CREATING A PREMIER AFRICAN GOLD PRODUCER Corporate Presentation February 2017
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equipment or processes to operate presentation contains “forward -looking statements” including but not as anticipated; accidents, labour disputes, title disputes, claims and limited to, statements with respect to Endeavour’s plans and operating limitations on insurance coverage and other risks of the mining industry; performance, the estimation of mineral reserves and resources, the timing delays in the completion of development or construction activities, changes and amount of estimated future production, costs of future production, in national and local government regulation of mining operations, tax rules future capital expenditures, and the success of exploration activities. and regulations, and political and economic developments in countries in Generally, these forward-looking statements can be identified by the use of which Endeavour operates. Although Endeavour has attempted to identify forward-looking terminology such as “expects”, “expected”, “budgeted”, important factors that could cause actual results to differ materially from “forecasts” and “anticipates” . Forward-looking statements, while based on those contained in forward-looking statements, there may be other factors management’s best estimates and assumptions, are subject to risks and that cause results not to be as anticipated, estimated or intended. There uncertainties that may cause actual results to be materially different from can be no assurance that such statements will prove to be accurate, as those expressed or implied by such forward-looking statements, including actual results and future events could differ materially from those but not limited to: risks related to the successful integration of acquisitions; anticipated in such statements. Accordingly, readers should not place risks related to international operations; risks related to general economic undue reliance on forward-looking statements. Please refer to Endeavour’s conditions and credit availability, actual results of current exploration most recent Annual Information Form filed under its profile at activities, unanticipated reclamation expenses; changes in project www.sedar.com for further information respecting the risks affecting parameters as plans continue to be refined; fluctuations in prices of metals Endeavour and its business. including gold; fluctuations in foreign currency exchange rates, increases in Adriaan “ Attie ” Roux, Pr.Sci.Nat , Endeavour’s Chief Operating Officer, is a Qualified Person under NI 43 -101, and has reviewed and approved the technical information in this presentation. CREATING A PREMIER AFRICAN GOLD PRODUCER 1
Endeavour Mining Overview Immediate Cashflow from 5 producing mines at low AISC – 2015 production: 517koz – 2016 production: 584koz – 2015 AISC: US$922/oz – 2016 AISC: US$895/oz Near-Term Growth from 2 attractive projects – Houndé Project construction started in April 2016, first gold pour expected in Q4-2017 – Ity CIL Project feasibility study demonstrated potential for Ity to become another flagship asset Long-Term Upside from Exploration – Strategic review outlined potential to find 10-15Moz over the next 5 years at a discover cost of <$15/oz – Potential to significantly extend mine lives to beyond 10 years CREATING A PREMIER AFRICAN GOLD PRODUCER 2
Company Profile Share Price Performance Top Shareholders Ticker TSX:EDV Rank Institution Name % of S/O Volume, shares EDV share price, C$ Shares in Issue 93.6 m 1 LA MANCHA HOLDING S.A.R.L. 28.1% 7000000 30 Fully Diluted 94.6 m Share price C$26.77 2 Van Eck Associates Corporation 13.7% 6000000 Market cap US$1,920m 25 3 RBC Global Asset Management Inc. 3.3% Net Debt US$25m 5000000 20 4 Fiera Capital Corporation 3.0% 4000000 5 M & G Investment Management Ltd. 2.9% 15 3000000 6 Liberty Metals & Mining Holdings, L.L.C. 2.6% 10 2000000 7 Ruffer LLP 2.5% 5 1000000 8 Sun Valley Gold, LLC 2.5% 0 0 9 Oppenheimer Funds, Inc. 2.2% Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 10 Maple Leaf Partners, L.L.C. 1.7% As of February 22, 2017 Board Members Shareholder distribution and geographic mix Michael Beckett Sebastien de Montessus Livia Mahler Retail Chairman, Non-executive Director CEO & President & Director Non-executive Director Institutional 7% 63% Naguib Sawiris Wayne McManus Olivier Colom Non-executive Director Non-executive Director Non-executive Director La Mancha 29% Ian Cockerill Ian Henderson Non-executive Director Non-executive Director Management 1% 3 CREATING A PREMIER AFRICAN GOLD PRODUCER
Clear Path to Build a +900koz Producer at ≤ $800/ oz AISC +900koz Strategic Milestones for 2018-2020 $1,137 + 900 koz 600-640koz ANNUAL PRODUCTION 584koz $1,010 ≤ 800$/ oz 517koz ALL IN CASH COST 462koz $922 10+ year 317koz $895 MINE LIFE IN OUR CORE ASSETS $860-905 220koz <$800 167koz 83koz 2010 2011 2012 2013 2014 2015 2016 6+6 2017 2018 2019 2016 Youga, Burkina Faso Nzema, Ghana Tabakoto, Mali Agbaou, Côte d'Ivoire Ity (Heap Leach), Côte d'Ivoire Karma, Burkina Faso (incl. pre-production) Houndé, Burkina Faso Ity (CIL), Côte d'Ivoire Group AISC Assumes Ity construction starts H2-2017 and first gold production in 2019 with Heap Leach operation ending once CIL starts CREATING A PREMIER AFRICAN GOLD PRODUCER 4
4 Strategic Levers to Building a Premier African Gold Producer 4 Strategic Levers Objective 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCK EXPLORATION VALUE PORTFOLIO & BALANCE SHEET 4 MANAGEMENT CREATING A PREMIER AFRICAN GOLD PRODUCER 5
OPERATIONAL EXCELLENCE 1 Hands-on Management Model With Teams Close to Operations London Based All GMs Located on Site Sebastien de Montessus CEO & Director Vincent Benoit Functions: • EVP CFO & Corporate Finance Development • Investor relations • Corporate development Morgan Carroll • People and culture EVP Corporate Finance & General Counsel Henri de Joux EVP People & Public Affairs Abidjan Based Management Focus Functions: Adriaan “Attie” Roux • Government relations COO • Operations controlling Lean and • Procurement Hands-On Cash flow Patrick Bouisset Safety First Efficient • Exploration driven Management EVP Exploration & Growth • Operations Projects • Environmental Jeremy Langford • CSR • HR – mine level EVP Construction Services CREATING A PREMIER AFRICAN GOLD PRODUCER 6
OPERATIONAL EXCELLENCE 1 Continued to meet guidance in 2016 584Koz in 2016 +13% vs 2015 Production Guidance 610koz 575koz $895/oz in 2016 (3%) vs 2015 AISC Guidance $920/oz $870/oz Circa $135m 2016 +60% vs 2015 FCF Before Growth Projects Guidance $135m Free Cash Flow (before growth projects, WC, tax and financing cost) CREATING A PREMIER AFRICAN GOLD PRODUCER 7
OPERATIONAL EXCELLENCE 1 Proven track record Guidance for the year Increased Production Decreased All-in Sustaining Costs AISC, in US$/oz 985-1,070koz 575-610koz $1,137/oz 930-980koz 475-500koz 400-440koz 875-925koz 600 310-345koz - 584koz $1,010/oz 517koz 640koz 466koz US$922/oz $860-905/oz 324koz US$895/oz 2013 2014 2015 2016 2017 Guidance 2013 2014 2015 2016 2017 Guidance Increased Cash Generation Low Lost Time Injury Frequency Rate Free cash flow before growth projects (and before WC, tax, and financing costs) Lost Time Injury Frequency Rate (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) $150m $135m 1.73 $85m $1,392/oz 0.76 0.73 $35m $28m 0.29 $1,392/oz $1,264/oz $1,157/oz $1,240/oz $1,240/oz 2013 2014 2015 2016 2017 Guidance 2013 2014 2015 2016 CREATING A PREMIER AFRICAN GOLD PRODUCER 8
1 OPERATIONAL EXCELLENCE CSR & stakeholder management at the foundation of long-term success Stakeholder Relationship Principles CSR strategy – Key Pillars & Recent Projects On-the-ground management Income generating activities Several ExCom members based locally Tabakoto: Orchard Project with local Women Association Several French-speaking Board and ExCom members with longstanding West African experience Education Nzema: Scholarship programs and partnership with Stable communication channels Australian High Commission At international, national and local levels Nzema and Karma: provision of educational facilities Local employment priority Direct financial support / community development 93%+ of total workforce is national including 44% from c.USD8m invested in CSR projects since 2014 directly impacted areas Access to infrastructure Healthcare / Water & Sanitation E.g. electrification of Ity village ; Power line at Agbaou ; Partnership with Monaco Red Cross Water wells around Tabakoto Agbaou & Tabakoto: provision of water & sanitation facilities Maintain a social license to operate CREATING A PREMIER AFRICAN GOLD PRODUCER 9
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