Building New Mines, Focused on Growth

Transcription

1 Building New Mines, Focused on Growth January 2018

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 2018 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 GROWTH WITH INTEGRITY

3 Investor Highlights Endeavour Silver Corp. Core Assets Mid-tier precious metals miner; 2018 production to rise 20% to million oz Ag and 58,000-64,000 oz Au ( million oz Ag Eq (1) ) Three high-grade silver-gold mines located in two historic mining districts of Mexico El Compas gold-silver project, acquired in 2016, started development in 2017,production in 2018, PEA shows robust economics Operational Excellence Exploration Expertise Focus on Growth Renewed focus on reducing operating costs; new focus on near-term growth Terronera silver-gold discovery still growing; PFS shows robust economics, development to start in 2018, production in 2019 Building new mines over the next three years; best organic growth profile in silver mining sector 1. Silver equivalents based on a 75:1 gold: silver ratio 3 GROWTH WITH INTEGRITY

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

5 Organic Resource Growth 250 Reserves and Resources (million oz) 2012 Acquired El Cubo Strategic acquisitions during bear market will fuel growth Silver & equivalent ounces (millions) Acquired Guanaceví Gold Silver Silver equivalent 2007 Acquired Bolañitos Nine years of resource growth during bull market 2013 Acquired Terronera 2016 Acquired El Compas & Parral Note: Gold ounces converted to silver equivalent ounces on a 70:1 ratio 5 5 GROWTH WITH INTEGRITY

6 Strategic Production Growth 15 Annual Production (million oz) Ten years of production growth during bull market Strategic acquisitions during bear market will fuel growth Silver & Equivalent ounces (millions) acquired Guanaceví Gold Silver Silver equivalent 2007 acquired Bolañitos 2012 acquired El Cubo 2013 Acquired Terronera 2016 Acquired El Compas & Parral Forecasting +20% increase in 2018 production Gold ounces converted to silver equivalent ounces on a 75:1 ratio in 2018 (1) Mid-point of guidance 6 6 GROWTH WITH INTEGRITY

7 Reducing Operating Costs Consolidated Cash Costs, net of gold byproduct credits (US$/oz Sold) 10 $8.31 $8.39 Consolidated Direct Costs (US$/Tonne) $7.87 $8.10 $92.17 $96.81 $95.05 $80.18 $72.42 $ Q YTD $6.78 $ Q $18.31 $16.79 $15.62 $12.43 YTD $ Q YTD Mid-point of guidance (2) Consolidated AISC, net of gold by-product credits (US$/oz Sold) $ Mid-point of guidance (2) 1. 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 2. See EDR News Release dated January 25, 2018 for full disclosure on 2018 Guidance; 2018 costs forecasts reflect an 19:1 Mexican Peso per US Dollar exchange rate, $17/ oz Ag & $1,275/ oz Au price assumption 7

8 Q4, 2017 Highlights Achieved 2017 Production Guidance Production of 4.9 million oz Ag & 53,007 oz Au for 8.9 million oz Ag Eq (1) Q-o-Q improvement 3 rd consecutive quarter of improved production, up 30% from Q4/16, Guanaceví mine issues mostly resolved, production continues to improve El Compas mine construction nearing completion Estimated 9 months development and US$10 million capex to production start-up in late Q1, 2018 Discovered new high-grade mineralization at Calicanto Satellite of El Compas Mine, potential to increase El Compas plant capacity; drilling results include 2,967 gpt Ag Eq (70:1) over a 2.8 m Drilling at Parral Discovery of potential bulk tonnage silver mineralization in Palmilla Mine area & high grade mineralization in the Veta Colorada area: drill results include: 179 gpt AgEq (70:1) over 11.1 m Optimized PFS for Terronera underway Mine & plant permits received, dumps and tailings permits pending, production decision in Q1, Ag Eq Production by Mine (oz) El Cubo, 3.5 million oz, 40% Guanacevi, 2.4 million oz, 27% Bolanitos, 3.0 million oz, 33% Silver Equivalents based on 75:1 gold:silver ratio 8 GROWTH WITH INTEGRITY

9 2017 Improving Quarterly Results Reducing Costs in H Rising Ag Eq Production (2) Consolidated cash costs per silver oz (1) Consolidated All In Sustaining costs per ounce (1) Guanacevi Bolanitos El Cubo 20 Significant increase in exploration & capex spending $20.11 $18.24 $20.46 Operating issues mostly resolved - improvements continue at Guanacevi $ ,000,000 2,500, M oz Third consecutive quarter of improved production 2.5M oz 15 Results prior to issues at Guanaceví 2,000, M oz 2.1M oz US $/ Oz Sold 10 $11.47 $9.39 $7.81 $8.36 $8.11 1,500,000 1,000,000 5 $ ,000 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 1. 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 9 0 Q1/17 Q2/17 Q3/17 Q4/ Silver Equivalents based on 75:1 gold: silver ratio GROWTH WITH INTEGRITY

10 2018 Outlook: Higher Production, Lower Unit Costs $ 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) $ $7.00 AISC, net of gold by-product credits (US$/ oz) (3), (4) $ $16.00 Sustaining Capital $41.1 Growth Capital $7.3 Exploration Budget $11.1 Guidance Highlights Silver equivalent production to increase +20% from 2017 Improved Cash Costs & AISC in 2018 Increased Capital Budget due to development of El Compas & high grade ore bodies at Guanacevi Decreased exploration budget due to shift towards development 1. El Compas is scheduled to achieve commercial production by the end of July Gold ounces converted to silver equivalent ounces on a 75:1 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 25, 2018 for full disclosure on 2018 Guidance; 2018 costs forecasts reflect an 19:1 Mexican Peso per US Dollar exchange rate, $17/ oz Ag & $1,275/ oz Au price assumption. Exploration & Development Projects, $8.3 million, 27,300 m of planned drilling 2018 Exploration Plan $11.1 million 2018 Budget Exisiting Mines, $2.8 million, 17,000 m of planned drilling 10

11 Title OPERATING MINES: GUANACEVĺ DURANGO 11 GROWTH WITH INTEGRITY

12 Guanaceví Our Largest Silver Producer 2018 Outlook Production (1) Tonnes/ Day Sustaining Capital Exploration Budget M oz Ag K oz Au M oz Ag Eq 900-1,050 tpd $25.9 million $0.8 million 7 new discoveries along the 8 km long Santa Cruz vein since mines Santa Cruz and Porvenir Norte are currently operating at tpd 2 mines Milache and Santa Cruz Sur are being developed to production starting in H2, 2018 Endeavour expects Guanaceví will return to normal operations with higher production and lower costs over the next 3 quarters Resolved: electrical, water, dilution and mining method issues & increased in grade in Q4/17 1. Silver equivalents based on a 75:1 gold: silver ratio 12

13 Guanaceví A Top 5 Mexican Silver District 2016 Reserves and Resources (1) Proven and probable 5.0 million oz Ag 11,900 oz Au Measured and indicated 24.6 million oz Ag 56,900 oz Au Inferred 9.8 million oz Ag 19,400 oz Au Financials Q3 YTD 2017 Cash costs (2) $13.78/oz All-in sustaining costs (3) $24.76/oz Improving Quarterly Results in 2017 Ag Eq (4) Production (oz) 650, , , , , ,492 oz 620,083 oz 614,707 oz 973 tpd ,666 oz tpd tpd 833 tpd Throughput (tpd) 400,000 Q1/17 Q2/17 Q3/17 Q4/17 1. At December 31, 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 GROWTH WITH INTEGRITY

14 BOLAÑITOS GUANAJUATO 14

15 Bolañitos Our Lowest Cost Mine 2018 Outlook Production (1) Tonnes/ Day Sustaining Capital Exploration Budget M oz Ag K oz Au M oz Ag Eq 1,100-1,250 tpd $2.6 million $1.0 million Multiple new discoveries in Lucero and LL- Asuncion areas since 2007 One mine La Luz currently operating at + 1,200 tpd Most profitable mine due to shallow depths, thick widths and high gold grades Gold production pays for the all-in costs to operate the mine and the silver production is essentially free Further optimization of the plant is underway to improve metal recoveries by 4-5% 1. Silver equivalents based on a 75:1 gold: silver ratio 15

16 Bolañitos In 2nd Largest Silver District 2016 Reserves and Resources (1) Proven and probable Measured and indicated Inferred 1.3 million oz Ag 28,100 oz Au 4.1 million oz Ag 52,300 oz Au 5.7 million oz Ag 84,800 oz Au Financials Q3 YTD 2017 Cash costs (2) $(-4.54)/oz All-in sustaining costs (3) $1.89/oz Improving Quarterly Results in , ,012 oz 1,400 Ag Eq (4) Production (oz) 800, , , , , , , , ,391 oz 743,012 oz 1,265 tpd 1,245 tpd 635,073 oz 1,048 tpd 1,350 tpd 1,300 1,200 1,100 1, Throughput (tpd) 400,000 Q1/17 Q2/17 Q3/17 Q4/ At December 31, 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 16 GROWTH WITH INTEGRITY

17 EL CUBO GUANAJUATO 17

18 El Cubo Our Largest Mine 2018 Outlook Production (1) Tonnes/ Day Sustaining Capital Exploration Budget El Cubo was our biggest operational turnaround One new discovery in Villapando-Asuncion area since 2012 Two mines, Dolores and Santa Cecilia, currently operating at 1,300-1,500 tpd All-in sustaining costs were $42 per oz in 2012 when we bought the mine and $13 per oz in 2016 after the turnaround Mine is now a core asset, expanded the tailings capacity in Q3 Further optimization of the plant is underway to improve recoveries by 2-3% 1. Silver equivalents based on a 75:1 gold: silver ratio M oz Ag K oz Au M oz Ag Eq 1,300-1,450 tpd $12.6 million $1.0 million 18

19 El Cubo Our Second Mine in Guanajuato 2016 Silver Reserves and Resources (1) Proven and probable Measured and indicated Inferred 4.3 million oz Ag 51,100 oz Au 5.9 million oz Ag 78,800 oz Au 10.0 million oz Ag 129,900 oz Au Financials Q3 YTD 2017 Cash costs (2) $7.53/oz All-in sustaining costs (3) $19.78/oz Improving Quarterly Results in 2017 $140 $120 $100 $80 $60 $40 $20 $0 Direct Production Costs ($/tonne) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Ag Eq (4) Production (oz) 1,200,000 1,100,000 1,000, , , , , ,000 1,347 tpd 701,118 oz 1,279 tpd 820,081 oz 1,452 tpd 927,945 oz 1,542 tpd 1,071,733 oz 1,600 1,500 1,400 1,300 1,200 1,100 1, Throughput (tpd) 400,000 Q1/17 Q2/17 Q3/17 Q4/ At December 31, 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 19 GROWTH WITH INTEGRITY

20 DEVELOPMENT PROJECTS: EL COMPAS ZACATECAS Construction is progressing on time and on budget. The plant is over 80% complete, with the ball mill ready for load testing 20

21 El Compas Production Start up in Q1/18 El Compas is our next high grade mine, targeting 2018 production of 100,000 oz silver, 7-8,000 oz gold, 6-800,000 million oz AgEq (1) Endeavour controls the south end of Zacatecas, the 3 rd largest silver mining district in Mexico Two orebodies, El Compas and El Orito, are already drilled, in reserves and resources Mine is already permitted, dormant government plant is leased for 10 years PEA released end Q1, 2017 $10 million capex over 9 months, development now underway, production to commence end Q1, 2018 Mine will produce 200 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 La Plomosa Panuco Vetagrande Mala Noche San Juan La Parroquia Plant Calicanto La Cantera Orito Compas 1. Silver equivalents based on a 75:1 gold: silver ratio 21

22 El Compas Developing Our Fourth Mine 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 Production decision developing the new El Compas mine for initial production in late Q1, 2018 Low capex $10 million including $4.6 million mine development/infrastructure, $3.3 million plant/site infrastructure, $1.2 million engineering, procurement, construction management, $0.9 million contingencies Low opex $110 per tonne including $69.80 mining, $26.20 processing, $14.00 G&A Total cash costs (1) $9.09 per Ag Eq oz (2) All-in sustaining costs (3) $9.64 per Ag Eq oz Resources (4) Classification Tonnes (000s) Ag g/t Au g/t Ag Eq g/t Ag oz (000s) Au oz (000s) Ag Eq oz (000s) Indicated ,939 Inferred ,158 Economics 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. Net of by-product credits 2. Silver equivalents based on 70:1 silver:gold ratio 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. At March 27,

23 El Compas Developing the Mine, Refurbishing the Plant 23

24 TERRONERA JALISCO 24

25 Terronera Large, Low Cost Mine Potential Terronera will become our largest mine, annual production est. 4.0 million oz silver, 33,000 oz gold, 6.4 million oz AgEq Endeavour controls the entire district of San Sebastian, 50 old mines on 20 known veins, all closed in 1910 Mexican revolution One orebody, Terronera, already drilled, 60 million oz Ag Eq. in reserves and resources, still open for expansion, many other veins to drill Mine and plant already permitted, waiting for dumps and tailings permits PFS released end Q1, 2017 $70 million capex over 15 months, initial production to commence late 2019, double production in Mine will produce 1,000 tpd initially but plant capacity ultimately up to 2,000 tpd so mine is scalable depending on new reserves Est. all-in sustaining cost less than $5 per silver oz, IRR more than 21% Several exploration targets at Terronera, new very high grade La Luz discovery not yet in resources, multiple discovery opportunities Discovery Gold ounces converted to silver equivalent ounces on a 70:1 ratio 25

26 Terronera New Discovery Still Open Open Open Open Hole Structure From True width Au Ag AgEq (m) (m) (gpt) (gpt) (gpt) Hole Structure From True width Au Ag AgEq (m) (m) (gpt) (gpt) (gpt) TR09-6* TR10.5-1* TR14-7* TR11-3 KP16-04 Terronera Including ,710 Terronera Including ,860 5,069 Terronera Including ,020 Terronera Including ,490 4,110 Terronera Including ,160 1,259 LL-02* LL-13 LL-14 LL-17 LL-21 La Luz ,512 Including ,025 La Luz ,735 Including ,103 La Luz ,719 Including ,247 La Luz ,865 Including ,537 La Luz ,054 Including ,740 Gold ounces converted to silver equivalent ounces on a 70:1 ratio 26

27 Terronera Developing Our Fifth Mine Pre-feasibility study robust economic returns; 1,000 tpd, expanding to 2,000 tpd in year three, under review Production decision decision to develop the new Terronera mine subject to receiving final permits and debt financing Permits pending MIA (EIS) already approved, mine and plant received Q3, tailings and dumps expected Q4 Optimized PFS underway Scheduled for release in Q Projected Low Total Cash Costs & AISC $3.44 / Ag oz $4.76 / Ag oz Cash Costs (1) AISC (2) 1. Including royalties & duties; net of gold credits 2. net of gold credits 27

28 PARRAL CHIHUAHUA 28

29 Parral Potential Sixth Silver Mine Parral is potentially our 6 th silver mine, no annual production forecast yet but mine produced 4 million oz silver per year before closing in 1990 Endeavour controls much of the district of Parral, another large historical silver mining district in Mexico 32 million oz historic resource in Veta Colorada already drilled, other veins such as Palmilla and San Patricio now being drilled Palmilla was highest grade silver mine in Mexico in 1800 s, provided silver to the Mexican mint, good bulk tonnage open pit potential Two small plants for sale in district, significant opportunities to buy more old mines Good synergies with existing 2.9 million tonne polymetallic resource at El Cometa property Targeting new resource estimate and economic study in 2018 Several exploration targets at Parral, multiple discovery opportunities 29

30 Parral Abundant High-Grade Targets Exploration permits and land access agreements already in place Will conduct twin, infill drilling to verify Remedio Argentina historic resource in 2017 US$2 million exploration commitment at San Patricio and La Palmilla over next two years Many additional vein targets for future exploration based on extensive sample database Drill hole SPD-03 at San Patricio intersected 638 gpt silver over one metre Drill hole LP-03 at La Palmilla intersected 114 g/t silver over 56 m from surface Drill hole PAL-02 at Palmilla intersected 179 g/t AgEq over 11.1 m Classic low-sulfidation epithermal vein mineralization Argentite-galena-sphalerite-chalcopyrite-pyrite in quartz-kspar-calcite veins 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 30

31 Attractive Relative Valuation 16 EV/AgEq PP Reserves 25 EV/AgEq M+I Resources EV/2016 AgEq Production 100 EV/2017E AgEq Production Source: S&P Capital IQ Jan 11, GROWTH WITH INTEGRITY

32 Shareholder Information Issued/outstanding (Sep 30, 2017) million Exchange listings NYSE:EXK, TSX:EDR Fully diluted (Sep 30, 2017) million Working capital (Sep 30, 2017) US$70.3 million Recent price (Jan 24, 2018) US$2.50 Cash position (Sep 30, 2017) US$43.5 million Market cap (Jan 24, 2018) US$319 million Major shareholders Van Eck 7% 52-week high/low (Jan 9, 2018) US$4.90/$1.94 Fresnillo 2% 90-day avg daily volume (Dec ) 2.3 million Mining analysts % 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) SSR Mining Inc. (TSX:SSRM) 32

33 Future Catalysts Complete Guanaceví recovery get mine back on plan: rising production, falling costs Optimize El Compas and Terronera economics release new studies in February 2018 Complete El Compas development consolidate and explore land holdings in district, target initial production in late Q Receive Terronera permits make production decision, commence mine development, expand resource potential, target production in Q Drill Parral targets aggressive drill program, verify historic resource, grow resources, explore multiple new veins, consolidate land holdings in district, complete PEA Expand project pipeline accretive mergers and acquisitions Extend mine lives aggressive brownfields exploration 33

34 Why Endeavour? Experienced Board and Management 400+ collective years in mining industry Proven Track Record 12 consecutive years of out-performance in mining operations Strategic Acquisitions Identified hidden potential at Guanaceví, Bolañitos, El Cubo, El Compas, Terronera, Parral Quality Assets Unfolded potential by discovering new orebodies, developing new mines, expanding plants Organic Growth New high-grade discovery at Terronera has potential to be our largest, lowest cost mine Good Liquidity Listed on the NYSE, TSX ~2.3 million shares/day Strong Financials Healthy $70 million working capital (including $ 43.5 million (1) cash): no long-term debt Pure Silver/Gold Leverage 60/40 silver/gold producer; no base metals; no hedging 1. As per Q3-17 Financial Results, dated September 30,

35 APPENDIX 35 GROWTH WITH INTEGRITY

36 Next Up-leg of Precious Metals Cycle Now Underway 36 GROWTH WITH INTEGRITY

37 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, semiconductors, 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 Denarius % Silver 37 GROWTH WITH INTEGRITY

38 World Silver Supply & Demand Source: GFMS, Thomson Reuters 38

39 Silver Mine Production by Source Metal Source: GFMS, Thomson Reuters 39 GROWTH WITH INTEGRITY

40 Solar Demand Silver Powder Production Source: GFMS, Thomson Reuters 40

41 Outlook by GMFS In terms of price GFMS remain moderately optimistic and forecasts average price $18.80 in 2018 Investment demand expected to show signs of recovery, although the next boom will be dependent on the economic backdrop PV demand in solar sector is expected to continue to be the star performer of industrial offtake. Electronics will also be a positive driver. Mine supply is expected to decline in the long run and we believe that 2016 was the beginning of this protracted decline. Meanwhile, scrap will stabilize if not increase marginally on rising IP Above ground stocks are likely to continue to grow, particularly those held in custodian vaults. In the case of lack in significant demand increase, this could dampen sustainable price rises in the next years 41 GROWTH WITH INTEGRITY

42 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 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% -70.0% Endeavour Silver Corp. (TSX:EDR) Coeur Mining, Inc. (NYSE:CDE) Pan American Silver Corp. (TSX:PAAS) Hecla Mining Company (NYSE:HL) Tahoe Resources Inc. (TSX:THO) Wheaton Precious Metals Corp. (TSX:WPM) 42 GROWTH WITH INTEGRITY

43 Why Buy Silver Miners Now? 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 Sources: Bloomberg, as at Jan 10,

44 Why Mexico? Largest silver producing country in the world Prolific mineral potential and mining history Close to home, part of NAFTA, low country risk Stable government, diversified economy, modern infrastructure Reasonable tax burden, permitting process, community support Security and social issues are localized, not pervasive 44 GROWTH WITH INTEGRITY

45 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 Tomas Iturriaga-Hidalgo, B.Sc., Global MBA VP, Operations and Country Manager, Mexico Dale Mah, B.Sc., P.Geo. VP, Corporate Development 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 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 45 GROWTH WITH INTEGRITY

46 Institutional Investors, Analyst Coverage Van Eck Associates Renaissance Technologies Fresnillo Connor Clark & Lunn BMO Asset Management Global X Management AMG Fondsverwaltung RBC Asset Management Intact Investment Management Stabilitas Sprott Asset Management UBS Financial Services CPPIB Ryan Thompson, BMO Dalton Baretto, Canaccord Genuity Cosmos Chiu, CIBC Bhakti Pavani, Euro Pacific Capital Ian Parkinson, GMP Securities Shane Nagle, National Bank Michael Heim, Noble Financial Under review, Raymond James Heiko Ihle, Rodman & Renshaw Daniel Earle, TD 46 GROWTH WITH INTEGRITY

47 Reserves and Resources (Dec 31, 2016) Silver-Gold Reserves and Resources Tonnes Au oz Ag Eq oz Ag g/t Au g/t Ag Eq g/t Ag oz (000s) (000s) (000s) (000s) Proven Guanaceví Bolañitos ,570 El Cubo , ,879 Total Proven , ,243 Probable Guanaceví , ,079 Bolañitos ,875 El Cubo , ,078 Terronera 4, , ,122 Total Probable 5, , ,154 Total P+P 5, , ,397 Measured Guanaceví Bolañitos El Cubo , ,835 Total Measured , ,407 Indicated Guanaceví 2, , ,628 Bolañitos , ,293 El Cubo , ,614 Guadalupe y Calvo 1, , ,651 El Compas ,112 Total Indicated 5, , ,298 Total M&I 6, , ,704 Inferred Guanaceví , ,046 Bolañitos 1, , ,201 El Cubo 1, , ,200 Guadalupe y Calvo ,263 Terronera , ,859 El Compas ,342 Total Inferred 4, , ,910 Silver-Gold-Lead-Zinc Resources Tonnes Au oz Ag Eq oz Ag g/t Au g/t Ag Eq g/t Ag oz (000s) Zn% Pb% (000s) (000s) (000s) Indicated Guanaceví , , Parral 1, , , Total Indicated 1, , , Inferred Guanaceví , , Parral 1, , , Total Inferred 1, , , GROWTH WITH INTEGRITY

48 Reserves and Resources (Dec 31, 2016) 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. 2. Mineral resources are exclusive of and in addition to mineral reserves. 3. Mineral resource and reserve cut-off grades are based on a 198 g/t silver equivalent for Guanaceví, 162 g/t silver equivalent for Bolañitos, 177 g/t silver equivalent for El Cubo, and 150g/t silver equivalent for El Compas and Terronera. 4. Metallurgical recoveries were 82.5% silver and 85.4% gold for Guanaceví, 79.6% silver and 84.5% gold for Bolañitos, and 87.8% silver and 84.7% gold for El Cubo. 5. Mining recoveries of 95% were applied for mineral reserve estimate calculations. 6. Minimum mining widths were 0.8 metres for mineral reserve estimate calculations. 7. Dilution factors for mineral reserve estimate calculations averaged 29% for Guanaceví, 21% for Bolañitos, and 30% for El Cubo. 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. 8. Silver equivalent grades are based on a 75:1 silver:gold ratio. 9. Price assumptions for Guanaceví, Bolañitos and El Cubo are US$16.29/oz for silver, US$1,195/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc. Price assumptions for Terronera and El Compas are $18/oz for silver and $1,225/oz for gold. 10. Figures in the tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates. The mineral resource estimates for Guanaceví, Bolañitos, and El Cubo were undertaken by Independent Qualified Persons Zachary Black, SME-RM, and Jeffery Choquette, P.E., MMSA, of Hard Rock Consulting. 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 resource estimates. The mineral resource estimates for Terronera and El Compas were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., and Richard Routledge, P.Geo., of P&E Mining Consultants Inc. Mr. Puritch has reviewed and approved the technical content of this information with respect to Terronera and El Compas. These mineral reserve and mineral resource estimates were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum CIM standards and definitions of mineral resource estimates and mineral reserve estimates as referenced in National Instrument Technical reports for Guanaceví, Bolañitos, and El Cubo were completed and filed on SEDAR in March Technical reports for Terronera and El Compas will be completed and filed on SEDAR in May GROWTH WITH INTEGRITY

49 Consolidated Mine Operations Table Comparative Table of Consolidated Mine Operations Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant throughput (tonnes) Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,489,746 15, Q , ,535,396 22, Q , ,855,846 22, Q , ,931,717 17, Total ,537, ,813,069 75, 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, n/a n/a n/a Total ,279, ,919,788 53, n/a n/a n/a 49

50 Guanaceví Mine Operations Table Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant throughput (tonnes) Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , , Q , ,036 1, Q , ,080 1, Q , ,495 2, Total , ,772,227 6, 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, n/a n/a n/a Total , ,066,448 4, n/a n/a n/a 50

51 Guanaceví Operations Overview 51

52 Bolañitos Mine Operations Table Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant throughput (tonnes) Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,654 9, (0.06) Q , ,414 15, (2.74) Q , ,734 15, (8.10) (3.29) Q , ,098 10, Total , ,881,816 51, (2.87) 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, n/a n/a n/a Total , ,238 26, n/a n/a n/a 52

53 Bolañitos Operations Overview 53

54 El Cubo Mine Operations Table Ore grades (g/t) Recovered ounces Recoveries (%) Period Plant throughput (tonnes) Silver Gold Silver Gold Silver Gold Cash costs ($/oz Ag) AISC ($/oz Ag) Direct costs ($/tonne) Q , ,446 4, Q , ,423 2, Q , ,032 5, Q , ,124 5, Total , ,159,026 17, 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, n/a n/a n/a Total , ,919,102 21, n/a n/a n/a 54

55 El Cubo Operations Overview 55

56 2016 Significant Operating Costs Breakdown 21% 2% 5% 5% 4% Consolidated 32% 11% 17% 3% Labour Re-agents & Grinding Fuel Power Royalties Contractor Refining Explosives tolled Ore 27% 11% 7% 3% El Cubo 38% 14% Labour Re-agents & Grinding Fuel Power Contractor Explosives 20% 3% 4% 8% Guanaceví 29% Labour Re-Agents & Grinding Fuel Power Royalties Contractor 20% 11% 6% Bolañitos 34% Labour Re-agents & Grinding Fuel Power Contractor Refining Refining 5% 17% 2% 12% Explosives Tolled Ore 18% 3% 8% Explosives 56

57 Corporate Social Integrity and Sustainable Development, CSR The Endeavour Way Corporate Social Integrity, The Endeavour Way to CSR or Why Who You Are and What You Do Determine the Strength of Your Community Relationships 57 We receive annual awards for the way we do business

58 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 continually improving what we do and how we do it, we 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 We care about: Ensuring the health and safety of our people Protecting and remediating the environment Building human capacity through education Pursuing a philosophy of continuous improvement We Value Integrity 58 GROWTH WITH INTEGRITY

59 Formal Sustainability Policies In 2008 Endeavour started formalizing its sustainable development policies: Corporate governance Economic development Health and safety Education and training Environmental protection 59 GROWTH WITH INTEGRITY

60 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 List of Policies: Diversity Policy Sustainability Policy Health and Safety Environmental Policy Community Investment Policy Anti Bribery and Anti Corruption 60 GROWTH WITH INTEGRITY

61 Economic Development 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 1,000 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; 97% in Mexico taxes 16% IVA, 30% corporate, 7.5% EBITDA, 0.5% gross royalty 61 GROWTH WITH INTEGRITY

62 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 62 GROWTH WITH INTEGRITY

63 Education and Training 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 63 GROWTH WITH INTEGRITY

64 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 64 GROWTH WITH INTEGRITY

65 Community Enrichment We support our local communities in many ways in order to improve their 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 65 GROWTH WITH INTEGRITY

66 Sustainability Reporting 2012 Endeavour started GRI 4.0 reporting of its sustainability activities, based on stakeholder engagement and materiality assessment 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 in order to adjust our sustainability goals and programs Governance, economics, people, environment and social are each reported separately in our Annual Review and Sustainability Report, including a review of our progress each year and resetting our goals over both the short and long term 66 GROWTH WITH INTEGRITY