Ja Januar uary y 24, 2019 Bui uilding ing New Ne w Mine nes to F o Fue uel Orga Or gani nic Grow Gr owth TSX: EDR EDR I NYSE: E: EXK I www.ed .edrs rsilver ilver.com .com
Cautio utiona nary ry Not ote This presentation contains “forward - looking statements” within the meaning of the United States private securities litigation re form act of 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 2019 and future years, including revenue, cash flow, operating and capital cost forecasts, silver and gold production, timing and expenditures to explore and develop new silver mines and mineralized zones, silver and gold grades and recoveries, cash and all-in sustaining costs per ounce, initial and sustaining capital expenditures, and the use of the Company’s working capital. 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. 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 or implied by such statements. Such factors include, among others: fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar); fluctuations in the price of consumed commodities, 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 (including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, reliability of calculation of mineral reserves and resources and precious metal recoveries, diminishing quantities or grades of mineral reserves as properties are mined; risks in obtaining necessary licenses and permits, global market events and conditions 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 Informat ion 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 continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, mining operations will ope rate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and suc h other 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. 2 GROWTH WITH INTEGRITY
In Investor estor Hi Highligh hlights ts Four high-grade silver-gold mines located in Mid-Tier ier Prod oduc ucer er Mexico; produced 9.5 mil oz Ag Eq (1) in 2018 Focused on continuous improvement, growing profit Optimizing zing Operat atio ions s margins, reducing costs, improving safety Best organic growth profile in silver mining sector; Focu ocused sed on n Gro rowth wth Developing new mines to drive future growth Track record of virgin discoveries, our competitive Disco cover ering ing Orebod odies es advantage; Exploring brownsfield assets to extend LOM Opportunistic M&A to create growth & value; Acquiring Acquir uiring ing Key Assets ets core assets at low prices to build project pipeline Parral silver resources still growing; Planning PEA Explorati ploration on Exper pertis tise release in 2019 1. 2018 Silver equivalents based on a 75:1 gold: silver ratio 3 GROWTH WITH INTEGRITY
Cor ore e Ass ssets ets Sierra Madre Occidental Silver & Gold Belt Chihuahua Guanac acev eví Parral Guada dalupe pe y y Calvo Durango Canada ada Zacatecas Bolañit itos os El Compas pas Lourde des Head Office Vancouver Guanajuato El Cubo Terroner era Jalisco Mexic ico City Mexic ico Off ffic ice Leon Product duction ion Mines Development Exploration Chil ile Off ffic ice e Developmen opment Terronera Guanaceví Parral Santiag iago Guadalupe y Calvo Explora ration ion Bolañitos Lourdes El Cubo Offi fice Cerro Marquez El Compas 4 GROWTH WITH INTEGRITY
Foc ocuse sed d on on Grow owing ing Prod oduct ction ion Annual AgEq (1) Production (million oz) Strategic acquisitions during bear market will 15 fuel growth Ten years of production growth during bull market Gold Silver & Equivalent ounces (millions) Silver Silver equivalent 2013 10 Acquired 2012 Terronera acquired 2016 El Cubo Acquired El Compas & Parral 2007 5 acquired Bolañitos 2004 acquired Guanaceví 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1. Gold ounces converted to silver equivalent ounces on a 75:1 ratio 5 GROWTH WITH INTEGRITY
2018 18 Hi Highlig hlights hts 2018 8 Producti uction n Up 7% Y-o-Y Y to 5.5 million oz Ag, 52,967 oz Au (9.5 million oz AgEq (1) ) 2018 AgEq Eq Produc duction tion of 9.5 millio ion oz Contin inue ued Explo lorati ation n Succes ess in 2018 8 primarily at Guanacevi, Terronera and Parral. 2P Ag and Au reserves (2) increased by 38% and 35% respectively Robust t Update ated 2018 8 PFS for Terrone nera a – $117.8 million after El Cubo, 48% 4.5 mil oz tax NPV (5%) , 23.5% after tax IRR Bolanitos, 27% Higher Revenues, EBITDA, Earnings & FCF • 2.6 6 mil oz Longer mine life: 9.5 years • Guanacevi, 25% Lower costs: LOM AISC of $1.36/ Ag oz, net of by products • 2.4 mil oz Average annual production: 5.1 million AgEq oz • Explo lorat ation n Success at Terrone nera a – Probable Reserves (2) increased 32% to 59.5 million AgEq oz and Indicated Q3, 2018 YTD Revenue e of $116. 6.7 7 millio ion Resources (2) increased 23% to 60 million AgEq oz Up 7% Y-o-Y Commis missionin ioning g of El Compas as Delay ayed ed – Awaiting installation of ball mill pinon in late January to start plant operations 43% Au Explo lorat ation n Success at Bolani nito tos – New discovery on the San 39,499 57% Ag oz Au sold Miguel vein, including 1,415 gpt Ag & 2.25 Au over 1.1 m 4.2 million oz Ag sold Parral Retur turns ns Positiv ive e Resul ults ts – High grade intersect including 934 gpt Ag & 0.21 gtp Au over 4.2 m 1. 2018 Silver Equivalents based on 75:1 gold: silver ratio 2. As at Dec 31, 2018. See EDR news release dated Jan 21, 2019 or refer to table in the appendix for details 3. See EDR news release dated August 30, 2018 or refer to table in the appendix for details 6 GROWTH WITH INTEGRITY
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