Honing Performance; Growing Margins NYSE: EXK TSX: EDR May 2014 - - PowerPoint PPT Presentation

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Honing Performance; Growing Margins NYSE: EXK TSX: EDR May 2014 - - PowerPoint PPT Presentation

Honing Performance; Growing Margins NYSE: EXK TSX: EDR May 2014 European Gold Forum 1 Cautionary Note This presentation contains forward -looking statements within the meaning of the United States private securities litigation reform act


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Honing Performance; Growing Margins

NYSE: EXK TSX: EDR

May 2014 European Gold Forum

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This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform 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 2014 and future years, including revenue, cash cost and capital cost forecasts, silver and gold production, timing and expenditures to develop new silver mines and mineralized zones, silver and gold grades and recoveries, cash costs per ounce, capital expenditures and sustaining capital 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

  • r 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 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 continued

  • peration of the Company’s mining operations, no material adverse change in the market price 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 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.

Cautionary Note

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Introduction

A mid-tier silver miner focused on accretive growth to build real value for stakeholders

Endeavour Silver Corp:

Three high grade silver-gold mines in Mexico, Guanaceví, Bolañitos and El Cubo, and an emerging new discovery at San Sebastián

Core Assets:

We acquire underperforming mines in large historic districts, then apply our expertise to turn around and expand them

Operational Excellence:

By conducting modern exploration in historic districts, we make new discoveries that can be fast-tracked to production

Organic Growth:

Build a premier senior silver producer (+10 million oz per year) through continued

  • rganic growth and strategic acquisitions

Near-Term Goal:

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SLIDE 4

Market Snapshot

4

Shares Issued: 101.2 million Fully Diluted: 106.6 million Recent Price (May 1/14): US$4.53 Market Cap (May 1/14): US$458million 52-week high-low: US$5.98-$2.88 Exchange Listings: NYSE:EXK TSX:EDR Daily Volume: 2.0 million shares Cash Position (Dec 31/13): $35 million LOC Available (Dec 31/13): $17 million

EXK Shares: Leverage to Precious Metals

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SLIDE 5

5

Three producing mines and seven exploration projects

Core Assets

Mines

Guanaceví Bolañitos El Cubo

Exploration

San Sebastián Pánuco Parral Guadalupe y Calvo El Inca Arroyo Seco Lourdes

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SLIDE 6

Strategic Acquisitions

6

  • Acquired Bolañitos in 2007
  • Processing 50 tpd of old minefill

into a 500 tpd plant

  • Discovered six orebodies to date
  • Upgraded and expanded plant
  • Developed one new mine, three
  • ld mines, including Asuncion
  • Today produces 1,600 tpd of

high grade ore

  • Acquired Guanaceví in 2004
  • Processing 100 tpd of old

tailings into a 600 tpd plant

  • Discovered six orebodies to date
  • Rebuilt and expanded the plant
  • Developed five new mines,

Milache ready for development

  • Today produces 1,200 tpd of

high grade ore

  • Acquired El Cubo in 2012
  • Processing 1,100 tpd of low

grade ore into a leased plant

  • Discovered one orebody to date
  • Rebuilt and expanded the plant
  • Turned around operations and

developing new V-Asuncion mine

  • Today produces 1,200 tpd of

medium grade ore – ramping up to 1,550 tpd by year end Guanaceví 2004 Bolañitos 2007 El Cubo 2012

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Organic Resource Growth

7

Silver and Silver Equivalent Reserves and Resources (million oz)

Other 4.7 14 41 41 47 59 71 88 142 123 5.4 16 46 53 62 76 90 121 206 191

50 100 150 200 250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Millions Silver Equivalents Silver

Note: Silver equivalents based on 50:1 silver:gold ratio; no base metals

2004 Acquired Guanaceví 2007 Acquired Bolañitos 2012 Acquired El Cubo

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SLIDE 8

8

Consistent Production Growth

Silver and Silver Equivalent Annual Production

Note: Silver equivalents based on 50:1 silver:gold ratio; no base metals

0.35 0.95 1.35 2.15 2.35 2.6 3.3 3.7 4.5 6.8 0.4 1.1 1.5 2.5 2.8 3.3 4.3 4.9 6.4 11.3

2 4 6 8 10 12 millions of ounces Silver Silver Equivalents

2012 Acquired El Cubo 2007 Acquired Bolañitos 2004 Acquired Guanaceví

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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SLIDE 9

Strong Financial Performance

9

  • $0.27 -$0.37
  • $0.09

$0.03 $0.37 $0.43 $0.11 $0.29

  • $0.60
  • $0.40
  • $0.20

$0.00 $0.20 $0.40 $0.60 2007 2008 2009 2010 2011 2012 2013

Adjusted Earnings per Share

(2)

$0.66 $0.80 $0.84 $1.07 $1.46 $2.23 $2.77 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2007 2008 2009 2010 2011 2012 2013

Revenue per Share

  • $0.05
  • $0.09

$0.20 $0.40 $0.54 $0.89 $0.82

  • $0.20

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 2007 2008 2009 2010 2011 2012 2013

Operating Cash Flow per Share(1)

$9.38 $9.03 $6.04 $5.71 $5.08 $7.33 $7.92

$2.59 $2.44 $4.85 $4.13 $6.83 $7.50 $8.90

$- $2.00 $4.00 $6.00 $8.00 $10.00 2007 2008 2009 2010 2011 2012 2013 $/oz

Cash Costs net of By-products(3)

Endeavour Cash Costs Peer Group Cash Costs

1. Before changes in working capital 2. Includes $0.18 per share for deferred Mexican tax liability 3. Peers include: AXR, CDE, FR, FVI, GPR, HL, PAA, SSO and SVM; for 2013 does not include AXR

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SLIDE 10

Market Multiples: Attractive Peer Comparisons

10

10 20 30 40

P/CF (trailing 4Q)

20 40 60 80 100

P/E (adjusted; trailing 4Q)

nmf nmf nmf = not meaningful

50 100 150

EV/oz 2013 Production (Ag Eq.)

2 4 6

EV/oz Resources

(Ag Eq., excluding base metals)

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SLIDE 11

EBITDA Leverage to Silver Price 2014

11 Precious metal price assumptions Change (+/-) from current spot prices (1) Impact on cash costs ($/oz Ag) Impact on annual EBITDA (2) $21 silver/$1,260 gold $1silver/$60 gold $0.61 $11.4 million

(1) Silver equivalents based on 60:1 silver:gold ratio (2) Assuming 2014 production guidance

  • 20

40 60 80 100 120 140 $- $5.00 $10.00 $15.00 $20.00 $25.00 $18 $19 $20 $21 $22 $23 $24 $25 $26 $27 $28 Millions

Consolidated EBITDA (includes new Mexican Taxes), Cash Costs and AISC Sensitivities Using 60:1 Silver:Gold Ratio

Cash Costs, net gold by-product All In Sustaining Costs Annual EBITDA

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Strong Production in Q1 2014

Financial Performance

2012 2013 Revenue $208 M $277 M EBITDA $90.5 M $100.0 M Operating cash flow(1) $82.9 M $81.6 M Adjusted net earnings(2) $40.2 M $11.1 M Cash costs(3) $7.33 per oz Ag $7.92 per oz Ag All-in sustaining costs(4) $23.03 per oz Ag $18.31 per oz Ag

Operating Performance

Q1 2013 Q1 2014 Silver production 1,489,716 oz 1,898,999 oz Gold production 15,032 oz 18,519 oz Silver equivalent production (5) 2,391,636 oz 3,010,139 oz Realized silver price $29.38 per oz $20.50 per oz Realized gold price $1,613 per oz $1,306 per oz

(1) Before changes in working capital (2) Adjusted earnings are calculated by adding back the mark-to-market impact of derivative equities held as a liability on the Company’s balance sheet. Refer to the MD&A for details. (3) Net of by-product credits (4) All-in Sustaining Costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation, reclamation and sustaining capital, net of gold credits (5) Silver equivalents are calculated on a 60:1 silver:gold ratio

EXK Mines Continued to Out-Perform

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13

Focus on Margin Growth in 2014

Operating 2014

Silver production 6.5-6.9 million oz Gold production 65,000-69,000 oz Silver equivalent production (1) 10.4-11.0 million oz

Financial

Cash costs – by-product $9-10 per oz Ag Cash costs – co-product – silver $13-14 per oz Ag Cash costs – by-product – gold $800-850 per oz Au All-in sustaining costs (AISC)(2) – by-product $19 per oz Ag AISC – co-product – silver $19 per oz Ag AISC – co-product – gold $1,166 per oz Au Capital budget $43.9 million Exploration budget $10.7 million

(1) Silver equivalents based on 60:1 silver:gold ratio (2) All-in Sustaining Costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site exploration, share-based compensation, reclamation and sustaining capital

2014 Guidance

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GUANACEVÍ

A High Grade, Underground, Silver-Gold Vein Mine

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Guanaceví: A Top Five Mexican Silver District

District Highlights:

Location: Durango, Mexico Property: 4,076 hectares Infrastructure: State highway, power grid, local labour Past Production: 450 million oz Ag Deposit Type: Low sulfidation epithermal veins Operating Mines: Porvenir Norte Porvenir Cuatro Santa Cruz New Discovery: Milache Future Potential: District poorly explored, five main veins up to eight km long

  • ver 5x10 km area
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2013 Reserves and Resources(1):

Proven and Probable: 3.3 million oz Ag Measured and Indicated: 14.0 million oz Ag Inferred: 9.4 million oz Ag

Q1 2014 Production

Production(2): 1,005,781 oz Ag 2,273 oz Au 1,412,161 oz Ag Eq. Throughput: 1,187 tpd Grades: 350 gpt Ag 0.77 gpt Au 396 gpt Ag Eq. Recoveries: 83.7% Ag 86.0% Au

Guanaceví: Producing +2.5 Million Oz Ag Per Year

16

(1) See page 40 for details (2) Silver equivalents based on 60:1 silver:gold ratio

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SLIDE 17

17

Guanaceví: New High-Grade Discovery at Milache

New Resources Added

Indicated:

  • 6.2 million oz Ag
  • 17,000 oz Au

Inferred:

  • 0.6 million oz Ag
  • 1,800 oz Au
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18

BOLAÑITOS

A High Grade, Underground, Silver-Gold Vein Mine

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Bolañitos: Second Largest Mexico Silver District

District Highlights:

Location: Guanajuato, Mexico Property: 2,538 hectares Infrastructure: State road, power grid, local labour Past Production:1.2 billion oz Ag 5 million oz Au Deposit Type: Low sulfidation epithermal veins Operating Mines: Lucero Bolañitos Karina Fernanda, Daniela New Discoveries: Asuncion, La Luz, Plateros Future Potential: District poorly explored, multiple veins up to five km long over 3x9 km area

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2013 Reserves and Resources(1): Proven and Probable: 2.3 million oz Ag Measured and Indicated: 4.6 million oz Ag Inferred: 9.6 million oz Ag Q1 2014 Production Production(2): 572,851 oz Ag 10,640 oz Au 1,211,251 oz Ag Eq. Throughput: 1,582 tpd Grades: 144 gpt Ag 2.72 gpt Au 307 gpt Ag Eq. Recoveries: 86.9% Ag 85.4% Au

20

Bolañitos: Producing +2.5 Million Oz Ag Per Year

(1) See page 40 for details (2) Silver equivalents based on 60:1 silver:gold ratio

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Bolañitos: Exploration Targets 2013-2015

21

Socorro

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Bolañitos: La Luz

22

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EL CUBO

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El Cubo: A Great Fit for Endeavour in Guanajuato

24

El Cubo Highlights:

Location: Guanajuato, Mexico Property: 8,144 hectares Infrastructure: State roads, power grid, local labour Past Production: 80 million oz Ag 2 million oz Au Deposit Type: Low sulfidation epithermal veins Operating Mines: San Nicolas Dolores Villalpando Peregrina New Discoveries: Drilling under way Future Potential: District poorly explored 16 separate drill targets

  • ver nine km length
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El Cubo: Turn-Around Nearing Completion

25

2013 Reserves and Resources(1): Proven and Probable: 5.9 million oz Ag Measured and Indicated: 10.6 million oz Ag Inferred: 6.0 million oz Ag Q1 2014 Production Production(2): 320,367 oz Ag 5,606 oz Au 656,727 oz Ag Eq. Throughput: 1,081 tpd Grades: 110 gpt Ag 2.01 gpt Au 231 gpt Ag Eq. Recoveries: 93.1% Ag 89.2% Au

Bolañitos is Model for Turn-Around

Bolanitos Production El Cubo Production Bolanitos Cash Cost El Cubo Cash Cost

(1) See page 40 for details (2) Silver equivalents based on 60:1 silver:gold ratio

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El Cubo: Exploration Targets 2013-2015

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El Cubo: Asunción – Villalpando

27

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28

SAN SEBASTIÁN

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San Sebastián: Historic Silver-Gold District

  • Discovered in 1542, mined for

centuries, largely unexplored

  • Four large silver-gold vein systems

each 3 km long

  • Covers +50 small historic mines on

+20 separate veins

  • Classic epithermal ore-bodies in

Lower Tertiary andesites

  • Located 40 km northeast of Puerto

Vallarta in Jalisco State

  • One small mine (La Quiteria)
  • perates in the district
  • Recent grab samples assay up to

11,824 gpt Ag, 40.3 gpt Au

  • New discovery in Terronera vein

Property Highlights

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30

San Sebastián: Emerging High-Grade Discovery

2013 Resource Estimate

Indicated :

  • 18.2 million oz Ag
  • 86,300 oz Au

Inferred:

  • 13.4 million oz Ag
  • 126,800 oz Au

Conceptual Plan

  • Complete initial economic evaluation
  • Commence environmental studies, permitting
  • Complete infill drilling
  • Make production decision
  • Arrange project financing
  • Complete project construction
  • Commence commercial production

2014 2015

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31

Growth Plan

2013 2014 2015 2016 San Sebastián Exploration Permitting Construction Production El Cubo Turn around Expand Discover Expand

  • perations production resources plant

1,500 tpd 2,000 tpd Bolañitos Expand Discover Expand Expand production resources plant production 2,000 tpd Guanaceví Optimize Develop Discover Expand plant Milache resources mine life Discover, Develop, Expand, Optimize – Our formula for growing production and reducing costs 6m oz 10m oz 10m oz 16m oz Ag Ag Eq. Ag Ag Eq.

Targeting 60% Production Growth

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SLIDE 32

Why Endeavour?

32

Proven Track Record:

Nine consecutive years of

  • rganic production

growth

Compelling Organic Growth:

Additional expansion potential at three mines; new high-grade discovery at San Sebastián

Building Quality Assets:

Low political risk, large districts, big veins, high grades, low cash costs

Strong Financials:

Cash position US$35 million (Dec 31, 2013); no long-term debt

Accretive Acquisition:

El Cubo mine in Guanajuato, same district as Bolañitos mine

Good Liquidity:

Listed on the NYSE, TSX ~2.0 million shares/day

Pure Silver/Gold Leverage:

60/40 silver/gold bullion producer; no base metals; no hedging

Experienced Board and Management:

300+ years in mining industry

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33

Contact Us

Endeavour Silver Corp.

Suite 301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada mbrown@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775

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Appendix

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SLIDE 35

Why Silver?

35

  • Silver is an industrial metal:

unlike gold, silver is consumed and the number

  • f industrial uses is

multiplying

  • Silver is a precious metal:

like gold, silver is money and its role as a store of value and a hedge against monetary inflation is growing

  • Currency debasement is not

new – governments throughout history have “printed” money eg. falling silver % in the Roman Denarius coin

Denarius % Silver

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Silver vs Gold

36

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Management

37

Dan Dickson CA CFO David Howe M.Sc. VP Operations and Mexico Country Manager Luis Castro

  • Ing. Geo.

VP Exploration Miguel Ordaz Ing. Geo. Mexico Projects Director and Legal Representative Bradford Cooke M.Sc., P .Geo. Founder and CEO Godfrey Walton M.Sc., P .Geo. President and COO Terry Chandler B.Sc., P .Geo. VP Corporate Development Meghan Brown BA., MBA Director Investor Relations

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SLIDE 38

Board of Directors

38

Bradford Cooke M.Sc., P .Geo. Godfrey Walton M.Sc., P .Geo. Mario Szotlender B.IR Ricardo Campoy B.Sc.

  • Comp. Committee Chair

Geoff Handley B.Sc. Chair, Corp. Gov. & Nom. Committee Chair Rex McLennan B.Sc., MBA, ICD.D Audit Committee Chair Ken Pickering P.Eng. HSES Committee Chair

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SLIDE 39

Institutional Investors, Analyst Coverage

39

  • Van Eck Associates
  • Renaissance Technologies
  • Royce & Associates
  • Global X Management
  • Blackrock (Canada)
  • Profund Advisors
  • AMG Analysen Anlagen
  • Norges Bank
  • Portola Group
  • AGF
  • CPP
  • Vanguard Group
  • Ash Guglani, Salman Partners
  • Chris Lichtenheldt, Dundee
  • Ben Asuncion, Haywood
  • Andrew Kaip, BMO
  • Chris Thompson, Raymond James
  • Ian Parkinson, GMP Securities
  • Leon Esterhuizen, CIBC
  • Daniel Earle, TD
  • Christos Doulis, PI Financial
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Reserves and Resources (Dec 31, 2013)

40

Silver-Gold Reserves and Resources Tonnes Ag g/t Au g/t Ag oz Au oz Aq Eq Proven Guanaceví 327,711 281 0.51 2,961,100 5,300 3,279,100 Bolañitos 380,522 156 2.50 1,910,300 30,500 3,740,300 El Cubo 752,534 138 2.16 3,330,400 52,200 6,462,400 Total Proven 1,460,766 175 1.87 8,201,800 88,000 13,481,800 Probable Guanaceví 34,480 342 0.46 379,400 500 409,400 Bolañitos 98,300 134 2.17 424,200 6,800 832,200 El Cubo 615,407 131 2.23 2,595,700 44,100 11,160,200 Total Probable 748,188 141 2.14 3,399,300 51,400 12,401,800 Total P&P 2,208,954 163 1.96 11,601,100 139,400 25,883,600 Measured Guanaceví 132,003 183 0.29 777,200 1,300 855,200 Bolañitos 75,900 132 1.39 322,800 3,400 526,800 El Cubo 660,097 158 2.87 3,357,800 60,800 7,005,800 Total Measured 868,000 160 2.35 4,457,800 65,500 8,387,800 Indicated Guanaceví 1,701,230 242 0.57 13,221,600 31,500 15,111,600 Bolañitos 1,191,800 111 1.95 4,263,300 74,700 8,745,300 El Cubo 1,570,476 144 2.06 7,263,000 104,200 13,515,000 San Sebastian 2,476,000 229 1.08 18,216,200 86,300 23,394,200 Guadalupe y Calvo 1,861,000 119 2.38 7,147,300 142,500 15,697,300 Total Indicated 8,800,506 177 1.55 50,111,400 439,200 76,463,400 Total M&I 9,668,506 176 1.62 54,569,200 504,700 84,851,200 Inferred Guanaceví 1,155,035 253 0.46 9,384,300 17,100 10,410,300 Bolañitos 2,145,128 140 1.62 9,642,100 111,720 16,345,300 El Cubo 1,477,844 163 3.40 7,729,500 130,100 15,535,500 San Sebastian 2,376,000 175 1.66 13,390,600 126,800 20,998,600 Guadalupe y Calvo 154,000 94 2.14 464,600 10,600 1,100,600 Total Inferred 7,308,007 173 1.69 40,611,100 396,320 64,390,300 Silver-Gold-Lead-Zinc Resources Tonnes Ag g/t Au g/t Ag oz Au oz Aq Eq Indicated Parral 1,631,000 49 0.90 2,589,900 47,200 5,421,900 Buena Fe 655,000 166 0.21 3,495,700 4,400 3,759,700 Total Indicated 2,286,000 83 0.70 6,085,600 51,600 9,181,600 Inferred Guanaceví 646,000 129 0.15 2,687,300 3,100 2,873,300 Parral 1,303,000 63 0.88 2,658,900 36,900 4,872,900 Arroyo Seco 738,000 220 0.07 5,220,000 1,700 5,322,000 Total Inferred 2,687,000 122 0.48 10,566,200 41,700 13,068,200

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SLIDE 41

Consolidated Mine Operations Table

41

Comparative Table of Consolidated Mine Operations

Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant t’put (tonnes) Silver Gold Silver Gold Silver Gold Cash costs(1) ($/oz Ag) Direct costs ($/tonne) Q1 2011 141,942 263 1.36 900,133 5,008 75.0 81.0 4.62 79.30 Q2 2011 136,958 266 1.36 850,476 4,831 72.7 80.6 6.98 96.69 Q3 2011 138,592 263 1.47 858,738 4,926 73.4 75.2 5.03 91.47 Q4 2011 184,381 252 1.45 1,120,781 7,045 75.0 82.0 4.05 84.14 Total 2011 601,873 260 1.41 3,730,128 21,810 74.1 79.8 5.08 87.55 Q1 2012 193,759 229 1.33 1,072,491 6,321 75.2 76.2 6.26 92.44 Q2 2012 202,987 208 1.47 1,040,026 7,695 76.5 80.3 5.46 86.32 Q3 2012 306,164 161 1.49 1,137,933 11,754 71.8 80.1 4.70 97.04 Q4 2012 362,779 151 1.55 1,235,026 12,917 70.1 71.7 12.25 92.86 Total 2012 1,065,689 179 1.48 4,485,476 38,687 73.2 76.5 7.33 92.74 Q1 2013 376,344 154 1.51 1,489,746 15,032 79.9 82.3 10.04 99.63 Q2 2013 393,070 165 1.96 1,535,396 22,212 73.6 80.4 10.53 96.45 Q3 2013 389,090 171 1.89 1,855,846 22,946 86.7 96.9 5.14 104.06 Q4 2013 379,480 181 1.78 1,931,717 17,686 87.3 81.6 7.46 90.72 Total 2013 1,537,984 168 1.78 6,813,069 75,578 82.1 85.6 7.92 97.00 Q1 2014 346,525 198 1.92 1,898,999 18,519 86.1 86.6 Q2 2014 Q3 2014 Q4 2014 Total 2014

(1) Net of by-product credits

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SLIDE 42

Guanaceví Mine Operations Table

42

Comparative Table of Guanaceví Mine Operations

Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant t’put (tonnes) Silver Gold Silver Gold Silver Gold Cash costs(1) ($/oz Ag) Direct costs ($/tonne) Q1 2011 91,104 307 0.70 663,202 1,750 73.8 85.4 8.63 89.11 Q2 2011 85,594 310 0.69 618,083 1,633 72.5 86.0 10.85 106.55 Q3 2011 87,662 305 0.83 647,397 1,933 75.3 82.6 9.61 107.05 Q4 2011 98,716 320 0.56 753,353 1,550 74.2 87.2 9.82 99.41 Total 2011 363,076 311 0.69 2,682,035 6,866 73.9 85.4 9.71 100.34 Q1 2012 98,963 292 0.60 726,697 1,620 78.2 85.3 12.38 113.69 Q2 2012 100,208 269 0.87 669,754 2,499 77.4 89.2 8.64 100.81 Q3 2012 108,343 227 0.87 598,285 2,667 75.7 88.0 10.99 101.82 Q4 2012 110,763 215 0.69 518,207 1,088 67.7 44.3 18.20 99.70 Total 2012 418,277 249 0.76 2,512,943 7,874 74.6 76.1 12.25 103.83 Q1 2013 106,653 233 0.34 640,616 942 80.2 80.8 16.70 113.61 Q2 2013 100,781 240 0.68 555,036 1,590 71.3 72.6 16.59 111.21 Q3 2013 107,480 265 0.70 715,080 1,978 78.0 82.1 12.98 111.06 Q4 2013 121,008 272 0.69 861,495 2,275 81.5 85.2 13.09 114.55 Total 2013 435,922 253 0.60 2,772,227 6,784 78.2 80.7 14.32 110.93 Q1 2014 106,813 350 0.77 1,005,781 2,273 83.7 86.0 Q2 2014 Q3 2014 Q4 2014 Total 2014

(1) Net of by-product credits

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SLIDE 43

Bolañitos Mine Operations Table

43

Comparative Table of Bolañitos Mine Operations

Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant t’put (tonnes) Silver Gold Silver Gold Silver Gold Cash costs(1) ($/oz Ag) Direct costs ($/tonne) Q1 2011 50,838 184 2.53 236,931 3,258 78.8 78.8 (6.59) 61.75 Q2 2011 51,364 192 2.48 232,393 3,198 73.3 78.1 (3.31) 80.25 Q3 2011 50,930 190 2.57 211,341 2,993 67.9 71.1 (9.02) 64.66 Q4 2011 85,665 173 2.48 367,428 5,494 77.1 80.3 (7.77) 66.54 Total 2011 238,797 183 2.51 1,048,093 14,943 74.7 77.5 (6.77) 68.07 Q1 2012 94,796 163 2.10 345,794 4,701 69.5 73.6 (6.63) 70.26 Q2 2012 102,779 149 2.05 370,272 5,196 75.2 76.6 (0.31) 72.18 Q3 2012 117,271 148 2.39 433,388 7,363 77.7 81.7 (9.98) 77.34 Q4 2012 161,841 140 2.20 518,674 8,660 71.3 75.8 (3.73) 75.66 Total 2012 476,687 148 2.19 1,668,128 25,920 73.4 77.0 (5.20) 74.25 Q1 2013 167,500 135 2.27 578,654 9,891 79.8 81.0 (0.06) 85.10 Q2 2013 202,472 160 2.84 810,414 15,751 77.8 85.2 1.75 75.50 Q3 2013 181,442 147 2.75 794,734 15,868 92.5 98.9 (8.10) 84.57 Q4 2013 159,294 152 2.61 698,098 10,142 89.7 75.9 0.60 72.78 Total 2013 710,708 149 2.63 2,881,816 51,652 84.6 86.0 (2.87) 79.47 Q1 2014 142,412 144 2.72 572,851 10,640 86.9 85.4 Q2 2014 Q3 2014 Q4 2014 Total 2014

(1) Net of by-product credits

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SLIDE 44

El Cubo Mine Operations Table

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Comparative Table of El Cubo Mine Operations

Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant t’put (tonnes) Silver Gold Silver Gold Silver Gold Cash costs(1) ($/oz Ag) Direct costs ($/tonne) Q1 2012 Q2 2012 Q3 2012 80,550 92 1.42 106,260 1,724 44.6 46.9 29.21 119.32 Q4 2012 90,175 96 1.42 198,145 3,169 71.2 77.0 38.52 115.25 Total 2012 170,725 94 1.42 304,405 4,893 58.6 62.8 35.27 117.17 Q1 2013 102,191 103 1.48 270,446 4,199 79.9 86.4 15.30 108.85 Q2 2013 89,817 93 1.41 170,423 2,574 63.5 63.2 31.31 127.11 Q3 2013 100,168 112 1.62 346,032 5,101 95.6 97.8 18.61 131.83 Q4 2013 99,178 118 1.77 372,124 5,269 98.9 93.4 6.65 90.44 Total 2013 391,354 107 1.57 1,159,026 17,142 86.1 86.8 18.77 113.31 Q1 2014 97,300 110 2.01 320,367 5,606 93.1 89.2 Q2 2014 Q3 2014 Q4 2014 Total 2013 391,354 107 1.57 1,159,026 17,142 86.1 86.8 18.77 113.31

(1) Net of by-product credits

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SLIDE 45

Significant Operating Costs Breakdown

45

29% 12% 2% 17% 5% 20% 4% 3% 8%

Guanaceví

Labour Re-Agents & Grinding Fuel Power Royalties Contractor Refining Explosives Tolled Ore

34% 8% 3% 18% 20% 11% 6%

Bolañitos

Labour Re-agents & Grinding Fuel Power Contractor Refining Explosives 38% 14% 3% 11% 27% 7%

El Cubo

Labour Re-agents & Grinding Fuel Power Contractor Explosives 32% 11% 3% 17% 2% 21% 5% 5% 4%

Consolidated

Labour Re-agents & Grinding Fuel Power Royalties Contractor Refining Explosives tolled Ore

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SLIDE 46

Guanaceví: Reserve/Resource Long. Section

46 46

Endeavour Discovered Five New Silver Deposits in Five Years

773,000 tonnes @ 304 Ag gpt + 0.65 Au gpt = 7.55 million Oz Ag (8.4 million Oz Ag-Eq) 799,000 tonnes @ 231 Ag gpt + 0.39 Au gpt = 5.93 million Oz Ag (6.5 million Oz Ag-Eq) 2.8 million tonnes @ 217 Ag gpt + 0.42 Au gpt = 19.92 million Oz Ag (22.1 million Oz Ag-Eq) 2.0 million tonnes @ 217 Ag gpt + 0.40 Au gpt = 14.05 million Oz Ag (15.5 million Oz Ag-Eq)

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SLIDE 47

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Bolañitos: Daniela Vein Long. Section

Daniela discovery is 800m long x150m vertical x 3-10m thick