cash equivalents			26,752		63,575		26,752		63,575
Cash and cash equivalents, end of the period		$	90,914	$	135,765	$	90,914	$	135,765
Supplemental cash flow information (Note 24)

The accompanying notes are an integral part of these interim financial statements

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Fortuna Silver Mines Inc.

Condensed Interim Consolidated Statements of Changes in Equity

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

		Share capital				Reserves
	Note	Number of common shares	Amount		Equity reserve		Hedging reserve		Fair value reserve			Equity component of convertible debentures	Foreign currency reserve		Retained earnings		Non-controlling interest		Total equity
Balance at January 1, 2022		291,529,330	$	1,079,746	$	27,435	$	128	$	(696)	$	4,825	$	(2,907)	$	266,617	$	54,422	$	1,429,570
Total comprehensive income for the period
Net income for the period		-		-		-		-		-		-		-		24,640		(112)		24,528
Other comprehensive loss for the period		-		-		-		70		(269)		-		(8,914)		-		-		(9,113)
Total comprehensive income for the period		-		-		-		70		(269)		-		(8,914)		24,640		(112)		15,415
Transactions with owners of the Company
Dividend payment to non-controlling interest		-		-		-		-		-		-		-		-		(2,708)		(2,708)
Repurchase of common shares	17	(2,201,404)		(5,929)		-		-		-		-		-		-		-		(5,929)
Shares issued on vesting of share units		853,649		2,525		(2,066)		-		-		-		-		-		-		459
Share-based payments	16	-		-		3,071		-		-		-		-		-		-		3,071
		(1,347,755)		(3,404)		1,005		-		-		-		-		-		(2,708)		(5,107)
Balance at September 30, 2022		290,181,575	$	1,076,342	$	28,440	$	198	$	(965)	$	4,825	$	(11,821)	$	291,257	$	51,602	$	1,439,878
Balance at January 1, 2021		184,195,727	$	492,306	$	20,086	$	(878)	$	(424)	$	4,825	$	1,115	$	208,740	$	-	$	725,770
Total comprehensive income for the period
Net income for the period		-		-		-		-		-		-		-		42,131		664		42,795
Other comprehensive loss for the period		-		-		-		749		(197)		-		(1,929)		-		-		(1,377)
Total comprehensive income for the period		-		-		-		749		(197)		-		(1,929)		42,131		664		41,418
Transactions with owners of the Company
Acquisition of Roxgold		106,106,224		582,137		8,163		-		-		-		-		-		52,800		643,100
Exercise of stock options		68,927		294		(136)		-		-		-		-		-		-		158
Shares issued on vesting of share units		1,174,752		4,499		(4,499)		-		-		-		-		-		-		-
Share-based payments	16	-		-		3,380		-		-		-		-		-		-		3,380
		107,349,903		586,930		6,908		-		-		-		-		-		52,800		646,638
Balance at September 30, 2021		291,545,630	$	1,079,236	$	26,994	$	(129)	$	(621)	$	4,825	$	(814)	$	250,871	$	53,464	$	1,413,826

The accompanying notes are an integral part of these interim financial statements.

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Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

1.   NATURE OF OPERATIONS

Fortuna Silver Mines Inc. (the “Company”) is a publicly traded company incorporated and domiciled in British Columbia, Canada.

The Company is engaged in precious and base metal mining and related activities in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. The Company operates the open pit Lindero gold mine (“Lindero”) in northern Argentina, the underground Yaramoko gold mine (“Yaramoko”) in south western Burkina Faso, the underground San Jose silver and gold mine (“San Jose”) in southern Mexico, the underground Caylloma silver, lead, and zinc mine (“Caylloma”) in southern Peru, and is developing the open pit Séguéla gold mine (“Séguéla”) in south western Côte d’Ivoire.

The Company’s common shares are listed on the New York Stock Exchange under the trading symbol FSM and on the Toronto Stock Exchange under the trading symbol FVI.

The Company’s registered office is located at Suite 650 - 200 Burrard Street, Vancouver, Canada, V6C 3L6.

2.   COVID-19 UNCERTAINTIES

During third quarter of 2022, there were no shutdowns or material impacts to the business related to COVID-19. The Company continues to monitor the evolution of COVID-19 and our operations maintain preventative and reactive health protocols including health awareness, health and hygiene controls and quarantine as necessary.

The Company’s operations and financial performance are dependent on it being able to operate at each of its mines and projects.  In view of the constantly changing situation regarding COVID-19 pandemic, including further waves of the virus and the emergence of variant forms of the virus, it is difficult to predict the exact nature and extent of the impact the pandemic may have on the Company’s operations and its business. Outbreaks of COVID-19 in areas where the Company operates or restrictive directives of government and public health authorities could cause delays or disruptions in the Company’s supply chain, restrict access to its mine sites, restrict its ability to transport and ship gold doré and/or metal concentrates, restrict access to processing and refinery facilities, or impediments to market logistics. Suspensions of operations or curtailment of construction activities at the Company’s mines remains a significant risk to its business and operations.

3.   BASIS OF PRESENTATION

Statement of Compliance

These unaudited condensed interim consolidated financial statements (“interim financial statements”) were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. They do not include all the information required for full annual financial statements. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021, which include information necessary for understanding the Company’s business and financial presentation.

The same accounting policies and methods of computation are followed in these interim financial statements as compared with the most recent annual financial statements.

On November 9, 2022, the Company's Board of Directors approved these interim financial statements for issuance.

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Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

Basis of Measurement

These interim financial statements have been prepared on a historical cost basis, except for those assets and liabilities that are measured at fair value (Note 23) at the end of each reporting period.

Adoption of new accounting standards

The Company adopted various amendments to IFRS, which were effective for accounting periods beginning on or after January 1, 2022. The impact of adoption was not significant to the Company's interim financial statements.

4.   USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS

The preparation of these interim financial statements requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the period end date and reported amounts of expenses during the reporting period. Such judgements and estimates are, by their nature, uncertain. Actual outcomes could differ from these estimates.

The impact of such judgements and estimates are pervasive throughout the interim financial statements, and may require accounting adjustments based on future occurrences. These judgements and estimates are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and are accounted for prospectively.

In preparing these interim financial statements for the three and nine months ended September 30, 2022, the Company applied the critical estimates, and judgements as disclosed in note 4 of its audited consolidated financial statements for the year ended December 31, 2021.

5.   TRADE AND OTHER RECEIVABLES

As at	September 30, 2022		December 31, 2021
Trade receivables from doré and concentrate sales	$	20,661	$	25,718
Advances and other receivables		6,029		4,424
Value added taxes recoverable - operations		36,607		46,345
Trade and other receivables	$	63,297	$	76,487

The Company’s trade receivables from concentrate and doré sales are expected to be collected in accordance with the terms of the existing concentrate and doré sales contracts with its customers. No amounts were past due as at September 30, 2022 and December 31, 2021.

6.   INVENTORIES

As at	Note	September 30, 2022		December 31, 2021
Concentrate stockpiles		$	1,949	$	1,711
Doré bars			2,044		3,456
Leach pad and gold-in-circuit			28,053		30,321
Ore stockpiles			50,807		39,292
Materials and supplies			40,338		31,437
Total inventories		$	123,191	$	106,217
Less: non-current portion	9		(40,464)		(20,398)
Current inventories		$	82,727	$	85,819

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Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

During the three and nine months ended September 30, 2022, the Company expensed $128.4 million and $356.4 million, respectively, of inventories to cost of sales (three and nine months ended September 30, 2021 – $101.3 million and $225.6 million, respectively).

During the three and nine months ended September 30, 2022, a charge of $1.0 million and $5.1 million, respectively, was recognized to reduce low grade stockpiles at Yaramoko to net realizable value. Included in the charge was $0.4 and $2.0 million, respectively, related to depletion and depreciation.

7.   OTHER CURRENT ASSETS

As at	September 30, 2022		December 31, 2021
Derivatives	$	1,338	$	1,490
Prepaid expenses		11,060		8,060
Investments in equity securities		77		416
Assets held for sale		26		-
Income tax recoverable		2,412		1,713
Other current assets	$	14,913	$	11,679

Investments in equity securities are classified as fair value through other comprehensive income, and any changes in the fair value of the investments are recorded in Other Comprehensive Income (Loss).

8.   MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT

		Mineral Properties - Depletable		Mineral Properties - Non depletable		Construction in Progress		Property, Plant & Equipment		Total
COST
Balance at December 31, 2021	$	758,112	$	719,663	$	57,759	$	675,486	$	2,211,020
Additions		53,223		19,376		84,063		10,278		166,940
Changes in closure and reclamation provision		(6,462)		2,342		-		(266)		(4,387)
Disposals		-		(5,503)		-		(2,985)		(8,488)
Transfers		1,969		-		(11,506)		9,537		-
Balance at September 30, 2022	$	806,842	$	735,878	$	130,316	$	692,049	$	2,365,085
ACCUMULATED DEPLETION
Balance at December 31, 2021	$	275,460	$	-	$	-	$	223,206	$	498,666
Disposals		-		-		-		(1,676)		(1,676)
Depletion and depreciation		78,742		-		-		58,880		137,622
Balance at September 30, 2022	$	354,202	$	-	$	-	$	280,410	$	634,612
Net Book Value at September 30, 2022	$	452,639	$	735,878	$	130,316	$	411,640	$	1,730,473

During the three and nine months ended September 30, 2022, the Company capitalized $1.3 million and $1.8 million, respectively, of interest related to the construction of the Séguéla Mine.

As at September 30, 2022, non-depletable mineral properties include $23.8 million of exploration and evaluation assets (December 31, 2021 - $22.0 million).

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Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

		Mineral Properties - Depletable		Mineral Properties - Non depletable		Construction in Progress		Property, Plant & Equipment		Total
COST
Balance at December 31, 2020	$	327,414	$	250,145	$	188,960	$	378,754	$	1,145,273
Acquisition of Roxgold		112,499		697,537		15,047		70,453		895,536
Additions1		54,882		12,467		81,343		23,433		172,125
Changes in closure and reclamation provision		2,262		1,552		-		(85)		3,729
Disposals		-		-		-		(5,643)		(5,643)
Transfers		261,055		(242,038)		(227,591)		208,574		-
Balance at December 31, 2021	$	758,112	$	719,663	$	57,759	$	675,486	$	2,211,020
ACCUMULATED DEPLETION
Balance at December 31, 2020	$	191,842	$	-	$	-	$	162,304	$	354,146
Disposals		-		-		-		(4,319)		(4,319)
Depletion and depreciation		83,618		-		-		65,221		148,839
Balance at December 31, 2021	$	275,460	$	-	$	-	$	223,206	$	498,666
Net Book Value at December 31, 2021	$	482,652	$	719,663	$	57,759	$	452,280	$	1,712,354

¹ Included in additions to Construction in Progress is $47.1 million related to the Séguéla project previously classified as additions to Mineral Properties – Non-depletable.

9.   OTHER ASSETS

As at	Note	September 30, 2022		December 31, 2021
Ore stockpiles	6	$	40,464	$	20,398
Value added tax recoverable			3,473		3,426
Income tax recoverable	26(d)		1,090		1,087
Other long-term assets			1,812		1,519
Total other assets		$	46,839	$	26,430

10.   TRADE AND OTHER PAYABLES

As at	Note	September 30, 2022		December 31, 2021
Trade accounts payable		$	71,535	$	82,533
Payroll and related payables			20,052		23,311
Mining royalty payable			1,552		2,416
Other payables			6,942		12,161
Derivative liabilities			1,407		3,077
Share units payable	16(a)(b)(c)		3,853		10,307
Total trade and other payables		$	105,341	$	133,805

11.   RELATED PARTY TRANSACTIONS

In addition to the related party transactions and balances disclosed elsewhere in these interim financial statements, the Company entered into the following related party transactions during the three and nine months ended September 30, 2022, and 2021:

(a)    Purchase of Goods and Services

During the nine months ended September 30, 2021, the Company was charged $5 thousand for general and administrative services pursuant to a shared services agreement with Gold Group Management Inc., a company of which Simon Ridgway, the Company’s former Chairman, is a director. Effective February 2, 2021, Mr. Ridgway resigned as director and Chairman of the Board, and costs incurred with Gold Group Management Inc. are no longer reported as related party transactions.

Page | 9

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

(b)    Key Management Personnel

Duringthenine monthsended 2022 and 2021,theCompanywaschargedforconsultingservicesbyMarioSzotlender,adirectorofthe Company. During the nine months ended September 30, 2021, the Company was charged consulting services byMillStreetServicesLtd.,acompanyofwhich Mr.Ridgway,theCompany’sformerChairman,is a director. EffectiveFebruary2,2021,Mr.RidgwayresignedasdirectorandChairmanoftheBoard,andcostsassociatedincurredwith MillStreetServicesLtd.arenolongerreportedasrelatedpartytransactions

Amounts paid to key management personnel were as follows:

	Three months ended September 30,					Nine months ended September 30,
	2022		2021		2022		2021
Salaries and benefits	$	2,078	$	2,234	$	9,057	$	6,030
Directors fees		197		125		737		436
Consulting fees		17		12		53		54
Share-based payments		1,452		(68)		4,416		513
	$	3,744	$	2,303	$	14,263	$	7,033

12.   LEASE OBLIGATIONS

	Minimum lease payments
As at	September 30, 2022		December 31, 2021
Less than one year	$	11,422	$	12,292
Between one and five years		6,508		13,380
More than five years		17,641		15,983
		35,571		41,655
Less: future finance charges		(11,542)		(12,250)
Present value of minimum lease payments		24,029		29,405
Less: current portion		(10,300)		(10,523)
Non-current portion	$	13,729	$	18,882

13.   DEBT

The following table summarizes the changes in debt:

		Credit Facility		Convertible debentures		Total
Balance at December 31, 2020	$	119,850		38,766	$	158,616
Transaction costs		(3,036)		-		(3,036)
Acquisition of Roxgold		31,711		-		31,711
Amortization of discount		242		1,641		1,883
Extinguishment of debt		603		-		603
Payments		(32,288)		-		(32,288)
Balance at December 31, 2021		117,082		40,407		157,489
Drawdown		65,000		-		65,000
Amortization of discount		463		1,271		1,734
Payments		(20,000)		-		(20,000)
Balance at September 30, 2022	$	162,545	$	41,678	$	204,223

Page | 10

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

During the nine months ended September 30, 2022, the Company drew down $65.0 million from its Credit Facility and repaid $20.0 million. As at September 30, 2022, the Company was in compliance with all of the covenants under the Credit Facility.  

14.   OTHER LIABILITIES

As at	Note	September 30, 2022		December 31, 2021
Restricted share units	16(b)	$	868	$	1,437
Other non-current liabilities			1,375		1,873
		$	2,243	$	3,310

15.   CLOSURE AND RECLAMATION PROVISIONS

The following table summarizes the changes in closure and reclamation provisions:

	Closure and Reclamation Provisions
	Caylloma Mine		San Jose Mine		Lindero Mine			Yaramoko Mine		Séguéla Project		Total
Balance at December 31, 2021	$	14,898	$	7,128	$	19,639	$	12,895	$	1,552	$	56,112
Changes in estimate		(1,397)		(675)		(3,289)		(1,370)		2,344		(4,387)
Reclamation expenditures		(284)		(69)		-		-		-		(353)
Accretion		621		465		373		219		-		1,678
Effect of changes in foreign exchange rates		-		97		-		-		-		97
Balance at September 30, 2022		13,838		6,946		16,723		11,744		3,896		53,147
Less: Current portion		(1,578)		(655)		-		-		-		(2,233)
Non-current portion	$	12,260	$	6,291	$	16,723	$	11,744	$	3,896	$	50,914
	Closure and Reclamation Provisions
	CayllomaMine		San JoseMine		LinderoProject			Yaramoko Mine		SéguélaProject		Total
Balance at December 31, 2020	$	14,761	$	5,905	$	19,684	$	-	$	-	$	40,350
Acquisition of Roxgold		-		-		-		11,122		-		11,122
Changes in estimate		(152)		1,142		(422)		1,609		1,552		3,729
Reclamation expenditures		(180)		(173)		-		-		-		(353)
Accretion		469		439		377		164		-		1,449
Effect of changes in foreign exchange rates		-		(185)		-		-		-		(185)
Balance at December 31, 2021		14,898		7,128		19,639		12,895		1,552		56,112
Less: Current portion		(1,230)		(652)		-		-		-		(1,882)
Non-current portion	$	13,668	$	6,476	$	19,639	$	12,895	$	1,552	$	54,230

The following table summarizes certain key inputs used in determining the present value of reclamation costs related to mine and development sites:

	Closure and Reclamation Provisions
	CayllomaMine		San JoseMine		LinderoMine			YaramokoMine		SéguélaProject		Total
Undiscounted uninflated estimated cash flow	$	15,816	$	7,954	$	20,293	$	12,010	$	4,360	$	60,433
Discount rate		6.20%		9.63%		4.08%		4.25%		3.83%
Inflation rate		2.30%		6.72%		2.02%		3.67%		2.66%

The Company is expecting to incur progressive reclamation costs throughout the life of its mines.

Page | 11

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

16.   SHARE BASED PAYMENTS

During the three and nine months ended September 30, 2022, the Company recognized share-based payments of $1.9 million and $5.8 million (three and nine months ended September 30, 2021 - $1.5 million and $1.1 million, respectively) related to the amortization of deferred, restricted and performance share units and $nil and $0.1 million (three and nine months ended September 30, 2021 – $nil) related to amortization of stock options.

(a) Deferred Share Units (DSUs)

		Cash Settled
	Number of DSUs		Fair Value
Outstanding, December 31, 2020		1,124,519	$	9,239
Granted		55,245		347
Units paid out in cash		(374,709)		(3,436)
Changes in fair value		-		(3,013)
Outstanding, December 31, 2021		805,055		3,137
Granted		117,643		452
Changes in fair value		-		(1,260)
Outstanding, September 30, 2022		922,698	$	2,329

(b) Restricted Share Units (RSUs)

		Cash Settled				Equity Settled
	Number of RSUs		Fair Value		Number of RSUs
Outstanding, December 31, 2020		1,367,490	$	5,392		1,533,366
Granted		677,250		4,111		-
Units paid out in cash		(618,357)		(2,484)		-
Assumed on acquisition		328,254		1,590		1,091,395
Vested and paid out in shares		-		-		(655,267)
Transferred from equity to cash settled		260,444		-		(260,444)
Forfeited or cancelled		(155,942)		(54)		(64,589)
Changes in fair value and vesting		-		(3,052)		-
Outstanding, December 31, 2021		1,859,139		5,503		1,644,461
Granted		1,348,538		5,264		-
Units paid out in cash		(810,241)		(3,622)		-
Vested and paid out in shares		-		-		(624,909)
Transferred from equity to cash settled		39,294		-		(39,294)
Transferred from cash to equity settled		(155,674)		-		155,674
Forfeited or cancelled		(227,780)		-		(10,600)
Changes in fair value and vesting		-		(4,753)		-
Outstanding, September 30, 2022		2,053,276		2,392		1,125,332
Less: current portion				(1,524)
Non-current portion			$	868

Page | 12

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

(c)    Performance Share Units

		Cash Settled			Equity Settled
	Number of PSUs		Fair Value		Number of PSUs
Outstanding, December 31, 2020		-	$	-	839,170
Assumed on acquisition		515,008		2,390	508,688
Granted		-		-	1,196,012
Forfeited or cancelled		-		-	(206,798)
Vested and paid out in shares		-		-	(491,185)
Changes in fair value and vesting		-		714	-
Outstanding, December 31, 2021		515,008		3,104	1,845,887
Granted		-		-	824,768
Forfeited or cancelled		-		-	(374,347)
Units paid out in cash		(683,460)		(3,882)	-
Transferred from equity to cash settled		168,452		569	(168,452)
Vested and paid out in shares		-		-	(228,740)
Change in fair value and vesting		-		209	-
Outstanding, September 30, 2022		-	$	-	1,899,116

(d)    Stock Options

The Company’s Stock Option Plan, as amended and approved from time to time, permits the Company to issue up to 12,200,000 stock options. As at September 30, 2022, a total of 2,441,061 stock options are available for issuance under the plan.

	Number of stock options	Weighted averageexercise price
		Canadian dollars
Outstanding, December 31, 2020	1,054,570	$	6.28
Exercised	(68,927)		4.99
Assumed on acquisition	405,240		3.77
Expired unexercised	(141,500)		3.22
Outstanding, December 31, 2021	1,249,383		5.88
Expired unexercised	(612,565)		6.16
Outstanding, September 30, 2022	636,818	$	5.62
Vested and exercisable, December 31, 2021	1,249,383	$	5.88
Vested and exercisable, September 30, 2022	636,818	$	5.62

17.   SHARE CAPITAL

Authorized Share Capital

The Company has an unlimited number of common shares without par value authorized for issue.

On May 2, 2022, the Company initiated a share repurchase program to purchase up to five percent of its issued and outstanding common shares, expiring on the earlier of May 1, 2023 and the date on which Fortuna has acquired the maximum number of common shares allowable under the Normal Course Issuer Bid (“NCIB”) or the date on which Fortuna otherwise decides not to make any further repurchases under the NCIB. From the commencement of the NCIB to September 30, 2022, the Company acquired and cancelled 2,201,404 common shares through this program at an average cost of $2.69 per share for a total cost of $5.9 million.

Page | 13

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

18.    EARNINGS PER SHARE

	Three months ended September 30,					Nine months ended September 30,
		2022	2021		2022		2021
Basic:
Net (loss) income attributable to Fortuna shareholders	$	(3,754)	$	(453)	$	24,640	$	42,131
Weighted average number of shares (000's)		291,429		289,122		291,652		219,962
(Loss) earnings per share - basic	$	(0.01)	$	—	$	0.08	$	0.19

	Three months ended September 30,					Nine months ended September 30,
		2022	2021		2022		2021
Diluted:
Net (loss) income attributable to Fortuna shareholders	$	(3,754)	$	(453)	$	24,640	$	42,131
Diluted net (loss) income for the period	$	(3,754)	$	(453)	$	24,640	$	42,131
Weighted average number of shares (000's)		291,429		289,122		291,652		219,962
Incremental shares from dilutive potential shares		-		-		2,824		2,874
Weighted average diluted number of shares (000's)		291,429		289,122		294,476		222,836
Earnings per share - diluted	$	(0.01)	$	—	$	0.08	$	0.19

For the three and nine months ended September 30, 2022, 3,836 and nil options were excluded from the diluted earnings per share calculation (three and nine months ended September 30, 2021 – 1,315,872 and nil out of the money options were excluded). For the three and nine months ended September 30, 2022, 3,024,448 and nil share units were excluded from the diluted earnings per share calculation (three and nine months ended September 30, 2021 – 3,692,125 and nil). In addition, for the three and nine months ended September 30, 2022, 9,176,000 potential shares issuable on conversion of the debentures were excluded from the diluted earnings per share calculation (three and nine months ended September 30, 2021 – 9,200,000). These units were excluded from the diluted earnings per share calculations as their effect would have been anti-dilutive.

Page | 14

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

19.   SALES

The Company’s geographical analysis of revenue from contracts with customers attributed to the location of the products produced, is as follows:

	Three months ended September 30, 2022
		Peru		Mexico		Argentina		Burkina Faso		Total
Silver-gold concentrates	$	-	$	41,715	$	-	$	-	$	41,715
Silver-lead concentrates		11,937		-		-		-		11,937
Zinc concentrates		13,749		-		-		-		13,749
Gold doré		-		-		52,258		46,426		98,684
Provisional pricing adjustments		366		437		(320)		-		483
Sales to external customers	$	26,052	$	42,152	$	51,938	$	46,426	$	166,568
	Three months ended September 30, 2021
		Peru		Mexico		Argentina		Burkina Faso		Total
Silver-gold concentrates	$	-	$	47,618	$	-	$	-	$	47,618
Silver-lead concentrates		16,633		-		-		-		16,633
Zinc concentrates		11,559		-		-		-		11,559
Gold doré		-		-		41,775		49,030		90,805
Provisional pricing adjustments		(153)		(3,893)		-		-		(4,046)
Sales to external customers	$	28,039	$	43,725	$	41,775	$	49,030	$	162,569

	Nine months ended September 30, 2022
		Peru		Mexico		Argentina		Burkina Faso		Total
Silver-gold concentrates	$	-	$	130,837	$	-	$	-	$	130,837
Silver-lead concentrates		37,572		-		-		-		37,572
Zinc concentrates		41,196		-		-		-		41,196
Gold doré		-		-		163,881		147,815		311,696
Provisional pricing adjustments		(693)		(3,202)		(638)		-		(4,533)
Sales to external customers	$	78,075	$	127,635	$	163,243	$	147,815	$	516,768
	Nine months ended September 30, 2021
		Peru		Mexico		Argentina		Burkina Faso		Total
Silver-gold concentrates	$	-	$	165,170	$	-	$	-	$	165,170
Silver-lead concentrates		46,408		-		-		-		46,408
Zinc concentrates		32,412		-		-		-		32,412
Gold doré		-		-		113,381		49,030		162,411
Provisional pricing adjustments		311		(5,795)		-		-		(5,484)
Sales to external customers	$	79,131	$	159,375	$	113,381	$	49,030	$	400,917

	Three months ended September 30,				Nine months ended September 30, 2022
	2022		2021		2022		2021
Customer 1	$	51,938	$	41,775	$	163,243	$	113,381
Customer 2		46,426		49,030		147,815		49,030
Customer 3		26,052		28,039		78,075		79,130
Customer 4		25,463		10,198		56,767		14,743
Customer 5		16,138		19,007		44,777		68,053
Customer 6		551		14,520		26,091		28,548
Customer 7		-		-		-		48,032
	$	166,568	$	162,569	$	516,768	$	400,917

Page | 15

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

From time to time, the Company mitigates the price risk associated with its base metal production by entering into forward sale and collar contracts for some of its forecasted base metal production and non-metal commodities.

During the three and nine months ended September 30, 2022, the Company recognized $0.1 million and $1.3 million of realized losses on the settlement of forward sale and collar contracts (three and nine months ended September 30, 2021 - $0.6 million and $1.2 million, respectively), and $1.6 million unrealized loss and $1.4 million unrealized gains, from changes in the fair value of the open positions (three and nine months ended September 30, 2021 – $2.5 million unrealized loss and $1.7 million unrealized gain, respectively).

20.   COST OF SALES

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Direct mining costs	$	74,783	$	57,260	$	201,550	$	129,469
Salaries and benefits		11,402		9,544		33,657		24,112
Workers' participation		1,433		1,630		3,265		6,197
Depletion and depreciation		44,990		37,188		126,673		76,294
Royalties and other taxes		8,196		7,821		25,778		16,019
Inventory net realizable value adjustments		1,053		1,778		5,089		1,697
Cost of Sales	$	141,857	$	115,221	$	396,012	$	253,788

For the three and nine months ended September 30, 2022, depletion and depreciation includes $2.3 million and $6.7 million, respectively, of depreciation related to right-of-use assets (three and nine months ended September 30, 2021 - $2.3 million and $4.1 million, respectively).

21.   GENERAL AND ADMINISTRATION

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
General and administration	$	10,788	$	10,233	$	38,172	$	26,352
Workers' participation		338		369		720		1,439
		11,126		10,602		38,892		27,791
Share-based payments		1,912		574		5,888		1,122
General and Administration	$	13,038	$	11,176	$	44,780	$	28,913

22.   SEGMENTED INFORMATION

The following summary describes the operations of each reportable segment:

● Mansfield Minera S.A. (“Mansfield”)  – operates the Lindero gold mine

● Roxgold SANU S.A. (“Sanu”) – operates the Yaramoko gold mine

● Roxgold SANGO S.A. (“Sango”) – construction of the Séguéla mine

● Compania Minera Cuzcatlan S.A. de C.V. (“Cuzcatlan”)  – operates the San Jose silver-gold mine

● Minera Bateas S.A.C. (“Bateas”) – operates the Caylloma silver, lead and zinc mine

● Corporate – corporate stewardship

Page | 16

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

	Three months ended September 30, 2022
		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Revenues from external customers	$	51,938	$	46,426	$	-	$	42,152	$	26,052	$	-	$	166,568
Cost of sales before depreciation and depletion		(30,526)		(29,125)		-		(23,276)		(13,940)		-		(96,867)
Depreciation and depletion in cost of sales		(13,402)		(18,356)		-		(9,660)		(3,572)		-		(44,990)
General, and administration		(2,070)		(688)		(85)		(1,937)		(980)		(7,278)		(13,038)
Other (expenses) income		(967)		1,741		(1,739)		(235)		47		(4,823)		(5,976)
Finance items		(590)		(141)		436		(27)		(160)		(3,587)		(4,069)
Segment income (loss) before taxes		4,383		(143)		(1,388)		7,017		7,447		(15,688)		1,628
Income taxes		(804)		159		-		(2,677)		(3,073)		641		(5,754)
Segment income (loss) after taxes	$	3,579	$	16	$	(1,388)	$	4,340	$	4,374	$	(15,047)	$	(4,126)
	Three months ended September 30, 2021
		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Revenues from external customers	$	41,775	$	49,030	$	-	$	43,725	$	28,039	$	-	$	162,569
Cost of sales before depreciation and depletion		(20,416)		(22,692)		-		(22,172)		(12,753)		-		(78,033)
Depreciation and depletion in cost of sales		(9,092)		(15,739)		-		(7,808)		(4,549)		-		(37,188)
General and administration		(1,421)		(439)		-		(2,222)		(780)		(6,314)		(11,176)
Other (expenses) income		(590)		(112)		-		(13,161)		125		(661)		(14,399)
Finance items		(712)		(946)		-		503		351		(11,884)		(12,688)
Segment income (loss) before taxes		9,544		9,102		-		(1,135)		10,433		(18,859)		9,085
Income taxes		(818)		(2,459)		-		(735)		(3,580)		(1,282)		(8,874)
Segment income (loss) after taxes	$	8,726	$	6,643	$	-	$	(1,870)	$	6,853		(20,141)	$	211

	Nine months ended September 30, 2022
		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Revenues from external customers	$	163,243	$	147,815	$	-	$	127,635	$	78,075	$	-	$	516,768
Cost of sales before depreciation and depletion		(79,919)		(82,753)		-		(67,048)		(39,619)		-		(269,339)
Depreciation and depletion in cost of sales		(41,203)		(47,009)		-		(27,265)		(11,196)		-		(126,673)
General and administration		(6,588)		(1,570)		(257)		(5,593)		(3,464)		(27,308)		(44,780)
Other (expenses) income		(2,239)		(2,752)		(2,684)		(4,136)		(481)		(4,130)		(16,422)
Finance items		(1,325)		(564)		(291)		(522)		(928)		(5,269)		(8,899)
Segment income (loss) before taxes		31,969		13,167		(3,232)		23,071		22,387		(36,707)		50,655
Income taxes		(2,721)		(4,786)		405		(7,011)		(8,017)		(3,997)		(26,127)
Segment income (loss) after taxes	$	29,248	$	8,381	$	(2,827)	$	16,060	$	14,370	$	(40,704)	$	24,528
	Nine months ended September 30, 2021
		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Revenues from external customers	$	113,381	$	49,030	$	-	$	159,375	$	79,132	$	-	$	400,917
Cost of sales before depreciation and depletion		(51,462)		(22,692)		-		(66,583)		(36,757)		-		(177,494)
Depreciation and depletion in cost of sales		(24,512)		(15,739)		-		(23,468)		(12,575)		-		(76,294)
General and administration		(4,120)		(439)		-		(6,715)		(3,260)		(14,379)		(28,913)
Other (expenses) income		(4,119)		(112)		-		(15,190)		451		(1,236)		(20,206)
Finance items		(852)		(946)		-		(162)		(1,476)		(17,576)		(21,012)
Segment income (loss) before taxes		28,316		9,102		-		47,257		25,515		(33,191)		76,998
Income taxes		(2,118)		(2,459)		-		(16,712)		(9,598)		(3,316)		(34,203)
Segment income (loss) after taxes	$	26,198	$	6,643	$	—	$	30,545	$	15,917	$	(36,507)	$	42,795

Page | 17

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

As at September 30, 2022		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Total assets	$	579,650	$	251,132	$	835,894	$	206,519	$	134,848	$	24,588	$	2,032,631
Total liabilities	$	48,435	$	60,229	$	177,981	$	31,068	$	47,636	$	227,404	$	592,753
Capital expenditures1	$	17,901	$	37,066	$	79,621	$	18,698	$	11,726	$	1,928	$	166,940
1 Capital expenditures are on an accrual basis for the nine months ended September 30, 2022
As at December 31, 2021		Mansfield		Sanu		Sango		Cuzcatlan		Bateas		Corporate		Total
Total assets	$	613,584	$	249,153	$	760,220	$	239,448	$	128,012	$	31,505	$	2,021,922
Total liabilities	$	51,544	$	67,229	$	186,981	$	48,094	$	54,863	$	183,641	$	592,352
Capital expenditures1	$	40,845	$	22,856	$	56,614	$	26,962	$	24,848	$	-	$	172,125
1 Capital expenditures are on an accrual basis for the year ended December 31, 2021

23.   FAIR VALUE MEASUREMENTS

During the three and nine months ended September 30, 2022, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value.

Page | 18

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

	Carrying value								Fair value
September 30, 2022	Fair Value through OCI		Fair value through profit or loss		Amortized cost		Total		Level 1		Level 2		Level 3		Carrying value approximates Fair Value
Financial assets measured at Fair Value
Investments in equity securities	$	77	$	-	$	-	$	77	$	77	$	-	$	-	$	-
Trade receivables concentrate sales		-		19,626		-		19,626		-		19,626		-		-
Metal forward sales contracts asset				440				440				440				-
Fuel hedge contracts asset		-		897		-		897		-		897		-		-
	$	77	$	20,963	$	-	$	21,040	$	77	$	20,963	$	-	$	-
Financial assets not measured at Fair Value
Cash and cash equivalents	$	-	$	-	$	90,914	$	90,914	$	-	$	-	$	-	$	90,914
Trade receivables doré sales		-		-		1,035		1,035		-		-		-		1,035
Other receivables		-		-		6,029		6,029		-		-		-		6,029
	$	-	$	-	$	97,978	$	97,978	$	-	$	-	$	-	$	97,978
Financial liabilities measured at Fair Value
Foreign exchange forward contracts liability		-		(1,407)		-		(1,407)		-		(1,407)		-		-
	$	-	$	(1,407)	$	-	$	(1,407)	$	-	$	(1,407)	$	-	$	-
Financial liabilities not measured at Fair Value
Trade payables	$	-	$	-	$	(71,535)	$	(71,535)	$	-	$	-	$	-	$	(71,535)
Payroll payable		-		-		(20,052)		(20,052)		-		-		-		(20,052)
Credit facilities		-		-		(162,545)		(162,545)		-		(165,000)		-		-
Convertible debentures		-		-		(41,678)		(41,678)		-		(42,656)		-		-
Other payables		-		-		(33,898)		(33,898)		-		-		-		(33,898)
	$	-	$	-	$	(329,708)	$	(329,708)	$	-	$	(207,656)	$	-	$	(125,485)

Page | 19

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

	Carrying value								Fair value
December 31, 2021	Fair Value through OCI		Fair valuethroughprofit or loss		Amortizedcost		Total		Level 1		Level 2		Level 3		Carrying valueapproximatesFair Value
Financial assets measured at Fair Value
Investments in equity securities	$	496	$	-	$	-	$	496	$	496	$	-	$	-	$	-
Trade receivables concentrate sales		-		23,298		-		23,298		-		23,298		-		-
Fuel hedge contracts asset		-		1,619		-		1,619		-		1,619		-		-
	$	496	$	24,917	$	-	$	25,413	$	496	$	24,917	$	-	$	-
Financial assets not measured at Fair Value
Cash and cash equivalents	$	-	$	-	$	107,097	$	107,097	$	-	$	-	$	-	$	107,097
Trade receivables doré sales		-		-		2,420		2,420		-		-		-		2,420
Other receivables		-		-		4,424		4,424		-		-		-		4,424
	$	-	$	-	$	113,941	$	113,941	$	-	$	-	$	-	$	113,941
Financial liabilities measured at Fair Value
Interest rate swap liability	$	(78)	$	-	$	-	$	(78)	$	-	$	(78)	$	-	$	-
Metal forward sales contracts liability		-		(2,547)		-		(2,547)		-		(2,547)		-		-
Fuel forward contracts liability		-		(508)		-		(508)		-		(508)		-		-
	$	(78)	$	(3,055)	$	-	$	(3,133)	$	-	$	(3,133)	$	-	$	-
Financial liabilities not measured at Fair Value
Trade payables	$	-	$	-	$	(80,925)	$	(80,925)	$	-	$	-	$	-	$	(80,925)
Payroll payable		-		-		(23,311)		(23,311)		-		-		-		(23,311)
Credit facilities		-		-		(117,082)		(117,082)		-		(120,000)		-		-
Convertible debentures		-		-		(40,407)		(40,407)		-		(50,614)		-		-
Other payables		-		-		(44,427)		(44,427)		-		-		-		(44,427)
	$	-	$	-	$	(306,152)	$	(306,152)	$	-	$	(170,614)	$	-	$	(148,663)

Page | 20

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

24.   SUPPLEMENTAL CASH FLOW INFORMATION

Changes in working capital for the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Trade and other receivables	$	6,139	$	7,816	$	9,548	$	(8,517)
Prepaid expenses		(2,682)		(1,742)		(240)		(4,831)
Inventories		(2,737)		(7,998)		(13,655)		(18,191)
Trade and other payables		10,856		2,651		(13,767)		7,585
Total changes in working capital	$	11,576	$	727	$	(18,114)	$	(23,954)

The changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes for the years as set out below are as follows:

	Bank loan		Convertible debentures		Leaseobligations
As at December 31, 2020	$	119,850	$	38,766	$	19,497
Additions		-		-		7,397
Terminations		-		-		(1,203)
Acquisition of Roxgold		31,711		-		13,597
Interest		845		1,641		2,336
Payments		(32,288)		-		(11,928)
Transaction costs		(3,036)		-		-
Foreign exchange		-		-		(291)
As at December 31, 2021		117,082		40,407		29,405
Additions		65,000		-		2,441
Terminations		-		-		(661)
Interest		463		1,271		2,048
Payments		(20,000)		-		(9,220)
Foreign exchange		-		-		16
As at September 30, 2022	$	162,545	$	41,678	$	24,029

The significant non-cash financing and investing transactions during the three and nine months ended September 30, 2022 and 2021 are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Acquisition of Roxgold	$	-	$	594,666	$	-	$	594,666
Mineral properties, plant and equipment changes in closure and reclamation provision	$	2,889	$	(930)	$	4,387	$	1,924
Stock options allocated to share capital upon exercise	$	-	$	44	$	-	$	136
Additions to right of use assets	$	(1,290)	$	(1,372)	$	(2,441)	$	(2,551)
Share units allocated to share capital upon settlement	$	1	$	155	$	2,525	$	4,499

25.  NON-CONTROLLING INTEREST

As at September 30, 2022, the non-controlling interest (“NCI”) of the Government of Burkina Faso, which represents a 10% interest in Roxgold SANU S.A. totaled $9.9 million. The income attributable to the NCI for the three and nine

Page | 21

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

months ended September 30, 2022, totaling $0.1 million net loss and $0.5 million net income, respectively, is based on the net income (loss) for Yaramoko.

As at September 30, 2022, the NCI of the Government of Côte d’Ivoire, which represents a 10% interest in Roxgold Sango S.A. totaled $41.7 million. The loss attributable to the NCI for the three and nine months ended September 30, 2022, totaling $0.3 million and $0.6 million, respectively, is based on the net loss for Séguéla.

26.   CONTINGENCIES AND CAPITAL COMMITMENTS

(a)    Caylloma Letter of Guarantee

The Caylloma mine closure plan, as amended, that was in effect in January 2021, included total undiscounted closure costs of $11.4 million, which consisted of progressive closure activities of $3.5 million, final closure activities of $7.2 million, and post closure activities of $0.8 million pursuant to the terms of the Mine Closing Law.

Under the terms of the current Mine Closing Law, the Company is required to provide the Peruvian Government with a guarantee in respect of the Caylloma mine closure plan as it relates to final closure activities and post-closure activities and related taxes. In 2022, the Company provided a bank letter of guarantee of $10.8 million to the Peruvian Government in respect of such closure costs and taxes.

(b)    San Jose Letter of Guarantee

The Company has established three letters of guarantee in the aggregate amount of $0.8 million to fulfill its environmental obligations under the terms and conditions of the Environmental Impact Statements issued by the Secretaria de Medio Ambiente y Recursos Naturales (“SEMARNAT”) in 2009 in respect of the construction of the San Jose mine, and in 2017 and 2020 with respect to the expansion of the dry stack tailings facility at the San Jose mine. The letters of guarantee expire on December 31, 2023, March 5, 2023, and September 17, 2023, respectively.

(c)    Other Commitments

As at September 30, 2022, the Company had capital commitments of $8.0 million, $2.8 million and $0.7 million for civil work, equipment purchases and other services at the Lindero, Caylloma and San Jose Mines, respectively, which are expected to be expended within one year.

As of September 30, 2022, the Company had capital commitments of $25.5 million for the construction of the Séguéla Mine, with $20.3 million expected to be expended within one year.

The Company entered into an agreement with a service provider at the Yaramoko mine wherein if the Company terminates the agreement prior to the end of its term, the Company would be required to make an early termination payment, which is reduced monthly over 30 months, and in certain circumstances, could be required to make other payments that will be negotiated between the Company and the service provider. If the Company had terminated the agreement at September 30, 2022 it would have been subject to an early termination payment of $2.9 million.

(d)    Tax Contingencies

The Company is, from time to time, involved in various tax assessments arising in the ordinary course of business. The Company cannot reasonably predict the likelihood or outcome of these actions. The Company has recognised tax provisions with respect to current assessments received from the tax authorities in the various jurisdictions in which the Company operates, and from any uncertain tax positions identified. For those amounts recognised related

Page | 22

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

to current tax assessments received, the provision is based on management's best estimate of the outcome of those assessments, based on the validity of the issues in the assessment, management's support for their position, and the expectation with respect to any negotiations to settle the assessment. Management re-evaluates the outstanding tax assessments regularly to update their estimates related to the outcome for those assessments taking into account the criteria above.

Peru

The Company was assessed $1.1 million (4.3 million Peruvian soles), including interest and penalties of $0.6 million (2.4 million Peruvian soles), for the 2010 tax year by SUNAT, the Peruvian tax authority, with respect to the deduction of certain losses arising from derivative instruments.  The Company has applied to the Peruvian tax court to appeal the assessment.

On January 22, 2019, the Peruvian tax court reaffirmed SUNAT’s position and denied the deduction. The Company believes the assessment is inconsistent with Peruvian tax law and that it is probable the Company will succeed on appeal through the Peruvian legal system. The Company has paid the disputed amount in full and has initiated proceedings through the Peruvian legal system to appeal the decision of the Peruvian tax court.

As at September 30, 2022, the Company has recorded the amount paid of $1.1 million (4.3 million Peruvian soles) in other long-term assets, as the Company believes it is probable that the appeal will be successful (Note 9).

Argentina

On August 16, 2022, the Argentine Tax Authority (“AFIP”) published General Resolution No.5248/2022 (the “Resolution”) which established a one-time “windfall income tax prepayment” for companies that have obtained extraordinary income derived from the general increase in international prices. The Resolution was published by AFIP without prior notice.

The windfall income tax prepayment applies to companies that meet certain income tax or net income tax (before the deduction of accumulated tax losses) thresholds for 2021 or 2022. The aggregate amount of the windfall income tax prepayment payable by Mansfield calculated in accordance with the Resolution is approximately $5.5 to $6 million.

The windfall income tax prepayment is to be paid in three equal and consecutive monthly instalments, starting on October 22, 2022, and is payable in addition to income tax instalments currently being paid by corporate taxpayers on account of their income tax obligations. The windfall income tax prepayment is an advance payment of income taxes due to be paid in 2023.

Based on the historical accumulated losses of Mansfield for fiscal 2021 which can be carried forward for 2022, Mansfield was not liable for income tax, and based upon current corporate income tax laws and the ability of the Company to deduct historical accumulated losses, it is projected that no income tax will be required to be paid for fiscal 2022.

To protect Mansfield’s position from having to pay the windfall income tax prepayment as an advance income tax for 2023, which based on management’s projections is not payable, Mansfield applied to the Federal Court of Salta Province for a preliminary injunction to prevent the AFIP from issuing a demand or other similar measure for the collection of the Windfall Income Tax Prepayment.  On October 3, 2022, Mansfield was notified that the Court had granted the preliminary injunction. As a result, Mansfield did not pay the instalment due on October 22, 2022.  In

Page | 23

Fortuna Silver Mines Inc.

Notes to Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022 and 2021

(Unaudited - Tabular amounts presented in thousands of US dollars, except share and per share amounts)

addition, Mansfield also filed an administrative claim with the AFIP to challenge the constitutionality of the Resolution, which was rejected by AFIP on November 2, 2022. 

Mansfield intends to protect its position and challenge the rejection of its administrative claim, by filing legal proceedings against the AFIP with the Federal Court. In addition, Mansfield has requested that the preliminary injunction previously obtained remain in effect. It is expected that the Court will make a determination on the maintenance of the injunction within the next 10 days. In the event, that the Court does not maintain the injunction, the Company will file for a new injunction concurrent with the filing of the legal proceedings in the Federal Court.

(e)    Other Contingencies

The Company is subject to various investigations and other claims, legal, labor, and tax proceedings covering matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably for the Company. Certain conditions may exist as of the date these interim financial statements are issued that may result in a loss to the Company. None of these matters is expected to have a material effect on the results of operations or financial conditions of the Company.

Page | 24

EX-99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2022

As of November 9, 2022

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022

This Management’s Discussion and Analysis (“MD&A”) of the financial position and results of operations for Fortuna Silver Mines Inc. (the “Company” or “Fortuna”) (TSX: FVI and NYSE: FSM) should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2021 (the “2021 Financial Statements”) and unaudited condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2022 and the related notes thereto which have been prepared in accordance with International Accounting Standard 34, Interim financial reporting, using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. For further information on the Company, reference should be made to its public filings on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.

This MD&A is prepared by management and approved by the Board of Directors as of November 9, 2022. The information and discussion provided in this MD&A covers the three and nine months ended September 30, 2022 (“Q3 2022” or the “Quarter”), and where applicable, the subsequent period up to the date of issuance of this MD&A. Unless otherwise noted, all dollar amounts in this MD&A are expressed in United States (“US”) dollars. References to "$" or "US$" in this MD&A are to US dollars and references to C$ are Canadian dollars.

Fortuna has a number of direct and indirect subsidiaries which own and operate assets and conduct activities in different jurisdictions. The terms "Fortuna" or the "Company" are used in this MD&A for simplicity of the discussion provided herein and may include references to subsidiaries that have an affiliation with Fortuna, without necessarily identifying the specific nature of such affiliation.

This MD&A contains forward-looking statements. Readers are cautioned as to the risks and uncertainties related to the forward-looking statements, the risks and uncertainties associated with investing in the Company’s securities and the technical and scientific information under National Instrument 43-101 – Standards for Disclosure of Mineral Projects (“NI 43-101”) concerning the Company’s material properties, including information about mineral reserves and resources, which classifications differ significantly from the requirements required by the U.S. Securities and Exchange Commission (“SEC”) as set out in the cautionary note 55 of this MD&A. All forward-looking statements are qualified by cautionary notes in this MD&A as well as risks and uncertainties discussed in the Company’s Annual Information Form for fiscal 2021 dated March 30, 2022 and its Management Information Circular dated May 12, 2022, which are filed on SEDAR and EDGAR.

This MD&A uses certain Non-IFRS financial measures and ratios that are not defined under IFRS, including but not limited to: cash cost per ounce of gold; all-in sustaining cash cost per ounce of gold sold; all-in cash cost per ounce of gold sold; total production cash cost per tonne; cash cost per payable ounce of silver equivalent; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow and free cashflow from ongoing operations; adjusted net income; adjusted EBITDA and working capital which are used by the Company to manage and evaluate operating performance at each of the Company’s mines and are widely reported in the mining industry as benchmarks for performance. Non-IFRS financial measures and non-IFRS ratios do not have a standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Non-IFRS measures are further discussed in the “Non-IFRS Measures” section 29 of this MD&A.

Throughout this MD&A, the operational and financial results of the assets acquired in the acquisition of Roxgold Inc. (“Roxgold”) are included from July 2, 2021 onward.

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

CONTENTS

Business Overview	4
Corporate Developments	4
Highlights	5
Financial Results	8
Quarterly Results of Operations	15
Projects & Exploration	20
Quarterly Information	23
Liquidity and Capital Resources	25
Financial Instruments	27
Share Position & Outstanding Options & Equity Based Share Units	27
Related Party Transactions	28
Non-IFRS Financial Measures	29
Risks and Uncertainties	39
Critical Accounting Estimates, Assumptions, and Judgements	49
Controls and Procedures	49
Cautionary Statement on Forward-Looking Statements	51
Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources	55

Fortuna | 3

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

BUSINESS OVERVIEW

Fortuna is a growth focused Canadian precious metals mining company with operations and projects in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. The Company produces silver, gold and base metals and generates shared value over the long-term through efficient production, environmental protection, and social responsibility.

The Company operates the open pit Lindero gold mine (“Lindero” or the “Lindero Mine”) located in northern Argentina, the underground Yaramoko gold mine (“Yaramoko” or the “Yaramoko Mine”) located in south-western Burkina Faso, the underground San Jose silver and gold mine (“San Jose” or the “San Jose Mine”) located in southern Mexico, the underground Caylloma silver, lead, and zinc mine (“Caylloma” or the “Caylloma Mine”) located in southern Peru, and is developing and constructing the open pit Séguéla gold mine (“Séguéla”, "Séguéla Project" or the “Séguéla Gold Project”) located in south-western Côte d’Ivoire. Each of the Company's producing mines is generally considered to be a separate reportable segment, along with the Company's corporate stewardship segment.

Fortuna is a publicly traded company incorporated and domiciled in British Columbia, Canada. Its common shares are listed on the New York Stock Exchange (“NYSE”) under the trading symbol FSM and on the Toronto Stock Exchange (“TSX”) under the trading symbol FVI.

CORPORATE DEVELOPMENTS

Normal Course Issuer Bid

On May 2, 2022, the Company initiated a share repurchase program to purchase up to 5% of its issued and outstanding common shares, expiring on the earlier of May 1, 2023 and the date on which Fortuna has acquired the maximum number of common shares allowable under the Normal Course Issuer Bid (“NCIB”) or the date on which Fortuna otherwise decides not to make any further repurchases under the NCIB. During the three months ended September 30, 2022, in accordance with the Company’s NCIB, the Company re-purchased an aggregate of 1,227,000 common shares at a weighted average price of $2.28 per share via open market purchases through the facilities of the NYSE for a total repurchase value of approximately $2.9 million, all of which shares were subsequently returned to treasury and cancelled.

From the commencement of the share repurchase program to September 30, 2022, the Company has purchased an aggregate of 2,201,404 shares at a weighted average price of $2.69 per share at a total cost of $5.9 million. The Company will continue to evaluate further share purchases with respect to this program when it believes the share price undervalues the Company, and based on cash requirements.

Change in Senior Management Team

On August 17, 2022, the Company announced the voluntary resignation of Paul Criddle from the position of Chief Operating Officer – West Africa effective September 30, 2022.

David Whittle formerly the Vice-President Operations – West Africa assumed the role of Chief Operating Officer – West Africa effective October 1, 2022.

San Jose EIA

On November 7, 2022, the Company received notice that the Mexican Federal Administrative Court had issued a judgment in favour of the Company, which re-confirms that the extension of the term of the EIA for the San Jose Mine is for a period of 12 years.  See the section of this MD&A entitled “Risks and Uncertainties” for more information. 

Fortuna | 4

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022

Financial

● Sales were $166.6 million, an increase of 2% from the $162.6 million reported in the three months ended September 30, 2021 (“Q3 2021”).  

● Mine operating income was $24.7 million, a decrease of 48% from the $47.3 million reported in Q3 2021.

● Operating income was $5.7 million, a decrease of 74% from the $21.8 million reported in Q3 2021.

● Net loss for the period was $4.1 million or $0.01 per share, a decrease from net income of $0.2 million or $0 per share reported in Q3 2021.

● Adjusted net income (refer to Non-IFRS Financial Measures) was $2.3 million compared to $22.5 million in Q3 2021,  representing a 90% quarter-over-quarter decrease.

● Adjusted EBITDA (refer to Non-IFRS Financial Measures) was $54.4 million compared to $75.3 million reported in Q3 2021, representing a 28% quarter-over-quarter decrease.  

● Free cash flow from ongoing operations (refer to Non-IFRS Financial Measures) was $34.0 million compared to $29.1 million reported in Q3 2021, representing a 17% quarter-over-quarter increase.

● Net cash provided by operating activities was $64.7 million, an increase of 64% from the $39.4 million reported in Q3 2021.

Operating

● Gold production of 66,344 ounces, an increase of 1% from Q3 2021

● Silver production of 1,837,506 ounces, an increase of 7% from Q3 2021

● Lead production of 9,085,000 pounds, an increase of 10% from Q3 2021

● Zinc production of 11,885,000 pounds, a decrease of 4% from Q3 2021

Growth and Development

● Séguéla construction was 78% complete as of September 30, 2022 and remains on-time and on-budget for first gold pour in mid-2023

● Fortuna continued to expand mineralization at the Sunbird discovery at Séguéla outside of the current reported inferred resource and regional exploration returned encouraging results (refer to Fortuna news release dated September 12, 2022: “Fortuna extends gold mineralization at Sunbird and identifies new regional prospects at Séguéla, Cote d’Ivoire” for full details)

COVID-19

During the third quarter of 2022, there were no shutdowns or material impacts to the business related to COVID-19. The Company continues to monitor the evolution of COVID-19 and our operations maintain preventative and reactive health protocols including health awareness, health and hygiene controls and quarantine as necessary.

Health & Safety

For the third quarter of 2022, the Company recorded zero lost time injuries (“LTI”), one restricted work injury (“RWI”) and four medical treatment injuries (“MTI”) over 3.3 million hours worked. The year-to-date LTI frequency rate (“LTIFR”) at the end of the third quarter was 0.21 lost time injuries per million hours worked, which represents a continuous improvement

Fortuna | 5

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

from the beginning of the year. The year-to-date total recordable injury frequency rate (“TRIFR”) at the end of the third quarter was 2.36 total recordable injuries per million hours worked.

The Company has continued to improve its Health and Safety management systems, governance and performance this quarter with the creation of new Corporate Standards such as Critical Risk Management and Malaria Risk Control, and the implementation of additional modules of our HSEC management software at the corporate and subsidiary level.

Environment

Site controls by the Company, local authorities and participatory monitoring were conducted in accordance with the plans for the quarter and no areas of non-compliance were identified, and no fines associated with permits and regulations were recorded during Q3 2022 and there were no significant environmental incidents.

Community Engagement

The Company seeks to maintain good constructive relations with the communities where it operates, based on dialogue, transparency, and respect, and to be a catalyst for social development.  At each of the Company’s operations, it maintains open and ongoing channels of communication with the people in the communities within its direct and indirect areas of influence. At each operation the Company has established mechanisms for addressing requests and complaints or grievances with local and other stakeholders. The Company also takes part in consultations and participatory meetings to identify and prioritize community development needs.

During the third quarter of 2022, there were no significant disputes at any of the sites. We also recorded 346 local stakeholder engagement activities during the period. These included consultation meetings with local administration and community leaders, participation in ceremonies and courtesy visits.

Climate Change

During Q3 2022, the Company continued decarbonisation studies at each of its operations and projects and continued to define baselines, targets and key parameters in line with the best practices outlined in the Task Force on Climate-Related Financial Disclosures Framework.

Fortuna | 6

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Operating and Financial Highlights

A summary of the Company’s consolidated financial and operating results for the three and nine months ended September 30, 2022 are presented below:

	Three months ended September 30,			Nine months ended September 30,
Consolidated Metrics	2022	2021	% Change	2022	2021	% Change
Selected highlights
Silver
Metal produced (oz)	1,837,506	1,711,881	7%	5,160,529	5,518,458	(6%)
Metal sold (oz)	1,835,296	1,738,881	6%	5,149,621	5,542,477	(7%)
Realized price ($/oz)	19.16	24.25	(21%)	21.88	25.80	(15%)
Gold
Metal produced (oz)	66,344	65,425	1%	195,315	131,028	49%
Metal sold (oz)	66,183	61,679	7%	196,595	125,547	57%
Realized price ($/oz)	1,718	1,779	(3%)	1,823	1,783	2%
Lead
Metal produced (000's lbs)	9,085	8,245	10%	25,856	24,571	5%
Metal sold (000's lbs)	9,155	8,859	3%	25,751	25,354	2%
Zinc
Metal produced (000's lbs)	11,885	12,436	(4%)	33,598	36,169	(7%)
Metal sold (000's lbs)	12,277	12,754	(4%)	33,743	36,775	(8%)
Adjusted net income1	2.3	22.5	(90%)	35.4	71.5	(50%)
Adjusted EBITDA1	54.4	75.3	(28%)	189.7	191.1	(1%)
Net cash provided by operating activities	64.7	39.4	64%	144.6	90.1	60%
Free cash flow from ongoing operations1	34.0	29.1	17%	64.8	70.4	(8%)
Capital Expenditures2
Sustaining	23.2	16.4	41%	64.3	37.5	71%
Non-sustaining3	4.0	0.7	467%	10.4	1.8	478%
Lindero construction	—	1.4	(100%)	—	4.0	(100%)
Séguéla construction	23.5	—	100%	87.6	—	100%
Brownfields	9.6	4.3	123%	17.1	10.3	66%
1 Refer to Non-IFRS financial measures
2 Capital expenditures are presented on a cash basis
3Non-sustaining expenditures include greenfields exploration
Figures may not add due to rounding

Fortuna | 7

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

FINANCIAL RESULTS

Selected Financial Information

	Three months ended September 30,			Nine months ended September 30,
(Expressed in $ millions except per share information)	2022	2021	% Change	2022	2021	% Change
Selected Financial Information
Sales	166.6	162.6	2%	516.8	400.9	29%
Mine operating income	24.7	47.3	(48%)	120.8	147.1	(18%)
Operating income	5.7	21.8	(74%)	59.6	98.0	(39%)
Net (loss) income	(4.1)	0.2	(2,150%)	24.5	42.8	(43%)
Loss (earnings) per share - basic	(0.01)	—	0%	0.08	0.19	(58%)
As at				September 30, 2022	December 31, 2021	% Change
Cash and cash equivalents				90.9	107.1	(15%)
Total assets				2,032.6	2,021.9	1%
Debt				204.2	157.5	30%
Equity attributable to Fortuna shareholders				1,388.3	1,375.1	1%
Figures may not add due to rounding

Third Quarter 2022 vs Third Quarter 2021

Mine operating income for the three months ended September 30, 2022 was $24.7 million, a decrease of $22.6 million over the same period in 2021. The decrease was primarily due to:

● A decrease in realized silver prices in the quarter to $19.16 compared to $24.25 for the same period for 2021 which was partially offset by higher silver production at San Jose

● Higher production costs driven by inflation of key commodities, additional maintenance costs and lower capitalized stripping at the Lindero mine and higher processing costs at the Yaramoko mine due to an increase in processed tonnes to offset lower grades and higher maintenance costs from an annual mill shutdown that was completed in September

● Higher non-cash costs as a result of the depletion of previously capitalized stripping costs at Lindero as the mine extracted more ore tonnes from Phase 2 of the open pit compared to the previous period and higher depletion rates at San Jose and Yaramoko

● The impact of a $1.0 million write-down to net realizable value in the marginal stockpiles at Yaramoko as a result of the decline in gold prices during the third quarter of 2022

The effect of the above was partially offset by higher sales at Lindero due to higher production.

Net loss for the three months ended September 30, 2022 was $4.1 million, an increase of $4.3 million over the same period in 2021. The increase in net loss was driven by the factors described above for mine operating income as well as the following:

● The Company terminated its option agreement on the Tlamino exploration project in Serbia and exchanged its 51% interest in the property for a 1.0% net smelter return royalty that may be repurchased by the counterparty for $3.0 million CAD. The capitalized exploration associated with the property was written off at a cost of $3.4 million.

● Higher foreign exchange losses as a result of the devaluation of the Euro relative to the US Dollar and its impact on balances denominated in West African Francs

Fortuna | 8

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

● The impact of a loss of $1.6 million on derivatives

Results for the comparable period in 2021 include one-time costs of $10.5 million for transaction costs related to the Roxgold acquisition, and $12.7 million related to the settlement of the disputed Mexican royalty.

First nine months of 2022 vs First nine months of 2021

Mine operating income for the first nine months of 2022 was $120.8 million, a decrease of 18% compared to $147.1 million over the same period in 2021. The decrease was primarily related to:

● Lower sales at the San Jose Mine due to lower head grades of silver and gold compared to the same period last year as well as lower realized silver prices

● Higher production costs at the Lindero mine as a result of an increase in ore tonnes crushed, inflation of key commodities, higher royalties from increased sales and lower capitalized stripping

● An increase in non-cash costs at the Lindero mine related to the depletion of previously capitalized stripping costs as the mine accessed a greater amount of ore in Phase 2 of the open pit

● The impact of a $5.4 million write-down to net realizable value in the marginal stockpiles at Yaramoko

The above was partially offset by higher sales at the Lindero mine as the site was in ramp up over the same period in 2021 and the contribution of nine months of sales from the Yaramoko mine compared to 3 months for the same period in 2021.

Net income for the first nine months of 2022 was $24.5 million, a decrease of $18.3 million compared to the same period in 2021. The reduction in net income was a result of lower mine operating income as described above, as well as the  following:

● Higher G&A expenses due to the acquisition of Roxgold and the associated personnel being included in nine months of results in 2022 compared to only three months in the previous year

● Higher foreign exchange losses as a result of the devaluation of the Euro relative to the US Dollar and its impact on balances denominated in West African Francs

● Write-downs of $5.5 million related to the termination of an exploration agreement on the Santa Fe property in Mexico and the Tlamino property in Serbia

Results for the comparable period in 2021 included one-time costs of $13.8 million for transaction costs related to the Roxgold acquisition and $12.7 million related to the settlement of the disputed Mexican royalty.

A discussion on sales and operating income is presented below.

Fortuna | 9

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Sales

	Three months ended September 30,			Nine months ended September 30,
	2022	2021	% Change	2022	2021	% Change
Provisional sales $
Lindero	51.9	41.6	25%	163.2	111.6	46%
Yaramoko4	46.4	49.0	(5%)	147.8	49.0	202%
San Jose	42.4	48.0	(12%)	132.0	164.9	(20%)
Caylloma	25.6	28.1	(9%)	79.0	80.8	(2%)
Adjustments1	0.3	(4.1)	(107%)	(5.2)	(5.4)	(4%)
Total sales $	166.6	162.6	2%	516.8	400.9	29%
Silver
Metal produced (oz)	1,837,506	1,711,881	7%	5,160,529	5,518,458	(6%)
Provisional sales (oz)	1,835,296	1,738,881	6%	5,149,621	5,542,477	(7%)
Provisional sales $	32.5	39.2	(17%)	104.6	133.3	(22%)
Realized price ($/oz)2	19.16	24.25	(21%)	21.88	25.80	(15%)
Net realized price ($/oz)3	17.68	22.57	(22%)	20.31	24.05	(16%)
Gold
Metal produced (oz)	66,344	65,425	1%	195,315	131,028	49%
Provisional sales (oz)	66,183	61,679	7%	196,595	125,547	57%
Provisional sales $	113.0	107.4	5%	355.5	218.7	63%
Realized price ($/oz)2	1,718	1,779	(3%)	1,823	1,783	2%
Net realized price ($/oz)3	1,708	1,742	(2%)	1,808	1,731	4%
Lead
Metal produced (000's lbs)	9,085	8,245	10%	25,856	24,571	5%
Provisional sales (000's lbs)	9,155	8,859	3%	25,751	25,354	2%
Provisional sales $	7.4	7.7	(4%)	22.8	21.0	9%
Realized price ($/lb)2	0.90	1.06	(15%)	0.99	0.98	1%
Net realized price ($/lb)3	0.81	0.87	(7%)	0.89	0.83	7%
Zinc
Metal produced (000's lbs)	11,885	12,436	(4%)	33,598	36,169	(7%)
Provisional sales (000's lbs)	12,277	12,754	(4%)	33,743	36,775	(8%)
Provisional sales $	13.2	11.5	15%	38.9	32.4	20%
Realized price ($/lb)2	1.48	1.36	9%	1.65	1.31	26%
Net realized price ($/lb)3	1.08	0.90	20%	1.15	0.88	31%
1 Adjustments consists of mark to market, final price and assay adjustments
2 Based on provisional sales before final price adjustments. Net after payable metal deductions, treatment, and refining charges
3 Treatment charges are allocated to base metals at Caylloma and to gold at San Jose
4 The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.

Third Quarter 2022 vs Third Quarter 2021

Consolidated sales for the three months ended September 30, 2022 were $166.6 million, a 2% increase from the $162.6 million reported in the same period in 2021. Sales by reportable segment for the three months ended September 30, 2022 were as follows:

● Lindero recognized adjusted sales of $51.9 million from the sale of 30,064 ounces of gold sold, a 25% increase from the same period in 2021. Higher gold sales were the result of higher production due to increased performance at the three-stage crushing and stacking facility. See "Results of Operations – Lindero Mine, Argentina" for additional information.

● Yaramoko recognized adjusted sales of $46.4 million from the sale of 27,055 ounces of gold sold, a 5% decrease from the same period in 2021. Lower sales were primarily the result of lower realized prices and gold production. See "Results of Operations – Yaramoko Mine, Burkina Faso" for additional information.

Fortuna | 10

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

● San Jose recognized adjusted sales of $42.2 million, a 3% decrease from the $43.7 million reported in the same period in 2021. Lower sales were primarily driven by lower realized silver prices but was partially offset by a 7% increase in the volume of silver sold and a 2% increase in the volume of gold sold due to an increase in mill throughput.See "Results of Operations – San Jose Mine, Mexico" for additional information.

● Caylloma recognized adjusted sales of $26.1 million, a 7% decrease from the $28.0 million reported in the same period in 2021 primarily due to lower realized silver prices and no gold sales. See "Results of Operations – Caylloma Mine, Peru" for additional information.

First nine months of 2022 vs First nine months of 2021

Consolidated sales for the nine months ended September 30, 2022 were $516.8 million, a 29% increase compared to the same period in 2021. The increase in sales was primarily driven by the following:

● Lindero recognized adjusted sales of $163.2 million compared to $113.4 million in the same period in 2021. Higher gold sales were driven by increased production as a result of increased performance at the three-stage crushing and stacking facility

● Yaramoko recognized adjusted sales of $147.8 million for nine months of operations compared to only three months in the comparable period in 2021 due to the timing of the Roxgold transaction

● This was partially offset by lower sales at San Jose which decreased by $31.7 million compared to the same period in 2021. The reduction in sales was driven by lower production as grades decreased in line with the reserve model and lower realized prices.

Operating Income (Loss) and Adjusted EBITDA

	Three months ended September 30,						Nine months ended September 30,
	2022		%1	2021		%1	2022		%1	2021		%1
Operating income (loss)
Lindero		5.0	10%		10.3	25%		33.3	20%		29.2	26%
Séguéla3		(1.8)	0%		-	0%		(2.9)	0%		-	0%
Yaramoko3		-	(0%)		10.0	20%		13.7	20%		10.0	20%
San Jose		7.0	17%		(1.6)	(4%)		23.6	18%		47.4	30%
Caylloma		7.6	29%		10.1	36%		23.3	30%		27.0	34%
Corporate		(12.1)			(7.0)			(31.4)			(15.6)
Total		5.7	3%		21.8	13%		59.6	12%		98.0	24%
Adjusted EBITDA2
Lindero		19.3	37%		21.8	52%		72.9	45%		57.6	51%
Séguéla3		(1.4)	0%		-	0%		(1.5)	0%		-	0%
Yaramoko3		18.0	39%		25.8	53%		61.5	42%		25.8	53%
San Jose		16.8	40%		20.2	46%		53.2	42%		85.5	54%
Caylloma		10.1	39%		13.5	48%		29.4	37%		36.6	46%
Corporate		(8.4)			(6.0)			(25.8)			(14.4)
Total		54.4	33%		75.3	46%		189.7	37%		191.1	48%
1 As a Percentage of Sales
2 Refer to Non-IFRS Financial Measures
3 The Yaramoko Mine and Séguéla Project was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.
Figures may not add due to rounding

Fortuna | 11

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Third Quarter 2022 vs Third Quarter 2021

Operating income for the three months ended September 30, 2022 was $5.7 million, a decrease of $16.1 million over the same period in 2021. The change in operating income was primarily due to lower mine operating income described above as well as the following factors:

● A charge of $3.4 million related to the write-off of the Tlamino project in Serbia

● Higher foreign exchange losses as a result of the devaluation of the Euro relative to the USD and the impact of West African Franc denominated balances

Results for the comparable period in 2021 include a one-time cost of  $12.7 million related to the settlement of the disputed Mexican royalty at the San Jose mine.

Adjusted EBITDA (refer to Non-IFRS Financial Measures) was $54.4 million for the three months ended September 30, 2022, a decrease of $20.9 million over the same period in 2021. Lower adjusted EBITDA was a result of higher production costs as described above.

The most comparable IFRS measure to the Non-IFRS measure adjusted EBITDA is net income. Net loss for the three months ended September 30, 2022 was $4.1 million. Refer to the discussion above and to the section entitled “Non-IFRS Measures” for more detailed information.

First nine months of 2022 vs First nine months of 2021

Operating income for the first nine months was $59.6 million, a decrease of $38.4 million over the same period in 2021. The decrease in operating income was a result of lower mine operating income as described above as well as the following factors:

● A write-down of $5.5 million related to the termination of an exploration agreement on the Santa Fe property in Mexico and the Tlamino property in Serbia

● Higher share-based compensation as the comparable period in 2021 was impacted by larger mark to market adjustments on share units that will settle in cash

● Higher foreign exchange losses as a result of the strengthening of the US dollar and its impact on balances denominated in other currencies

● Higher G&A costs from running the larger combined organization for nine months in 2022, post Roxgold acquisition, compared to only three months in the comparable period in 2021

Adjusted EBITDA for the first nine months was $189.7 million, a decrease of $1.4 million over the same period in 2021. The decrease in adjusted EBITDA was primarily the result of higher sales offset by higher production costs as described above.

Fortuna | 12

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

The most comparable IFRS measure to the Non-IFRS measure adjusted EBITDA is net income. Net income for the nine months ended September 30, 2022, was $24.5 million. Refer to the discussion above and to the section entitled “Non-IFRS Measures” for more detailed information.

General and Administrative (“G&A”) Expenses

	Three months ended September 30,					Nine months ended September 30,
	2022		2021		% Change	2022		2021		% Change
Mine G&A		5.7		4.4	30%		16.5		12.7	30%
Corporate G&A		5.1		5.8	(12%)		21.7		13.7	58%
Share-based payments		1.9		0.6	217%		5.9		1.1	436%
Workers' participation		0.3		0.4	(25%)		0.7		1.4	(50%)
Total		13.0		11.2	16%		44.8		28.9	55%

Third Quarter 2022 vs Third Quarter 2021

General and administrative expenses for the three months ended September 30, 2022, increased 16% to $13.0 million compared to $11.2 million reported in the same period in 2021, which was due primarily to:

● Higher share-based compensation as the comparable period in 2021 was impacted by larger mark to market adjustments on share units that will settle in cash

● Lower corporate G&A offset by higher mine site G&A due to timing of expenditures

First nine months of 2022 vs First nine months of 2021

General and administrative expenses for the first half of 2022 increased 55% to $44.8 million compared to $28.9 million reported in the same period in 2021. The increase in G&A was a result of:

● The inclusion of nine months of G&A expenses at Yaramoko compared to three months for the comparable period

● Higher G&A expenses at Lindero as the mine was ramping up over the comparable period in 2021

● Higher share-based compensation as the comparable period in 2021 was impacted by larger mark to market adjustments on share units that will settle in cash.

Foreign Exchange Loss

Third Quarter 2022 vs Third Quarter 2021

Foreign exchange loss for the three months ended September 30, 2022 increased $1.9 million to $2.4 million compared to $0.5 million reported in the same period in 2021. The higher foreign exchange loss in the quarter was primarily the result of the strengthening of the US dollar relative to other currencies. This was more pronounced in West Africa due to the devaluation of the Euro relative to the US dollar which impacted balances denominated in West African Francs, a currency that is pegged to the Euro.

First nine months of 2022 vs First nine months of 2021

Foreign exchange loss for the first half of 2022 increased $3.4 million to $8.4 million compared to $5.0 million for the same period in 2021. The higher foreign exchange loss was primarily the result of the same factors above and partially offset by lower foreign exchange losses in Argentina as the Company had lower valued added tax receivable balances at Lindero compared to the previous year.

Fortuna | 13

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Income Tax Expense

The Company is subject to tax in various jurisdictions, including Peru, Mexico, Argentina, Côte d’Ivoire, Burkina Faso, Australia, and Canada. There are a number of factors that can significantly impact the Company’s effective tax rate (“ETR”) including the geographic distribution of income, variations in our income before income taxes, varying rates in different jurisdictions, the non-recognition of tax assets, local inflation rates, fluctuation in the value of the United States dollar and foreign currencies, changes in tax laws and the impact of specific transactions and assessments. As a result of the number of factors that can potentially impact the ETR and the sensitivity of the tax provision to these factors, the ETR will fluctuate, sometimes significantly. This trend is expected to continue in future periods.

Third Quarter 2022 vs Third Quarter 2021

Income tax expenses for the three months ended September 30, 2022 was $5.8 million or $3.0 million lower than the $8.8 million reported in the same period in 2021. The decrease of $3.0 million is primarily attributable to the increase in inflation adjustment that is tax deductible.

The ETR for the three months ended September 30, 2022 was 354.1% compared to 97.6% for the same period in 2021. The increase of 256.5% is primarily attributable to an increase in mining taxes, higher withholding taxes relative to the comparable period, the impact of foreign exchange and inflation in Mexico and Argentina and lower pre-tax income.

First nine months of 2022 vs First nine months of 2021

Income tax expenses for the nine months ended September 30, 2022 was $26.1 million, or $8.1 million lower, than the $34.2 million reported in the same period in 2021. The decrease of $8.0 million is primarily attributed to the increase in inflation adjustment that is tax deductible.

The ETR for the nine months ended September 30, 2022 was 51.6% compared to 44.4% for the same period in 2021. The increase of 7.3% is primarily attributable to higher withholding taxes, the impact of inflation in Mexico and Argentina, foreign exchange and lower pre-tax income.

Outlook on Cost and Inflation

Inflationary pressures continued in the third quarter of 2022 as a result of geopolitical events, supply chain constraints and increases in the cost of energy and commodities. These inflationary pressures were realized in the Company’s cost structure as prices increased for several key commodities including diesel, reagents, explosives and steel. The impact of inflation was most pronounced at the Lindero Mine.

The inflation situation remains dynamic and the Company expects higher input costs to remain for the fourth quarter of the year and beyond. To mitigate inflationary pressure on its cost structure the Company will continue to focus on operational efficiencies and cost optimization measures across all mining operations. However, even with these efforts it is expected the continued cost pressure will push the Lindero mine towards the upper end of our cost guidance for the year.

Fortuna | 14

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Production Outlook

As outlined in the news release dated October 6, 2022, the Company delivered steady production performance through the first nine months of 2022 with the Company on track to achieve annual guidance for gold and the upper range of annual guidance for silver.

QUARTERLY RESULTS OF OPERATIONS

Lindero Mine, Argentina

The Lindero Mine is an open pit gold mine located in Salta Province in northern Argentina. Its commercial product is gold doré. The table below shows the key metrics used to measure the operating performance of the mine: tonnes placed on the leach pad, grade, production and unit costs:

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes placed on the leach pad	1,365,726	1,387,134	4,163,555	4,994,134
Gold
Grade (g/t)	0.83	1.10	0.83	0.94
Production (oz)	30,032	26,235	89,116	68,088
Metal sold (oz)	30,064	23,559	89,229	63,788
Realized price ($/oz)	1,719	1,772	1,825	1,775
Unit Costs
Cash cost ($/oz Au)1	772	646	717	635
All-in sustaining cash cost ($/oz Au)1	1,159	1,270	1,117	1,182
Capital expenditures ($000's) 2
Sustaining	4,814	9,385	14,062	20,040
Non-sustaining	–	–	169	–
Brownfields	314	47	1,104	489
1 Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.

² Capital expenditures are presented on a cash basis

Quarterly Operating and Financial Highlights

In the third quarter of 2022, a total of 1,365,726 tonnes of ore were placed on the heap leach pad, averaging 0.83 g/t gold, containing an estimated 36,501 ounces of gold. Gold production for Q3 2022 totaled 30,032 ounces, representing a 14% increase year-over-year. Higher gold production is mainly explained by an increase in performance of the three-stage crushing and stacking circuits, which delivered 100% of the 1.37 million tonnes of ore placed on the pad in the quarter, compared to 89% or 1.2 million tonnes of the 1.39 million tonnes placed during the comparable quarter a year ago. Mine production was 2.2 million tonnes of mineralized material with a lower strip ratio of 0.83:1 when compared to the second quarter of 2022. The reduction in the stripping ratio was a result of optimizing the mine plan sequence during the period. The operation experienced a positive reconciliation for ore sent to the leach pad during the third quarter, with grades sampled at the plant being 5.6% higher than estimated from the reserve model.

Cash cost per ounce of gold for the three months ended September 30, 2022 was $772 compared to $646 in the third quarter of 2021. Cash cost per ounce of gold was higher due to higher consumable prices, mainly related to diesel, explosives and reagents, higher service costs related to maintenance equipment rentals and higher maintenance contractor expenses, partially offset by lower labor cost.

Fortuna | 15

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

All-in sustaining cash cost per gold ounce sold was $1,159 during Q3 2022 compared with $1,270 in the third quarter of 2021. All-in sustaining cash cost for the third quarter of 2022 was impacted by the issues described above, offset by higher ounces sold, lower sustaining capital and a positive by-product effect.

Sustaining capital for the quarter primarily consisted of spending on the leach pad and mine maintenance. Construction of Phase-1B of the leach pad was completed during the quarter as planned, ensuring sufficient capacity to support the production plan through the second half of 2024. Detailed engineering work for the Phase-2 leach pad expansion was initiated in the third quarter of 2022 and is expected to be completed by year end. Construction work on Phase-2 is planned to commence in 2023. Brownfields capital primarily relates to exploration at the Arizaro project.

Yaramoko Mine, Burkina Faso

The Yaramoko Mine is located in south-western Burkina Faso, and began commercial production in 2016. The operation consists of two underground mines feeding ore to a traditional gold processing facility where the ore is crushed, milled and subject to carbon-in-leach extraction processes, prior to electrowinning and refining where gold is poured to doré bars. The table below shows the key metrics used to measure the operating performance of the mine: throughput, grade, production and unit costs:

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	137,202	126,677	403,957	126,677
Gold
Grade (g/t)	6.21	7.28	6.34	7.28
Recovery (%)	97	98	97	98
Production (oz)	27,130	28,751	79,918	28,751
Metal sold (oz)	27,055	27,494	81,183	27,494
Realized price ($/oz)	1,716	1,783	1,821	1,783
Unit Costs
Cash cost ($/oz Au)1	934	720	847	720
All-in sustaining cash cost ($/oz Au)1	1,630	1,188	1,433	1,188
Capital expenditures ($000's) 3
Sustaining	10,225	7,398	26,671	7,398
Brownfields	2,530	560	3,018	560
1 Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.
2 The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.
3 Capital expenditures are presented on a cash basis

Quarterly Operating and Financial Highlights

The Yaramoko Mine produced 27,130 ounces of gold in the third quarter of 2022 with an average gold head grade of 6.21g/t, which is in line with the mining sequence and Mineral Reserve estimate. The operation benefitted from higher mill throughput and operating time during the quarter offset by lower head grades when compared to the third quarter in 2021. Gold production for the first nine months of 2022 is in line with the annual guidance range.

Cash cost per gold ounce sold was $934, compared to $720 in the third quarter of 2021, primarily due to higher mining service costs related to inflation, higher processing costs due to annual mill inspection and repair moved up from

Fortuna | 16

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

November, and the processing of lower grade stockpiles during Q3 2022 as the site is currently mine constrained. This was partially offset by favorable foreign exchange rates.

All-in sustaining cash cost per gold ounce sold was $1,630 for Q3 2022, compared to $1,188 for the same period in 2021, as a result of decreased production, increased cash cost, and an increase in capital expenditures.

The operational focus remains on advancing development of the decline to maintain stope sequencing flexibility in the mine for the remainder of 2022 and into 2023. Sustaining capital for Q3 2022 was higher due to higher mine development and equipment purchases related to the QV Prime project in Bagassi South. Brownfields expenditure was higher due to greater amounts of diamond drilling as well as further development of the 109 Zone.

San Jose Mine, Mexico

The San Jose Mine is an underground silver-gold mine located in the state of Oaxaca in southern Mexico. The following table shows the key metrics used to measure the operating performance of the mine: throughput, head grade, recovery, gold and silver production and unit costs:

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	267,198	248,984	770,090	778,352
Average tonnes milled per day	3,071	2,862	2,939	2,980
Silver
Grade (g/t)	196	195	189	206
Recovery (%)	92	92	91	91
Production (oz)	1,545,410	1,436,658	4,288,936	4,707,496
Metal sold (oz)	1,539,382	1,440,946	4,272,878	4,704,656
Realized price ($/oz)	19.14	24.16	21.86	25.80
Gold
Grade (g/t)	1.16	1.22	1.14	1.29
Recovery (%)	91	91	91	91
Production (oz)	9,091	8,910	25,625	29,477
Metal sold (oz)	9,064	8,922	25,580	29,421
Realized price ($/oz)	1,722	1,784	1,825	1,798
Unit Costs
Production cash cost ($/t)2	79.37	77.52	79.66	74.22
Production cash cost ($/oz Ag Eq)1,2	9.70	9.99	10.35	9.28
All-in sustaining cash cost ($/oz Ag Eq)1,2	14.23	15.51	14.95	14.13
Capital expenditures ($000's) 3
Sustaining	4,410	3,553	12,036	9,525
Non-sustaining	–	745	869	1,776
Brownfields	1,548	2,547	4,645	6,437
1 Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively
2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures
3 Capital expenditures are presented on a cash basis

Fortuna | 17

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Quarterly Operating and Financial Highlights

In the third quarter of 2022, the San Jose Mine produced 1,545,410 ounces of silver and 9,091 ounces of gold, 8% and 2% higher, respectively, when compared to the equivalent period in 2021. The result is primarily due to higher mill throughput, with grades in line with the mining sequence and Mineral Reserve estimates. Silver production is tracking to meet the upper range of annual guidance.

The cash cost per tonne for the three months ended September 30, 2022 was $79.37 compared to $77.52 in the same period in 2021 primarily due to cost increases related to inflation, offset by higher tonnes processed.

All-in sustaining cash costs of $14.23 per ounce 15.51 per ounce for the same period in 2021 with higher silver equivalent ounces offsetting higher costs.

Capital expenditures for the quarter was lower than the previous year primarily due to lower brownfields exploration cost as the site focused on less capital-intensive exploration.

Fortuna | 18

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Caylloma Mine, Peru

Caylloma is an underground silver, lead and zinc mine located in the Arequipa Department in southern Peru. Its commercial products are silver-lead and zinc concentrates. The table below shows the key metrics used to measure the operating performance of the mine: throughput, head grade, recovery, silver, gold, lead and zinc production and unit costs:

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	139,143	136,410	407,695	401,942
Average tonnes milled per day	1,546	1,516	1,533	1,517
Silver
Grade (g/t)	79	78	82	77
Recovery (%)	82	81	81	82
Production (oz)	292,096	275,223	871,594	810,962
Metal sold (oz)	293,159	295,532	866,511	830,495
Realized price ($/oz)	19.31	24.67	21.98	25.80
Gold
Grade (g/t)	0.11	0.48	0.14	0.51
Recovery (%)	19	72	35	72
Production (oz)	91	1,529	656	4,712
Metal sold (oz)	—	1,466	603	3,140
Realized price ($/oz)	—	1,808	1,864	1,790
Lead
Grade (%)	3.33	3.14	3.29	3.15
Recovery (%)	89	87	88	88
Production (000's lbs)	9,085	8,245	25,856	24,571
Metal sold (000's lbs)	9,155	8,859	25,751	25,354
Realized price ($/lb)	0.90	1.06	0.99	0.98
Zinc
Grade (%)	4.37	4.74	4.22	4.67
Recovery (%)	89	87	89	87
Production (000's lbs)	11,885	12,436	33,598	36,169
Metal sold (000's lbs)	12,277	12,754	33,743	36,775
Realized price ($/lb)	1.48	1.36	1.65	1.31
Unit Costs
Production cash cost ($/t)2	93.12	86.04	92.03	85.17
Production cash cost ($/oz Ag Eq)1,2	11.32	12.75	12.25	13.25
All-in sustaining cash cost ($/oz Ag Eq)1,2	15.66	17.66	17.16	18.17
Capital expenditures ($000's) 3
Sustaining	3,764	3,480	11,506	7,930
Brownfields	198	1,168	729	2,777
1 Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively
2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures
3 Capital expenditures are presented on a cash basis

Fortuna | 19

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Quarterly Operating and Financial Highlights

The Caylloma Mine produced 292,096 ounces of silver, 9.1 million pounds of lead, and 11.9 million pounds of zinc during the three months ended September 30, 2022. The operation delivered another strong quarter of operational performance and is tracking well to deliver total production in the upper range of guidance. Measured against the comparable quarter of the previous year, silver was 6.1% higher due to a combination of increased mill throughput, higher grades and better recoveries. Lead production was 10% higher than the comparable period as a result of higher head grades, recovery, and mill throughput. Zinc production was 4% lower than the comparable period, mainly impacted by lower head grades partially offset by higher mill throughput and recovery. Gold production totaled 91 ounces with an average head grade of 0.11 g/t.

The cash cost per tonne of processed ore for the three months ended September 30, 2022 increased 8% to $93.12 compared to $86.04 in the same period in 2021. The increase was mainly the result of higher mining costs driven by inflation and its direct impact on the price of materials, such as explosives, fuel, cement, reagents, mill balls and others.

The all-in sustaining cash cost for the three months ended September 30, 2022 decreased 11% to $15.66 per ounce compared to $17.66 per ounce for the same period in 2021 as a result of higher costs being offset by an increase in silver equivalent production.

Sustaining capital expenditures for the quarter increased primarily due to greater execution of the developments located in level 16 and level 18, offset by decreased expenditure on other levels. The decrease in brownfields capital expenditures was due to significantly lower spending on drilling and development. During the third quarter of 2022, an assessment study for a potential expansion of the mine and processing plant was commenced, with tradeoff results expected to be delivered in the first quarter of 2023.

PROJECTS & EXPLORATION

Séguéla Gold Project Update

On September 29, 2021, Fortuna announced the decision to proceed with the construction of the open pit mine at the Séguéla Gold Project in Côte d’Ivoire. The total initial capital investment for the project is estimated to be $173.5 million, including $11.5 million previously approved by the Board for early works items, an anticipated construction schedule of approximately 20 months, with ramp up to name plate capacity expected in the third quarter of 2023. The development of the Séguéla Gold Project, including the milestones noted below is based on the technical report filed under NI 43-101 entitled “NI 43-101 Technical Report Séguéla Project, Feasibility Study, Worodougou Region, Côte d’Ivoire”, dated May 26, 2021 with an effective date of April 19, 2021.

At the end of September 30, 2022 the overall project was 78% complete, and was 83% complete as of October 31, 2022. The following provides an update on project activities for the third quarter of 2022 and from the end of the quarter to October 31, 2022.

Construction Highlights

● Approximately $119.0 million of the $173.5 million capital budget accrued as of September 30, 2022

● Deliveries continue to arrive in Abidjan, Côte d´Ivoire with all SAG mill components now shipped; last SAG mill package is due to arrive in early December

● The process plant structural, mechanical, and piping (SMP) contractor has advanced work across multiple work fronts

● Construction of the 33kV transmission line diversion was completed, and the line was energized in early August

● Construction of the 90kV transmission line and substation is nearing completion and on-track to be energized in December

Fortuna | 20

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

● Approximately 565,000 m3 of water has collected in the water storage dam (WSD) which is in line with expectations and needs for commissioning and startup activities

● Mota-Engil, the mining contractor, has mobilized to site and begun site establishment with long-lead equipment expected to arrive on site in the fourth quarter of 2022

● First gold pour remains on target for mid-2023

Accommodation camp  

The accommodation camp is complete and occupied by the project and Company staff

Processing plant

Lycopodium has made excellent progress in advancing the critical path scopes for the plant. Main construction activities include:

● Civil and concrete works nearing completion with handover of the SAG mill pedestals to the SMP contractor complete

● Carbon-in-leach (CIL) tank fabrication and hydrostatic / settlement completed

● Assembly of the water tanks and hydrostatic testing completed

● Erection of the reagents storage building, warehouse and workshop completed

● Structural steel erected in the crushing, surge bin and milling and grinding areas

● Mechanical equipment installations commenced for items such as the thickener, intensive leach reactor, and apron feeder

● Installation of conveyors underway

● Fabrication of steel pipe spools commenced

The delivery and installation of the SAG mill remains on the project’s critical path and, despite global supply chain challenges and risks, all components have been shipped and are expected to be delivered to site before the end of the year.

Site Bulk Earthworks

Construction of the tailings storage facility (TSF) and WSD are well advanced. Construction of the WSD is nearly complete and has already captured approximately 565,000 m³ of raw water in preparation for commissioning and transition to operations. Likewise, good progress has been made on the TSF embankment which is on track to be completed this quarter. Forty-eight percent of the total surface of the TSF has been lined with HDPE lining. As the wet season has ended, the lining contractor is re-mobilizing to site to complete the lining of the TSF.  

Grid Connection

The construction of the HV substation is approximately 97% complete. Work is on-track for the energization of the substation in December 2022 ahead of commissioning activities at the processing plant.

Mining

Mota-Engil, the mining services contractor at Séguéla, is well underway with its recruitment activities for the project and has mobilized its team to the site. All long-lead equipment has been procured and started to arrive in country in October.

Operational Readiness

Preparations for the operational phase of the mine are progressing well. Mota-Engil is currently undertaking civil works associated with the establishment of their infrastructure, including workshops, offices and explosives magazine area. Construction of the ROM pad and preliminary grade control drilling is expected to commence during the current quarter.

The first delivery of mining equipment has been received in Côte d’Ivoire with further deliveries of the mining fleet expected throughout the quarter.

Fortuna | 21

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Operational mine team recruitment activities are well advanced with General Manager Operations and other senior management positions appointed. Recruitment continues for the remainder of the operational team.

Cost

For the third quarter of 2022 the Company incurred and expended $21.5 million and $20.6 million, respectively. Since the project early works began in the third quarter of 2021, the Company incurred and expended $118.7 million and $110.8 million, respectively. Capital expenditures are summarized in the table below.

(Expressed in millions)	Q3 2022	YTD 20224	Project to Date
Expended Capital Costs1	20.6	83.3	110.8
Working Capital Adjustment2	(0.9)	13.4	(7.9)
Incurred Capital Costs3	21.5	70.0	118.7

_{1 Cash basis. Excludes exploration costs, capitalized interest and management fees.}

_{2 Primarily consists of work performed not yet invoiced and increases in the accounts payable balance offset by increases in the VAT receivable balance.}

_{3 Accrual basis. Excludes capitalized interest and management fees.}

_{4 YTD includes a correction for the timing of payments. This has not impacted project to date spend.}

As of September 30, 2022, the project had approximately $54.8 million in remaining spend of the project’s $173.5 million budget and the project remains on time and on budget. The Company’s cash and cash equivalents balance, free cash flow from ongoing operations and undrawn amounts of the credit facility are expected to be sufficient to fund the construction of the Séguéla Project.

Upcoming Milestones and Schedule

Selected upcoming milestones of the current construction schedule include:

2022 Q4

● Continue to negotiate the Mining Convention with the State of Côte d’Ivoire

● Power on high voltage substation

● Completion of the construction of the tailings storage facility

2023 Q1

● Commence pre-strip of the Antenna deposit

● Negotiation of Mining Convention

● Processing plant practical completion

Mid 2023

● First gold pour

Séguéla Exploration Update (Refer to Company News Release dated September 12, 2022 for full details)

Exploration drilling at the Séguéla Gold Project continued to advance the Sunbird deposit beyond the previously reported inferred mineral resource extends the defined mineralization associated with the central high grade core. This recent drilling has extended the defined mineralized strike at Sunbird to more than 1.1 kilometers, a further 480 meters to the south along the projected strike.

A six-hole, 1,957-meter program was completed at Ancien which was drilled to test the projection of several high grade zones to help improve the structural understanding of the mineralization controls. This program was designed to help

Fortuna | 22

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

support future testing for potential targets and mineralized extensions which may be amenable to underground mining in the future. 

Exploration of the Séguéla region through reverse circulation (RC) and diamond drilling (DD) at the Kestrel, G7 and Winy regional exploration targets returned encouraging results.

QUARTERLY INFORMATION

The following table provides information for the last eight fiscal quarters up to September 30, 2022:

	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020
Sales	166.6	167.9	182.3	198.9	162.6	120.5	117.8	103.5
Mine operating income	24.7	32.5	63.5	58.3	47.3	48.5	51.3	46.7
Operating income	5.7	13.1	40.7	38.9	21.8	35.9	40.4	28.2
Net (loss) income	(4.1)	1.7	27.0	16.6	0.2	16.2	26.4	18.6
Basic (loss) earnings per share	(0.01)	0.01	0.09	0.05	—	0.09	0.14	0.10
Diluted (loss) earnings per share	(0.01)	0.01	0.09	0.05	—	0.09	0.14	0.09
Total assets	2,032.6	2,060.0	2,060.4	2,021.9	2,002.1	1,083.2	1,069.1	1,055.3
Debt	204.2	218.6	198.0	157.5	187.7	159.5	159.0	158.6

Figures may not add due to rounding

Sales decreased 1% in the third quarter of 2022 to $166.6 million compared to $167.9 million in the second quarter of 2022 as higher production was offset by lower realized metal prices. Mine operating income was impacted by higher processing costs and a $1.0 million writedown of inventory to net realizable value at Yaramoko. Net income decreased $5.8 million compared to the second quarter of 2022 primarily due to the factors described above as well the write-off of the Tlamino property for $3.4 million.

Sales decreased 8% in the second quarter of 2022 to $167.9 million compared to $182.3 million in the first quarter of 2022 due primarily to lower sales at Yaramoko as mining finished in the QV zone and mill feed was supplemented by stockpiles reducing head grade delivered to the mill and lower head grades at San Jose. Mine operating income was lower as a result of lower sales as well as a $4.0 million write-down of inventory to net realizable value and an increase in costs due to inflationary pressures. Net income decreased $25.3 million compared to the first quarter of 2022 primarily due to the factors described above as well as higher current taxes from the recognition of withholding taxes.

Sales decreased 8% in the first quarter of 2022 to $182.3 million compared to $198.9 million in the fourth quarter of 2021 due primarily to lower sales at Lindero as a result of the impacts of COVID-19 at the mine and due to lower head grades at San Jose. Operating income was in line with the previous quarter as higher mine operating income was offset by the $2.1 million write-off due to the termination of a property agreement for the Santa Fe Property in Mexico and an increase in foreign exchange losses in the quarter. Net income increased $10.4 million compared to the fourth quarter of 2021 primarily due to lower current and deferred taxes.

Sales increased 22% in the fourth quarter of 2021 to $198.9 million compared to $162.6 million in the third quarter of 2021 due primarily to higher sales at Lindero and San Jose. Sales at Lindero increased to $65.6 million from $41.6 million, and sales from San Jose increased to $56.7 million from $48.0 million. Operating income was 78% higher in the fourth quarter of 2021 due primarily to an increase in gold ounces sold at Lindero and higher metal prices and the impact of the SGM royalty settlement in the third quarter of 2021.

Sales increased 35% in the third quarter of 2021 to $162.6 million compared to $120.5 million in the second quarter of 2021 due primarily to the $49.0 million of sales from Yaramoko, higher sales at Lindero, which increased to $41.6 million

Fortuna | 23

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

from $34.0 million, higher sales at Caylloma, which increased to $28.1 million from $26.0 million, offset partly by lower sales at San Jose, which decreased to $48.0 million from $59.0 million. Mine operating income decreased 2% in the third quarter of 2021 due primarily to the settlement payment related to the disputed SGM royalty claim, partly offset by the contributions from Yaramoko.

Sales increased 2% in the second quarter of 2021 to $120.5 million compared to $117.8 million in the first quarter of 2021 due to favorable price and assay adjustments of $1.5 million compared to unfavorable adjustments of $2.5 million during the first quarter, higher sales at San Jose, which increased to $59.0 million from $58.0 million, higher sales at Caylloma, which increased to $26.0 million from $25.4 million, offset partly by lower sales at Lindero, which decreased to $34.0 million from $36.9 million. Mine operating income decreased 6% in the second quarter of 2021 due primarily to San Jose, where operating income increased to $29.0 million from $26.6 million in the first quarter of 2021.  

Sales increased 14% in the first quarter of 2021 to $117.8 million compared to $103.5 million in the fourth quarter of 2020 due primarily to higher sales at Lindero, which increased to $36.9 million from $20.3 million, and sales at Caylloma, which increased to $25.4 million from $22.2 million, offset partly by provisional pricing adjustments. Mine operating income increased 10% in the first quarter of 2021 due primarily to Lindero, which increased to $15.2 million from $10.2 million in the fourth quarter of 2020.

Precious Metal Prices Trends

For the quarter ended September 30, 2022, the sale of silver and gold ounces represents approximately 88% of the Company’s sales revenue while lead and zinc make up the remaining 12%. Therefore, the prices of silver and gold are the most dominant factors in determining the Company’s profitability and cash flow from operations. The prices of gold and silver are subject to volatile fluctuations over short periods of time and can be affected by numerous macroeconomic conditions, including supply and demand factors, value of the U.S. dollar, interest rates and global economic and political issues.  The Company’s financial performance is expected to continue to be closely linked to the prices of silver and gold.

Fortuna | 24

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Gold and Silver prices declined through the third quarter of 2022 as central banks continued to combat inflation through interest rate hikes and the US dollar strengthened relative to precious metals. Gold and silver traded through a range of $1,808 to $1,634 and $20.06 to $17.77 per ounce respectively. Gold and silver finished the quarter at $1,671 and $19.02 per ounce, respectively. While higher volatility will have an impact on the revenue and cash flow of the Company it is not expected to impact the Company’s current capital plans as the Company remains well capitalized to fund the remaining construction of the Séguéla Project.

LIQUIDITY AND CAPITAL RESOURCES

Cash and Cash Equivalents

The Company had cash and cash equivalents of $90.9 million as at September 30, 2022, a decrease of $16.2 million since the beginning of the year. The decrease was due primarily to $144.6 million of net cash generated from operations and a drawdown of $65.0 million from the Company’s revolving credit facility, offset by $182.5 million of net cash used in investing activities primarily for construction expenditures at Séguéla, a repayment of $20.0 million to the revolving credit facility and $5.9 million in share repurchases as part of the NCIB program.

The Company’s investment objectives for its cash balances, in order of priority, are to preserve capital, to ensure liquidity, and to maximize returns. The Company’s strategy to achieve these objectives is to invest its excess cash balance in a portfolio of primarily fixed income instruments with specified credit rating targets established by the Board of Directors of the Company. The Company does not own any asset-based commercial paper or other similar at-risk investments in its investment portfolios.

Working Capital

Working capital (refer to Non-IFRS Financial Measures) at September 30, 2022 increased $6.8 million during the year to $121.1 million, due primarily to a $28.5 million decrease in trade and other payables and a $7.6 million decrease in income taxes payable offset by a $13.2 million decrease in trade and VAT receivables and a $16.1 million decrease in cash and cash equivalents.

Capital Resources

The Company maintains a $200 million revolving credit facility (“Credit Facility”). As of September 30, 2022 the Company had drawn down $165 million of the available credit. The Credit Facility has a term of four years and steps down to $150 million on November 4, 2024. Interest accrues on LIBOR loans under the Credit Facility at LIBOR plus an applicable margin of between 2% and 3% which varies according to the consolidated leverage levels of the Company.

The Credit Facility includes covenants customary for a facility of this nature including, among other matters, reporting requirements, and positive, negative, and financial covenants set out in therein. As at September 30, 2022, the Company was in compliance with all of the covenants under the Credit Facility.

Fortuna | 25

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

The Company has secured credit approval from its banking syndicate to increase the size of its Credit Facility by $50 million to $250 million. The upsized facility will also include a $50 million accordion feature. The amended facility is expected to close in the fourth quarter of 2022, subject to the completion of definitive documentation among the parties.

As at	September 30, 2022		December 31, 2021		Change
Cash and cash equivalents		90.9		107.1		(16.2)
Credit facility		200.0		200.0		-
Total liquidity available		290.9		307.1		(16.2)
Amount drawn on credit facility		(165.0)		(120.0)		(45.0)
Net liquidity position		125.9		187.1		(61.2)

Figures may not add due to rounding

In the third quarter of 2022, central banks around the world raised interest rates to combat high rates of inflation. This has resulted in a significant increase in LIBOR rates and the interest rate that is charged on the Company’s Credit Facility. The Company continues to monitor its cash management strategy and may make greater use of its own cash reserves to fund the construction of Séguéla, fund corporate activities or pay down debt. This may have an impact of increasing income taxes for the year where withholding taxes are paid to repatriate funds from our foreign subsidiaries.

The Russian invasion of Ukraine and the COVID-19 pandemic continue to impact the global economy. Given the ever evolving nature of the COVID-19 pandemic, it is difficult to predict the extent of the impact of the COVID-19 pandemic (or any other disease, epidemic or pandemic) on the Company and its business, which will depend on future developments, including: the duration, severity and geographic spread of the COVID-19 virus (or other communicable disease); further actions that may be taken by governmental authorities, which could include travel restrictions and the suspension of business activities, including mining; the effectiveness and timing of actions taken to contain and treat the COVID-19 virus and variants or mutations thereof, including the effectiveness and uptake of vaccines; and how quickly and to what extent normal economic conditions and operating conditions can resume. In the event of an extended conflict in Ukraine, additional waves of COVID-19 for an unexpectedly prolonged duration, or in the event that more rigorous capital controls are implemented in Argentina, the Company may be required to raise additional debt or equity. There is no assurance that the lenders will agree to such a request or that financing will be available to the Company on terms acceptable to it.

The Company does not have unlimited financial resources and there is no assurance that sufficient additional funding or financing will be available when needed by the Company or its direct and indirect subsidiaries on acceptable terms, or at all, to further explore or develop its properties or to fulfill its obligations under any applicable agreements.  Fortuna is a multinational company and relies on financial institutions worldwide to fund corporate and project needs.  Instability of large financial institutions may impact the ability of the Company to obtain equity or debt financings in the future and, if obtained, on terms that may not be favorable to the Company. Disruptions in the capital and credit markets as a result of uncertainty, geo-political events, changing or increased regulations of financial institutions, reduced alternatives or failures of significant financial institutions could adversely affect the Company’s access to the liquidity needed for the business in the longer term.

The Company may incur substantial debt from time to time to finance working capital, capital expenditures, investments or acquisitions or for other purposes. If the Company does so, the risks related to the Company’s indebtedness could intensify, including: (i) increased difficulty in satisfying existing debt obligations (ii) limitations on the ability to obtain additional financings, or imposed requirements to make non-strategic divestures (iii) impose hedging requirements (iv) imposed restrictions on the Company’s cash flows, for debt repayments or capital expenditures (v) increased vulnerability to general adverse economic and industry conditions (vi) interest rate risk exposure as borrowings may be at variable rates of interest (vii) decreased flexibility in planning for and reacting to changes in the mining industry (viii) reduced competitiveness versus less leveraged competitors, and (ix) increased cost of borrowings.

Fortuna | 26

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Subject to the various risks and uncertainties, as explained in the Risks and Uncertainties section of this MD&A, management believes the Company’s mining operations will generate sufficient cash flows and the Company has sufficient available credit lines and cash on hand to fund planned capital and exploration programs.

The Company has contingencies and capital commitments as described in Note 26 “Contingencies and Capital Commitments” in the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2022. From time to time, the Company may also be involved in legal proceedings that arise in the ordinary course of its business.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements or commitments that are expected to have a current or future effect on the financial condition, results of operations, liquidity, capital expenditures, or capital resources that are material to investors.

FINANCIAL INSTRUMENTS

The Company does not utilize complex financial instruments in hedging foreign exchange or interest exposure. Any hedging activity requires approval of the Company’s Board of Directors. The Company will not hold or issue derivative instruments for speculative or trading purposes.

Provisional priced trade receivables of $19.6 million, a forward sales and foreign exchange contracts liability totaling $1.4 million, and a forward fuel contract asset of $0.9 million are the Company’s only level 2 fair valued instruments and no level 3 instruments are held.

Provisionally priced trade receivables are valued using forward London Metal Exchange prices until final prices are settled at a future date. The forward sales, and forward foreign exchange contracts liabilities are valued based on the present value of the estimated contractual cash flows. Estimates of future cash flows are based on quoted swap rates, futures prices and interbank borrowing rates. These are discounted using a yield curve, and adjusted for credit risk of the Company or the counterparty.

Refer to the Risks and Uncertainties section of this MD&A for a discussion on credit risk, metal price risk, currency risk, and interest rate risk related to these financial instruments. See note 4 (section r) and Note 30 of the 2021 Financial Statements for a discussion of the Company’s use of financial instruments, including a description of liquidity risks associated with such instruments.

SHARE POSITION & OUTSTANDING OPTIONS & EQUITY BASED SHARE UNITS

The Company has 290,181,575 common shares outstanding as at November 9, 2022. In addition, there were 3,661,266 outstanding equity-settled share-based awards as follows:

Incentive stock options636,818

Restricted share units1,125,332

Performance share units​ ​1,899,116

Total​ ​3,661,266

An aggregate of 1,469,112 share-settled performance units issued by the Company are subject to a multiplier ranging from 50% to 200% depending on the achievement level of certain performance targets.

Fortuna | 27

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

As at September 30, 2022 the Company has $45.9 million of debentures that are convertible at the holder’s option into common shares in the capital of the Company at a conversion price of $5.00 per share, representing a conversion rate of 200 Common Shares per $1,000 principal amount of Debentures, subject to adjustment in certain circumstances.  Subject to certain exceptions in connection with a change of control of the Company, the Debentures cannot be redeemed by the Company prior to October 31, 2022. Between November 1, 2022 and prior to October 31, 2023, the Debentures may be redeemed in whole or in part from time to time at the Company’s option at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the Common Shares on the NYSE for the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is at least 125% of the Conversion Price. On and after October 31, 2023, the Debentures may be redeemed in whole or in part from time to time at the Company’s option at a price equal to their principal amount plus accrued and unpaid interest regardless of the trading price of the Common Shares. The Debentures mature on October 31, 2024 and bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October, commencing on April 30, 2020.

Subject to applicable securities laws and regulatory approval and provided that no event of default has occurred and is continuing, the Company may, at its option, elect to satisfy its obligation to pay the principal amount of the Debentures and accrued and unpaid interest on the redemption date and the maturity date, in whole or in part, through the issuance of Common Shares, by issuing and delivering that number of Common Shares, obtained by dividing the principal amount of the Debentures and all accrued and unpaid interest thereon by 95% of the current market price (as defined in the Debenture Indenture) on such redemption date or maturity date, as applicable.

Normal Course Issuer Bid

During the three months ended September 30, 2022, in accordance with the Company’s NCIB, the Company re-purchased an aggregate of 1,227,000 common shares at a weighted average price of $2.28 per share via open market purchases through the facilities of the NYSE for a total repurchase value of approximately $2.9 million, all of which shares were subsequently returned to treasury and cancelled.

From the commencement of the NCIB to the end of Q3 2022, the Company has purchased 2,201,404 shares at a weighted average price of $2.69 per share at a total cost of $5.9 million. The Company will continue to evaluate further share purchases with respect to this program when it believes the share price undervalues the Company, and based on cash requirements.

RELATED PARTY TRANSACTIONS

The Company has entered into the following related party transactions during the three and nine months ended September 30, 2022 and 2021:

(a)   Purchase of Goods and Services

During the nine months ended September 30, 2021, the Company was charged $5 thousand for general and administrative services pursuant to a shared services agreement with Gold Group Management Inc., a company of which Simon Ridgway, the Company’s former Chairman, is a director. Effective February 2, 2021, Mr. Ridgway resigned as director and Chairman of the Board, and costs incurred with Gold Group Management Inc. are no longer reported as related party transactions.

(b)   Key Management Personnel

Duringthenine monthsended 2022 and 2021,theCompanywaschargedforconsultingservicesbyMarioSzotlender,adirectorofthe Company. During the nine months ended September 30, 2021, the Company was charged consulting

Fortuna | 28

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

services byMillStreetServicesLtd.,acompanyofwhich Mr.Ridgway,theCompany’sformerChairman,is a director. EffectiveFebruary2,2021,Mr.RidgwayresignedasdirectorandChairmanoftheBoard,andcostsassociatedincurredwith MillStreetServicesLtd.arenolongerreportedasrelatedpartytransactions

Amounts paid to key management personnel were as follows:

	Three months ended September 30,				Nine months ended September 30,
(Expressed in $ thousands)	2022		2021		2022		2021
Salaries and benefits		2,078		2,234		9,057		6,030
Directors fees		197		125		737		436
Consulting fees		17		12		53		54
Share-based payments		1,452		(68)		4,416		513
		3,744		2,303		14,263		7,033

NON-IFRS FINANCIAL MEASURES

The Company has disclosed certain financial measures and ratios in this MD&A which are not defined under IFRS and are not disclosed in the Financial Statements, including but not limited to: cash cost per ounce of gold; all-in sustaining cash cost per ounce of gold sold; all-in cash cost per ounce of gold sold; total production cash cost per tonne; cash cost per payable ounce of silver equivalent; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow and free cashflow from ongoing operations; adjusted net income; adjusted EBITDA and working capital.

These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by Management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS. The Company has calculated these measures consistently for all periods presented.

The following table outlines the non-IFRS financial measures and ratios, their definitions, the most directly comparable IFRS measures and why we use these measures.

Non-IFRS Financial Measure or Ratio	Definition	Most Directly Comparable IFRS Measure	Why we use this measure and why it is useful to investors
Silver Equivalent Ounces Sold	Silver equivalent ounces are calculated by converting other metal production to its silver equivalent using relative metal/silver metal prices at realized prices and adding the converted metal production expressed in silver ounces to the ounces of silver production.	Silver Ounces Sold	Management believes this provides a consistent way to measure costs and performance

Fortuna | 29

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Non-IFRS Financial Measure or Ratio	Definition	Most Directly Comparable IFRS Measure	Why we use this measure and why it is useful to investors
Cash Costs	Cash costs include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining and processing costs, third-party refining and treatment charges, on-site general and administrative expenses, applicable production taxes and royalties which are not based on sales or taxable income calculations , net of by-product credits, but are exclusive of the impact of non-cash items that are included as part of the cost of sales that is calculated in the consolidated Income Statement including depreciation and depletion, reclamation, capital, development and exploration costs.	Cost of Sales	Management believes that cash cost and AISC measures provide useful information regarding the Company's ability to generate operating earnings and cash flows from its mining operations, and uses such measures to monitor the performance of the Company's mining operations. In addition, the Company believes that each measure provides useful information to investors in comparing, on a mine-by-mine basis, our operations relative performance on a period-by-period basis, against our competitors operations
Cash Cost Per Tonne	This ratio is calculated by dividing Cash Costs by the number of tonnes milled in the period
Cash Cost Per Ounce	This ratio is calculated by dividing cash costs by gold or silver equivalent ounces sold in the period
All-In Sustaining Costs (AISC)	The Company, in conjunction with an initiative undertaken within the gold mining industry, has adopted AISC and all-in sustaining cost measures based on guidance published by World Gold Council ("WGC"). The Company conforms its AISC and all-in cash cost definitions to that set out in the guidance and the Company has presented the cash cost figures on a sold ounce basis. We define All-in Sustaining Costs as total production cash costs incurred at the applicable mining operation but excludes mining royalty recognized as income tax within the scope of IAS-12, as well as non-sustaining capital expenditures. Sustaining capital expenditures, corporate selling, general and administrative expenses, and brownfield exploration expenditures are added to the cash cost. AISC is estimated at realized metal prices.
AISC per Ounce Sold	This ratio is calculated by dividing AISC by gold or silver equivalent ounces sold in the period.
All-In Costs	All-In Costs is calculated consistently with AISC but is inclusive of non-sustaining capital.
Free cash Flow From Ongoing Operations	Free cash flow from ongoing operations is defined as net cash provided by operating activities, including Lindero commissioning, less sustaining capital expenditures and current income tax expense and adding back income taxes paid, changes in long-term receivable sustaining capital expenditures, one time transaction costs, payments of lease liabilities and other non-recurring items	Net Cash Provided by Operating Activities	This non-IFRS measure is used by the Company and investors to measure the cash flow available to fund the Company’s growth through investments and capital expenditures

Fortuna | 30

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Non-IFRS Financial Measure or Ratio	Definition	Most Directly Comparable IFRS Measure	Why we use this measure and why it is useful to investors
Adjusted Net Income	Adjusted net income excludes the after-tax impact of specific items that are significant, which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as foreign exchange gains (losses) related to the construction of the Séguéla Mine, gains and losses and other one-time costs related to acquisitions, impairment charges (reversals), and certain non-recurring items. Although some of the items are recurring, such as; loss on disposal of assets and non-hedge derivative gains and losses, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results	Net Income	Management believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information and information obtained from conventional IFRS measures to evaluate the Company’s performance.
Adjusted EBITDA	Adjusted EBITDA is a non-IFRS measure which is calculated as net income before interest, taxes, depreciation, and amortization, adjusted to exclude specific items that are significant, but not reflective of the Company's underlying operations, such as foreign exchange gains (losses) related to the construction of the Séguéla Mine, gains and losses and other one-time costs related to acquisitions, impairment charges (reversals), unrealized gains (losses) on derivatives and certain non-recurring items, included in “Other expenses” on the Consolidated Income Statement. Other companies may calculate Adjusted EBITDA differently.	Net Income	Management believes that adjusted EBITDA provides valuable information as an indicator of the Company’s ability to generate operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Adjusted EBITDA is also a common metric that provides additional information used by investors and analysts for valuation purposes based on an observed or inferred relationship between adjusted EBITDA and market value.
Working Capital	Working capital is non-IFRS measure which is calculated by subtracting current liabilities from current assets.	Current Assets, Current Liabilities	Management believes that working capital is a useful indicator of the liquidity of the Company

Fortuna | 31

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Cash Cost per Ounce of Gold Sold

The following tables presents a reconciliation of cash cost per ounce of gold sold to the cost of sales in the September 30, 2022 unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2022 and 2021:

Lindero Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		43,928	29,508	121,122	75,974
Changes in doré inventory		(107)	1,456	605	2,458
Inventory adjustment		-	(1,743)	-	(1,743)
Export duties		(3,900)	(3,137)	(12,192)	(8,519)
Depletion and depreciation		(14,898)	(9,092)	(41,203)	(24,512)
By product credits		(232)	(55)	(232)	(183)
Production cash cost1		24,791	16,937	68,100	43,475
Changes in doré inventory		107	(1,456)	(605)	(2,458)
Realized gain in diesel hedge		(1,696)	(272)	(3,515)	(525)
Cash cost applicable per gold ounce sold	A	23,202	15,209	63,980	40,492
Ounces of gold sold	B	30,052	23,549	89,193	63,672
Cash cost per ounce of gold sold1 ($/oz)	=A/B	772	646	717	635
1 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

Yaramoko Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		47,481	38,431	129,762	38,431
Changes in doré inventory		-	823	(1,320)	823
Inventory net realizable value adjustment		(1,050)	-	(5,077)	-
Export duties		(2,817)	(2,975)	(8,898)	(2,975)
Depletion and depreciation		(18,356)	(15,739)	(47,010)	(15,739)
Refining charges		-	-	(329)	-
By product credits		-	(61)	(25)	(61)
Production cash cost		25,258	20,479	67,103	20,479
Changes in doré inventory		-	(823)	1,320	(823)
Refining charges		-	138	329	138
Cash cost applicable per gold ounce sold	A	25,258	19,794	68,752	19,794
Ounces of gold sold	B	27,055	27,475	81,183	27,475
Cash cost per ounce of gold sold ($/oz)	=A/B	934	720	847	720
The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.

Fortuna | 32

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

All-in Sustaining Cash Cost and All-in Cash Cost per Ounce of Gold Sold

The following tables shows a breakdown of the all-in sustaining cash cost per ounce of gold sold and all-in cash cost per ounce of gold sold for the three and nine months ended September 30, 2022 and 2021:

Lindero Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable	23,202	15,209	63,980	40,492
Export duties and mining taxes	3,900	3,137	12,192	8,519
General and administrative expenses (operations)	2,044	1,387	6,497	4,003
Adjusted operating cash cost	29,146	19,733	82,669	53,014
Sustaining leases	563	740	1,831	1,796
Sustaining capital expenditures1	4,814	9,385	14,062	20,040
Brownfields exploration expenditures1	314	47	1,104	489
All-in sustaining cash cost	34,837	29,905	99,666	75,339
Non-sustaining capital expenditures1	-	-	169	-
All-in cash cost	34,837	29,905	99,835	75,339
Ounces of gold sold	30,052	23,549	89,193	63,762
All-in sustaining cash cost per ounce of gold sold	1,159	1,270	1,117	1,182
All-in cash cost per ounce of gold sold	1,159	1,270	1,119	1,182
1 Presented on a cash basis

Yaramoko Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable	25,258	19,794	68,752	19,794
Inventory net realizable value adjustment	1,170	2,975	3,125	2,975
Export duties and mining taxes	2,817	-	8,898	-
General and administrative expenses (operations)	688	439	1,570	439
Adjusted operating cash cost	29,933	23,208	82,345	23,208
Sustaining leases	1,419	1,467	4,273	1,467
Sustaining capital expenditures1	10,225	7,398	26,671	7,398
Brownfields exploration expenditures1	2,530	560	3,018	560
All-in sustaining cash cost	44,107	32,633	116,307	32,633
All-in cash cost	44,107	32,633	116,307	32,633
Ounces of gold sold	27,055	27,475	81,183	27,475
All-in sustaining cash cost per ounce of gold sold	1,630	1,188	1,433	1,188
All-in cash cost per ounce of gold sold	1,630	1,188	1,433	1,188
The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.
1 Presented on a cash basis

Fortuna | 33

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Production Cash Cost per Tonne and Cash Cost per Payable Ounce of Silver Equivalent Sold

The following tables present a reconciliation of production cash cost per tonne and cash cost per payable ounce of silver equivalent sold to the cost of sales in the unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2022 and 2021:

San Jose Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		32,936	29,980	94,313	90,051
Changes in concentrate inventory		(209)	(31)	(137)	63
Depletion and depreciation in concentrate inventory		68	54	49	21
Inventory adjustment		312	(35)	266	46
Royalties and mining taxes		(1,261)	(1,641)	(4,002)	(4,368)
Workers participation		(979)	(1,218)	(1,876)	(4,573)
Depletion and depreciation		(9,659)	(7,808)	(27,265)	(23,468)
Cash cost3	A	21,208	19,301	61,348	57,772
Total processed ore (tonnes)	B	267,198	248,984	770,090	778,352
Production cash cost per tonne3 ($/t)	=A/B	79.37	77.52	79.66	74.22
Cash cost3	A	21,208	19,301	61,348	57,772
Changes in concentrate inventory		209	31	137	(63)
Depletion and depreciation in concentrate inventory		(68)	(54)	(49)	(21)
Inventory adjustment		(312)	35	(266)	(46)
Treatment charges		(173)	(2,622)	(228)	(441)
Refining charges		997	3,539	2,789	3,161
Cash cost applicable per payable ounce sold3	C	21,861	20,230	63,731	60,362
Payable ounces of silver equivalent sold1	D	2,254,673	2,024,487	6,159,782	6,501,691
Cash cost per ounce of payable silver equivalent sold2,3 ($/oz)	=C/D	9.70	9.99	10.35	9.28
Mining cost per tonne3		37.72	38.00	37.48	38.74
Milling cost per tonne		17.49	17.22	18.74	16.71
Indirect cost per tonne		16.09	14.79	15.48	12.66
Community relations cost per tonne		2.68	3.08	2.55	1.44
Distribution cost per tonne		5.39	4.43	5.41	4.67
Production cash cost per tonne3 ($/t)		79.37	77.52	79.66	74.22
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 90.0:1 (Q3 2021: 73.8:1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 83.5:1 (YTD 2021: 69.7:1).
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results – Sales and Realized Prices
3 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

Fortuna | 34

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Caylloma Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		17,512	17,302	50,815	49,332
Changes in concentrate inventory		135	(670)	11	(899)
Depletion and depreciation in concentrate inventory		(30)	133	(196)	155
Inventory adjustment		(491)	-	(179)	-
Royalties and mining taxes		(218)	(68)	(686)	(157)
Provision for community support		123	-	97	-
Workers participation		(455)	(412)	(1,389)	(1,624)
Depletion and depreciation		(3,619)	(4,549)	(10,952)	(12,575)
Cash cost3	A	12,957	11,736	37,521	34,232
Total processed ore (tonnes)	B	139,143	136,410	407,695	401,942
Production cash cost per tonne3 ($/t)	=A/B	93.12	86.04	92.03	85.17
Cash cost	A	12,957	11,736	37,521	34,232
Changes in concentrate inventory		(135)	670	(11)	899
Depletion and depreciation in concentrate inventory		30	(133)	196	(155)
Inventory adjustment		491	-	179	-
Treatment charges		3,028	4,378	11,195	11,125
Refining charges		389	459	1,153	1,292
Cash cost applicable per payable ounce sold3	C	16,760	17,110	50,233	47,393
Payable ounces of silver equivalent sold1	D	1,480,688	1,341,997	4,101,900	3,577,778
Cash cost per ounce of payable silver equivalent sold2,3 ($/oz)	=C/D	11.32	12.75	12.25	13.25
Mining cost per tonne		41.38	33.82	39.04	32.24
Milling cost per tonne		14.57	15.95	15.24	15.00
Indirect cost per tonne		28.46	28.05	29.50	29.50
Community relations cost per tonne		1.30	0.51	0.93	0.72
Distribution cost per tonne		7.43	7.71	7.34	7.71
Production cash cost per tonne3 ($/t)		93.14	86.04	92.05	85.17
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 0.0:1 (Q3 2021: 72.5:1), silver to lead ratio of 1:21.4 pounds (Q3 2021: 1:23.3), and silver to zinc ratio of 1:13.0 pounds (Q3 2021: 1:18.1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 84.8:1 (YTD 2021: 69.4:1), silver to lead ratio of 1:22.2 pounds (YTD 2021: 1:26.3), and silver to zinc ratio of 1:13.3 pounds (YTD 2021: 1:19.7).
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices
3 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

Fortuna | 35

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

All-in Sustaining Cash Cost and All-in Cash Cost per Payable Ounce of Silver Equivalent Sold

The following tables show a breakdown of the all-in sustaining cash cost per silver equivalent ounce payable for the three and nine months ended September 30, 2022 and 2021:

San Jose Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable4	21,861	20,230	63,731	60,362
Royalties and mining taxes	1,261	1,641	4,002	4,368
Workers' participation	1,224	1,522	2,345	5,716
General and administrative expenses (operations)	1,606	1,719	4,845	5,022
Adjusted operating cash cost4	25,952	25,112	74,923	75,468
Sustaining leases4	183	184	489	447
Sustaining capital expenditures3	4,410	3,553	12,036	9,525
Brownfields exploration expenditures3	1,548	2,547	4,645	6,437
All-in sustaining cash cost	32,093	31,397	92,093	91,878
Non-sustaining capital expenditures3	-	745	869	1,776
All-in cash cost	32,093	32,142	92,962	93,654
Payable ounces of silver equivalent sold1	2,254,673	2,024,487	6,159,782	6,501,691
All-in sustaining cash cost per ounce of payable silver equivalent sold2	14.23	15.51	14.95	14.13
All-in cash cost per ounce of payable silver equivalent sold2	14.23	15.88	15.09	14.40
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 90.0:1 (Q3 2021: 73.9:1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 83.5:1 (YTD 2021: 69.7:1).
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results - Sales and Realized Prices
3 Presented on a cash basis
4 September 30, 2021 restated, Sustaining leases moved from Cash Cost

Caylloma Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable4	16,760	17,110	50,233	47,392
Royalties and mining taxes	218	68	686	157
Workers' participation	522	465	1,607	1,886
General and administrative expenses (operations)	890	630	3,135	2,700
Adjusted operating cash cost4	18,390	18,273	55,661	52,135
Sustaining leases4	841	780	2,505	2,170
Sustaining capital expenditures3	3,764	3,480	11,506	7,930
Brownfields exploration expenditures3	198	1,168	729	2,777
All-in sustaining cash cost	23,193	23,701	70,401	65,012
All-in cash cost	23,193	23,701	70,401	65,012
Payable ounces of silver equivalent sold1	1,480,688	1,341,997	4,101,900	3,577,778
All-in sustaining cash cost per ounce of payable silver equivalent sold2	15.66	17.66	17.16	18.17
All-in cash cost per ounce of payable silver equivalent sold2	15.66	17.66	17.16	18.17
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 0.0:1 (Q3 2021: 72.5:1), silver to lead ratio of 1:21.4 pounds (Q3 2021: 1:23.3), and silver to zinc ratio of 1:13.0 pounds (Q3 2021: 1:18.2). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 84.8:1 (YTD 2021: 69.4:1), silver to lead ratio of 1:22.2 pounds (YTD 2021: 1:26.3), and silver to zinc ratio of 1:13.3 pounds (YTD 2021: 1:19.7).
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices
3 Presented on a cash basis
4 September 30, 2021 restated, Sustaining leases moved from Cash Cost

Fortuna | 36

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Free Cash Flow from Ongoing Operations

In 2022, the Company changed the method for calculating Free Cash Flow from Ongoing Operations. The calculation now uses taxes paid as opposed to the previous method which used current income taxes. While this may create larger quarter over quarter fluctuations due to the timing of income tax payments, management believes the revised method is a better representation of the Free Cash Flow generated by the Company’s ongoing operations. Comparative values from 2021 have been restated in this MD&A using the change in methodology.

The following table presents a reconciliation of free cash flow from ongoing operations to net cash provided by operating activities, the most directly comparable IFRS measure, for the three and nine months ended September 30, 2022 and 2021:

		Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
				(Restated)				(Restated)
Net cash provided by operating activities		64.7		39.4		144.6		90.1
Adjustments
Roxgold transaction costs		-		3.5		-		3.5
Additions to mineral properties, plant and equipment		(27.8)		(13.8)		(73.8)		(23.2)
Progresso royalty payment		-		-		3.0		-
Other adjustments		(2.9)		-		(9.0)		-
Free cash flow from ongoing operations		34.0		29.1		64.8		70.4

Figures may not add due to rounding

Adjusted Net Income

The following table presents a reconciliation of the adjusted net income from net income, the most directly comparable IFRS measure, for the three and nine months ended September 30, 2022 and 2021:

		Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Net income		(4.1)		0.2		24.5		42.8
Adjustments, net of tax:
Community support provision and accruals1		-		-		-		0.1
Foreign exchange loss, Lindero Mine2		-		1.2		-		3.8
Foreign exchange loss, Séguéla Project		0.3		-		1.2		-
Write off of mineral properties		3.4		-		4.9		-
Unrealized loss (gain) on derivatives		1.7		-		(0.5)		-
Roxgold transaction costs		-		10.5		-		14.1
SGM Royalty settlement		-		6.7		-		6.7
Inventory adjustment		0.9		-		4.2		-
Accretion on right of use assets		0.6		-		1.8		-
Other non-cash/non-recurring items		(0.5)		3.9		(0.7)		4.0
Adjusted net income		2.3		22.5		35.4		71.5
1 Amounts are recorded in Cost of sales
2 Amounts are recorded in General and Administration

Figures may not add due to rounding

Fortuna | 37

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA from net income, the most directly comparable IFRS measure, for the three and nine months ended September 30, 2022 and 2021:

	Three months ended September 30,					Nine months ended September 30,
	2022		2021		2022		2021
Net income		(4.1)		0.2		24.5		42.8
Adjustments:
Community support provision and accruals		-		-		-		(0.1)
Inventory adjustment		1.1		1.8		5.1		1.7
Foreign exchange loss, Lindero Mine		-		1.2		-		3.8
Foreign exchange loss, Séguéla Project		0.3		-		1.2		-
Net finance items		2.4		4.0		8.9		8.5
Depreciation, depletion, and amortization		46.9		37.8		127.4		77.5
Income taxes		5.8		8.9		26.1		34.2
Roxgold transaction costs		-		10.5		-		14.1
SGM Royalty settlement		-		9.6		-		9.6
Other non-cash/non-recurring items		2.0		1.3		(3.5)		(1.0)
Adjusted EBITDA		54.4		75.3		189.7		191.1

Figures may not add due to rounding

Working Capital

The following table presents a calculation of working capital for the nine months ended September 30, 2022 and 2021:

	Nine months ended September 30,
	2022		2021
Current Assets	$	251,851	$	255,601
Current Liabilities		130,753		203,916
Working Capital	$	121,098	$	51,685

Qualified Person

Eric Chapman, P.Geo (EGBC #36328), Senior Vice-President of Technical Services for the Company, is a Qualified Person (as defined by National Instrument 43-101–Standards of Disclosure for Mineral Projects) (“NI 43-101”).  Mr. Chapman has reviewed and approved the scientific and technical information pertaining to the production results for each of the Lindero, Yaramoko, San Jose and Caylloma mines contained in this MD&A and has verified the underlying data.

Raul Espinoza, F.AusIMM CP, Director of Technical Services for the Company is a Qualified Person as defined by NI 43-101, and has reviewed and approved the scientific and technical information pertaining to the Séguéla Project contained in this MD&A and has verified the underlying data.

Other Information, Risks and Uncertainties

For further information regarding the Company’s operational risks, please refer to the section entitled “Description of the Business - Risk Factors” in the Company’s most recent Annual Information Form that is available at www.sedar.com and www.sec.gov/edgar.shtml.

Fortuna | 38

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

RISKS AND UNCERTAINTIES

The Company is exposed to many risks in conducting its business, including but not limited to metal price risk as the Company derives its revenue from the sale of silver, gold, lead and zinc; credit risk in the normal course of business; foreign exchange risk as the Company reports its financial statements in U.S. dollars whereas the Company operates in jurisdictions that conducts its business in other currencies; the inherent risks of uncertainties in estimating mineral reserves and mineral resources; the risks related to the construction of an open pit gold mine at the Séguéla Gold Project and the anticipated timing of production at the mine; rising rates of inflation which impact the costs of production; risks related to widespread epidemics or pandemics such as further outbreaks of COVID-19; political risks, capital controls risk and the limitations on the repatriation of operating cash flows, environmental risks; risks related to the ability of the Company to obtain permits for its operations, including the reconfirmation of the 12 year extension of the EIA at the San Jose mine; and risks related to its relations with employees. These and other risks are described below and in the 2021 Financial Statements, its Annual Information Form which is available on SEDAR at www.sedar.com, and its Form 40-F filed with the SEC. Readers are encouraged to refer to these documents for a more detailed description of some of the risks and uncertainties inherent to the Company’s business.

Foreign Jurisdiction Risk

As at the date of the MD&A, the Company currently conducts its operations in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru.  All these jurisdictions are potentially subject to a number of political and economic risks, including those described in the following section. The Company is unable to determine the impact of these risks or its future financial position or results of operations and the Company’s exploration, development, and production activities may be substantially affected by factors outside of the Company’s control.  These potential factors include but are not limited to royalty and tax increases or claims by governmental bodies, expropriation or nationalization, lack of an independent judiciary, foreign exchange controls, capital and currency controls, import and export regulations, cancellation or renegotiation of contracts, and environmental and permitting regulations. The Company has no political risk insurance coverage against these risks

The majority of the Company’s production and revenue to September 30, 2022 was derived from its operations in Argentina, Mexico, Burkina Faso and Peru.  As the Company’s business is carried on in a number of developing countries, it is exposed to a number of risks and uncertainties, including the following: expropriation or nationalization without adequate compensation especially in Argentina which has a history of expropriation where the Company operates the Lindero Mine; changing political and fiscal regime, including the military coups in Burkina Faso in January and September 2022, and economic and regulatory instability; the unexpected change of Government in Côte d'Ivoire in April 2022; unanticipated changes to royalty and tax regulations; unreliable and undeveloped infrastructure, labour unrest, and labour scarcity; difficulty procuring key equipment and components for equipment; import and export regulation and restrictions; the imposition of capital controls which may affect the repatriation of funds; high rates of inflation; extreme fluctuations in foreign exchange rates and the imposition of currency controls; inability to obtain fair dispute resolution or judicial determination because of bias, corruption or abuse of power; difficulties enforcing judgments; difficulties understanding and complying with regulatory and legal framework with respect to ownership and maintenance of mineral properties, mines and mining operations, local opposition to mine development projects, which include the potential for violence, property damage and frivolous or vexatious claims; terrorism and hostage taking; military repression and increased likelihood of international conflicts or aggression; increased public health concerns. Certain of these risks and uncertainties are prevalent in the jurisdictions where the Company operates.

There can be no assurance that these measures will not be extended or that more restrictive measures will be put in place in the countries in which the Company operates, which may result in the suspension of operations or construction at the Company’s mines on a short or long-term basis.

Fortuna | 39

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Estimating Mineral Resources and Mineral Reserves

There is a degree of uncertainty attributable to the estimation of Mineral Resources, Mineral Reserves, and expected mineral grades.  Until mineral deposits are actually mined and processed, Mineral Resources and Mineral Reserves must be considered as estimates only. Any such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices.

Mineral Resources and Mineral Reserves may require revision based on actual production experience. Market fluctuations in the price of metals, as well as increased production costs and reduced metallurgical recovery rates, may render certain Mineral Reserves uneconomic and may ultimately result in a restatement of Mineral Resources and/or Mineral Reserves. Short-term operating factors relating to the Mineral Resources and Mineral Reserves, such as the need for sequential development of ore bodies, may adversely affect the Company’s profitability in any accounting period. Estimates of operating costs are based on assumptions including those relating to inflation and currency exchange, which may prove incorrect. Estimates of mineralization can be imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. In addition, the grade and/or quantity of precious metals ultimately recovered may differ from that indicated by drilling results. There can be no assurance that precious metals recovered in small scale tests will be duplicated in large scale tests under onsite conditions or in production scale. Amendments to mine plans and production profiles may be required as the amount of Mineral Resources changes or upon receipt of further information during the implementation phase of the project. Extended declines in market prices for gold, silver and other metals may render portions of the Company’s mineralization uneconomic and result in reduced reported mineralization. Any material reduction in estimates of mineralization, or in the Company’s ability to develop its properties and extract and sell such minerals, could have a material adverse effect on the Company's results of operations or financial condition.

Mining Operations

The capital costs required by the Company’s projects may be significantly higher than anticipated. Capital and operating costs, production and economic returns, and other estimates contained in the Company’s current technical reports, may differ significantly from those provided for in future studies and estimates and from management guidance, and there can be no assurance that the Company’s actual capital and operating costs will not be higher than currently anticipated. In addition, delays to construction and exploration schedules may negatively impact the net present value and internal rates of return of the Company’s mineral properties as set forth in the applicable technical report. Similarly, there can be no assurance that historical rates of production, grades of ore processed, rates of recoveries or mining cash costs will not experience fluctuations or differ significantly from current levels over the course of the mining operations. In addition, there can be no assurance that the Company will be able to continue to extend the production from its current operations through exploration and drilling programs.

Uncertainties related to new mining operations

Without limiting the generality of the foregoing, Fortuna is in the process of the development and construction of an open pit mine at the Séguéla Project. Any such development or expansion project which is progressed to commercial operations will face a number of risks inherent in new mining operations.

The successful completion of the Company’s development and expansion projects requires the construction and operation of mines, processing plants and related infrastructure.  As a result, the Company is and will continue to be subject to all of the risks associated with establishing new mining operations, including:

● the timing and cost, which can be considerable, of the construction of mining and processing facilities;

● the availability and cost of skilled labour, mining equipment and principal supplies needed for operations;

● the availability and cost of appropriate smelting and refining arrangements;

Fortuna | 40

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

● the need to maintain necessary environmental and other governmental approvals and permits;

● the availability of funds to finance construction and development activities;

● potential opposition from governments, non-governmental organizations, environmental groups, local groups or other stakeholders, which may delay or prevent development activities; and

● potential increases in construction and operating costs due to changes in the cost of labour, fuel, power, materials and supplies.

It is not unusual in the mining industry for new mining operations to experience unexpected difficulties during the start-up phase or the initial production phase, resulting in production suspensions, delays and requiring more capital than anticipated. It is also common in new mining operations to experience unexpected problems, delays and costs during mine development and ramp-up to full production capacity. Such factors can add to the costs of the mine development, production and operations and/or impair production and mining activities, thereby affecting the Company’s cashflows and profitability.  Any unexpected complications and delays in the completion and successful functioning of these operational elements may result in additional costs being incurred by the Company beyond those already incurred and budgeted.  There can be no assurance that current or future development and expansion plans in respect of the Yaramoko Mine and the Séguéla Project will be successful or completed on time or on budget.

Environmental Uncertainties

All phases of the Company’s operations are subject to environmental regulation in the various jurisdictions in which it operates. These laws address emissions into the air, discharges into water, management of waste, management of hazardous substances, protection of natural resources, antiquities and endangered species, and reclamation of lands disturbed by mining operations. The Company’s operations generate chemical and metals depositions in the form of tailings. The Company’s ability to obtain, maintain and renew permits and approvals, and to successfully develop and operate mines may be adversely affected by real or perceived impacts associated with the Company’s activities or of other mining companies that affect the environment, human health and safety. Environmental hazards may exist on the Company’s properties which are unknown to the Company at present and were caused by previous or existing owners or operators of the properties, for which the Company could be held liable.

Environmental legislation is evolving in a manner which is imposing stricter standards and enforcement, increased fines and penalties for non-compliance, in addition to more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. Compliance with environmental laws and regulations may require significant capital outlays on behalf of the Company and may cause material changes or delays in the Company’s intended activities. Failure to comply with applicable environmental laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities, causing operations to cease or be curtailed. Such enforcement actions may include the imposition of corrective measures requiring capital expenditure, installation of new equipment or remedial action. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company’s operations.

The activities of the Company require licenses and permits from various governmental authorities. The Company currently has been granted the requisite licenses and permits to enable it to carry on its existing business and operations. On December 20, 2021, the Company announced that SEMARNAT had granted a 12-year extension to the EIA for the San Jose Mine. Subsequently on February 4, 2022, the Company announced that it had received a notice from SEMARNAT which advised that SEMARNAT had made a typographical error in the extension to the term of the EIA for the San Jose Mine and that the correct term was two years. The Company  initiated legal proceedings in the Mexican Federal Administrative Court (the “Court”) to challenge the notice, and also obtained an injunction in favour of the Company, which suspended the reduction of the term of the EIA from 12 years to two years during the course of the legal proceedings. On November 7, 2022, the Company received notice that the Court had issued a judgment in favour of the Company, which revoked the alleged “typographical  error” of the term of the EIA, and re-confirms the period of a 12 year extension for the EIA. 

Fortuna | 41

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

In addition, there can be no assurance that the Company will be able to obtain all the necessary licenses and permits which may be required to carry out exploration, development and mining operations for its projects in the future. The Company might find itself in situations where the state of compliance with regulation and permits can be subject to interpretation and challenge from authorities that could carry risk of fines or temporary stoppage.

Diseases, epidemics and pandemics (including the COVID-19 pandemic) may adversely impact the Company’s operations, financial condition and share price.

The Company’s operations and financial performance are dependent on it being able to operate at each of its mines and projects.  In view of the constantly changing situation regarding COVID-19 pandemic, including further waves of the virus and the emergence of variant forms of the virus, it is difficult to predict the exact nature and extent of the impact the pandemic may have on the Company’s operations and its business. Outbreaks of COVID-19 in areas where the Company operates or restrictive directives of government and public health authorities could cause delays or disruptions in the Company’s supply chain, restrict access to its mine sites, restrict its ability to transport and ship gold doré and/or metal concentrates, restrict access to processing and refinery facilities, or impediments to market logistics. Suspensions of operations or curtailment of construction activities at the Company’s mines remains a significant risk to its business and operations.

Risks Associated with the Integration of the Company and Roxgold

The completion of the business combination of Roxgold is expected to result in among other benefits, a combination of quality assets resulting in increased gold production; a complementary and diversified portfolio of assets in West Africa and the Americas; multiple brownfields and greenfields options across the Americas and West Africa, and a low-cost platform of precious metals production and growth. The ability of the Company to realize the benefits of the acquisition will depend in part on successfully consolidating functions and integrating operations, procedures and personnel in a timely and efficient manner, as well as the Company’s ability to realize the anticipated growth opportunities and synergies from integrating Roxgold's business. This integration will require the dedication of management effort, time and resources which may divert management's focus and resources from other strategic opportunities available to the Company, and from operational matters during this process.

In addition, the integration process could result in the disruption of existing relationships with suppliers, employees, customers and other constituencies of Fortuna and Roxgold. There can be no assurance that management will be able to integrate the operations of each of the businesses successfully or achieve any of the synergies or other benefits that are anticipated to result from the acquisition. It is possible that the integration process could result in the loss of key employees, the disruption of the respective ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect the ability of management to maintain relationships with customers, suppliers, employees or to achieve the anticipated benefits of the acquisition. Any inability of management to successfully integrate the operations could have a material adverse effect on the Company’s business, financial condition and results of operations.

Risks of Operating in West Africa

Certain of our operations are currently conducted in West Africa, with the Yaramoko Mine in Burkina Faso and the Séguéla Project in Côte d’Ivoire, and as such as is common in other mining jurisdictions, the Company’s operations are exposed to various political, economic, and other risks and uncertainties.  The Company is subject to risks associated with operating in West Africa with its Yaramoko Mine in Burkina Faso and the Séguéla Project in Côte d’Ivoire. These risks and uncertainties include but are not limited to: civil and ethnic unrest, war (including in neighbouring countries), terrorist actions, hostage taking or detainment of personnel, military repression, criminal activity, nationalization, invalidation of governmental orders, failure to enforce existing laws, labour disputes, corruption, sovereign risk, political instability, the failure of foreign parties, courts or governments to honour or enforce contractual relations or uphold property rights, changing

Fortuna | 42

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

government regulations with respect to mining (including royalties, environmental requirements, labour, taxation, land tenure, foreign investments, income repatriation and capital recovery), fluctuations in currency exchange and inflation rates, import and export restrictions, the expropriation of property interests, as well as by laws and policies of Canada affecting foreign trade, investment and taxation.

As African governments continue to struggle with deficits and depressed economies, the strength of commodity prices has resulted in the gold mining sector being targeted as a source of revenue. Governments are continually assessing the terms for a mining company to exploit resources in their country.

Operations may also be impacted to varying degrees by the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption, or other factors that are inconsistent with the rule of law. Businesses can become involved in lengthy court cases over simple issues when rulings are not clearly defined, and the poor drafting of laws and excessive delays in the legal process for resolving issues or disputes compound such problems.

Any of the above events could delay or prevent the Company from operating, developing, or exploring its properties even if economic quantities of minerals are found and could have a material adverse impact upon the Company’s operations.

Safety and Security

The Company’s Yaramoko Mine is located in Burkina Faso and the advanced exploration Séguéla Gold Project is located in in Côte d’Ivoire.  Following instability in recent years in several West African countries, the prevailing security environment in these countries has deteriorated due to the presence of various militant secessionist and Islamist paramilitary groups, as well as the result of the January and September 2022 military coups in Burkina Faso. While additional measures have been implemented in response to ensure the security of its various assets, personnel and contractors, and the Company continues to cooperate with regional governments, their security forces and third parties, there can be no assurance that these measures will be successful. Any failure to maintain the security of its assets, personnel and contractors may have a material adverse effect on the Company’s business, prospects, financial condition, and results of operations. To date, neither employees nor operations have been impacted by the security situation in Burkina Faso.

While there is no reason to believe that the Company’s employees or operations will be targeted by criminal and/or terrorist activities in the countries in which we operate, risks associated with conducting business in the region, along with the increased perception that such incidents are likely to occur, may disrupt the Company’s operations, limit its ability to hire and keep qualified personnel, and impair its access to sources of capital or insurance on terms and at rates that are commercially viable. Furthermore, although the Company has developed procedures regarding the mitigation of such risks, due to the unpredictable nature of criminal and/or terrorist activities, there is no assurance that its efforts will be able to effectively mitigate such risks and safeguard the Company’s personnel and assets.

Credit Risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations.  All of our trade receivables from concentrate sales are held with large international metals trading companies.  

The Company’s cash and cash equivalents and short-term investments are held through large financial institutions. These investments mature at various dates within one year.

Fortuna | 43

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

The Company’s maximum exposure to credit risk as at September 30, 2022 and December 31, 2021 is as follows:

As at	September 30, 2022		December 31, 2021
Cash and cash equivalents		90.9		107.1
Derivative assets		1.3		1.5
Trade and other receivables		63.3		76.5
Income tax receivable		2.4		1.7
Other non-current receivables		6.4		6.0
		164.3		192.8

Figures may not add due to rounding

The carrying amount of financial assets recorded in the financial statements represents the Company’s maximum exposure to credit risk. We limit our exposure to counterparty credit risk on cash and term deposits by only dealing with financial institutions with high credit ratings and through our investment policy of purchasing only instruments with a high credit rating. Almost all of our concentrate is sold to large well-known concentrate buyers.

Metal Price Risk

The Company derives its revenue from the sale of silver, gold, lead, and zinc.  The Company’s sales are directly dependent on metal prices, and metal prices have historically shown significant volatility that is beyond the Company’s control.  

The following table illustrates the sensitivity to a +/-10% change in metal prices on the Company’s outstanding trade receivables as at September 30, 2022:

Metal	Change	Effect on Sales
Silver	+/- 10%	0.9
Gold	+/- 10%	0.5
Lead	+/- 10%	0.2
Zinc	+/- 10%	0.5

Changes in the market prices of the precious metals that the Company produces affects the Company’s profitability and cashflow. Metals prices can fluctuate due to many factors including, demand, the strength of the United States dollar, currency exchange rates, inflation, global mine production levels, other general price instability. Decrease in the market price of metals can also significantly affect the value of the Company’s metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value as well as significantly impact the carrying value of Company’s assets.

From time to time, the Company mitigates the price risk associated with its base metal production by entering into forward sale and collar contracts for some of its forecasted base metal production and non-metal commodities.  

Refer to the Company’s 2021 Financial Statements for details of contracts entered into.

The zinc, lead, and fuel contracts are derivative financial instruments and are not accounted for as designated hedges. They were initially recognized at fair value on the date on which the related derivative contracts were entered into and are subsequently re-measured to estimated fair value. Any gains or losses arising from changes in the fair value of the derivatives are credited or charged to profit or loss.

Currency Risk

The Company is exposed to fluctuations in foreign exchange rates as a portion of our expenses are incurred in Canadian dollars, Peruvian soles, Argentine pesos, Mexican pesos, Euro, Australian dollar, and West African CFA francs. A significant

Fortuna | 44

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

change in the foreign exchange rates between the United States dollar relative to the other currencies could have a material effect on the Company’s profit or loss, financial position, or cash flows.

The following table summarizes the sensitivity to a +/-10% change in foreign currency exchange rates on the Company’s foreign currency exposure as at September 30, 2022:

Currency of foreign denominated items	Change	Effect
Mexican pesos	+/- 10%	0.3
Peruvian soles	+/- 10%	0.3
Argentine pesos	+/- 10%	0.2
Canadian dollars	+/- 10%	1.0
West African CFA franc	+/- 10%	1.6
Australian Dollar	+/- 10%	0.1
Euro	+/- 10%	0.1

Due to the volatility of the exchange rate for Argentine peso, the Company is applying additional measures in cash management to minimize potential losses arising from the conversion of funds. As discussed below in the capital management section, the Company is required to convert the equivalent value into Argentine peso from the export sale of all gold doré from the Lindero Mine. In addition, the Company would be required to obtain the prior consent of the Argentine Central Bank for the payment of cash dividends and distributions of profits out of Argentina.  

The following tables summarizes the Company’s exposure to currency risk through the following assets and liabilities denominated in foreign currencies:

As at September 30, 2022 (In millions of local currency)	Canadian dollars	Peruvian soles	Mexican pesos	Argentine pesos	West African CFA Franc	Australian Dollars	Euro
Cash and cash equivalents	0.7	4.4	46.6	11.8	13,584.0	-	-
Marketable securities	0.4	-	-	-	-	-	-
Restricted cash	-	-	-	-	2,030.1	-	-
Trade and VAT receivables	1.0	3.4	134.8	2,062.9	11,230.9	-	-
Income tax receivable	-	20.3	49.0	-	-	-	-
VAT - long term receivable	-	-	70.5	-	-	-	-
Trade and other payables	(16.4)	(18.6)	(193.1)	(1,429.4)	(15,332.4)	(0.4)	(1.2)
Provisions, current	-	(8.4)	(13.4)	(387.9)	-	-	-
Income tax payable	0.1	-	(71.0)	-	(750.9)	-	-
Other liabilities	(0.4)	-	(6.5)	-	-	-	-
Provisions, non current	-	(13.3)	(81.6)	-	-	-	-
Total foreign currency exposure	(14.6)	(12.2)	(64.7)	257.4	10,761.7	(0.4)	(1.2)
US$ equivalent of foreign currency exposure	(10.7)	(3.1)	(3.2)	1.7	17.1	(0.4)	(1.2)
Figures may not add due to rounding

Fortuna | 45

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

As at December 31, 2021 (In millions of local currency)	Canadian dollars	Peruvian soles	Mexican pesos	Argentine pesos	West African CFA Franc	Australian Dollars	Euro
Cash and cash equivalents	1.7	5.5	18.1	4.3	11,494.9	-	-
Marketable securities	0.5	-	-	-	-	-	-
Restricted cash	-	-	-	-	1,167.0	-	-
Trade and VAT receivables	0.7	2.1	174.2	1,526.5	13,433.4	-	-
Income tax receivable	-	20.7	-	-	-	-	-
VAT - long term receivable	-	-	70.5	-	-	-	-
Trade and other payables	(3.8)	(17.5)	(400.7)	(1,174.0)	(10,094.2)	(0.9)	(1.4)
Provisions, current	(0.1)	(4.4)	(13.5)	(95.4)	-	-	-
Income tax payable	-	-	(87.9)	-	-	-	-
Other liabilities	-	-	(6.2)	-	-	-	-
Provisions, non current	-	-	(87.3)	-	-	-	-
Total foreign currency exposure	(1.0)	6.4	(332.8)	261.4	16,001.1	(0.9)	(1.4)
US$ equivalent of foreign currency exposure	(0.8)	1.7	(16.8)	2.7	28.5	(0.7)	(1.2)
Figures may not add due to rounding

Liquidity Risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they come due. We manage our liquidity risk by continually monitoring forecasted and actual cash flows. We have in place a planning and budgeting process to help determine the funds required to support our normal operating requirements and our development plans. We aim to maintain sufficient liquidity to meet our short term business requirements, taking into account our anticipated cash flows from operations, our holdings of cash and cash equivalents, and our committed and anticipated liabilities.

The Company manages its liquidity risk by continuously monitoring forecasted and actual cashflows. A rigorous reporting, planning, and budgeting process are in place to help facilitate forecasting funding requirements, to support operations on an ongoing basis and with expansion plans, if any.  See also “Liquidity and Capital Resources”.  

As at September 30, 2022, the Company expects the following maturities of its financial liabilities, lease obligations, and other contractual commitments, excluding payments relating to interest:

	Expected payments due by year as at September 30, 2022
	Less than			After
	1 year	1 - 3 years	4 - 5 years	5 years	Total
Trade and other payables	105.3	-	-	-	105.3
Debt	-	60.9	150.0	-	210.9
Income taxes payable	12.9	-	-	-	12.9
Lease obligations	11.4	5.4	1.1	17.6	35.5
Other liabilities	-	2.2	-	-	2.2
Capital commitments, Séguéla	20.3	5.2	-	-	25.5
Closure and reclamation provisions	3.0	10.5	18.9	28.0	60.4
Total	152.9	84.2	170.0	45.6	452.7
Figures may not add due to rounding

Fortuna | 46

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

Capital Management

The Company’s objective when managing its capital is to maintain its ability to continue as a going concern while at the same time maximizing the growth of its business and providing returns to its shareholders.  The Company manages its capital structure and makes adjustments based on changes to its economic environment and the risk characteristics of the Company’s assets.  

Effective December 23, 2019, changes to Argentina’s tax laws proposed by the new Argentine Government were implemented. The changes ratified and extended legislation which was to expire on December 31, 2019 and allow the Argentine Central Bank to regulate funds coming into and flowing out of Argentina in order to maintain stability and support the economic recovery of the country. The Argentine Government has not set an expiry date for these restrictions, and they currently remain in place. These capital controls together with additional temporary controls enacted on May 29, 2020, have the effect of: requiring exporters to convert the equivalent value of foreign currency received from the export into Argentine Pesos; requiring the prior consent of the Argentine Central Bank to the payment of cash dividends and distributions of currency out of Argentina; requiring Argentine companies to convert foreign currency loans received from abroad into Argentine Pesos; and restricting the sale of Argentine Pesos for foreign currency. These provisions restrict the Company from holding funds in Argentina in United States dollars.  Further, effective June 27, 2022 additional capital controls were imposed on the import of goods and services in Argentina by the addition of annual quotas on imports calculated on the value of imports from previous periods. In the event a company exceeds its annual quota of imports it is restricted from pre-paying for imports and is required to defer payment for 180 days.

Certain of the costs and expenses to fund the construction at the Lindero Mine were advanced by way of intercompany loans. Under the terms of the Argentine Central Bank regulation, any funds in foreign currency which were advanced by the Company as a loan to its Argentine subsidiary in connection with the payment of construction costs and expenses at the Lindero Mine, are to the extent that the funds were advanced in foreign currency, required to be converted into Argentine Pesos at a conversion rate negotiated at the foreign exchange market within five business days from the date of the receipt of the funds in Argentina. When the loan is to be repaid, the regulation requires proof that the loan was advanced in foreign currency and converted into local currency in order to repay the loan in foreign currency. Due to the volatility of the exchange rate for Argentine Pesos, the Company will apply additional measures in cash management to minimize potential gains or losses arising from the conversion of funds. In addition, the Argentine Central Bank has also issued a temporary measure in effect until December 31, 2023, which requires the consent of the Argentine Central Bank to the repayment of certain types of intercompany loans.  There can be no assurance that the temporary measure will not be extended.

As part of the structure used to fund the construction of the Lindero project and the operation of the Lindero Mine, Fortuna has implemented a series of intercompany revolving pre-export financing facilities in an aggregate of $110 million. This allows exporters to apply the proceeds of sales directly towards payment of principal and interest under the facility.  The facilities are not impacted by the regulations described above, and the Company expects that it can continue to repatriate funds during 2022 and into the first quarter of 2023 through this mechanism. Once the loan has been repaid, any repatriation of funds out of Argentina by way of cash dividends or other distributions of currency out of Argentina will be required to be made accordance with the capital control restrictions of the Argentine Central Bank. The Company continues to monitor the foreign currency exposure risk.

The Company’s capital requirement is effectively managed based on the Company having a thorough reporting, planning, and forecasting process to help identify the funds required to ensure the Company is able to meet its operating and growth objectives.

Fortuna | 47

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

The Company’s capital structure consists of equity comprising of share capital, reserves, and retained earnings as well as debt consisting of credit facilities and convertible debentures, lease obligations less cash and cash equivalents.

As at	September 30, 2022		December 31, 2021
Equity		1,388.3		1,375.1
Debt		204.2		157.5
Lease obligations		24.0		29.4
Less: cash and cash equivalents		(90.9)		(107.1)
		1,525.6		1,454.9
Figures may not add due to rounding

As discussed above, the Company operates in Argentina where the new Argentine government has ratified and extended legislation to allow the Argentine Central Bank to regulate funds coming into and flowing out of Argentina.  Other than the restrictions related to these capital controls and complying with the debt covenants under the credit facilities, the Company is not subject to any externally imposed capital requirements. As at September 30, 2022, the Company was in compliance with its debt covenants.  See also “Liquidity and Capital Resources”.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Currently, our interest rate exposure mainly relates to interest earned on our cash and cash equivalents balances, interest paid on its LIBOR-based debt, and the mark-to-market value of derivative instruments which depend on interest rates.

Key Personnel

The Company is dependent on a number of key management and employee personnel.  The Company’s ability to manage its exploration, development, construction, and operating activities, and hence its success, will depend in large part on the ability to retain current personnel and attract and retain new personnel, including management, technical, and unskilled employees.  The loss of the services of one or more key management personnel, as well as a prolonged labor disruption, could have a material adverse effect on the Company’s ability to successfully manage and expand its affairs.

Claims and Legal Proceedings

The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the normal course of business.  The Company may be subject to claims by local communities, indigenous groups, or private land owners relating to land and mineral rights and such claimants may seek sizable monetary damages or seek the return of surface or mineral rights that may be valuable to the Company which may significantly impact operations and profitability, if lost.  These matters are subject to various uncertainties and it is possible that some of these matters may be resolved with an unfavorable outcome to the Company.  The Company does carry liability insurance coverage, but such coverage does not cover all risks to which the Company may be exposed to.

On August 16, 2022, the Argentine Tax Authority (“AFIP”) published General Resolution No.5248/2022 (the “Resolution”) which established a one-time “windfall income tax prepayment” for companies that have obtained extraordinary income derived from the general increase in international prices. The Resolution was published by AFIP without prior notice.

The windfall income tax prepayment applies to companies that meet certain income tax or net income tax (before the deduction of accumulated tax losses) thresholds for 2021 or 2022. The aggregate amount of the windfall income tax prepayment payable by Mansfield calculated in accordance with the Resolution is approximately $5.5 to $6 million.

Fortuna | 48

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

The windfall income tax prepayment is to be paid in three equal and consecutive monthly instalments, starting on October 22, 2022, and is payable in addition to income tax instalments currently being paid by corporate taxpayers on account of their income tax obligations. The windfall income tax prepayment is an advance payment of income taxes due to be paid in 2023.

Based on the historical accumulated losses of Mansfield for fiscal 2021 which can be carried forward for 2022, Mansfield was not liable for income tax, and based upon current corporate income tax laws and the ability of the Company to deduct historical accumulated losses, it is projected that no income tax will be required to be paid for fiscal 2022.

To protect Mansfield’s position from having to pay the windfall income tax prepayment as an advance income tax for 2023, which based on management’s projections is not payable, Mansfield applied to the Federal Court of Salta Province for a preliminary injunction to prevent the AFIP from issuing a demand or other similar measure for the collection of the Windfall Income Tax Prepayment.  On October 3, 2022, Mansfield was notified that the Court had granted the preliminary injunction. As a result, Mansfield did not pay the instalment due on October 22, 2022.  In addition, Mansfield also filed an administrative claim with the AFIP to challenge the constitutionality of the Resolution, which was rejected by AFIP on November 2, 2022. 

Mansfield intends to protect its position and challenge the rejection of its administrative claim, by filing legal proceedings against the AFIP with the Federal Court. In addition, Mansfield has requested that the preliminary injunction previously obtained remain in effect.  It is expected that the Court will make a determination on the maintenance of the injunction within the next 10 days.   In the event, that the Court does not maintain the injunction, the Company will file for a new injunction concurrent with the filing of the legal proceedings in the Federal Court.

CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

For further information on our significant judgements and accounting estimates, refer to note 4 of our audited annual consolidated financial statements for the years ended December 31, 2021 and 2020. There have been no subsequent material changes to these significant judgements and accounting estimates.

Changes in Accounting Policies

The accounting policies applied in our unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2022 are the same as those applied in the audited consolidated financial statements for the years ended December 31, 2021 and 2020 . A number of new standards and amendments to standards are effective for annual periods beginning on or after January 1, 2022 and earlier application is permitted; however, we have not early adopted and continue to evaluate the impact of the forthcoming or amended standards in preparing our condensed consolidated interim financial statements.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures have been designed to provide reasonable assurance that all material information related to the Company is identified and communicated to management on a timely basis. Management of the Company,

Fortuna | 49

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

under the supervision of the President and Chief Executive Officer and the Chief Financial Officer, is responsible for the design and operation of disclosure controls and procedures in accordance with the requirements of National Instrument 52-109 of the Canadian Securities Administrators and as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended.

Management’s Report on Internal Control over Financial Reporting

The Company’s internal control over financial reporting (“ICFR”) is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external reporting purposes in accordance with IFRS as issued by the International Accounting Standards Board.  However, due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements and fraud.

There have been no changes in the Company’s internal control over financial reporting during the three months ended September 30, 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Fortuna | 50

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This MD&A and any documents incorporated by reference into this MD&A contain forward-looking statements which constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the United States Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, “Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-Looking Statements. The Forward-looking Statements in this MD&A include, without limitation, statements relating to:

● mineral “reserves” and “resources” as they involve the implied assessment, based on estimates and assumptions that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future;

● production rates and forecasted production for 2022 at the Company’s properties;

● cash cost estimates;

● forecasted cash costs and all-in sustaining costs estimates at the Company’s mines;

● timing for delivery of materials and equipment for the Company’s properties;

● the sufficiency of the Company’s cash position and its ability to raise equity capital or access debt facilities;

● the Company’s planned Greenfields exploration programs including related activities and the costs and timing thereof;

● the Company’s planned capital expenditures and brownfields exploration at each of the Company’s mines;

● the Company’s ability to manage challenges presented by pandemics, such as COVID 19, epidemics, and public health crises which may adversely affect the Company’s business and operations, and financial condition, including the Company’s ability to operate or to continue operating at its sites;

● the ability to successfully integrate the acquisition of Roxgold into the operations of the Company, and risks that the anticipated benefits of the Roxgold acquisition will not be realized or fully realized;

● undisclosed risks and liabilities relating to the acquisition of Roxgold and the loss of key employees related to same;

● the Company’s ability to manage challenges presented by COVID-19 and the impact of COVID-19 on the Company’s business and operations, and financial condition, including the Company’s ability to operate or to continue operating at its sites;

● the effectiveness of the preventative measures and safety protocols put in place by the Company to curb the spread of COVID-19;

● maturities of the Company’s financial liabilities, finance leases and other contractual commitments;

● expiry dates of bank letters of guarantee;

● the effectiveness and impact of, and Fortuna’s commitment to, the Sustainability Framework and related disclosure, ESG policies and targets and other operational and governance policies;

● complying with anti-corruption laws and internal controls;

● litigation matters;

● estimated mine closure costs and timing; and

● the Company's plans and expectations for its material properties and future exploration, development and operating activities including, without limitation, capital expenditure and production estimates, exploration activities and budgets, forecasts and schedule estimates, as well as their impact on the results of operations or financial condition of the Company.

Often, but not always, these Forward-looking Statements can be identified by the use of words such as “anticipates”, “believes”, “plans”, “estimates”, “expects”, “forecasts”, “scheduled”, “targets”, “possible”, “strategy”, “potential”,

Fortuna | 51

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

“intends”, “advance”, “goal”, “objective”, “projects”, “budget”, “calculates” or statements that events, “will”, “may”, “could” or “should” occur or be achieved and similar expressions, including negative variations.

The forward-looking statements in this MD&A also include financial outlooks and other forward-looking metrics relating to Fortuna and its business, including references to financial and business prospects and future results of operations,  including production, and cost guidance and anticipated future financial performance. Such information, which may be considered future oriented financial information or financial outlooks within the meaning of applicable Canadian securities legislation (collectively, “FOFI”), has been approved by management of the Company and is based on assumptions which management believes were reasonable on the date such FOFI was prepared, having regard to the industry, business, financial conditions, plans and prospects of Fortuna and its business and properties. These projections are provided to describe the prospective performance of the Company's business. Nevertheless, readers are cautioned that such information is highly subjective and should not be relied on as necessarily indicative of future results and that actual results may differ significantly from such projections. FOFI constitutes forward-looking statements and is subject to the same assumptions, uncertainties, risk factors and qualifications as set forth below.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others:

• operational risks relating to mining and mineral processing;

• uncertainty relating to Mineral Resource and Mineral Reserve estimates;

• uncertainty relating to capital and operating costs, production schedules and economic returns;

• uncertainty relating to new mining operations and development projects such as the Lindero Mine and the Séguéla Gold Project, including the possibility that actual capital and operating costs and economic returns will differ significantly from those estimated for such projects prior to production;

• uncertainty relating to the costs of the construction, the financing of construction  and timing for the completion of the Séguéla Project;

• risks relating to the Company’s ability to replace its Mineral Reserves;

• risks associated with mineral exploration and project development;

• uncertainty relating to the repatriation of funds as a result of currency controls;

• environmental matters including maintaining, obtaining or renewing environmental permits and potential liability claims;

• uncertainty relating to nature and climate conditions;

• risks associated with political instability and changes to the regulations governing the Company’s business operations;

• changes in national and local government legislation, taxation, controls, regulations and political or economic developments in countries in which the Company does or may carry on business;

• risks associated with war, hostilities or other conflicts, such as the Ukrainian – Russian conflict, and the impact it may have on global economic activity;

• risks relating to the termination of the Company’s mining concessions in certain circumstances;

• risks related to International Labor Organization (“ILO”) Convention 169 compliance;

• developing and maintaining good relationships with local communities and stakeholders;

• risks associated with losing control of public perception as a result of social media and other web-based applications;

• potential opposition to the Company’s exploration, development and operational activities;

Fortuna | 52

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

• risks related to the Company’s ability to obtain adequate financing for planned exploration and development activities;

• substantial reliance on the Lindero Mine, the Yaramoko Mine and the San Jose Mine for revenues;

• property title matters;

• risks relating to the integration of businesses and assets acquired by the Company;

• impairments;

• risks associated with climate change legislation;

• reliance on key personnel;

• uncertainty relating to potential conflicts of interest involving the Company’s directors and officers;

• risks associated with the Company’s reliance on local counsel and advisors and the experience of its management and board of directors in foreign jurisdictions;

• adequacy of insurance coverage;

• operational safety and security risks;

• risks related to the Company’s compliance with the United States Sarbanes-Oxley Act;

• risks related to the foreign corrupt practices regulations and anti-bribery laws;

• legal proceedings and potential legal proceedings;

• uncertainties relating to general economic conditions;

• risks relating to a global pandemic, which until contained could continue to cause a slowdown in global economic growth and impact the Company’s business, operations, financial condition and share price;

• risks relating to pandemics, such as COVID-19, epidemics and public health crises; the impact of COVID-19 on the Company’s business, operations and financial condition; the Company’s ability to access its supply chain; the ability of the Company to transport its products; and impacts on the Company’s employees and local communities all of which may affect the Company’s ability operate;

• competition;

• fluctuations in metal prices;

• regulations and restrictions with respect to imports;

• high rates of inflation;

• risks associated with entering into commodity forward and option contracts for base metals production;

• fluctuations in currency exchange rates and restrictions on foreign exchange and currencies;

• failure to meet covenants under its Credit Facilities, or an event of default which may reduce the Company’s liquidity and adversely affect its business;

• tax audits and reassessments;

• risks relating to hedging;

• uncertainty relating to concentrate treatment charges and transportation costs;

• sufficiency of monies allotted by the Company for land reclamation;

• risks associated with dependence upon information technology systems, which are subject to disruption, damage, failure and risks with implementation and integration;

• risks associated with climate change legislation;

• our ability to manage physical and transition risks related to climate change and successfully adapt our business strategy to a low carbon global economy;

• our plan to release climate-related goals in 2022 and the anticipated nature and effect of climate related risks;

• risks related to the volatility of the trading price of the Company’s common shares and the Company’s Debentures (as defined herein);

• dilution from further equity or convertible debenture financings; and

Fortuna | 53

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

• risks related to future insufficient liquidity resulting from a decline in the price of the Common Shares or Debentures;

• uncertainty relating to the Company’s ability to pay dividends in the future;

• risks relating to the market for the Company’s securities;

• risks relating to the Debentures of the Company; and

• uncertainty relating to the enforcement of U.S. judgments against the Company.

as well as those factors referred to in the “Risks and Uncertainties” section in this MD&A and in the “Risk Factors” section in our Annual Information Form filed with the Canadian Securities Administrators and available at www.sedar.com and filed with the U.S. Securities and Exchange Commission as part of the Company’s Form 40-F and available at www.sec.gov/edgar.shtml.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

Forward-looking Statements contained in this MD&A are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to:

● all required third party contractual, regulatory and governmental approvals will be obtained and maintained for the exploration, development, construction and production of its properties;

● the ability to successfully integrate the operations of Roxgold into the operations of the Company;

● there being no significant disruptions affecting operations, whether relating to labour, supply, power, damage to equipment or other matter;

● the world-wide economic and social impact of COVID-19 is managed, and the duration and extent of the coronavirus pandemic is minimized or not long-term;

● there being no material and negative impact to the various contractors, suppliers and subcontractors at the Company’s mine sites as a result of the Ukrainian – Russian conflict, COVID-19 or otherwise that would impair their ability to provide goods and services;

● permitting, construction, development, expansion, and production continuing on a basis consistent with the Company’s current expectations;

● expected trends and specific assumptions regarding metal prices and currency exchange rates;

● prices for and availability of fuel, electricity, parts and equipment and other key supplies remaining consistent with current levels;

● production forecasts meeting expectations;

● management’s expectation that any investigations, claims, and legal, labor and tax proceedings arising in the ordinary course of business will not have a material effect on the results of operations or financial condition of the Company; and

● the accuracy of the Company’s current mineral resource and reserve estimates.

These Forward-looking Statements are made as of the date of this MD&A. There can be no assurance that Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on Forward-looking Statements. Except as required by law, the Company does not assume the obligation to revise or update these forward looking-statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.

Fortuna | 54

Fortuna Silver Mines Inc.

Management’s Discussion and Analysis

For the three and nine months ended September 30, 2022 (in US Dollars, tabular amounts in millions, except where noted)

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF RESERVES AND RESOURCES

The Company is a Canadian “foreign private issuer” as defined in Rule 3b-4 under the United States Securities Exchange Act of 1934, as amended, and is permitted to prepare the technical information contained herein in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of the securities laws currently in effect in the United States.  

Technical disclosure regarding the Company’s properties included herein was prepared in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 differs significantly from the disclosure requirements of the SEC generally applicable to U.S. companies. Accordingly, information contained herein is not comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.

Fortuna | 55

EX-99.3

FORTUNA SILVER MINES INC.

Form 52-109F2

Certification of Interim Filings – Full Certificate

I, Jorge Ganoza Durant, Chief Executive Officer of Fortuna Silver Mines Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “Interim Filings”) of Fortuna Silver Mines Inc. (the “Issuer”) for the interim period ended September 30, 2022.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the Interim Filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the Interim Filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the Interim Filings fairly present in all material respects the financial condition, financial performance and cash flows of the Issuer, as of the date of and for the periods presented in the Interim Filings.

4. Responsibility: The Issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109, Certification of Disclosure in Issuers’ Annual and Interim Filings, for the Issuer.

5. Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the Issuer’s other certifying officer and I have, as at the end of the period covered by the Interim Filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the Issuer is made known to us by others, particularly during the period in which the Interim Filings are being prepared; and

(ii) information required to be disclosed by the Issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Issuer’s GAAP.

5.1 Control framework:  The control framework the Issuer’s other certifying officer and I used to design the Issuer’s ICFR is Committee of Sponsoring Organizations of the Treadway Commission.

5.2 N/A.

-2-

5.3 N/A.

6. Reporting changes in ICFR: The Issuer has disclosed in its interim MD&A any change in the Issuer’s ICFR that occurred during the period beginning on July 1, 2022 and ended on September 30, 2022 that has materially affected, or is reasonably likely to materially affect, the Issuer’s ICFR.

DATED: November 9, 2022

“Jorge Ganoza Durant”​ ​

JORGE GANOZA DURANT,

Chief Executive Officer

EX-99.4

FORTUNA SILVER MINES INC.

Form 52-109F2

Certification of Interim Filings – Full Certificate

I, Luis Ganoza Durant, Chief Financial Officer of Fortuna Silver Mines Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “Interim Filings”) of Fortuna Silver Mines Inc. (the “Issuer”) for the interim period ended September 30, 2022.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the Interim Filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the Interim Filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the Interim Filings fairly present in all material respects the financial condition, financial performance and cash flows of the Issuer, as of the date of and for the periods presented in the Interim Filings.

4. Responsibility: The Issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109, Certification of Disclosure in Issuers’ Annual and Interim Filings, for the Issuer.

5. Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the Issuer’s other certifying officer and I have, as at the end of the period covered by the Interim Filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the Issuer is made known to us by others, particularly during the period in which the Interim Filings are being prepared; and

(ii) information required to be disclosed by the Issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Issuer’s GAAP.

5.1 Control framework:  The control framework the Issuer’s other certifying officer and I used to design the Issuer’s ICFR is Committee of Sponsoring Organizations of the Treadway Commission.

5.2 N/A.

-2-

5.3 N/A.

6. Reporting changes in ICFR: The Issuer has disclosed in its interim MD&A any change in the Issuer’s ICFR that occurred during the period beginning on July 1, 2022 and ended on September 30, 2022 that has materially affected, or is reasonably likely to materially affect, the Issuer’s ICFR.

DATED: November 9, 2022

“Luis Ganoza Durant”​ ​

LUIS GANOZA DURANT,

Chief Financial Officer

EX-99.5

NEWS RELEASE

Fortuna Reports Results for the Third Quarter of 2022

(All amounts expressed in US dollars, tabular amounts in millions, unless otherwise stated)

Vancouver, November 9, 2022:Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna” or the “Company”) today reported its financial and operating results for the third quarter of 2022.

Third Quarter 2022 Highlights

Operational

●Gold and silver production of 66,344 ounces and 1,837,506 ounces, respectively. An increase of 1% and 7% respectively compared to the third quarter of 2021 (“Q3 2021”). Gold equivalent production of 101,840³ ounces.

●Cash costs¹ per ounce of gold of $772 for the Lindero Mine and $934 for the Yaramoko mine. Cash costs^1,2 per silver equivalent ounce of payable silver sold of $9.70 for the San Jose Mine and $11.32 for the Caylloma mine.

●AISC ¹ per ounce of gold sold of $1,159 for the Lindero Mine and $1,630 for the Yaramoko Mine. AISC ^1,2 per silver equivalent ounce of payable silver sold of $14.23 and $15.66 for the San Jose Mine and Caylloma Mine, respectively.

●The Company confirms it is tracking to meet production and the top end of cost guidance for the year.

●Total recordable injury frequency rate of 2.36 per million hours worked and zero lost time injuries in over 3.3 million hours worked.

Financial

●Free cash flow from ongoing operations¹ of $34.0 million, after operating mine capital, corporate overhead, taxes and interest paid, compared to $29.1 million reported in Q3 2021.

●Adjusted EBITDA¹ of $54.4 million compared to $75.3 million reported in Q3 2021.

●Net loss of $4.1 million or $0.01 per share, compared to $0.2 million or $0 net income per share reported in Q3 2021. Adjusted net income¹ of $2.3 million or $0.01 per share compared to $22.5 million reported in Q3 2021.

●As at September 30, 2022, the Company had available liquidity of $125.9 million.

●Returned $2.9 million of capital to shareholders during the quarter through the share repurchase program.

Growth and Development

●Séguéla construction 83% complete as of the end of October. On-time and on-budget for first gold pour in mid-2023.

●Fortuna continued to expand mineralization at the Sunbird discovery at Séguéla outside of the current reported inferred mineral resource (refer to Fortuna news release dated September 12, 2022: “Fortuna extends gold mineralization at Sunbird and identifies new regional prospects at Séguéla, Cote d´Ivoire”).

¹Refer to Non-IFRS financial measures

²AISC/oz Ag Eq calculated at realized metal prices, refer to mine site results for realized prices and Non-IFRS Financial Measures for silver equivalent ratio

³Gold equivalent production includes gold, silver, lead and zinc and is calculated using the following metal prices: US$1,718/oz Au, US$19.16/oz Ag, US$1,989/t Pb and US$3,268/t Zn or Au:Ag = 1:89.65, Au:Pb = 1:0.90, Au:Zn = 1:0.53

‌Fortuna | 1

Jorge A. Ganoza, President and CEO, commented, “Our four mines had steady production of gold and silver in the quarter, which places us in a comfortable position at the end of the nine months of the year to meet our annual guidance estimates.  Price inflation on key consumable products has driven cost at our operations to the upper range of annual cost guidance, but at this stage in the year we anticipate that the risk for significant cost deviations beyond guidance has diminished.”  Mr. Ganoza continued, “Free cash flow for the period remained strong, underpinned by robust production performance at our operating sites.” Mr. Ganoza concluded, “Construction of our flagship Séguéla mine is 83% complete as of the end of October, remaining on-time and on-budget. We continue to successfully de-risk construction at a steady pace. All components of the SAG mill, a major equipment in the critical path of the project, have been shipped removing the last supply chain concerns on major equipment deliveries. Another milestone coming soon is the project connection to the national power grid, which is planned for December.”

	Three months ended September 30,			Nine months ended September 30,
	2022	2021	% Change	2022	2021	% Change
Sales	166.6	162.6	2%	516.8	400.9	29%
Mine operating income	24.7	47.3	(48%)	120.8	147.1	(18%)
Operating income	5.7	21.8	(74%)	59.6	98.0	(39%)
Net (loss) income	(4.1)	0.2	(2,150%)	24.5	42.8	(43%)
(Loss) earnings per share - basic	(0.01)	-	0%	0.08	0.19	(58%)
Adjusted net income1	2.3	22.5	(90%)	35.4	71.5	(50%)
Adjusted EBITDA1	54.4	75.3	(28%)	189.7	191.1	(1%)
Net cash provided by operating activities	64.7	39.4	64%	144.6	90.1	60%
Free cash flow from ongoing operations1	34.0	29.1	17%	64.8	70.4	(8%)
Capital expenditures2
Sustaining	23.2	16.4	41%	64.3	37.5	71%
Non-sustaining3	4.0	0.7	467%	10.4	1.8	478%
Lindero construction	-	1.4	(100%)	-	4.0	(100%)
Séguéla construction	23.5	-	100%	87.6	-	100%
Brownfields	9.6	4.3	123%	17.1	10.3	66%
As at				September 30, 2022	December 31, 2021	% Change
Cash and cash equivalents				90.9	107.1	(15%)
Net liquidity position				125.9	187.1	(33%)
1 Refer to Non-IFRS Financial Measures section of this news release and to the MD&A accompanying the Company’s financial statements filed on SEDAR at www.sedar.com for a description of the calculation of these measures.
2 Capital expenditures are presented on a cash basis
3Non-sustaining expenditures include greenfields exploration
Figures may not add due to rounding

Third Quarter 2022 Results

Net loss for the period was $4.1 million compared to net income of $0.2 million in Q3 2021.  Operating income was $5.7 million compared to $21.8 million in the comparative period. Higher cash costs quarter over quarter were approximately $16.0 million due to continued inflationary pressures and higher processed tonnes at Yaramoko and San Jose. Management estimates that if realized gold and silver prices had stayed consistent with the previous year operating income would have been $13.0 million higher.

Additional items impacting net income in the quarter were a $3.4 million write off of the Tlamino project in Serbia, and $1.7 million of unrealized derivative losses.

Adjusted net income for the period was $2.3 million compared to $22.5 million in Q3 2021.  Adjusted EBITDA was $54.4 million compared to $75.3 million in Q3 2021.  The reduction in EBITDA was consistent with the drivers of lower operating income described above, namely lower silver and gold prices and inflationary cost pressures.

Net cash provided by operating activities was $64.7 million, compared to $39.4 million in Q3 2021, as the comparative quarter was impacted by $23.1 million of non-recurrent expenses ($12.6 million payment including taxes for the

Fortuna | 2

settlement of the disputed royalty claim with the Mexican Geological Survey and $10.5 million of transaction costs related to the Roxgold acquisition).  

Free cash flow from ongoing operations in the quarter was $34.0 million after deducting operating mine capital, corporate overhead, taxes and interest paid. Year to date free cash flow from on-going operations was $64.8 million compared to $70.4 million in 2021.

Sales for the three months ended September 30, 2022 were $166.6 million, an increase of 2% from the $162.6 million over the same period in 2021.  Sales by mine in the three months ended September 30, 2022 were as follows:

◾ Lindero recognized adjusted sales of $51.9 million, a 25% increase from the $41.6 million reported in Q3 2021. Higher sales were the result of a 28% increase in volume of gold sold, partially offset by lower realized gold price of 3%.  

◾ Yaramoko recognized adjusted sales of $46.4 million, a 5% decrease from the $49.0 million reported in Q3 2021. Lower sales were the result of a 2% decrease in volume of gold sold and lower realized gold price of 4%.  

◾ San Jose recognized adjusted sales of $42.2 million, a 4% decrease from the $43.7 million reported in Q3 2021. Lower sales were driven by a 21% and 3% decrease in provisional silver and gold prices, respectively, partially offset by an increase of 7% and 2% in the volume of silver and gold ounces, respectively, sold.  

◾ Caylloma recognized adjusted sales of $26.1 million, a 7% decrease from the $28.0 million reported in Q3 2021.  The decrease in sales was driven by 22% lower realized prices for silver as well as no gold sales compared to 1,466 ounces sold in the comparative period.  

Outlook on Cost and Inflation

Inflationary pressures continued in the third quarter of 2022 as a result of geopolitical events, supply chain constraints and increases in the cost of energy and commodities. These inflationary pressures were realized in the Company’s cost structure as prices increased for several key commodities including diesel, reagents, explosives and steel.

The inflation situation remains dynamic and the Company expects higher input costs to remain for the last quarter of the year and beyond. To mitigate inflationary pressure on its cost structure the Company will continue to focus on operational efficiencies and cost optimization across all mining operations. However, even with these efforts it is expected the continued inflationary pressures will push costs towards the upper end of our cost guidance.

Liquidity

Total liquidity available to the Company as at September 30, 2022 was $125.9 million, comprised of $90.9 million of cash and cash equivalents and $35.0 million undrawn on the Company’s revolving $200 million credit facility.

The Company has secured credit approval from its banking syndicate to increase the existing senior secured revolving credit facility by $50.0 million to $250.0 million.  The upsized facility will include a $50.0 million accordion feature, and is expected to close in the fourth quarter of 2022, subject to the completion of definitive documentation between the parties.

Séguéla Construction

As of September 30, 2022, the Séguéla Project had approximately $54.8 million in remaining spend of the project’s $173.5 million construction budget, and the project remains on time and on budget. The Company’s cash and cash equivalents balance, free cash flow from ongoing operations and undrawn amounts of the credit facility are expected to be sufficient to fund the construction of the Séguéla Project.

Fortuna | 3

Lindero Mine, Argentina

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes placed on the leach pad	1,365,726	1,387,134	4,163,555	4,994,134
Gold
Grade (g/t)	0.83	1.10	0.83	0.94
Production (oz)	30,032	26,235	89,116	68,088
Metal sold (oz)	30,064	23,559	89,229	63,788
Realized price ($/oz)	1,719	1,772	1,825	1,775
Unit Costs
Cash cost ($/oz Au)1	772	646	717	635
All-in sustaining cash cost ($/oz Au)1	1,159	1,270	1,117	1,182
Capital expenditures ($000's) 2
Sustaining	4,814	9,385	14,062	20,040
Non-sustaining	–	–	169	–
Brownfields	314	47	1,104	489
1 Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.

Quarterly Operating and Financial Highlights

In the third quarter of 2022, a total of 1,365,726 tonnes of ore were placed on the heap leach pad, averaging 0.83 g/t gold, containing an estimated 36,501 ounces of gold. Gold production for Q3 2022 totaled 30,032 ounces, representing a 14% increase year-over-year. Higher gold production is mainly explained by an increase in performance of the three-stage crushing and stacking circuits, which delivered 100% of the 1.37 million tonnes of ore placed on the pad in the quarter, compared to 89% or 1.2 million tonnes of the 1.39 million tonnes placed during the comparable quarter a year ago. Mine production was 2.2 million tonnes of mineralized material with a lower strip ratio of 0.83:1 when compared to the second quarter of 2022. The reduction in the stripping ratio was a result of optimizing the mine plan sequence during the period. The operation experienced a positive reconciliation for ore sent to the leach pad during the third quarter, with grades sampled at the plant being 5.6% higher than estimated from the reserve model.

Cash cost per ounce of gold for the three months ended September 30, 2022 was $772 compared to $646 in the third quarter of 2021. Cash cost per ounce of gold was higher due to higher consumable prices, mainly related to diesel, explosives and reagents, higher service costs related to maintenance equipment rentals and higher maintenance contractor expenses, partially offset by lower labor cost.

All-in sustaining cash cost per gold ounce sold was $1,159 during Q3 2022 compared with $1,270 in the third quarter of 2021. All-in sustaining cash cost for the third quarter of 2022 was impacted by the issues described above, offset by higher ounces sold, lower sustaining capital and a positive by-product effect.

Sustaining capital for the quarter primarily consisted of spending on the leach pad and mine maintenance. Construction of Phase-1B of the leach pad was completed during the quarter as planned, ensuring sufficient capacity to support the production plan through the second half of 2024. Detailed engineering work for the Phase-2 leach pad expansion was initiated in the third quarter of 2022 and is expected to be completed by year end. Construction work on Phase-2 is planned to commence in 2023. Brownfields capital primarily relates to exploration at the Arizaro project.

Fortuna | 4

Yaramoko Mine Complex, Burkina Faso

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	137,202	126,677	403,957	126,677
Gold
Grade (g/t)	6.21	7.28	6.34	7.28
Recovery (%)	97	98	97	98
Production (oz)	27,130	28,751	79,918	28,751
Metal sold (oz)	27,055	27,494	81,183	27,494
Realized price ($/oz)	1,716	1,783	1,821	1,783
Unit Costs
Cash cost ($/oz Au)1	934	720	847	720
All-in sustaining cash cost ($/oz Au)1	1,630	1,188	1,433	1,188
Capital expenditures ($000's) 3
Sustaining	10,225	7,398	26,671	7,398
Brownfields	2,530	560	3,018	560
1 Cash cost and AISC are non-IFRS financial measures. Refer to Non-IFRS Financial Measures.
2 The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.
3 Capital expenditures are presented on a cash basis

The Yaramoko Mine produced 27,130 ounces of gold in the third quarter of 2022 with an average gold head grade of 6.21g/t, which is in line with the mining sequence and Mineral Reserve estimate. The operation benefitted from higher mill throughput and operating time during the quarter offset by lower head grades when compared to the third quarter in 2021. Gold production for the first nine months of 2022 is in line with the annual guidance range.

Cash cost per gold ounce sold was $934, compared to $720 in the third quarter of 2021, primarily due to higher mining service costs related to inflation, higher processing costs due to annual mill inspection and repair moved up from November, and the processing of lower grade stockpiles during Q3 2022 as the site is currently mine constrained. This was partially offset by favorable foreign exchange rates.

All-in sustaining cash cost per gold ounce sold was $1,630 for Q3 2022, compared to $1,188 for the same period in 2021, as a result of decreased production, increased cash cost, and an increase in capital expenditures.

The operational focus remains on advancing development of the decline to maintain stope sequencing flexibility in the mine for the remainder of 2022 and into 2023. Sustaining capital for Q3 2022 was higher due to higher mine development and equipment purchases related to the QV Prime project in Bagassi South. Brownfields expenditure was higher due to greater amounts of diamond drilling as well as further development of the 109 Zone.

Fortuna | 5

San Jose Mine, Mexico

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	267,198	248,984	770,090	778,352
Average tonnes milled per day	3,071	2,862	2,939	2,980
Silver
Grade (g/t)	196	195	189	206
Recovery (%)	92	92	91	91
Production (oz)	1,545,410	1,436,658	4,288,936	4,707,496
Metal sold (oz)	1,539,382	1,440,946	4,272,878	4,704,656
Realized price ($/oz)	19.14	24.16	21.86	25.80
Gold
Grade (g/t)	1.16	1.22	1.14	1.29
Recovery (%)	91	91	91	91
Production (oz)	9,091	8,910	25,625	29,477
Metal sold (oz)	9,064	8,922	25,580	29,421
Realized price ($/oz)	1,722	1,784	1,825	1,798
Unit Costs
Production cash cost ($/t)2	79.37	77.52	79.66	74.22
Production cash cost ($/oz Ag Eq)1,2	9.70	9.99	10.35	9.28
All-in sustaining cash cost ($/oz Ag Eq)1,2	14.23	15.51	14.95	14.13
Capital expenditures ($000's) 3
Sustaining	4,410	3,553	12,036	9,525
Non-sustaining	–	745	869	1,776
Brownfields	1,548	2,547	4,645	6,437
1 Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively
2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures
3 Capital expenditures are presented on a cash basis

In the third quarter of 2022, the San Jose Mine produced 1,545,410 ounces of silver and 9,091 ounces of gold, 8% and 2% higher, respectively, when compared to the equivalent period in 2021. The result is primarily due to higher mill throughput, with grades in line with the mining sequence and Mineral Reserve estimates. Silver production is tracking to meet the upper range of annual guidance.

The cash cost per tonne for the three months ended September 30, 2022 was $79.37 compared to $77.52 in the same period in 2021 primarily due to cost increases related to inflation, offset by higher tonnes processed.

All-in sustaining cash costs of $14.23 per ounce was lower than the $15.51 per ounce for the same period in 2021 with higher silver equivalent ounces offsetting higher costs.

Capital expenditures for the quarter was lower than the previous year primarily due to lower brownfields exploration cost as the site focused on less capital-intensive exploration.

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Caylloma Mine, Peru

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Mine Production
Tonnes milled	139,143	136,410	407,695	401,942
Average tonnes milled per day	1,546	1,516	1,533	1,517
Silver
Grade (g/t)	79	78	82	77
Recovery (%)	82	81	81	82
Production (oz)	292,096	275,223	871,594	810,962
Metal sold (oz)	293,159	295,532	866,511	830,495
Realized price ($/oz)	19.31	24.67	21.98	25.80
Gold
Grade (g/t)	0.11	0.48	0.14	0.51
Recovery (%)	19	72	35	72
Production (oz)	91	1,529	656	4,712
Metal sold (oz)	—	1,466	603	3,140
Realized price ($/oz)	—	1,808	1,864	1,790
Lead
Grade (%)	3.33	3.14	3.29	3.15
Recovery (%)	89	87	88	88
Production (000's lbs)	9,085	8,245	25,856	24,571
Metal sold (000's lbs)	9,155	8,859	25,751	25,354
Realized price ($/lb)	0.90	1.06	0.99	0.98
Zinc
Grade (%)	4.37	4.74	4.22	4.67
Recovery (%)	89	87	89	87
Production (000's lbs)	11,885	12,436	33,598	36,169
Metal sold (000's lbs)	12,277	12,754	33,743	36,775
Realized price ($/lb)	1.48	1.36	1.65	1.31
Unit Costs
Production cash cost ($/t)2	93.12	86.04	92.03	85.17
Production cash cost ($/oz Ag Eq)1,2	11.32	12.75	12.25	13.25
All-in sustaining cash cost ($/oz Ag Eq)1,2	15.66	17.66	17.16	18.17
Capital expenditures ($000's) 3
Sustaining	3,764	3,480	11,506	7,930
Brownfields	198	1,168	729	2,777
1 Production cash cost silver equivalent and All-in sustaining cash cost silver equivalent are calculated using realized metal prices for each period respectively
2 Production cash cost, Production cash cost silver equivalent, and All-in sustaining cash cost silver equivalent are Non-IFRS Financial Measures, refer to Non-IFRS Financial Measures
3 Capital expenditures are presented on a cash basis

The Caylloma Mine produced 292,096 ounces of silver, 9.1 million pounds of lead, and 11.9 million pounds of zinc during the three months ended September 30, 2022. The operation delivered another strong quarter of operational performance and is tracking well to deliver total production in the upper range of guidance. Measured against the comparable quarter of the previous year, silver was 6% higher due to a combination of increased mill throughput, higher grades and better recoveries. Lead production was 10% higher than the comparable period as a result of higher head grades, recovery, and mill throughput. Zinc production was 4% lower than the comparable period, mainly impacted by lower head grades partially offset by higher mill throughput and recovery. Gold production totaled 91 ounces with an average head grade of 0.11 g/t.

The cash cost per tonne of processed ore for the three months ended September 30, 2022 increased 8% to $93.12 compared to $86.04 in the same period in 2021. The increase was mainly the result of higher mining costs driven by inflation and its direct impact on the price of materials, such as explosives, fuel, cement, reagents, mill balls and others.

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The all-in sustaining cash cost for the three months ended September 30, 2022 decreased 11% to $15.66 per ounce compared to $17.66 per ounce for the same period in 2021 as a result of higher costs being offset by an increase in silver equivalent production.

Sustaining capital expenditures for the quarter increased primarily due to greater execution of the developments located in level 16 and level 18, offset by decreased expenditure on other levels. The decrease in brownfields capital expenditures was due to significantly lower spending on drilling and development. During the third quarter of 2022, an assessment study for a potential expansion of the mine and processing plant was commenced, with tradeoff results expected to be delivered in the first quarter of 2023.

Qualified Person

Eric Chapman, Senior Vice President of Technical Services, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (Registration Number 36328), and is the Company’s Qualified Person (as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.

Non-IFRS Financial Measures

The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, and are not disclosed in the Company's financial statements, including but not limited to: cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold sold; all-in cash cost per ounce of gold sold; total production cash cost per tonne; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow from ongoing operations; adjusted net income; adjusted EBITDA and working capital.

These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS. The Company has calculated these measures consistently for all periods presented.

To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition, see “Non-IFRS Financial Measures” in the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2022 (“Q3 2022 MD&A”), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor and the additional purposes, if any, for which management of Fortuna uses such measures and ratio. The Q3 2022 MD&A may be accessed on SEDAR at www.sedar.com under the Company’s profile, Fortuna Silver Mines Inc.

Except as otherwise described in the Q3 2022 MD&A, the Company has calculated these measures consistently for all periods presented.

Fortuna | 8

Adjusted Net Income for the Three and Nine Months Ended September 30, 2022 and 2021

	Three months ended September 30,		Nine months ended September 30,
Consolidated	2022	2021	2022	2021
Net income	(4.1)	0.2	24.5	42.8
Adjustments, net of tax:
Community support provision and accruals1	-	-	-	0.1
Foreign exchange loss, Lindero Mine2	-	1.2	-	3.8
Foreign exchange loss, Séguéla Project	0.3	-	1.2	-
Write off of mineral properties	3.4	-	4.9	-
Unrealized loss (gain) on derivatives	1.7	-	(0.5)	-
Roxgold transaction costs	-	10.5	-	14.1
SGM Royalty settlement	-	6.7	-	6.7
Inventory adjustment	0.9	-	4.2	-
Accretion on right of use assets	0.6	-	1.8	-
Other non-cash/non-recurring items	(0.5)	3.9	(0.7)	4.0
Adjusted Net Income	2.3	22.5	35.4	71.5
1 Amounts are recorded in Cost of sales
2 Amounts are recorded in General and Administration
Figures may not add due to rounding

Adjusted EBITDA for the Three and Nine Months Ended September 30, 2022 and 2021

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Net income	(4.1)	0.2	24.5	42.8
Adjustments:
Community support provision and accruals	-	-	-	(0.1)
Inventory adjustment	1.1	1.8	5.1	1.7
Foreign exchange loss, Lindero Mine	-	1.2	-	3.8
Foreign exchange loss, Séguéla Project	0.3	-	1.2	-
Net finance items	2.4	4.0	8.9	8.5
Depreciation, depletion, and amortization	46.9	37.8	127.4	77.5
Income taxes	5.8	8.9	26.1	34.2
SGM Royalty settlement	-	9.6	-	9.6
Roxgold transaction costs	-	10.5	-	14.1
Other non-cash/non-recurring items	2.0	1.3	(3.5)	(1.0)
Adjusted EBITDA	54.4	75.3	189.7	191.1

Figures may not add due to rounding

Free Cash Flow from ongoing operations for the Three and Nine Months Ended September 30, 2022 and 2021

In 2022, the Company changed the method for calculating Free Cash Flow from Ongoing Operations. The calculation now uses taxes paid as opposed to the previous method which used current income taxes. While this may create larger quarter over quarter fluctuations due to the timing of income tax payments, management believes the revised method is a better representation of the Free Cash Flow generated by the Company’s ongoing operations. Comparative values from 2021 have been restated using the change in the methodology.

		Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
				(Restated)				(Restated)
Net cash provided by operating activities		64.7		39.4		144.6		90.1
Adjustments
Roxgold transaction costs		-		3.5		-		3.5
Additions to mineral properties, plant and equipment		(27.8)		(13.8)		(73.8)		(23.2)
Progresso royalty payment		-		-		3.0		-
Other adjustments		(2.9)		-		(9.0)		-
Free cash flow from ongoing operations		34.0		29.1		64.8		70.4

Figures may not add due to rounding

Fortuna | 9

Cash Cost per Ounce of Gold Sold for the Three and Nine Months Ended September 30, 2022 and 2021

Lindero Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		43,928	29,508	121,122	75,974
Changes in doré inventory		(107)	1,456	605	2,458
Inventory adjustment		-	(1,743)	-	(1,743)
Export duties		(3,900)	(3,137)	(12,192)	(8,519)
Depletion and depreciation		(14,898)	(9,092)	(41,203)	(24,512)
By product credits		(232)	(55)	(232)	(183)
Production cash cost1		24,791	16,937	68,100	43,475
Changes in doré inventory		107	(1,456)	(605)	(2,458)
Realized gain in diesel hedge		(1,696)	(272)	(3,515)	(525)
Cash cost applicable per gold ounce sold	A	23,202	15,209	63,980	40,492
Ounces of gold sold	B	30,052	23,549	89,193	63,672
Cash cost per ounce of gold sold1 ($/oz)	=A/B	772	646	717	635
1 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

Yaramoko Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		47,481	38,431	129,762	38,431
Changes in doré inventory		-	823	(1,320)	823
Inventory net realizable value adjustment		(1,050)	-	(5,077)	-
Export duties		(2,817)	(2,975)	(8,898)	(2,975)
Depletion and depreciation		(18,356)	(15,739)	(47,010)	(15,739)
Refining charges		-	-	(329)	-
By product credits		-	(61)	(25)	(61)
Production cash cost		25,258	20,479	67,103	20,479
Changes in doré inventory		-	(823)	1,320	(823)
Refining charges		-	138	329	138
Cash cost applicable per gold ounce sold	A	25,258	19,794	68,752	19,794
Ounces of gold sold	B	27,055	27,475	81,183	27,475
Cash cost per ounce of gold sold ($/oz)	=A/B	934	720	847	720
The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.

All-in Sustaining Cash Cost per Ounce of Gold Sold for the Three and Nine Months Ended September 30, 2022 and 2021

Lindero Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable	23,202	15,209	63,980	40,492
Export duties and mining taxes	3,900	3,137	12,192	8,519
General and administrative expenses (operations)	2,044	1,387	6,497	4,003
Adjusted operating cash cost	29,146	19,733	82,669	53,014
Sustaining leases	563	740	1,831	1,796
Sustaining capital expenditures1	4,814	9,385	14,062	20,040
Brownfields exploration expenditures1	314	47	1,104	489
All-in sustaining cash cost	34,837	29,905	99,666	75,339
Non-sustaining capital expenditures1	-	-	169	-
All-in cash cost	34,837	29,905	99,835	75,339
Ounces of gold sold	30,052	23,549	89,193	63,762
All-in sustaining cash cost per ounce of gold sold	1,159	1,270	1,117	1,182
All-in cash cost per ounce of gold sold	1,159	1,270	1,119	1,182
1 Presented on a cash basis

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Yaramoko Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable	25,258	19,794	68,752	19,794
Inventory net realizable value adjustment	1,170	2,975	3,125	2,975
Export duties and mining taxes	2,817	-	8,898	-
General and administrative expenses (operations)	688	439	1,570	439
Adjusted operating cash cost	29,933	23,208	82,345	23,208
Sustaining leases	1,419	1,467	4,273	1,467
Sustaining capital expenditures1	10,225	7,398	26,671	7,398
Brownfields exploration expenditures1	2,530	560	3,018	560
All-in sustaining cash cost	44,107	32,633	116,307	32,633
All-in cash cost	44,107	32,633	116,307	32,633
Ounces of gold sold	27,055	27,475	81,183	27,475
All-in sustaining cash cost per ounce of gold sold	1,630	1,188	1,433	1,188
All-in cash cost per ounce of gold sold	1,630	1,188	1,433	1,188
The Yaramoko Mine was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward.
1 Presented on a cash basis

Production Cash Cost per Tonne and Cash Cost per Payable Ounce of Silver Equivalent Sold for the Three and Nine Months Ended September 30, 2022 and 2021

San Jose Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		32,936	29,980	94,313	90,051
Changes in concentrate inventory		(209)	(31)	(137)	63
Depletion and depreciation in concentrate inventory		68	54	49	21
Inventory adjustment		312	(35)	266	46
Royalties and mining taxes		(1,261)	(1,641)	(4,002)	(4,368)
Workers participation		(979)	(1,218)	(1,876)	(4,573)
Depletion and depreciation		(9,659)	(7,808)	(27,265)	(23,468)
Cash cost3	A	21,208	19,301	61,348	57,772
Total processed ore (tonnes)	B	267,198	248,984	770,090	778,352
Production cash cost per tonne3 ($/t)	=A/B	79.37	77.52	79.66	74.22
Cash cost3	A	21,208	19,301	61,348	57,772
Changes in concentrate inventory		209	31	137	(63)
Depletion and depreciation in concentrate inventory		(68)	(54)	(49)	(21)
Inventory adjustment		(312)	35	(266)	(46)
Treatment charges		(173)	(2,622)	(228)	(441)
Refining charges		997	3,539	2,789	3,161
Cash cost applicable per payable ounce sold3	C	21,861	20,230	63,731	60,362
Payable ounces of silver equivalent sold1	D	2,254,673	2,024,487	6,159,782	6,501,691
Cash cost per ounce of payable silver equivalent sold2,3 ($/oz)	=C/D	9.70	9.99	10.35	9.28
Mining cost per tonne3		37.72	38.00	37.48	38.74
Milling cost per tonne		17.49	17.22	18.74	16.71
Indirect cost per tonne		16.09	14.79	15.48	12.66
Community relations cost per tonne		2.68	3.08	2.55	1.44
Distribution cost per tonne		5.39	4.43	5.41	4.67
Production cash cost per tonne3 ($/t)		79.37	77.52	79.66	74.22
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 90.0:1 (Q3 2021: 73.8:1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 83.5:1 (YTD 2021: 69.7:1).
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results – Sales and Realized Prices
3 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

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Caylloma Mine		Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)		2022	2021	2022	2021
Cost of sales		17,512	17,302	50,815	49,332
Changes in concentrate inventory		135	(670)	11	(899)
Depletion and depreciation in concentrate inventory		(30)	133	(196)	155
Inventory adjustment		(491)	-	(179)	-
Royalties and mining taxes		(218)	(68)	(686)	(157)
Provision for community support		123	-	97	-
Workers participation		(455)	(412)	(1,389)	(1,624)
Depletion and depreciation		(3,619)	(4,549)	(10,952)	(12,575)
Cash cost3	A	12,957	11,736	37,521	34,232
Total processed ore (tonnes)	B	139,143	136,410	407,695	401,942
Production cash cost per tonne3 ($/t)	=A/B	93.12	86.04	92.03	85.17
Cash cost	A	12,957	11,736	37,521	34,232
Changes in concentrate inventory		(135)	670	(11)	899
Depletion and depreciation in concentrate inventory		30	(133)	196	(155)
Inventory adjustment		491	-	179	-
Treatment charges		3,028	4,378	11,195	11,125
Refining charges		389	459	1,153	1,292
Cash cost applicable per payable ounce sold3	C	16,760	17,110	50,233	47,393
Payable ounces of silver equivalent sold1	D	1,480,688	1,341,997	4,101,900	3,577,778
Cash cost per ounce of payable silver equivalent sold2,3 ($/oz)	=C/D	11.32	12.75	12.25	13.25
Mining cost per tonne		41.38	33.82	39.04	32.24
Milling cost per tonne		14.57	15.95	15.24	15.00
Indirect cost per tonne		28.46	28.05	29.50	29.50
Community relations cost per tonne		1.30	0.51	0.93	0.72
Distribution cost per tonne		7.43	7.71	7.34	7.71
Production cash cost per tonne3 ($/t)		93.14	86.04	92.05	85.17
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 0.0:1 (Q3 2021: 72.5:1), silver to lead ratio of 1:21.4 pounds (Q3 2021: 1:23.3), and silver to zinc ratio of 1:13.0 pounds (Q3 2021: 1:18.1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 84.8:1 (YTD 2021: 69.4:1), silver to lead ratio of 1:22.2 pounds (YTD 2021: 1:26.3), and silver to zinc ratio of 1:13.3 pounds (YTD 2021: 1:19.7).
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices
3 September 30, 2021 restated, Sustaining leases moved to All-In Sustaining

All-in Sustaining Cash Cost and All-in Cash Cost per Payable Ounce of Silver Equivalent Sold for the Three and Nine Months Ended September 30, 2022 and 2021

San Jose Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable4	21,861	20,230	63,731	60,362
Royalties and mining taxes	1,261	1,641	4,002	4,368
Workers' participation	1,224	1,522	2,345	5,716
General and administrative expenses (operations)	1,606	1,719	4,845	5,022
Adjusted operating cash cost4	25,952	25,112	74,923	75,468
Sustaining leases4	183	184	489	447
Sustaining capital expenditures3	4,410	3,553	12,036	9,525
Brownfields exploration expenditures3	1,548	2,547	4,645	6,437
All-in sustaining cash cost	32,093	31,397	92,093	91,878
Non-sustaining capital expenditures3	-	745	869	1,776
All-in cash cost	32,093	32,142	92,962	93,654
Payable ounces of silver equivalent sold1	2,254,673	2,024,487	6,159,782	6,501,691
All-in sustaining cash cost per ounce of payable silver equivalent sold2	14.23	15.51	14.95	14.13
All-in cash cost per ounce of payable silver equivalent sold2	14.23	15.88	15.09	14.40
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 90.0:1 (Q3 2021: 73.9:1). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 83.5:1 (YTD 2021: 69.7:1).
2 Silver equivalent is calculated using the realized prices for gold and silver. Refer to Financial Results - Sales and Realized Prices
3 Presented on a cash basis
4 September 30, 2021 restated, Sustaining leases moved from Cash Cost

Fortuna | 12

Caylloma Mine	Three months ended September 30,		Nine months ended September 30,
(Expressed in $'000's, except unit costs)	2022	2021	2022	2021
Cash cost applicable4	16,760	17,110	50,233	47,392
Royalties and mining taxes	218	68	686	157
Workers' participation	522	465	1,607	1,886
General and administrative expenses (operations)	890	630	3,135	2,700
Adjusted operating cash cost4	18,390	18,273	55,661	52,135
Sustaining leases4	841	780	2,505	2,170
Sustaining capital expenditures3	3,764	3,480	11,506	7,930
Brownfields exploration expenditures3	198	1,168	729	2,777
All-in sustaining cash cost	23,193	23,701	70,401	65,012
All-in cash cost	23,193	23,701	70,401	65,012
Payable ounces of silver equivalent sold1	1,480,688	1,341,997	4,101,900	3,577,778
All-in sustaining cash cost per ounce of payable silver equivalent sold2	15.66	17.66	17.16	18.17
All-in cash cost per ounce of payable silver equivalent sold2	15.66	17.66	17.16	18.17
1 Silver equivalent sold for Q3 2022 is calculated using a silver to gold ratio of 0.0:1 (Q3 2021: 72.5:1), silver to lead ratio of 1:21.4 pounds (Q3 2021: 1:23.3), and silver to zinc ratio of 1:13.0 pounds (Q3 2021: 1:18.2). Silver equivalent sold for YTD 2022 is calculated using a silver to gold ratio of 84.8:1 (YTD 2021: 69.4:1), silver to lead ratio of 1:22.2 pounds (YTD 2021: 1:26.3), and silver to zinc ratio of 1:13.3 pounds (YTD 2021: 1:19.7).
2 Silver equivalent is calculated using the realized prices for gold, silver, lead, and zinc. Refer to Financial Results - Sales and Realized Prices
3 Presented on a cash basis
4 September 30, 2021 restated, Sustaining leases moved from Cash Cost

Additional information regarding the Company’s financial results and activities underway are available in the Company’s third quarter 2022 Financial Statements and accompanying Q3 2022 MD&A, which are available for download on the Company’s website,  www.fortunasilver.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.

Conference Call and Webcast

A conference call to discuss the financial and operational results will be held on Thursday, November 10, 2022 at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO; Luis D. Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer - Latin America and David Whittle, Chief Operating Officer - West Africa.

Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at https://www.webcaster4.com/Webcast/Page/1696/46956 or over the phone by dialing in just prior to the starting time.

Conference call details:

Date:  Thursday, November 10, 2022

Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time  

Dial in number (Toll Free): +1. 888.506.0062

Dial in number (International): +1.973.528.0011

Entry code: 722669

Replay number (Toll Free): +1.877.481.4010

Replay number (International): +1.919.882.2331

Replay Passcode: 46956

Playback of the earnings call will be available until Thursday, November 24, 2022. Playback of the webcast will be available until Friday, November 10, 2023. In addition, a transcript of the call will be archived on the Company’s website.

Fortuna | 13

About Fortuna Silver Mines Inc.

Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d’Ivoire. 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. For more information, please visit our website.

ON BEHALF OF THE BOARD

Jorge A. Ganoza

President, CEO, and Director

Fortuna Silver Mines Inc.

Investor Relations:

Carlos Baca |  info@fortunasilver.com

Forward-looking Statements

This news release contains forward-looking statements which constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (collectively, "Forward-looking Statements"). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements. The Forward-looking Statements in this news release include, without limitation, statements about the Company's plans for its mines and mineral properties; the Company’s anticipated financial and operational performance in 2022; estimated production and costs of production for 2022, including grade and volume of metal produced and sales, revenues and cashflows, and capital costs (sustaining and non-sustaining), and operating costs, including projected production cash costs and all-in sustaining costs; the ability of the Company to mitigate the inflationary pressures on supplies used in its operations; estimated capital expenditures and estimated exploration spending in 2022, including amounts for exploration activities at its properties; the Company’s plans for the construction of the open pit mine at the Séguéla project in Cote d’Ivoire; the economics for the construction of the mine at the Séguéla project as set out in the feasibility study, the estimated construction capital expenditures for the project, the timelines and schedules for the construction and production of gold at the Séguéla project; statements regarding the Company's liquidity, access to capital,  including the proposed increase in size of the Company’s existing credit facility; the impact of COVID-19 on the Company’s operations; the Company's business strategy, plans and outlook; the merit of the Company's mines and mineral properties; mineral resource and reserve estimates, metal recovery rates, concentrate grade and quality; changes in tax rates and tax laws, requirements for permits, anticipated approvals and other matters. Often, but not always, these Forward-looking Statements can be identified by the use of words such as "estimated", “expected”, “anticipated”, "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "planned", "reflecting", "will", "containing", "remaining", "to be", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; the impact of the COVID-19 pandemic on the Company’s mining operations and construction activities; the risks relating to a global pandemic, including the COVID-19 pandemic, as well as risks associated with war or other geo-political hostilities, such as the Ukrainian – Russian conflict, any of which could continue to cause a disruption in global economic activity; the risks associated with the acquisition of Roxgold; fluctuation in currencies and foreign exchange rates; increases in the rate of inflation; the imposition of capital controls in countries in which the Company operates; any extension of the currency controls in Argentina or changes in tax laws in Argentina and the other countries in which we operate; the ability of the Company to enter into definitive documentation to increase the size of its existing credit facility, on acceptable terms or at all; changes in the prices of key supplies; technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; changes to current estimates of mineral reserves and resources; changes to production and cost estimates; changes in the position of regulatory authorities with respect to the granting of approvals or permits; governmental and other approvals; changes in government, political unrest or instability in countries where Fortuna is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

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Forward-looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to the accuracy of the Company’s current mineral resource and reserve estimates; that the Company’s activities will be conducted in accordance with the Company’s public statements and stated goals; that there will be no material adverse change affecting the Company, its properties or changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing, and recovery rate estimates and may be impacted by unscheduled maintenance, labour and contractor availability and other operating or technical difficulties); the construction at the Séguéla gold Project will continue on the time line and in accordance with the budget as planned; the duration and impacts of COVID-19; geo-political uncertainties that may affect the Company’s production, workforce, business, operations and financial condition; that the Company will the expected trends in mineral prices and currency exchange rates; that the Company will be successful in mitigating the impact of inflation on its business and operations; that the Company will be able to enter into definitive documentation to increase the size of its existing credit facility, on terms acceptable to it; that all required approvals and permits will be obtained for the Company’s business and operations on acceptable terms; that there will be no significant disruptions affecting the Company's operations, the ability to meet current and future obligations and such other assumptions as set out herein. Forward-looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that these Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward-looking Statements.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

Reserve and resource estimates included in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by a Canadian company of scientific and technical information concerning mineral projects. Unless otherwise indicated, all mineral reserve and mineral resource estimates contained in the technical disclosure have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves. Canadian standards, including NI 43-101, differ significantly from the requirements of the Securities and Exchange Commission, and mineral reserve and resource information included in this news release may not be comparable to similar information disclosed by U.S. companies.

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