January 24, Building New Mines to Fuel Organic Growth

Transcription

1 January 24, 2019 Building New Mines to Fuel Organic Growth TSX: EDR I NYSE: EXK I

2 Cautionary Note 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 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 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 operation 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 forwardlooking 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

3 Investor Highlights Mid-Tier Producer Optimizing Operations Focused on Growth Discovering Orebodies Acquiring Key Assets Exploration Expertise Four high-grade silver-gold mines located in Mexico; produced 9.5 mil oz Ag Eq (1) in 2018 Focused on continuous improvement, growing profit margins, reducing costs, improving safety Best organic growth profile in silver mining sector; Developing new mines to drive future growth Track record of virgin discoveries, our competitive advantage; Exploring brownsfield assets to extend LOM Opportunistic M&A to create growth & value; Acquiring core assets at low prices to build project pipeline Parral silver resources still growing; Planning PEA release in Silver equivalents based on a 75:1 gold: silver ratio 3

4 Core Assets Sierra Madre Occidental Silver & Gold Belt Guadalupe y Calvo Chihuahua Parral Guanaceví Mexico Office Leon Canada Head Office Vancouver El Compas Terronera Durango Zacatecas Lourdes Guanajuato Jalisco Mexico City Bolañitos El Cubo Production Development Exploration Office Chile Office Santiago Mines Guanaceví Bolañitos El Cubo El Compas Development Terronera Exploration Parral Guadalupe y Calvo Lourdes Cerro Marquez 4

5 Silver & Equivalent ounces (millions) Focused on Growing Production 15 Annual AgEq (1) Production (million oz) Ten years of production growth during bull market Strategic acquisitions during bear market will fuel growth Gold Silver 10 Silver equivalent 2012 acquired El Cubo 2013 Acquired Terronera 2016 Acquired El Compas & Parral acquired Guanaceví 2007 acquired Bolañitos Gold ounces converted to silver equivalent ounces on a 75:1 ratio 5

6 2018 Highlights 2018 Production Up 7% Y-o-Y to 5.5 million oz Ag, 52,967 oz Au (9.5 million oz AgEq (1) ) Continued Exploration Success in 2018 primarily at Guanacevi, Terronera and Parral. 2P Ag and Au reserves (2) increased by 38% and 35% respectively Robust Updated 2018 PFS for Terronera $117.8 million after tax NPV (5%), 23.5% after tax IRR Higher Revenues, EBITDA, Earnings & FCF Longer mine life: 9.5 years Lower costs: LOM AISC of $1.36/ Ag oz, net of by products Average annual production: 5.1 million AgEq oz Exploration Success at Terronera Probable Reserves (2) increased 32% to 59.5 million AgEq oz and Indicated Resources (2) increased 23% to 60 million AgEq oz 2018 AgEq Production of 9.5 million oz El Cubo, 48% Bolanitos, 27% Guanacevi, 25% 4.5 mil oz 2.6 mil oz 2.4 mil oz Q3, 2018 YTD Revenue of $116.7 million Up 7% Y-o-Y Commissioning of El Compas Delayed Awaiting installation of ball mill pinon in late January to start plant operations Exploration Success at Bolanitos New discovery on the San Miguel vein, including 1,415 gpt Ag & 2.25 Au over 1.1 m Parral Returns Positive Results High grade intersect including 934 gpt Ag & 0.21 gtp Au over 4.2 m 57% Ag 4.2 million oz Ag sold 43% Au 39,499 oz Au sold Silver Equivalents based on 75:1 gold: silver ratio 2. As at Dec 31, 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

7 2019 Outlook $ millions unless otherwise stated, US dollars Guanacevi Bolanitos El Cubo El Compas (1) Consolidated Silver Production (M oz) Gold Production (K oz) Silver Eq Production (M oz) (2) Cash Costs, net of gold by-product credits (US$/oz) (3), (4) $ $9.50 AISC, net of gold by-product credits (US$/ oz) (3), (4) $ $16.00 Capital Budget $20.6 Exploration Budget $9.8 Guidance Highlights Silver equivalent production to decrease by 10% from 2018; however technical improvements underway Guanacevi will return to profitability through the development of two new ore bodies Decreased capital budget due to lower sustaining capex at El Cubo Decreased exploration budget due to shift towards growth projects 1. El Compas is scheduled to achieve commercial production in Q1, Gold ounces converted to silver equivalent ounces on a 80:1 ratio in Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on Non-GAAP measures found on the company website. 4. See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance; 2019 costs forecasts reflect an 20:1 Mexican Peso per US Dollar exchange rate, $15.50/ oz Ag & $1,240/ oz Au price assumption. Exploration & Development Projects, $6.7 million, 11,500 m of planned drilling 2019 Exploration Plan $9.8 million 2019 Budget Exisiting Mines, $3.1 million, 18,500 m of planned drilling 7

8 OPERATING Title MINES GUANACEVĺ DURANGO 8

9 Guanaceví Our Largest Silver Producer 2019 Outlook (1) Production Tonnes/ Day Sustaining Capital Exploration Budget M oz Ag K oz Au 1,000-1,200 tpd $10.6 million $1.2 million Guanaceví is our largest silver producer, and only mine that produces dore bars 2 mines Santa Cruz and Porvenir Norte are currently operating at tpd and nearing exhaustion 2 mines Milache and Santa Cruz Sur are being developed to production to expand production with higher grades, at shallower depths and wider vein widths to improve profitability 2018 AgEq Production (2) of 2.4 million oz Ag Eq was below plan due to operational challenges Milache has three levels open and is advancing in lower grade ore with grades increasing at depth; SCS commenced development with new adit collared in late See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance silver equivalents based on a 75:1 gold: silver ratio 9

10 Ag Eq (4) Production (oz) Guanaceví Returning to Profitability 2018 Reserves and Resources (1) Proven and probable Measured and indicated Inferred 6.8 million oz Ag 17,400 oz Au 12 million oz Ag 28,500 oz Au 10.2 million oz Ag 21,400 oz Au Financials Q3 YTD 2018 Cash costs (2) $16.98/oz All-in sustaining costs (2,3) $26.85/oz Operational Improvements Underway 700, , , , , , , ,854 oz 601,868 oz 571,654 oz 577,197 oz 877 tpd 883 tpd 783 tpd 821 tpd Throughput (tpd) 0 Q1/18 Q2/18 Q3/18 Q4/18 1. At December 31, Refer to tables in the Appendix for full details. 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on Non-GAAP measures found on the company website. Costs are presented in US $, net of by-product credits 3. 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 4. Silver equivalents based on a 75:1 gold: silver ratio

11 BOLAÑITOS GUANAJUATO 11

12 Bolañitos Our Lowest Cost Mine 2019 Outlook (1) Production Tonnes/ Day Sustaining Capital Exploration Budget M oz Ag K oz Au 1,000-1,250 tpd $4.2 million $0.8 million Bolanitos covers the west, north sides of Guanajuato, the 2 nd largest silver district in Mexico Multiple new discoveries in Lucero and LL- Asuncion areas since 2007 Most profitable mine due to shallow depths, thick widths and high gold grades Gold production pays for the cash costs to operate the mine and the silver production is essentially free 2018 AgEq Production (2) of 2.6 million oz was below plan due to lower gold grades 2018 exploration program yielded a new discovery north of the plant, the San Miguel vein system, and provided extensions to known mineralized areas 1. See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance silver equivalents based on a 75:1 gold: silver ratio 12

13 Ag Eq (4) Production (oz) Bolañitos In 2nd Largest Silver District 2018 Reserves and Resources (1) Proven and probable Measured and indicated Inferred 1.1 million oz Ag 20,600 oz Au 3.5 million oz Ag 42,700 oz Au 3.4 million oz Ag 53,300 oz Au Financials Q3 YTD 2018 Cash costs (2) $2.00/oz All-in sustaining costs (2,3) $10.23/oz Operational Improvements Underway 800, , , , , , , ,466 oz 640,241 oz 1,150 tpd 598,597 oz 622,776 oz 1,278 tpd 1,193 tpd 1,192 tpd 1,400 1,300 1,200 1,100 1, Throughput (tpd) 100, Q1/18 Q2/18 Q3/18 Q4/ At December 31, Refer to tables in the Appendix for full details. 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on Non-GAAP measures found on the company website. Costs are presented in US $, net of by-product credits 3. 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 4. Silver equivalents based on a 75:1 gold: silver ratio

14 EL CUBO GUANAJUATO 14

15 El Cubo Biggest Operational Turnaround 2019 Outlook (1) Production Tonnes/ Day M oz Ag K oz Au tpd El Cubo controls the east side of Guanajuato, the 2 nd largest silver mining district in Mexico El Cubo was our biggest operational turnaround; AISC were $42 per oz in 2012 when we bought the mine and $13 per oz in 2016 after the turnaround 2018 AgEq production (2) of 4.6 million oz was above plan due to higher grades and throughput Due to the remaining mine life, Endeavour plans to reduce the production rate in 2019 to approximately half of the 1,500 tpd capacity while continuing to explore for new reserves The company has announced an employee reduction program of approx. 240 people to reflect the lower production rate 1. See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance silver equivalents based on a 75:1 gold: silver ratio 15

16 Ag Eq (4) Production (oz) El Cubo Our Second Mine in Guanajuato 2018 Reserves and Resources (1) Proven and probable Measured and indicated Inferred 1.3 million oz Ag 12,200 oz Au 1.7 million oz Ag 17,200 oz Au 4.0 million oz Ag 59,700 oz Au Financials Q3 YTD 2018 Cash costs (2) $2.49/oz All-in sustaining costs (2,3) $9.34/oz Operational Improvements Underway 1,400,000 1,200,000 1,000, , , , ,000 1,463 tpd 1,038,120 oz 1,478 tpd 1,200,963 oz 1,170,307 oz 1,169,550 oz 1,379 tpd 1,388 tpd 1,600 1,500 1,400 1,300 1,200 1,100 1, Throughput (tpd) 0 Q1/18 Q2/18 Q3/18 Q4/18 1. At December 31, Refer to tables in the Appendix for full details. 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on Non-GAAP measures found on the company website. Costs are presented in US $, net of by-product credits 3. 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 4. Silver equivalents based on a 75:1 gold: silver ratio

17 DEVELOPMENT PROJECTS EL COMPAS ZACATECAS 17

18 El Compas Commissioning Our 4 th Mine 2019 Outlook (1) Production Tonnes/ Day Sustaining Capital Exploration Budget M oz Ag K oz Au tpd $4.0 million $0.8 million Panuco La Plomosa Endeavour controls the south end of Zacatecas, the 3 rd largest silver mining district in Mexico Mine will produce 250 tpd initially but plant capacity ultimately 500 tpd so mine is scalable depending on new reserves Est. all-in sustaining cost less than $10 per silver oz, IRR more than 42% Several exploration targets at El Compas and newly acquired old mines have never been drilled, represent discovery opportunities Recent Calicanto surface drill results returned impressive intercepts including 269 gpt Ag & 5.5 gpt over 1.1 m (682 gpt Ag Eq (1) ) Vetagrande Mala Noche San Juan La Parroquia Plant Calicanto Orito Compas La Cantera 1. See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance silver equivalents based on a 75:1 gold: silver ratio 18

19 El Compas Development Complete Preliminary Economic Assessment robust economic returns, very scalable if we discover or purchase additional mineral resources in the Zacatecas district and refurbish the second ball mill to double the plant capacity to 500 tpd Low capex $11.3 million final construction costs paid in Q2/18 Low opex (1) $110 per tonne including $69.80 mining, $26.20 processing, $14.00 G&A Commissioning Delayed To Resolve Certain Issues Excess clay in ore causing a recovery issue in the plant (metallurgical studies on-going) Water issue in tailings facility (now resolved) Ball mill equipment failure in late December that halted plant operations while the mine continues to stockpile ore; awaiting installation of pinion in mid February 2018 Reserves and Resources (2) Proven and probable 0.2 million oz Ag 8,800 oz Au Measured and indicated 0.2 million oz Ag 12,100 oz Au Inferred 0.5 million oz Ag 36,500 oz Au Economics (1) Ag Price Au Price IRR NPV Payback Period US$16/oz US$1,120/oz 29% US$8.0m 2.6 years US$18/oz Base Case US$1,260/oz 42% US$12.6m 2.1 years US$20/oz US$1,400/oz 54% US$17.0m 1.8 years 1. Projected costs are based on Updated PEA filed in At December 31, Refer to tables in the Appendix for full details 19

20 TERRONERA JALISCO 20

21 Terronera Large, Low Cost Mine Potential Terronera will become our largest mine, average annual production est. 2.9 million oz silver, 28,000 oz gold for 5.1 million oz AgEq (1) Located 40 km NE of Puerto Vallarta, Jalisco in the Sierra Madre silver-gold belt Endeavour controls the entire district of San Sebastian, 50 old mines on 20 known veins, all closed in 1910 Mexican revolution Two orebodies, Terronera and La Luz drilled, 60 million oz Ag Eq in reserves (2), additional resources, still open for expansion, other veins to drill Terronera vein mineralization 1400m long by 500m and 3-16m thick, average mine grade 394 gpt AgEq Mine and plant already permitted, waiting for dumps and tailings permits Deposit remains open at depth with multiple prospective veins to explore Updated 2018 PFS - $75.8 million capex over 18 month construction period, followed by phase 2 expansion to 1,500 tpd in year 3 for $39.1 million Terronera Discovery La Luz Discovery 1. Gold ounces converted to silver equivalent ounces on a 75:1 ratio 2. At December 31, Refer to tables in the Appendix for full details 21

22 Terronera - Surface Layout Terronera Project San Sebastián Jalisco - Mexico Tailings Dam Mine Camp Santiago de los Pinos La Luz Mine Plant Waste Dump El Rayo Terronera Mine San Sebastián Km

23 Terronera Resources Still Open to Depth Infill Drill Program Open Open From True width Au Ag AgEq From True width Au Ag AgEq Hole Structure Hole Structure (m) (m) (gpt) (gpt) (gpt) (m) (m) (gpt) (gpt) (gpt) TR10-6 TR11-4 TR11-5 TR13-7 KP16-04 Terronera Including LL-02* Terronera Including ,090 4,456 LL-13 Terronera Including ,370 3,778 LL-14 FW Terronera Including LL-17 Terronera Including ,060 LL-21 Terronera Including ,493 La Luz ,803 Including ,215 La Luz ,832 Including ,348 La Luz ,864 Including ,562 La Luz ,978 Including ,775 La Luz ,338 Including ,340 Since 2011, over 100,000 m have been drilled Gold ounces converted to silver equivalent ounces on a 75:1 ratio 23

24 Terronera High AgEq Grades All colors but grey and blue make ore grade Grey were high grade stopes mined out TERRONERA VEIN - LONGITUDINAL SECTION SILVER EQUIVALENT GRADE DISTRIBUTION NW SE AGEQ= AG + (AU x 75) W LA LUZ VEIN - LONGITUDINAL SECTION SILVER EQUIVALENT GRADE DISTRIBUTION E Almost entirely super high grade 24

25 Terronera - Annual Production & Grade 1. Gold ounces converted to silver equivalent ounces on a 75:1 ratio 25

26 Terronera Updated PFS Comparison % Change Updated Operating Metrics from PFS (1) PFS LOM tonnes processed (thousands) 4,701 16% Life of Mine (Years) % Average silver grade (g/t) 224 8% Direct Costs Per Tonne Mining Costs Processing Costs G&A Royalty, $4.23 Royalty G&A, $8.40 Average gold grade (g/t) % Silver equivalent grade (g/t) Base Prices % Total Cost $78.30 Avg annual Ag ounces produced (millions) 2.9 (9%) Avg annual Au ounces produced (thousands) 28 7% Avg annual Ag Eq ounces produced (millions) 5.1 0% Processing Costs, $19.58 Mining Costs, $46.08 % Change Updated Financial Metrics from PFS (1) PFS LOM Revenue ($, millions) % LOM EBITDA ($, millions) % Projected Low Total Cash Costs & AISC (3) $1.36 / Ag oz LOM Free cash flow ($, millions) % Project after tax NPV (5%, $,millions) % After tax internal rate of return (%) % $0.15 / Ag oz Payback period (years) % 1. See Appendix for full base case assumptions in the updated 2018 PFS. Silver and gold price assumptions were $17/ oz Ag and $1,275 / oz Au. Average Recoveriesfor silver and gold are 84.6% and 80.4% respectively 2. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on Non-GAAP measures found on the company website. Costs are presented in US $, net of by-product credits 3. Projected cash costs & AISC are based on Updated PFS filed in Cash Costs (2) AISC (2)

27 Terronera Upcoming Catalysts Final Permits + Debt Financing = Development Decision Revise Mine Plan include new reserves based on infill & step out drilling in 2018 Optimize Crushing Circuit provide lowest energy requirement Optimize Grinding Circuit increase particle size and recoveries Expand Tailings Facility accommodate longer mine life Review Power Alternatives grid power vs LNG facility, solar and diesel power Continue Exploration Drilling extend mine life on Terronera vein and nearby veins Receive final tailings & dumps permits Finalize first tranche of debt facility Receive development decision from the Board Initiate construction including earth works 27

28 PARRAL CHIHUAHUA 28

29 Parral Potential Sixth Silver Mine Endeavour controls much of the historic Parral silver mining district in Mexico Four distinct silver vein systems that have UG & open pit potential Palmilla was highest grade silver mine in Mexico in 1800 s, provided silver to the Mexican mint 2018 exploration program ($2 million spend) provided positive results from surface drilling, UG sampling including 934 gpt Ag & 0.21 gpt Au over 4.2m 2018 Resources (1) Indicated Resources (Parral new) Inferred Resources (Parral new) Indicated Resources (Cometa) Inferred Resources (Cometa) 0.2 million oz Ag 300 oz Au 29.8 million oz Ag 26,900 oz Au 2.6 million oz Ag 47,200 oz Au 2.7 million oz Ag 36,900 oz Au 1. See EDR News Release dated January 24, 2019 for full disclosure on 2019 Guidance 29

30 Parral Abundant High-Grade Targets Parral is potentially our 6 th silver mine, Veta Colorada mine produced 4 million oz silver per year before closing in metallurgical testing yielded excelling metal recoveries for both flotation and leaching Targeting new resource estimate and economic study (PEA) in 2019, while commencing mine permitting and more definitive drilling Many additional vein targets for future exploration based on extensive sample database Exploration permits and land access agreements already in place IMMSA s Santa Barbara and Frisco s San Francisco mines to the South, Levon s Cordero project to the NE, Kootenay s Cigarra project to the West Two small plants for sale in district, significant opportunities to buy more old mines 30

31 Shareholder Information Issued/Outstanding million Exchange Listings NYSE:EXK, TSX:EDR Fully Diluted million Working Capital US$57.4 million Recent Price (Jan 9, 2019) US$2.27 Cash Position US$28.6 million Market Cap (Jan 9, 2019) US$295 million Major Shareholder Van Eck 9% 52-week High/Low US$3.35/$1.76 Strategic Shareholder Fresnillo 2% 90-day avg Daily Volume ~1.5 million Mining Analysts 9 ~ presented as at September 30, 2018 unless noted otherwise 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% Silvercorp Metals Inc. (TSX:SVM) Endeavour Silver Corp. (TSX:EDR) First Majestic Silver Corp. (TSX:FR) Great Panther Silver Limited (TSX:GPR) Fortuna Silver Mines Inc. (TSX:FVI) 31

32 Future Catalysts Develop Two New Ore Bodies at Guanaceví get mine back on plan with rising production, falling costs Attain Commercial Production at El Compas expected in Q1, 2019, continue to optimize the operation Advance Terronera to a Production Decision - receive final permits, raise debt financing, make production decision, & commence mine development Expand Resources at Parral prepare new resource estimate, explore multiple new veins in 2019, consolidate land holdings in district, complete PEA Expand Project Pipeline accretive mergers and acquisitions Extend Mine Lives brownfields exploration 32

33 Why Invest? MID-TIER PRECIOUS METALS PRODUCER Four high-grade silver-gold mines in Mexico EXPERIENCED MANAGEMENT TEAM Proven track record with exploration, development and operational expertise STRONG ORGANIC GROWTH PROFILE Building new mines to increase production and reduce costs Our mission is to create value for our shareholders and become a premier silver producer in the silver mining industry. STRONG BALANCE SHEET $57.4 million working capital, no debt (as at 9/30/2018) PURE SILVER/ GOLD LEVERAGE No base metals, no hedging & industry leading beta to silver price (60/40 silver gold producer) 33

34 APPENDIX 34

35 Why Silver? Silver is an industrial metal: unlike gold, silver is consumed and the number of industrial uses is multiplying Best natural conductor of electricity and heat, used in electronics, batteries, solar panels, alloys & coatings, LED & RFID chips, semi-conductors, photography, antibacterials, preservatives, medicines 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 Coins & Medals, 9% Silverware, 5% Implied net investment, 16% Jewelry, 18% Silver Demand Photography, 6% Industrial applications, 46% Denarius % Silver 35

36 Recent Silver Research Silver semi-conductor film can hold vast amount of data as holograms Silver nano-particles enhance soil for healthier crops Silver helps produce hydrogen for fuel cells, electricity Silver helps high value chemicals 36

37 Silver Supply & Demand Moz e % -change 2016 % -change 2013 Mine Production % +4% Total Supply 987 1,051 1,044 1, % 0% Jewelry & Silverware % -5% Coins & Bars % -60% Industrial Fabrication % -1% Physical Demand 1,126 1,118 1,165 1,042 1,018-2% -11% Physical Surplus/ Deficit Annual Average Silver Price ($/oz) % -431% % -40% Source: GFMS, Thomson Reuters 37

38 Silver Physical Surplus/Deficit Source: GFMS, Thompson Reuters 38

39 World Silver Mine Production Source: GFMS, Thompson Reuters 39

40 Silver Mine Production Source Primary Base Metals 61% Primary Silver Mines 26% Primary Gold Mines 13% Source: GFMS, Thomson Reuters 40

41 Silver Photovoltaic Fabrication Source: Solarbuzz; Earth Policy Institute; ITRPV; GFMS, Thompson Reuters 41

42 Silver Demand in Automotive Source: GFMS, Thompson Reuters; Silver Institute 42

43 Gold vs Base Money Inflation Source: Bloomberg, Incrementum AG 43

44 Gold vs The Everything Bubble Source: Incrementum AG, Jesse Felder, Federal Reserve St. Louis 44

45 Commodities vs Equities Source: Dr. Torsten Dennin, Incrementum AG 45

46 Rate Hike Cycles And Following Recessions in The US As a long-term chart of the Fed funds rate reveals, the vast majority of rate hike cycles has led to a recession. Moreover, every day financial crisis was preceded by rate hikes The historical evidence is overwhelming in the past 100 years, 16 out of 19 rate hikes cycles were followed by recessions. Only three cases turned out to be exceptions to the rule Source: Fed St. Louis, Federal Reserve Bank New York, Incrementum AG 46

47 Historic Bull Markets in Mining Stocks If one looks at all bull markets in the Barron's Gold Mining Index (BGMI), one notices that the current uptrend is still relatively modest in terms of duration and performance. Should we really be on the cusp of a pronounced uptrend in the sector which we assume to be the case quite a bit of upside potential would remain. Jordan Roy-Byrne, an analyst whom we greatly respect, describes the sector's status as bearish bull. Source: Nowandfutures, TheDailyGold.com, Barrons, Incrementum AG 47

48 Silver Mining Shares Silver mining shares trade at a premium to gold mining shares due to the scarcity of primary silver mining companies There are only approximately 12 primary silver miners Like senior gold miners, the senior silver miners do not offer growth An attractive alternative to senior silver mining shares are the junior and mid-tier silver producers They offer the best combination of liquidity, leverage and growth Much stronger leverage to silver price than gold miners to gold price One-year beta Three-year beta Five-year beta Endeavour First Majestic Fortuna Wheaton PM Coeur Hecla Fresnillo Hochschild Pan American During bull markets, silver equities typically rise up to double the gold equities Source: S&P Global, as of July 30,

49 Next Up-leg of Precious Metals Cycle Now Underway 49

50 Gold/ Silver Ratio Compression Silver +1811% Gold +595% Silver +60% Gold +9% Silver? Gold? Silver +159% Gold +42% Silver +60% Gold +8% Silver +64% Gold -21% Silver +203% Silver +371% Gold +77% Falling Ratio Gold/Silver-Ratio During falling gold/silver ratio scenarios, both gold and silver performed very well, however silver always outperforms! The currently high ratio implies that pressure continues to build for break-out. 50

51 Management and Board Management Bradford Cooke, M.Sc., P.Geo. Founder and CEO Godfrey Walton, M.Sc., P.Geo. President and COO Dan Dickson, CA CFO Nick Shakesby, BBA VP, Operations Dale Mah, B.Sc., P.Geo. VP, Corporate Development Manuel Echevarria, B.Sc. VP, New Projects Luis Castro, Ing. Geo. VP, Exploration Christine West VP, Controller Miguel Ordaz, Ing. Geo. Mexico Projects Director and Legal Representative Galina Meleger, CIM Director, Investor Relations Lorena Aguilar, CHRP Director, Human Resources Board of Directors Bradford Cooke, M.Sc., P.Geo. Company CEO Godfrey Walton, M.Sc., P.Geo. Company President and COO Geoff Handley, B.Sc. Independent Director, Chair (1)(2)(3) Rex McLennan, B.Sc., MBA, ICD.D Independent Director (1)(3)(4) Ricardo Campoy, B.Sc. Independent Director (1)(2) Ken Pickering, P.Eng. Independent Director (1)(2)(4) Mario Szotlender, B.IR Independent Director (2)(3)(4) (1) Audit Committee (2) Compensation Committee (3) Corporate Governance and Nominating Committee (4) Sustainability Committee 51

52 Institutional Investors, Analyst Coverage Van Eck Associates Renaissance Technologies Fresnillo Credit Suisse Securities Sprott Asset Management Global X Management Connor Clark & Lunn NinePoint Partners Morgan Stanley AMG Fondsverwaltung UBS Financial Services ETF Managers Konwave AG Stabilitas Ryan Thompson, BMO Cosmos Chiu, CIBC Bhakti Pavani, Alliance Global Partners Ian Parkinson, GMP Securities Mark Reichman, Noble Capital Markets Heiko Ihle, H.C. Wainwright Daniel Earle, TD Chris Thompson, PI Financial Joseph Reagor, Roth Capital Partners 52

53 Reserves and Resources (Dec 31, 2018) Tonnes Ag g/t Au g/t Ag oz Au oz Proven Guanaceví 74, ,000 1,300 Bolañitos 186, ,000 11,400 El Cubo 98, ,000 6,100 El Compas 38, ,000 4,800 Total Proven 396, ,914,000 23,600 Probable Guanaceví 687, ,248,000 16,100 Bolañitos 146, ,000 9,200 El Cubo 136, ,000 6,100 El Compas 29, ,000 4,000 Terronera 5,587, ,003, ,200 Total Probable 6,443, ,415, ,100 Total P+P 5, , Measured Guanaceví 29, , Bolañitos 136, ,000 8,200 El Cubo 69, ,000 4,700 El Compas 3, , Total Measured 238, ,371,000 13,800 Indicated Guanaceví 999, ,230,000 24,900 Bolañitos 551, ,880,000 34,500 El Cubo 251, ,298,000 12,500 El Compas 77, ,000 11,700 Guadalupe y Calvo 1,861, ,120, ,400 Parral (new) 37, , Total Indicated 3,775, ,942, ,300 Total M&I 4,013, ,312, ,100 Inferred Guanaceví 653, ,133,000 18,900 Bolañitos 783, ,352,000 53,300 El Cubo 845, ,042,000 59,700 El Compas 212, ,000 36,500 Terronera 1,080, ,239,000 79,000 Guadalupe y Calvo 154, ,000 10,600 Parral (new) 3,138, ,812,000 26,900 Total Inferred 6,864, ,273, ,900 Silver-Gold-Lead-Zinc Resources Tonnes Ag g/t Au g/t Ag oz Au oz Pb% Zn% Indicated Guanaceví 363, ,420,500 3, Parral (Cometa) 1,631, ,589,900 47, Total Indicated 1,994, ,010,400 50, Inferred Guanaceví 488, ,076,000 2, Parral (Cometa) 1,303, ,658,900 36, Total Inferred 1,791, ,734,900 39,

54 Reserves and Resources (Dec 31, 2018) Notes 1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 2. The Inferred Mineral Resource in this estimate has a lower level of confidence than 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. 3. The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. 4. Mineral Resources are exclusive of and in addition to Mineral Reserves. 5. Guanacevi Mineral Resource and Mineral Reserve cut-off grades are based on a 218 g/t silver equivalent for Santa Cruz Sur of Guanacevi and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache of Guanaceví; Metallurgical recoveries were 83.0% silver and 85.0% gold for Guanaceví 6. Bolañitos,Mineral Resource and Mineral Reserve cut-off grades are based on a 158 g/t silver equivalent. Metallurgical recoveries were 84.3% silver and 87.7% gold for Bolañitos 7. El Cubo Mineral Resource and Mineral Reserve cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 217 g/t silver equivalent for Areas I&IV (that comprise Santa Cecilia and San Nicolas Mines) of El Cubo. Metallurgical recoveries were 87.0% silver and 86.7% gold for El Cubo. 8. El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.38 g/t gold equivalent. Metallurgical recoveries were 83.0% silver and 85.0% gold for El Compas 9. Mineral Resource cut-off grades for Terronera was 150 g/t silver equivalent and the Mineral Reserve cut-off grades for Terronera and La Luz Deposits were 160 g/t and 216 g/t silver equivalent respectively. 10. Mineral Resource and Mineral Reserve cut-off grades are based on a 150 g/t silver equivalent for Guadalupe y Calvo and Parral Properties. 11. Mining recoveries of 93% were applied for Guanaceví, Bolañitos and El Compas, 88% for El Cubo and 95% for Terronera for Mineral Reserve Estimate calculations. Minimum mining widths were 0.8 metres for Mineral Reserve Estimate calculations. 12. Dilution factors for Mineral Reserve Estimate calculations averaged 24% for Guanaceví, Bolañitos and El Compas, 53% for El Cubo and 10% for Terronera. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill mining and 30% for long hole mining at Guanaceví, 28% and Bolañitos and 54% for long mining at El Cubo. 13. Silver equivalent grades are based on a 75:1 silver:gold ratio and calculated including only silver and gold. 14. Probable Mineral Reserves for Terronera includes the Terronera and La Luz Deposits. 15. Inferred Mineral Resources for Terronera includes the Terronera, La Luz and Real Alto Area. 16. Indicated and Inferred Mineral Resources for "Parral (new)" includes the Colorada, Palmilla and San Patricio areas. 17. The La Colorada structure (Parral) does not contain gold on an economic scale. 18. Price assumptions for Guanaceví, Bolañitos, El Cubo and El Compas are US$17.26/oz for silver, US$1,232/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc. 19. Price assumptions for Terronera are US$17/oz for silver, US$1,275/oz for gold. 20. Price assumptions for Parral are US$17/oz for silver, US$1,250/oz for gold. 21. Figures in tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates. Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALSChemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish. The Mineral Resource Estimates for Terronera, and Parral were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., and David Burga, P.Geo of P&E Mining Consultants Inc. Mr. Puritch has reviewed and approved the technical content of this press release with respect to the Terronera and new Parral. The Cometa property in Parral which is part of the Lead-Zinc portion of the table is based on a Technical report titled NI Technical Report audit of the Mineral Resource Estimate for the Parral Project, Chuhuahua State, Mexico and filed Dec 15, 2010 and authored by William Lewis, B.Sc., Charley Z. Murahwi M.Sc. MAusIMM and Dibya Kanti Mukhopadhyay M.Sc. MAusIMM. This report is separate from the Parral Properties described by P&E Mining Consultants Inc. 54

55 Terronera Updated Reserves & Resources Mineral Resource Comparison 2018 vs Classification Tonnes ( 000s) Ag g/t Au g/t Ag Eq g/t (2) Contained Ag oz ( 000 s) Contained Au oz ( 000 s) Contained Ag Eq oz ( 000 s) (2) 2018 Indicated Estimates Terronera 4, , ,083 La Luz , ,904 Total 4, , ,987 Compared to 2017 Indicated Estimates Terronera 3, , ,920 % Change 10% 3% 16% 11% 13% 28% 23% 2018 Inferred Estimates Terronera 1, , ,825 La Luz , ,994 Total 1, , ,819 Compared to 2017 Inferred Estimates Terronera , ,533 % Changed 49% -18% 61% 4% 21% 141% 55% Mineral Reserve Comparison 2018 vs Classification Tonnes ( 000s) Ag g/t Au g/t Ag Eq g/t (2) Contained Ag oz ( 000 s) Contained Au oz ( 000 s) Contained Ag Eq oz ( 000 s) (2) 2018 Probable Estimates Terronera 4, , ,832 La Luz , ,621 Total 4, , ,453 Compared to 2017 Probable Estimates Terronera 4, , ,877 % Change 16% 8% 17% 15% 25% 34% 32% 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 Refer to Cautionary Language in the Appendix slide following this slide 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 55

56 Terronera Assumptions for 2018 PFS Financial Notes Corporate Tax Rate 30.0% After allowable deductions Mining Special Duty Tax Rate 7.5% Applied to EBITDA, deductible against corporate tax Government Royalty 0.5% NSR on gross revenues after smelter charges Discount Rate 5.0% For NPV calculation PESOS:USD FX Rate 20 Approximate average Q Silver Price, US$/oz $17.00 Constant, LOM Gold Price, US$/oz $1,275 Constant, LOM Depreciation 11yr Units of production Property NSR Royalty 2.0% Payable to original property owner Technical Notes Silver Recovery to Con % 84.6% Forecast from detailed metallurgical tests Gold Recovery to Con % 80.4% Forecast from detailed metallurgical tests Con Silver Payable % 97.5% Based on current contracts Con Silver Payable % 97.5% Based on current contracts Mining Cost per Tonne $46.08 Applicable to stoped ore Processing Cost per Tonne $19.58 On-site processing, including treatment and refining charges G&A Costs per Tonne $8.40 On-site G&A 56

57 Terronera NI Cautionary Disclosure 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/m 3, derived from 683 analyses was used for Terronera and 2.62 tonnes/m 3 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 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. Qualified Persons 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. 57

58 Consolidated Mine Operations Table Period Plant throughput (tonnes) Ore grades (g/t) Recovered ounces Recoveries (%) Cost Analysis Cash AISC Direct costs Silver Gold Silver Gold Silver Gold costs ($/oz ($/oz Ag) ($/tonne) Ag) Q , ,898,999 18, Q , ,669,609 15, Q , ,634,294 14, Q , ,009,172 15, Total ,404, ,212,074 62, Q , ,820,050 15, Q , ,769,741 13, Q , ,820,282 15, Q , ,732,765 15, Total ,563, ,178,666 59, Q , ,510,065 15, Q , ,551,851 15, Q , ,284,646 14, Q , , , Total ,458, ,435,407 57, Q , ,076,974 11, Q , ,143,788 13, Q , ,262,064 13, Q , ,436,962 14, Total ,279, ,919,788 53, Q , ,350,840 13, Q , ,355,895 13, Q , ,428,828 12, Q , ,386,505 13, n/a n/a n/a Total ,266, ,522,068 52, n/a n/a n/a 58

59 Guanaceví Mine Operations Table Period Plant throughput (tonnes) Ore grades (g/t) Recovered ounces Recoveries (%) Cost Analysis Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,005,781 2, Q , ,824 1, Q , ,272 1, Q , ,024,762 2, Total , ,587,639 7, Q , ,106 1, Q , ,581 1, Q , ,292 1, Q , ,769 1, Total , ,440,748 7, Q , ,731 1, Q , ,221 1, Q , ,385 1, Q , ,708 1, Total , ,364,045 5, Q , ,683 1, Q , ,741 1, Q , ,907 1, Q , ,117 1, Total , ,066,448 4, Q , ,163 1, Q , ,929 1, Q , ,318 1, Q , ,197 1, n/a n/a n/a Total , ,963,773 5, n/a n/a n/a 59

60 Bolañitos Mine Operations Table Period Plant throughput (tonnes) Ore grades (g/t) Recovered ounces Recoveries (%) Cost Analysis Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,851 10, (2.21) Q , ,898 9, Q , ,159 8, Q , ,271 7, Total , ,396,179 37, Q , ,117 8, Q , ,305 4, Q , ,988 5, Q , ,363 5, Total , ,449,776 23, Q , ,569 8, (6.20) (3.55) Q , ,885 8, (7.08) (4.25) Q , ,350 7, (15.17) (11.16) Q , ,813 5, (4.87) Total , ,052,617 30, (8.37) (4.77) Q , ,723 6, (10.28) (3.82) Q , ,106 6, (4.78) Q , ,972 6, (0.52) Q , ,712 7, (2.73) Total , ,238 26, (4.00) Q , ,012 5, (2.77) Q , ,591 5, Q , ,197 4, Q , ,326 5, n/a n/a n/a Total , ,555 21, n/a n/a n/a 60

61 El Cubo Mine Operations Table Period Plant throughput (tonnes) Ore grades (g/t) Recovered ounces Recoveries (%) Cost Analysis Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,367 5, Q , ,887 3, Q , ,863 3, Q , ,139 5, Total , ,228,256 18, Q , ,827 5, Q , ,855 6, Q , ,002 8, Q , ,633 8, Total ,563, ,288,145 28, Q , ,765 5, Q , ,745 5, Q , ,911 5, Q , ,324 4, Total , ,018,745 21, Q , ,568 4, Q , ,031 5, Q , ,351 5, Q , ,133 6, Total , ,919,102 21, Q , ,473 5, Q , ,375 7, Q , ,313 7, Q , ,982 6, n/a n/a n/a Total , ,582,740 26, n/a n/a n/a 61

62 Sustainability Reporting 2012 Endeavour started GRI 4.0 reporting of its sustainability activities. Every year, we go to our stakeholders for feedback on a full range of interests, and every two years, we conduct a materiality review to rank what is most important both internally and externally to adjust our goals and programs. Our reporting is based on the five pillars listed below, with Governance as the foundation 2017 marks the 6 th consecutive year that we ve reported on our sustainability initiatives, including the last 5 under the GRI G4 guidelines. 62

63 Mission, Vision, Values Who we are and what we do: We find, build and operate quality silver mines in a sustainable way to create real value for all stakeholders Our goal is to continue growing to become a premier, low cost senior producer in the silver mining sector By aim to make a positive difference in people s lives Doing what s right and pursuing a sustainable approach to mining are core to building a successful enterprise Pursuing a philosophy of continuous improvement We Value Integrity We receive annual awards for the way we do business 63

64 Corporate Governance Corporate governance lays the foundation upon which our business is built Formalized our approach to doing business by establishing our Board and Committee charters and policies on Ethical Code of Conduct, Anti-Bribery and Corruption, Whistle Blower, Disclosure and Advance Notice Instituted over time policies on Health and Safety, Environment, Community, Diversity and Sustainability Commenced full GRI G4 sustainability reporting, based on broad engagement with all stakeholders including shareholders, investors, bankers, analysts, employees, communities, ejidos, governments, union, church, contractors, suppliers, small-scale miners and media Embedding Sustainability into our Organization GOVERNANCE Sustainability is supported by our executive team and is part of our governance structure RISK MANAGEMENT We assess and manage economic, social and environmental risks relevant to our business BUSINESS ALIGNMENT Our sustainability agenda is aligned with our core business, including operational, development and exploration activities, and relationships with suppliers STAKEHOLDER ENGAGEMENT We use a materiality assessment to identify and address the most important issues to our stakeholders VALUES AND POLICIES Sustainability is enshrined in our values and policies 64

65 Health and Safety Because mining is a high risk industry, employee health and safety is our #1 priority, governed by extensive safety policies and practices Every employee goes through rigorous safety induction, daily safety procedures, regular refresher courses, job site audits and each mine has award-winning first aid and mine rescue teams We provide regular health programs for employees including annual medical checkups, disease and occupational health tests, drug and alcohol tests, lifestyle and fitness counselling In the communities, we work with state governments to provide medical, dental, and optical services, and lifestyle and addiction counselling During 2017, Endeavour supported a rescue effort following a Mexican earthquake: Dispatched 12 members of our mine rescue team Donated USD $100,000 65

66 Educating & Training Our People Education and training are important to improving the quality of life in the local communities Endeavour sponsors university scholarships in Mexico and Canada, high school scholarships in Mexico, and online courses to complete high school diplomas, technical and self-employment courses We run mining skills training programs to teach young people, women and the unemployed career skills like operating dump trucks, scoop trams, jumbo drills followed by job offers During 2017, We increased learning activities by 48% over 2016 and launched new learning programs 52 hours of training per employee (up from 36 hours) 23 hours of training per contractor (up from 16 hours) 66

67 Economic Impact Investments are essential to generate economic impact and profits are essential to fulfil community and sustainability objectives Our most obvious positive economic impacts have been from investing in acquisition of properties, mines and plants exploration to discover new orebodies in historic mining districts development to open new mines and refurbish and expand old mines, plants and facilities operations to create 1,700 employee jobs and 1,200 contractor jobs direct economic impact on 8,100 people (3:1 ratio) indirect economic impact on another 8,100 people such as suppliers and services; 99% in Mexico During 2017, invested $40.7 million on employee wages and benefits, spent $66.2 million on goods and services in Mexico and $16.5 million in taxes 67

68 Environmental Protection Protection of our natural environment is paramount for Endeavour We monitor dumps, tailings, water and energy consumption and emissions, waste recycling and disposal and biodiversity In particular, tailings management has been a hot topic recently but from day one we have made major investments to upgrade our tailings facilities to North American standards dry stack at Guanaceví, a unique drainage system at Bolañitos, and new facilities at El Cubo We typically plant tens of thousands of trees and cacti each year, reclaiming areas disturbed by Endeavour but also historic areas. In 2017, we planted nearly 44,000 trees to reclaim disturbed ground. During 2017, we recycled and reused over 90% of water to reduce our reliance on fresh water and achieved a 5% reduction in water consumption. 68

69 Community Enrichment We support our local communities in many ways to improve the quality of life, resolve issues and build sustainable capacity Endeavour donates our time, funds, food and gifts for cultural and religious celebrations; we sponsor sports teams, kids camps and field trips, and an annual 10 km race to promote fitness; we help upgrade local buildings, schools, churches and roads We also train locals and provide equipment for cottage businesses such as pastry making, confections, jewelry, tourist gifts, clothing and mops Our goal is to complete at least one legacy project at each community, from fresh water supply, to proper sewage disposal, to new community buildings, to tourist mine During 2017, we contributed US$517,000 to strengthen communities across Mexico & Canada, hosted workshops to help employees acquire job ready skills, funded infrastructure projects including roads and bridges and launched scholarship programs. 69