2018 8 Updated ated PFS FS Terron onera era Project ect TSX: - - PowerPoint PPT Presentation

August st 30, 2018 18

TSX TSX: EDR I NYSE: E: EXK I www.ed .edrs rsilver ilver.com .com

2018 8 Updated ated PFS FS Terron

• nera

era Project ect

Cautio utiona nary ry Not

• te

GROWTH WITH INTEGRITY 2

This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act

• f 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking

statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2018, the timing and results of various future activities, the reliability of mineral resource estimates, the economic analysis and proposed development of the Terronera mine. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed

• r implied by such statements. Such factors include, among others, the reliability of Terronera mineral resource and reserve estimates,

economic analysis and estimates for the Terronera, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the reliability of mineral resource and reserve estimates and economic analyses for the Terronera mine, the continued operation of the Company’s mines, no material adverse change in the market prices of commodities, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such

• ther assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause

actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law. The 2018 Updated PFS report and the updated Mineral Resource and Reserve Estimates were prepared in compliance with National Instrument 43-101 (NI 43-101) and will be filed on SEDAR and EDGAR within 45 days of Endeavour Silver’s News Release dated August 30,

• 2018. All currency references herein are in US$.

En Endeavo eavour ur Si Silver lver Overview erview

GROWTH WITH INTEGRITY 3 Product duction ion Developmen

• pment

Explora ration ion Mexic ico City

Sierra Madre Occidental Silver & Gold Belt

Terroner era El Cubo

Guanajuato Zacatecas

Lourde des Bolañit itos

• s

Guanac acev eví Parral

Chihuahua

Guada dalupe pe y y Calvo

Durango Jalisco

Mid Mid-tier er precious us metals als producer r with h four high grade e silver ver gold mines es in Mexico.

• . The Company

y has a compell lling ing pipeline ne of explora rati tion n and develop lopme ment nt projects s to f fuel el future ure growth h to b become e a premier er senio ior silver er producer er.

• US$305M

5M market cap 3

• 4

4 operating mines

• 10.2

2 – 11.2 2 mil oz

• z Ag Eq

Eq1

2018 production forecast

• +1,60

600 0 employees

El Compas pas

• $58.9M

9M working cap, no debt 2

1. Silver equivalents based on 75:1 silver: gold ratio 2. As at June 30, 2018. Cash position of US$31.1 million 3. As at August 28, 2018

• $35.7

7 millio lion n ATM Financi ncing ng

to advance Terronera to fund equity portion of CAPEX

4

Ter erronera

• nera Proj
• jec

ect t Overvi erview ew

GROWTH WITH INTEGRITY

A N New District trict Scale ale Explora rati tion n & Mining ng Opportunit tunity

Locat ation n - NW Jalisco State, near town of San Sebastian, 40 Km NE of Puerto Vallarta, Jalisco state, Mexico Access – 1.5 hour drive from Puerto Vallarta via Highway 70 2010 – acquired option to purchase from Grupo Mexico,

• ne of the largest mining companies in Mexico

2011 – commenced exploration 201 012 2 – discovered Terronera mineralization 2013 3 – exercised option to acquire 100% interest in the San Sebastián Properties 2014 4 - 2018 8 – Further consolidated land package in the area, expanded resources, completed PEA & PFS Total al purchas ase price - $2.75 million, subject to 2% NSR Property erty – currently comprised of 21 mineral concessions, totalling 16,691 hectares

View overlooking the local town of San Sebastian

5 GROWTH WITH INTEGRITY

Prop

• pert

erty y Ge Geol

• logy
• gy
• San Sebas

asti tian an - historic mining district dating back to 1542

• Situated in the Sierra Madre volcanic belt that hosts

the majority of Mexico’s Au & Ag deposits

• > 50 historic mines on > 20 known veins
• Production was halted by 1910-12 due to Mexican

Revolution

• Grupo Mexico

xico – conducted minor exploration drilling in late 1980’s early 1990’s but district largely unexplored by modern methods

• Low sulphi

hidati ation epit ithe hermal al vein n system tem – in 4 mineralized vein sub-districts

• Each vein cluster spans ~3km x 3km in area
• Mineralization down to 400 m depth
• Veins average 2-8 m thick, up to 30 m in places

The San n Sebasti astian an veins ns rang nge e up to 30 m meter ers s thick ick and carry rry high grade silver gold mineralization up to 1,000’s gpt Ag Eq Eq

Prop

• per

erty ty Mine neralizati ralization

• n

6

• Low sulfidation, epithermal, bonanza

silver-gold mineralization

• Hosted in Cretaceous andesite

volcanics

• Ore minerals are argentite-pyrite

(galena-sphalerite-pyrargyrite) in ginguro bands

• Vein minerals are quartz-adularia-

calcite- barite (sericite)

• Amenable to both flotation and

agitated leach recoveries 80-90%

• Grades typically range 100-500 gpt

Ag and 1-5 gpt gold

7 GROWTH WITH INTEGRITY

Ex Exploration

• ration Dr

Drillin lling g

From 2011-2018 + 3 307 drill holes es & + 9 90,000 meter ers s have ve been n drilled ed

2010 – Commenced exploration activities 2011 – 2012 2 – drilling on Real Alto & Quiteria West Veins 2012 2 – 2015 5 – drilling on Terronera vein, initial government permitting including PEA 2016 6 – exploration of new drilling targets around the Terronera Project and discovery of high grade La Luz vein 2017 – Exploration focused on La Luz, and PFS on the Terronera Project 2018 8 – Infill drilling along Terronera vein, final government permitting and updated PFS Terrone nera a mine neraliz alizat ation ion 1,40 400 mete eters long, g, 400 meter ters deep ep and 3-16 6 mete ters thick ick and still l open n along g strik ike e and at depth th

8 GROWTH WITH INTEGRITY

Updat dated ed Minera neral l Res esou

• urce

rces s – 2018 18 vs. 2017 17

1. The updated 2018 Mineral Resource and Mineral Reserve Estimates include drill results for the Terronera vein completed before the November 2017 cut-off date and since the October 31, 2016 cut-off date for the 2017 Mineral Resource and Reserve Estimates. It also includes all drill results for the La Luz vein discovered in 2016 and drilled in 2017. Refer to 43-101 Cautionary Language in the Appendix for full disclosure. Cut-off grade of 150 g/t Ag Eq. Mineral Resources are exclusive of and in addition to Mineral Reserves 2. Silver equivalents based on 75:1 silver: gold ratio

Clas assifi ificat atio ion Tonne nes (‘000s) Ag g/t Au g/t Ag Eq Eq g/t (2) Contai aine ned d Ag

• z
• z (‘000’s)

Contai aine ned d Au

• z
• z (‘000’s)

Contai aine ned d Ag Eq Eq

• z
• z (‘000’s) (2)

2018 Indi dicat ated d Estima mates Terrone nera ra 4,237 240 2.20 405 32,658 299 55,083 La La Luz 126 192 13.60 1,212 779 55 4,904 Total al 4,363 63 239 2.53 53 428 33,437 354 59,98 ,987 Compared to 2017 Indic icat ated Estim imat ates Terrone nera ra 3,959 59 232 2.18 385 29,53 ,530 277 48,920 ,920 % Chang nge 10% 3% 16% 11% 13% 28% 23% 2018 Inferr rred Estim imat ates Terrone nera ra 1,015 258 1.82 395 8,400 59 12,825 La Luz 58 145 12.15 1,060 269 23 1,994 Total al 1,073 252 252 2.38 431 8,669 669 82 82 14,8 ,819 Compared to 2017 Inferre rred Estim imat ates Terrone nera ra 720 309 1.48 48 413 7,153 53 34 34 9,53 533 % Chang nged 49%

• 18%

61% 4% 21% 141% 55%

 Ag Ag Eq Eq Ind ndicat icated ed Min Mineral eral Re Resour urces es in increas eased ed 23 23% to to 60 60 millio million oz

• z with higher tonnes (10%),

silver grades (3%) and gold grades (16%)  Ag Ag Eq Eq Infe nferred ed Min Mineral eral Res Resour urces es in increas eased ed 55 55% to to 14 14.8 milli million oz

• z with higher tonnes (49%),

and gold grades (61%)

9 GROWTH WITH INTEGRITY

Lon

• ng Sec

ections tions – Silver lver Eq Eq Gr Grade des

NW

SE

TERRONERA VEIN - LONGITUDINAL SECTION SILVER EQUIVALENT GRADE DISTRIBUTION

AGEQ= AG + (AU x 75) LA LUZ VEIN - LONGITUDINAL SECTION SILVER EQUIVALENT GRADE DISTRIBUTION

W E

10 GROWTH WITH INTEGRITY

Lon

• ng Sec

ections tions – Ve Vein n Widt dths hs

NW

SE

TERRONERA VEIN - LONGITUDINAL SECTION WIDTH VEIN MAP

LA LUZ VEIN - LONGITUDINAL SECTION WIDTH VEIN MAP

W E

Upda dated ted Mine neral ral Reserves rves – 2018 18 vs. 2017 17

11

Clas assifi ificat atio ion Tonne nes (‘000s) Ag g/t Au g/t Ag Eq Eq g/t (2) Contai aine ned d Ag oz

• z (‘000’s)

Contai aine ned d Au oz

• z (‘000’s)

Contai aine ned d Ag Eq Eq oz

• z (‘000’s) (2)

2018 Probabl bable Estim imat ates Terrone nera ra 4,559 226 2.00 376 33,082 290 54,832 La La Luz 142 158 11.40 1,013 721 52 4,621 Total al 4,701 224 224 2.28 28 395 33,803 342 59,45 ,453 Compa pared d to 2017 Probabl bable Estim imat ates Terrone nera ra 4,061 61 207 1.95 95 344 27,027 255 255 44,8 ,877 % Chang nge 16% 8% 17% 15% 25% 34% 32%

 Ag Ag Eq Eq Pr Probab able le Min Mineral eral Res Reser erves es in increas eased ed 32 32% to to 59 59.4 milli million oz

• z with higher tonnes (16%)

silver grades (8%) and gold grades (17%)

1. The updated 2018 Mineral Resource and Mineral Reserve Estimates include drill results for the Terronera vein completed before the November 2017 cut-off date and since the October 31, 2016 cut-off date for the 2017 Mineral Resource and Reserve Estimates. It also includes all drill results for the La Luz vein discovered in 2016 and drilled in 2017. . Refer to 43-101 Cautionary Language in the Appendix for full disclosure. Cut-off grade of 150 g/t Ag Eq. Mineral Resources are exclusive of and in addition to Mineral Reserves 2. Silver equivalents based on 75:1 silver: gold ratio

Current ent Exp xplor

• rat

ation ion in 2018

12

• Drill 5,400 m to extend mineralization in

Terronera vein

• Infill 20,000 m with a goal to upgrade approx. 1

million tonnes of inferred resources to measured and indicated resources and to expand the inferred resources at depth The e deepest t minera eraliz ized ed hole e drilled led to date te inters tersec ected ted 618 8 gpt silver er and 3.2 2 gpt gold over 21.2 .2 m m true ue width th in hole TR11-4 at 430 30 metr tres es verti tical al dep epth, th, and rema main ins open n at depth. th.

2018 infill drilling ng has s generat nerated ed better ter than an anticipated icipated results sults

Terronera Project

San Sebastián – Jalisco - Mexico Santiago de los Pinos San Sebastián La Luz Mine Terronera Mine

Tailings Dam Plant El Rayo Waste Dump Mine Camp

2 1 Km Km

Sur urface face Layo yout ut

Mining ning Method hod

14

Undergr erground und Mine e Operat ations ions Acces essed ed via Ramp: mp: Terrone nera – ramp access will connect to haulage drift – initial production rates of 750 tpd (Year 1&2) La Luz – ramp access will connect centrally to deposit - double production in Year 3 to 1,50 500 tpd

• nwards by including La Luz deposit until the end of mine life

Mining g Method: : Terrone nera – drift & fill mining method for veins 1-10 m in width (each cut & fill will be 300m long)

• Main access level is 1,380 EL main haulage drift; Deposit divided into 5 mining blocks (M1-M5)

La Luz – Resue mining method for narrower vein widths Backfill: ill: blend of tailing and waste rock and cement

Ramp mp Access ess

GROWTH WITH INTEGRITY 15

Equip ipmen ment t & P Pow

• wer

er

16

UG Mining ng Equip uipme ment nt Flee eet t compris ised ed of:

• Jumbo Drills
• Scooptrams
• Haulage trucks
• Mechanized bolters
• Scissor Decks
• Loaders
• Small & Large longhole drills
• Jackleg drills

Power Supply ly will be provid ided ed by the Nati tiona nal Grid operate ated by the Comisión Federal al de Electr ectricid icidad ad (CFE) E)

• 23kV powerline runs through the

Terronera Property however Endeavour has an arrangement with CFE for the construction of a new 115kV powerline with a new substation, which will take 18 months to build

• Leased generators will be installed on site

to provide power during construction and phase 1 of 750tpd operations

• Trade off studies underway to evaluate
• pportunities for LNG, solar & diesel

Cam amp p & & Offic fice

17 Santiago Mine Camp Surface View

A construction camp will be established near the site to provide accommodation, meals, and ancillary services for construction and operations personnel. The camp will service 410 people at its peak.

Proc

• cess

ss Flow

• w Sheet

et

18

Two Stage age Crushi hing ng Circuit uit – followed by closed circuit grinding to achieve a flotation feed grind size

• f 80 % passing 150 mesh (100 microns) – currently optimizing the grinding circuit to increase

particle size Flash h Flotati tation– target recoveries of 84.6 Ag/ 80.4% Au Regrin ind Circuit uit – provides improved liberation of precious metals mineralization and higher concentrate grade

Proj

• jec

ect t Timelin meline e

19

Subseq sequent uent to Rece ceiv iving ing Final al Permi rmits ts, 18 month h const struction ruction sched hedule ule

Impr proved

• ved Operat

rating ing Para aramet meter ers s

20

Devel velopi ping ng our r 5th

th and Large

gest st Mine e

Parameter/ ameter/ Result Upda dated ted 2018 PFS 2017 PFS % Change e

Silve ver r pric ice per oz

• z

17 18 (6%) Gold d price per oz

• z

1,275 1,260 1% LOM LOM tonne nes processed d (thousands) 4,701 4,061 16% Life of Mine ne (Years) 9.5 7.0 36% Avera rage ge silver grade de (g/t) 224 207 8% Avera rage ge gold d grade ade (g/t) 2.26 1.95 16% Silve ver r equiv ival alent nt grade de (g/t) Base Prices 394 344 15% Avera rage ge silver r recove very ry (%) 84.6 87 (3%) Avera rage ge gold recove very y (%) 80.4 74.7 8% LOM LOM payabl able Ag ounc nces produ duced d (millions) 27.9 22.6 23% LOM Payabl able Au ounc nces produc duced d (thousands) 268 185 45% LOM LOM payabl able Ag Eq Eq ounc nces produc duced d (millions) 48 35.6 35% Avg annual nual Ag ounces produc duced (millions) 2.9 3.2 (9%) Avg annual nual Au ounces produc duced d (thousands) 28 26 7% Avg annual nual Ag Eq Eq ounces prod

• duc

uced d (millions) 5.1 5.1 0%

Impr proved

• ved Financ

nancial ial Perfo rform rmance ance

21

$0.15 / Ag oz $1.36 / Ag oz Cash Costs(1) AISC (1)

• 1. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. Costs are presented in US $,

net of by-product credits . 2. Projected cash costs & AISC are based on Updated PFS to be filed in 2018.

Direct ect Costs Per Tonne ne

Mining ng Costs , , $46.0 .08 Proces

• cessin

sing g Costs sts , , $19.58 .58 G&A G&A, , $8.40 .40 Royalt yalty y , , $4.2 .23

Mining Costs Processing Costs G&A Royalty

Total l Cost $78.30 8.30

Projec ected ted Low Total al Cash h Cost & AISC SC

Upda dated ted 2018 PFS 2017 PFS % Change e

LOM Revenue nue ($, millions) 815.8 639.5 28% LOM EBITDA DA ($, millions) 447.7 347.3 29% LOM Free e cash flow w ($, millions) 193.2 125.3 54% Project ect after r tax x NPV PV (5%, $,millions) 117.8 78.1 51% After r tax inter erna nal l rate e of return n (%) 23.5 21.2 11% Payb yback ck period

• d (years)

5.4 4.3 26%

2018 PFS shows ws higher her Reven enues, ues, FCF, mine e life, e, & N NPV by 51%

Capita pital l Cos

• sts

ts

22

CAPEX EX Require uireme ments for Phase 1 ( 750 0 tpd operat ations in years ars 1 & 2 )

Plant ant and site infra rastruct ructure ure $44.3 million Mine ne develop

• pme

ment nt, infra rastruc ructure ure and d equip ipme ment nt $13.7 million Owners rs cost, construc ructio ion n camp, p, engine ineering, ring, procure ureme ment nt and construc uctio ion n managem agement nt (EPCM) $9.7 million Contin inge genc ncy $8.1 million Total al Init itial ial Capit ital al Expendi ditur ures $75.8 million

CAPEX EX Requir uiremen ments for Phase e 2 Expansio nsion n ( 1,500 500 tpd operati ations ns in year ars 3 +)

Power r from

• m state grid

d $14.9 million Underg rgroun round d mine ne developm pment nt $12.0 million Plant ant expans nsion

• n

$6.1 million Owners rs cost, construc ructio ion n camp, , and construc ructio ion manage nagement nt (EPCM) M) $2.0 million Contin inge genc ncy $4.2 million Total al Expans nsio ion Capit ital al Expendi ditures $39.2 million

Phase ase 1 - 750 tpd tpd, Phase ase 2 – 1,500 tpd tpd in year ar 3 o

• nwar

ard with h the addition ion of Li Line B milling ng & flotation ation circ rcuits uits

Sensit sitivity ivity Analy alysis sis

23

Operat atin ing g Cost Init itial ial Capit ital al Metal al Prices Varia ianc nce NPV (5%) IRR Paybac back NPV (5%) IRR Paybac back NPV (5%) IRR Paybac back

• 20%

$ 148.9 28.1% 5.0 $ 132.5 28.6% 5.1 $ 33.8 10.6% 7.2

• 10%

$ 133.4 25.8% 5.2 $ 125.2 25.8% 5.2 $ 76.1 17.3% 6.1 Base Case $ 117.8 23.5% 5% 5.4 $ 117.8 23.5% 5% 5.4 $ 117.8 23.5% 5% 5.4 10% $ 99.7 20.6% 5.7 $ 110.5 21.4% 5.6 $ 154.7 28.4% 5.0 20% $ 81.3 17.7% 6.1 $ 103.1 19.5% 5.8 $ 191.6 33.2% 4.6

After er Tax x Cash sh Flow

• w

24

• $100,000
• $50,000

$- $50,000 $100,000 $150,000 $200,000 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

US$ (000s)

After-Tax Annual Cash Flow After-Tax Cumulative Cash Flow

• Project Payback Period is 5.4 years

Upcoming

• ming Catalyst

talysts

25

Revise Mine Plan – to include new reserves Optim imize ze Crus ushi hing ng Circuit uit – to provide lowest energy requirement Optim imize ze Grind ndin ing g Circuit uit – to increase particle size and recoveries Expand and Taili iling ngs Facili ility ty – to accommodate longer mine life Revie iew Power Altern ernati atives es – grid power vs LNG facility + solar and diesel power to reduce capital costs Continue ue Explorato atory y Drill lling g to Exte tend Mine Life –

• n nearby mineralized ore bodies, given recent

exploration success to extend the mine life

Final al Perm rmit its s + D Debt t Financi ancing ng = D Develo elopment ment Deci cision sion

Receive final al tailing lings & dump mps permit mits Final alize ze first t tranche anche of debt t facili ility ty Recei eive e develo elopmen ent t decisio ision n from the e Board Init itia iate te Constr truc uction ion works inclu ludin ing g land clearin aring g

Operat rating ing Cos

• st

t Com

• mpa

parison rison

26

1. Based on the Updated 2018 PFS for the Terronera Project, net of by product credits 2. The data presented for the operating peer group set is cash costs and AISC, net of by product credits, for the 6 months ended June 30, 2018 Source: S&P Global, as of August 28, 2018

• $10.60
• $9.03
• $6.29
• $4.22
• $1.64 -$0.82 -$0.45

$0.03 $0.19 $1.25 $1.34 $4.86 $5.70 $6.07 $6.46 $6.92 $7.82 $8.10 $8.27 $8.81 $9.06 $10.09 $10.43 10.59 $10.60 $10.67 $10.71 $11.29 $13.51 $14.18 $14.70 $14.99 $15.47 $19.50

• $15.00
• $10.00
• $5.00

$- $5.00 $10.00 $15.00 $20.00 $25.00

Terrone nera a est. LOM Cash h Costs (1) vs. Operati ating ng Peer Group up (2

(2)

• $1.50

$1.38 $2.56 $2.65 $3.25 $4.35 $5.07 $5.78 $6.79 $7.48 $7.88 $8.20 $8.84 $9.55 $9.74 $11.15 $11.36 $12.00 12.07 $12.34 $12.95 $14.16 $15.00 $15.98 $16.94 $17.00 $19.30 $20.72 $25.11 $25.37

• $5.00

$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00

Terrone nera a est. LOM AISC SC (1) vs. Operati ating ng Peer er Group up (2)

(2)

GROWTH WITH INTEGRITY 27

Com

• mmunity

munity En Engagement gagement

Reclaim laim Distur urbed ed Areas as Annual ually ly – we have planted approximately 57,150 trees in the area Estab ablis lishe hed a Wild Deer er Farm- continue to support this as part of our environmental strategy Trai aine ned 25 Locals als – three month mine skills training program for future employees Hirin ing g Local al Contracto tors – for opportunities related to construction of the site and local road construction Signe ned Collab aborati ation n Agree eeme ment nt with h CONANP ANP – (Natural Protection Areas Commission) to co-operate on minimizing potential impacts Curren ently tly Hirin ing g Key y Manage agers to Advanc ance e Project ect :

Employ 350 people e during ing const stru ructi ction

• n & 4

400 people e in opera rati tions

• ns
• Community Relations
• General Manager
• Safety
• Purchasing
• Human Resources
• Electrical

Environm ironmenta ental Perm rmit itting ting

28

 Recei eived ed MIA A (EIS) S) from SEMARN ARNAT AT– Mexican environmental permitting authority in Q1, 2017 for 1,500 tpd plant and environmental monitoring before, during and after mine closure.  Recei eived ed Mine e & Plant nt Permit mits – Q3, 2017  Await itin ing g Final al Tail ilin ings gs & Dumps Permit mits – Expect to receive in 2018

• Tailings storage facility will be designed to recycle water and store “drystack tailings”
• All required documents have been filed with Mexican government agencies

Summ mmary ary Terrone

• nera

ra

29

Devel veloping ping our r 5th

th and La

Large gest st Mine e Core e Asset t Robust st Ec Econo nomic ics Low Cost Long Mine Life Explora rati tion n Upside e Large ge Mine

Attractive both in size and grade; Deposit is shallow, thick and rich $117.8 million after tax NPV(5%) , 5.4 payback period, 23.5% after tax IRR 9.5 year mine life and growing High grade silver-gold discovery still growing; deposit open at depth; other prospective veins Annual phase 2 production est. 2.9 million oz Ag, 28,000 oz Au, for 5.1 million oz AgEq Estimated all-in sustaining cost, net of by product credits, of $1.36 per silver oz

• 1. Gold ounces converted to silver equivalent ounces on a 75:1 ratio

Que uest stio ions ? ns ?

30

Base e Case se Assump umpti tions

• ns for
• r PFS

S

31 Finan ancial ial Notes es

Corpo pora rate Tax Rate 30.0% After allowable deductions Mining ning Special al Duty y Tax Rate 7.5% Applied to EBITDA, deductible against corporate tax Gove vernme rnment nt Royal alty y 0.5% NSR on gross revenues after smelter charges Discount

• unt Rate

5.0% For NPV calculation PESOS:USD D FX Rate 20 Approximate average Q2 2018 Silve ver r Pric ice, , US$/oz

• z

$17.00 Constant, LOM Gold d Price, , US$/oz

• z

$1,275 Constant, LOM Depreciat iatio ion 11yr Units of production Prope pert rty NSR Royal alty 2.0% Payable to original property owner

Tech chnic ical Notes es

Silve ver r Recove very y to Con % 84.6% Forecast from detailed metallurgical tests Gold d Recove very ry to Con % 80.4% Forecast from detailed metallurgical tests Con Silve ver r Payabl able % 97.5% Based on current contracts Con Silve ver r Payabl able % 97.5% Based on current contracts Mining ning Cost per Tonne ne $46.08 Applicable to stoped ore Processing ng Cost per Tonne ne $19.58 On-site processing, including treatment and refining charges G&A Costs per Tonne ne $8.40 On-site G&A

NI 43-101 101 Caut utiona ionary y Di Disclosur closure e

32

Notes (1) CIM definitions were followed for Mineral Resource Estimates (2) Mineral Resources are estimated by conventional 3D block modeling based on wire-framing at a 150 g/t Ag Eq cut-off grade and inverse distance cubed grade interpolation. (3) Ag Eq is calculated using the formula: Ag Eq = Ag g/t + (75*Au g/t). (4) For the purpose of Mineral Resource estimation, assays at Terronera were capped up to 15 g/t for Au and up to 2,100 g/t for Ag and 90 g/t Au and 1,000 g/t Ag for La Luz. (5) Metal prices for the Mineral Resource Estimate are: US$17.00/oz Ag and US$1,275/ oz Au. (6) A bulk density of 2.57 tonnes/m3, derived from 683 analyses was used for Terronera and 2.62 tonnes/m3 derived from 79 analyses for La Luz were used for the volume to tonnes conversion. (7) Grade model blocks are 4.0m x 1.0m x 4.0m for Terronera and 2.0m x 0.50m x2.0m for La Luz (8) Mineral Resources are classified as Indicated and Inferred based on drill hole location, interpreted geologic continuity and quality of data. (9) A small amount of the Mineral Resource was historically mined in the upper portion of the Terronera Vein and this material has not been included in the Mineral Resource Estimate. (10) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues (11) The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. (12) The Inferred Mineral Resources reported herein were not included in the economic assessment of the updated 2018 PFS. (13) P&E Mining Consultants Inc. estimated diluted and extractable mineralized resources using a cut-off grade of 160 g/t AgEq for Terronera and 216 g/t for La Luz and employed mechanized cut and fill mining methodology. (14) Mining extraction was estimated at 95% and mining dilution was calculated at an average of 10% for Terronera and 22% for La Luz. PFS Team Endeavour engaged Smith Foster & Associates Inc. to complete an NI 43-101 2018 PFS for Terronera, including the metallurgical test work and process flowsheet

• design. P&E Mining Consultants Inc. prepared the Mineral Resource and Mineral Reserve Estimates. Knight Piésold provided input on the mine geotechnical and

water inflow data while Wood (formerly AmecFW) designed the tailings and water management facilities and reviewed the environmental permits. Qualifie fied d Person

• ns

Godfrey Walton, M.Sc., P.Geo., Endeavour’s President and COO, is the Qualified Person who reviewed and approved this news release and supervised the engineering work supporting the 2018 PFS. Peter Smith, P.Eng., Eugenio Iasillo, P. E., Eugene Puritch, P.Eng. F.E.C., Benjamin Peacock, P.Eng., and Humberto Preciado, P.E., are the Independent Qualified Persons for the 2018 PFS who have reviewed and approved the technical contents of this news release. QA/ / QC A Quality Control sampling program of reference standards, blanks and duplicates is used to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption (AA) finish and silver by aqua regia digestion and ICP finish, over-limits by fire assay and gravimetric finish.