Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) reports that a small group of union employees, representing 15 percent of the mine and plant workforce, have illegally blockaded access to the San Jose Mine. As a result, operations at the mine have been temporarily halted.

The illegal blockade arose after this group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker's profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation. The blockaders demand the Company increases profit sharing participation beyond what is stipulated by law.

The Company is engaged in dialogue with the union leadership in an open and constructive manner to have employees return to work and for operations to resume as soon as possible.

For over a decade, the San Jose Mine has been the single largest employer in the region of Valles Centrales and provides direct quality employment to over 1,200 people.