FVI: High-Grade Zone Discovered at Caylloma

MATTHEW O'KEEFE, Cormark Securities Inc. (02/03/2010)
"Exploration Work at Caylloma Reveals More High Grade
Fortuna reported that it has intersected bonanza-grade silver through exploration raises in its Animas vein at its Caylloma Mine in Peru. The material appears to be up to 10x higher than resource grade and could have a positive impact on 2010 silver production.

Definitive Quarter for San Jose Project
In Q1/10, Fortuna is expected to pass several major milestones on the San Jose production path, including the release of a pre-feasibility study and commencement of construction.

Maintaining Buy Recommendation and C$3.25 Target
Fortuna continues to prove itself as a solid mine operator with growth being fueled by the addition of San Jose in 2011. The results are encouraging but will require additional drilling and sampling to quantify. We are maintaining our Buy recommendation and target price of C$3.25 per share, which is based on a 1.0x multiple to NAV."

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