CREATING A PREMIER AFRICAN GOLD PRODUCER. Corporate Presentation February 2017

Transcription

1 Corporate Presentation February 2017

2 Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-gaap performance measures with no standard meaning under IFRS. This presentation contains forward-looking statements including but not limited to, statements with respect to Endeavour s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as expects, expected, budgeted, forecasts and anticipates. Forward-looking statements, while based on management s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour s most recent Annual Information Form filed under its profile at for further information respecting the risks affecting Endeavour and its business. Adriaan Attie Roux, Pr.Sci.Nat, Endeavour s Chief Operating Officer, is a Qualified Person under NI , and has reviewed and approved the technical information in this presentation. 1

3 Endeavour Mining Overview Immediate Cashflow from 5 producing mines at low AISC 2015 production: 517koz 2016 production: 584koz 2015 AISC: US$922/oz 2016 AISC: US$895/oz Near-Term Growth from 2 attractive projects Houndé Project construction started in April 2016, first gold pour expected in Q Ity CIL Project feasibility study demonstrated potential for Ity to become another flagship asset Long-Term Upside from Exploration Strategic review outlined potential to find 10-15Moz over the next 5 years at a discover cost of <$15/oz Potential to significantly extend mine lives to beyond 10 years 2

4 Company Profile Share Price Performance Ticker TSX:EDV Shares in Issue 93.6 m Volume, shares EDV share price, C$ Fully Diluted 94.6 m Share price C$ Market cap US$1,920m Net Debt US$25m Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 As of February 22, 2017 Board Members Top Shareholders Rank Institution Name % of S/O 1 LA MANCHA HOLDING S.A.R.L. 28.1% 2 Van Eck Associates Corporation 13.7% 3 RBC Global Asset Management Inc. 3.3% 4 Fiera Capital Corporation 3.0% 5 M & G Investment Management Ltd. 2.9% 6 Liberty Metals & Mining Holdings, L.L.C. 2.6% 7 Ruffer LLP 2.5% 8 Sun Valley Gold, LLC 2.5% 9 Oppenheimer Funds, Inc. 2.2% 10 Maple Leaf Partners, L.L.C. 1.7% Shareholder distribution and geographic mix Michael Beckett Chairman, Non-executive Director Sebastien de Montessus CEO & President & Director Livia Mahler Non-executive Director Institutional 63% Retail 7% Naguib Sawiris Non-executive Director Wayne McManus Non-executive Director Olivier Colom Non-executive Director Ian Cockerill Non-executive Director Ian Henderson Non-executive Director Management 1% La Mancha 29% 3

5 Clear Path to Build a +900koz Producer at $800/oz AISC Strategic Milestones for koz ANNUAL PRODUCTION $1, koz +900koz 800$/oz ALL IN CASH COST $1, koz 517koz 584koz 10+ year MINE LIFE IN OUR CORE ASSETS 317koz $922 $895 $ koz 167koz <$800 83koz Youga, Burkina Faso Nzema, Ghana Tabakoto, Mali Agbaou, Côte d'ivoire Ity (Heap Leach), Côte d'ivoire Karma, Burkina Faso (incl. pre-production) Houndé, Burkina Faso Ity (CIL), Côte d'ivoire Group AISC Assumes Ity construction starts H and first gold production in 2019 with Heap Leach operation ending once CIL starts 4

6 4 Strategic Levers to Building a Premier African Gold Producer 4 Strategic Levers Objective 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCK EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT 5

7 1 OPERATIONAL EXCELLENCE Hands-on Management Model With Teams Close to Operations London Based All GMs Located on Site Sebastien de Montessus CEO & Director Vincent Benoit EVP CFO & Corporate Development Morgan Carroll EVP Corporate Finance & General Counsel Functions: Finance Investor relations Corporate development People and culture Henri de Joux EVP People & Public Affairs Abidjan Based Management Focus Adriaan Attie Roux COO Patrick Bouisset EVP Exploration & Growth Jeremy Langford EVP Construction Services Functions: Government relations Operations controlling Procurement Exploration Projects Environmental CSR HR mine level Cash flow driven Safety First Lean and Efficient Operations Hands-On Management 6

8 1 OPERATIONAL EXCELLENCE Continued to meet guidance in 2016 Production Guidance 575koz 584Koz in % vs koz AISC Guidance $870/oz $895/oz in 2016 (3%) vs 2015 $920/oz FCF Before Growth Projects Guidance Circa $135m % vs 2015 $135m Free Cash Flow (before growth projects, WC, tax and financing cost) 7

9 1 OPERATIONAL EXCELLENCE Proven track record Increased Production Decreased All-in Sustaining Costs koz 324koz koz 466koz koz 517koz koz 584koz koz $1,137/oz 985-1,070koz $1,010/oz koz US$922/oz koz US$895/oz Guidance for the year AISC, in US$/oz $ /oz Guidance Increased Cash Generation Low Lost Time Injury Frequency Rate 2017 Guidance Free cash flow before growth projects (and before WC, tax, and financing costs) $135m $150m Lost Time Injury Frequency Rate (Number of LTIs in the Period X 1,000,000)/ (Total man hours worked for the period) $85m $1,392/oz 1.73 $28m $35m $1,392/oz $1,264/oz $1,157/oz $1,240/oz $1,240/oz Guidance

10 1 OPERATIONAL EXCELLENCE CSR & stakeholder management at the foundation of long-term success Stakeholder Relationship Principles On-the-ground management Several ExCom members based locally Several French-speaking Board and ExCom members with longstanding West African experience Stable communication channels At international, national and local levels Local employment priority 93%+ of total workforce is national including 44% from directly impacted areas Access to infrastructure E.g. electrification of Ity village ; Power line at Agbaou ; Water wells around Tabakoto CSR strategy Key Pillars & Recent Projects Income generating activities Tabakoto: Orchard Project with local Women Association Education Nzema: Scholarship programs and partnership with Australian High Commission Nzema and Karma: provision of educational facilities Direct financial support / community development c.usd8m invested in CSR projects since 2014 Healthcare / Water & Sanitation Partnership with Monaco Red Cross Agbaou & Tabakoto: provision of water & sanitation facilities Maintain a social license to operate 9

11 2 PROJECT DEVELOPMENT Houndé and Ity CIL are top tier projects Significant West African Construction Expertise: Core construction team has successfully developed projects together for +10 years 7 projects built, $2.4B in capex All projects delivered on time and within budget 2 Sissingue (Perseus) Bubble size represents average annual production = 100koz p.a. Yanfolila (Hummingbird ) Wa-Lawra (Azumah) Tri-K (Avocet) Banfora (Gryphon) Kobada (African Gold Group) Natougou (Semafo) Bouly (NordGold) Mako (Toro) Yaramoko (Roxgold) Ity CIL (PFS) Houndé Baomahun (Amara) Mine life, years DFS Fekola (B2Gold) West African DFS Stage Projects Benchmark: Ity CIL (DFS) Mine life and All-in cost (including initial capex) 1, Kalana (Avnel) 18 Dugbe 1 (Hummingbird) ,200 1,150 1,100 1,050 $1,000/oz All-in Cash Cost, $/oz (AISC + Initial Capex) 10

12 2 PROJECT DEVELOPMENT Houndé is positioned to be Endeavour s flagship low cost mine Construction started in April with first gold pour expected in Q Construction is progressing on-time and on-budget Karma Inata (Avocet) Bissa Hill (Nordgold) Essakane (IAMGOLD) Taparko (Nordgold) - Procurement is nearly complete 10-year mine life based on current reserves + significant exploration upside Average production of 190kozpa at AISC of US$709/oz Banfora (Gryphon) Mana (Semafo) Yaramoko (Roxgold) Houndé Konkera (Centamin) Ouagadougou Bomboré (Orezone) Youga (MNG) Burkina Faso Capex of $328m, inclusive of $47m for owner-mining fleet Life of Mine Plan 265koz Production based on reserves, koz AISC/oz Robust Project with after-tax IRR of +30% at US$1,250/oz 231koz 223koz 218koz Exploration upside expected to fill this shortfall 184koz $506/oz $645/oz $662/oz $648/oz $901/oz 116koz $496/oz Year 1 Year 2 Year 3 Year 4 Year 5 to 8 Average Year 9 to 10 Average 11

13 2 PROJECT DEVELOPMENT Ity CIL Feasibility Study demonstrates potential for Ity to become another flagship asset Long-life Low Cost Project Long 14-year reserves mine life Low AISC of $507/oz over first 9 years 165kozpa at AISC of US$507/oz on average over the first 5 years Solid production of 144kozpa over first 9 years Robust Project Economics (based on $1,250/oz) After-tax IRR of 36% 163koz 193koz 185koz 150koz After-tax NPV 5% of $411m Quick payback of 2.1 years Significant improvement expected in H Feasibility Study update 134koz 133koz 103koz 124koz 109koz $898/oz Inclusion of the recent high-grade Bakatouo and Colline Sud discoveries and Verse Ouest Additional Resource conversion at Daapleu and Mont Ity $477/oz $409/oz $608/oz $500/oz $582/oz $622/oz $608/oz $554/oz $638/oz 53koz Well-positioned with strong liquidity sources to take final investment decision in H Year 1 Year 2 Year 3 Year 4 Year 5 Production based on reserves, koz Year 6 AISC/oz Year 7 Year 8 Year 9 Years 10 to 14 12

14 3 UNLOCK EXPLORATION VALUE Amongst Largest and Most Promising Portfolios in West Africa +200 Targets 7,190 km 2 10 Mining Leases 42 Exploration Licenses 390 km² 2,140 km² 510 km² 4,150 km² 13

15 Moz UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Ranking of Potential Ambition to find 10-15Moz of Indicated Resources over next 5 years Moz Moz Moz Moz Moz Moz Greater Ity Significant success over the last 4 years Significant amount of data available Many known targets based on geochem and auger results Houndé Exploration stopped once project reached critical size to make investment decision Many known targets and historical drill data Tabakoto On same trend as Randgold Limited exploration expenses have caused mine life to be short New discoveries made in 2016 with strong targets for Agbaou Has same reserves as when production started in 2014 despite limited exploration (mainly focused on converting inferred) Focus on pit extensions and parallel trends Targets backed by geochem anomolies Karma and Regional Previously owned by junior with lack of fund for exploration North Kao already added 2.5 years of mine life Many near mill targets Côte d Ivoire Regional One of the largest exploration tenements in the country Several advanced exploration targets based on historic results 14

16 3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: Low Discovery Costs Annual budget of $35-40m with anticipated average discovery costs <$15/oz $55m Mali 17% Côte d Ivoire $45m 5-year budget 50% $30m 33% $25m Burkina Faso $25/oz $15m $11/oz $15/oz $15/oz $20/oz $10m $13/oz Greater Ity Exploration budget Houndé Average discovery cost Tabakoto Agbaou Karma and Regional Côte d Ivoire Regional 15

17 3 UNLOCK EXPLORATION VALUE Exploration Strategic Review Output: What are the priorities? Priorities: 1. Tabakoto due to its short mine life 2. Agbaou to extend oxide mine life 3. Ity to extend HL and Improve CIL case 4. Houndé (once in production) to maintain 250kozpa level after 4 th year Priorities: 1. Ity Greater Area 2. Houndé to prolong mine life 3. Tabakoto and Agabou exploration will be success driven 100% 100% 100% 100% 6% 100% 6% 23% 23% 20% 13% 22% 26% 35% 27% 4% 18% 9% 20% 20% 43% 25% 35% 25% 21% 13% 8% 3% 7% 4% 10% 2% 13% 7% 12% Tabakoto Hounde Agbaou Ity Regional CI Karma and Regional 16

18 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Increase Overall Quality of our Portfolio AISC, US$/oz $1,200/oz Decreased costs from >1,300/oz $1,150/oz $1,100/oz Youga SOLD Cut-back Tabakoto ( koz) Nzema ( koz) $1,050/oz $1,000/oz $950/oz $900/oz Ity HL (75-80koz) Possibility to run HL in parallel Karma ( koz) Houndé +250koz starting Q Karma with North Kao $850/oz $800/oz $750/oz $700/oz Agbaou ( koz) $650/oz $600/oz Bubble size represents production Mine life as at 2016 Mine life, years Ity CIL 165koz starting 2019 Côte d Ivoire Burkina Faso Ghana Mali $550/oz $500/oz $450/oz 17

19 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Well Positioning Ourselves Against Our Peers Benchmark of West-African Producers AISC, $/oz 1,100 Gold Fields 1,050 IAMGOLD 1,000 Golden Star Teranga 950 Endeavour 2015A Endeavour 2016A Kinross Perseus AngloGold Ashanti Resolute Nordgold Asanko Endeavour (output of strategic exploration review) Newcrest Randgold Newmont 700 Semafo 650 Bubble size represents production Source: UBS Research, based on 2015A only West-Africa production. Mine life excludes expansion and development projects such as Kinross Tasiast Phase 2 and Resolute s UG project Average mine life, years Asanko based on 2017 guidance

20 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Healthy financial structure Significant Balance Sheet improvement $65m cash injection received from La Mancha in May 2016 following the True Gold transaction close $104m of net proceeds from bought deal financing to accelerate organic growth and exploration Free Cash Flow of c. $135m (before growth projects, WC, tax and financing cost) Liquidity and Financing Sources Strong liquidity and financing sources to fund remaining Houndé capex spend of roughly $180m Further headroom potential to fund exploration and Ity CIL with free cash flow $254m Net debt Net Debt to trailing 12-month Operating EBITDA ratio $242m Cash Position of $125m 1.8x 2014 (year-end) 1.7x End of Sept 2015 $83m 0.5x End of June 2016 $25m 0.1x End of Dec 2016 (in US$ million) Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Cash Less: Equipment finance lease Less: Drawn portion of $350 million RCF Net Debt/(Cash) Position $335m As of Dec 30 st, 2016 Undrawn RCF of $210m Net debt = Cash less drawn RCF, leases & drawn equipment financing RCF of $350 million, maturity date March 2020, semi-annual reductions commencing September 2018, annual interest based on LIBOR + a 3.75% to 5.75% margin 19

21 4 HEALTHY FINANCIAL STRUCTURE Well positioned to fund growth Strong Liquidity Sources and Cash Flow generation to fund internal growth ~$480m Net Free Cash flow from current mine operations including Houndé start in Q Hedging collar (between USD1,200-1,400/oz) covering c. 50% of production from Apr 16 to June 2017 protects cash flows while Houndé is being built Room to manoeuvre between debt and own cashflow Potential liquidity buffer $1,250/oz) Ity CIL project costs ~$300m Ity Equipment Financing (expected) $210m Undrawn RCF Objective to keep leverage in a maximum range of 0.5x-1.0x Remaining Houndé project costs ~$180m $125m Existing cash balance Funding requirements As of end December 2016 Liquidity Sources 20

22 Key 2016 Achievements Reset Strategy Streamline Organization 5-year strategy validated by the board Focused on improve the quality of our portfolio, with mines with AISC <$850/oz and mine life +10 years 4 key pillars: 1) Operational Excellence, 2) Project Development, 3) Unlock Exploration, 4) Portfolio & Balance Sheet Management Streamlining Excom from 10 to 7 3 Operational Pillars in Abidjan (Ops Projects Explo) Re-group all corporate offices in London office (Monaco, Vancouver, Paris) Improve Governance Manage Portfolio Deleverage Balance Sheet New CEO appointed in June 2016 Board reorganization with 3 departures and 4 new arrivals (2 La Mancha + 2 independent) Additional governance improvements under consideration Dynamic portfolio management to improve quality of asset base Youga sold in March (end of life, high cost operation) Karma acquired in April (Long mine life, low-cost operation) Houndé construction launched and Ity DFS published US$230m additional equity injection which includes La Mancha deal (c.$65m), La Mancha anti-dilution right in True Gold deal (c.$63m) and successful equity raise (c.us$110m) and cash flow generation Net Debt positon reduced to US$25m Improve Investor Relations Clarified equity story Increased management presence and marketing Improved transparency 21

23 Investment Highlights Endeavour now offers exposure to both near and long-term growth potential, in addition to current production Immediate Cashflow from Production Near-Term Growth from Projects Long-Term Upside from Exploration with an accomplished management team and a healthy balance sheet 22

24 2017 Outlook

25 2017 GUIDANCE Production expected to increase and AISC to decrease Production Guidance, koz AISC Guidance, US$/oz (on a 100% basis) 2016 Actual 2017 Guidance Agbaou 195, , ,000 Tabakoto 162, , ,000 Nzema 87, , ,000 Ity 75,867 75,000-80,000 Karma 61, , ,000 Group-wide Production 583, , ,000 (In US$/oz) 2016 Actual 2017 Guidance Agbaou ~ Tabakoto ~1, Nzema ~1, Ity ~ Karma ~ Mine-level AISC ~ Corporate G&A ~ Sustaining exploration ~ Group AISC ~

26 2017 GUIDANCE Free Cash Flow Before Growth Projects Expected to Increase Exploration Guidance, $m (In $m) 2017 Guidance Agbaou 7 Tabakoto 9 Ity 10 Karma 4 Houndé 5 Exploration Expenditures for Mines 35 Grassroots exploration expense 5 Total Exploration Expenditures 40 AISC Guidance, $/oz (in $m) Sustaining Capital Non-Sustaining Capital Growth Projects Agbaou Tabakoto Nzema Ity Karma Houndé Total Free Cash Flow Guidance based on Production and AISC Guidance Mid-points, $m (in US$m) $1,100/oz $1,200/oz $1,300/oz Net Revenue (based on production guidance mid-point) Mine level AISC costs (based on AISC guidance mid-point) (510) (510) (510) Corporate G&A (21) (21) (21) Sustaining exploration (14) (14) (14) Group AIS Margin Non-sustaining mine exploration (20) (20) (20) Non-sustaining capital (35) (35) (35) Free Cash Flow before growth projects (Mine cash flow less corporate costs before WC, tax and financing cost) 25

27 Details by Mine and Project

28 Agbaou Mine Côte d Ivoire Quick Facts (on 100% basis) Ity Mine Côte d Ivoire Agbaou Mine Abidjan Ownership Resources (incl. of Reserves) Reserves Processing Rate Open Pit Strip Ratio Gold Recovery Mining Type Production AISC (mine-level) Expected Mine Life Royalty Corporate Tax 85% EDV, 10% Côte d Ivoire, 5% SODEMI M&I: 2.5 g/t for 1.180Moz Inferred: 1.7 g/t for 0.065Moz 2.4 g/t for 1.027Moz Up to 2.6 Mtpa Gravity/CIL plant - oxides; 1.6 Mtpa fresh 8.1 to 1 (2016A) Achieving 95% at present; 92.5% design Open Pit Contractor Mining (BCM) 2014A 2015A 2016 Prelim 2017E 2014A $621/oz 2015A $576/oz 2016 Prelim $535/oz 2017E - $ /oz 7 years from current Reserves 3% - 5% sliding scale 25% (5 year corporate tax holiday) 147koz 181koz 196koz koz Recent and Upcoming catalysts Accomplished - Fully repaid shareholder loans in <2 years, in Nov Commissioned secondary crusher on time and on budget in July Reserves are same level as when production started in 2014 Upcoming - Secondary crusher allows for stable mill throughput throughout life of mine - Return to more normalised sustainable production rate of koz with fresh ore representing up to 50% of tonnes processed - Exploration campaign underway with initial drill results confirming mineralization 27

29 Agbaou Mine Côte d Ivoire Q Insights Record performance in Q4: Benefit from the end of the rainy season Greater mix of higher grade transitional ore, which represented 15% of total ore processed 2017 Outlook The secondary crusher (commissioned in mid-2016) provides the flexibility to process higher grade transitional ore while maintaining a fairly constant ore blend and throughput over the remaining life of mine After achieving an exceptional year, Agbaou is expected to return to a more normalized and sustainable production rate of koz in 2017 with fresh ore representing up to 50% of tonnes processed Production and AISC Production, koz AISC, US$/oz 57koz 52koz 43koz 46koz 49koz 535 $537 $525 $525 $550 Q Q Q Q Q Insight: Benefit of higher grades Tonnes milled, kt Grade milled, g/t Au 2.50 g/t 748kt 654kt 743kt 709kt 721kt AISC are expected to remain competitive, at $ /oz, as higher grade transitional ore is expected to compensate for increased unit costs and lower throughput 2.05 g/t Q g/t Q g/t Q g/t Q Q

30 Agbaou Exploration The ongoing exploration campaign, which commenced in April 2016 based on previous geophysics and soil geochemistry results, is focused on: North pit and South pit extensions, Agbaou South target Niafouta target Generating targets beyond the current resource boundaries. Initial drill results suggest the extension of mineralized zones An exploration budget of $7 million has been planned for 2017, totaling approximately 45,000 meters of drilling Agbaou Site Map 29

31 Agbaou Numerous Gold in soil anomalies over Mag > 50 ppb 30

32 Agbaou Exploration 5 years targets Côte d Ivoire Auger & RC drilling 31

33 Agbaou Exploration Potential Targeting discovery of between 0.5 to 1.5 Moz at an average cost of $25/oz over the next 5 years with a budget of ~$25M to extend mine life to 10 years* : Successful Drilling limited to infill drilling and immediate trend extension to renew resources and compensate for reserves depletion. As such, no preparation of future targets was done (nearly no inferred left) Current drill program is focused on new targets and definition of new inferred resources to be converted in 2017/2018 into indicated resources & reserves Known targets on the Agbaou Exploitation license have the potential to replace the production for a few additional years A brownfield exploration campaign of targets located in Agbaou Exploration License (at less than 20 km of the Agbaou mill) has started in Any new deposit discovered on this license also has the potential to further extend the mine life *Targeting to discover between 0.5 to 1.5 Moz with average grade between 2 and 3 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 32

34 Tabakoto Mine Mali Tabakoto Mine Bamako Mali Quick Facts (on 100% basis) Ownership Resources (incl. of Reserves) Reserves Open Pit Strip Ratio Processing Rate 80-90% Endeavour depending on pit, remainder government of Mali M&I: 3.1 g/t for 1.844Moz Inferred: 3.6 g/t for 1.023Moz 3.5 g/t for 0.725Moz 10.4 to 1 (2016A) Gold Recovery 92% - 95% Mining Type Production 1.4 Mtpa Gravity/CIL Plan Tabakoto (UG), Segala (UG) & Kofi C Open Pit Mine 2014A 127koz 2015A 2016 Prelim 152koz 163koz 2017E koz AISC (mine-level) 2014A $1,335/oz 2015A $1,067/oz 2016 Prelim $1,030/oz 2017E - $ /oz Expected Mine Life Royalty 6% Corporate Tax 30% Recent and Upcoming catalysts Accomplished 4+ years from current Reserves - In 2013 the mill was expanded from 2,000 tpd to 4,000 tpd - Segala ore production commenced in Q and to full production by Q Kofi C deposit commenced production in Q In 2015, switch to owner and contractor fleet resulting in increased productivity Upcoming Top exploration priority and cost reduction to be the main focus of 2017 Ongoing cost saving and optimisation programs include overhead reduction centralizing procurement, fleet replacement and improvement equipment availability and mining efficiency 33

35 Tabakoto Mine Mali Q Insights Production and AISC Record quarter due to the anticipated higher grades from Kofi C and Segala and increased mill throughput following the end of the rainy season Outlook 42koz 39koz 39koz Production, koz 37koz AISC, US$/oz +30% 48 Cost reduction will continue to be the main focus in 2017, with AISC expected to decrease to $ /oz. $1,119 $1,071 $1,061 $1,071 $930 Ongoing cost saving and optimization programs include: Overhead reduction and centralizing procurement Improving mine efficiency by improving equipment availability and replacing fleet Production is expected to slightly decrease in 2017 to koz as grades are expected to slightly decrease due to open pit mining transitioning from Kofi C to Kofi B in the second half of the year, and underground mining sequence. Q Q Q Q Q4-2016E Mine output out-perfomed mill throughput Tonnes Mined, kt Tonnes Processed, kt Processed grades, g/t Au 448kt 380kt 406kt 368kt 399kt 398kt 381kt 403kt 3.90 g/t 3.10 g/t 3.31 g/t 3.11 g/t Q Q Q Q

36 Tabakoto Mine Exploration Tabakoto is a top exploration priority in 2017 given its relatively short mine life and significant potential. $9 million exploration program totaling approximately 72,000 meters of drilling has been planned for Focus on both surface exploration, with the aim of delineating resources within trucking distance at discoveries made in 2016 and on new targets, and underground drilling. Tabakoto Site Map At Kofi B North a 244 hole RC drilling program and a 1,311 hole auger drilling program have been completed since the beginning of the year Analytic drill currently being analyzed Kofi B North A first shallow RC program of 334 holes was completed on the Tabakoto, Fougala and Kreko targets which confirmed two mineralized trends A second phase drill program has been launched on Fougala and Kreko Kreko Fougala 35

37 Tabakoto Surface Target priority ranking Segala S Reg. Explo Yatia SE 75 targets identified, 7 Priority 1 (2017) Areas under transported cover identified Sanou Sira Dabo S Kreko Fougala Famakan Sanou Sira S Dioulafoundou S 36

38 KOFI Land Package Main Target Areas Auger drilling RC drilling 37

39 Mali Exploration Tabakoto and Kofi Land Packages Targeting discovery of between 1.5 to 2.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$30M* Main focus is on finding new additional open pit resources within a short distance to the Tabakoto mill within within18 to 24 months to replace Kofi C and further Kofi B/A Linear/ Betea production while pursuing exploration near Kofi C/B/A Aggressive Tabakoto surface exploration was initiated at mid-2016 (Ongoing Kreko and Fougala trend exploration) Ongoing large exploration program over Kofi Blocks Due to its on trend position with Loulo type deposits, we will be targeting a new large discovery in Kofi North, along this trend with the potential be a standalone operation since it is located more than 40 km away from Tabakoto facilities While proven continuation at-depth, a prudent evaluation of the underground potential as been set at koz for the next 2-3 years. Afterwards, although mineralizations continue at depth, additional exploration will be based on economic viability of the production *Targeting to discover between 1.5 to 2.5 Moz with average grade between 2 and 4 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 38

40 Ity Mine Côte d Ivoire Quick Facts (on 100% basis) Ownership 55% EDV, 30% SODEMI, 10% Côte d Ivoire, 5% private Ity Mine Côte d Ivoire Agbaou Mine Abidjan Resources (HL + CIL) (incl. of Reserves) Reserves (HL+CIL) Open Pit Strip Ratio Processing Rate Gold Recovery 81% M&I: 1.6 g/t for 3.106Moz Inferred: 1.5 g/t for 0.687Moz 1.7 g/t for 1.6Moz 4.2 to 1 (2016A) 950ktpa HL Mining Type Production Open pit / Heap Leach 2015A 2016 Prelim 2017E 81koz 76koz 75-80koz AISC (mine-level) 2016 Prelim $790/oz 2017E - $ /oz Mine life Royalty 3 years from current Reserves + addition potential 3% - 5% sliding scale Corporate Tax 25% Recent and Upcoming catalysts Accomplished - Producing at historic highs (+50% since 2012 level) - Increased heap leach capacity from 0.6mtpa to 1.0mtpa in DFS for CIL project published on November 10, 2016 outlines potential to become core low-cost asset Upcoming - Continued exploration success to prolong heap leach life at current production level - Potential to increase ownership - Possibility of running the CIL and heap leaching operations in parallel for the first few years remains under review 39

41 Ity Mine Côte d Ivoire Q Insights Production increased in Q4 following the end of the rainy season which allowed for increased throughput Pre-strip at the Zia pit was completed during the quarter which positively contributed to Ity's Q4 production increase 2017 Outlook Production is expected to remain stable in 2017, at 75-80koz while AISC are expected to slightly decrease to $ /oz due to higher grades The possibility of running the CIL and Heap leaching operations in parallel for the first few years is currently under analysis. Production and AISC Production, koz 22koz 21koz 19koz 15koz $710 $775 $724 $621 Q Q Q Q Ity mine extraction Tonnes stacked, kt 303kt 304kt 271kt 2.53 g/t 2.10 g/t 1.90 g/t AISC, US$/oz 17koz $850 Q Grade milled, g/t Au 295kt 2.00 g/t Q Q Q Q

42 Summary of Independent Feasibility Study for CIL Project Independent CIL Feasibility Study prepared by: Lead Consultant: Contributions from: Ity CIL Project DFS highlights Life of Mine Production Strip ratio, w:o 2.1 Tonnes of ore processed, Mt Grade processed, Au g/t Gold content processed, Moz 41.0 Mt 1.42 g/t 1.88Moz Gold recovery, % 83% Gold production, Moz Mine life, years Average annual gold production, koz 1.56Moz 14 years 114Koz AISC, $/oz $603 Capital Cost Upfront capital cost, $m $282m Equipment lease $25m Economic Returns base on US$1,250/oz After-tax Project NPV5%,$m 411 After-tax Project IRR, % 36% Payback, years 2.1 Source: Ity CIL Feasibility Study 41

43 Significant Improvement Expected in Updated Feasibility Study H update expected to include: Recent high-grade Bakatouo and Colline Sud discoveries Verse Ouest following recently completed infill drilling program Additional Resource conversion at Daapleu and Mont Ity based planned infill drilling program Significant opportunity beyond the potential to delineate additional resources at known deposits and make new discoveries 42

44 Additional Potential for Resource Conversion Potential includes: The recently discovered Bakatouo and Colline Sud deposits and the results from the ongoing 11,700 meter reverse-circulation ( RC ) and diamond-drilling ( DD ) program to test their extensions and conduct infill drilling. Further resource conversion potential on both Daapleu and Mont Ity following the completion of the planned 33,000 meter in-fill drilling program Inclusion of Verse Ouest following the recent completion of the in-fill drilling program Deposits on a 100% basis. Resources are inclusive of reserves. Open Pits Probable Reserves Indicated Resources Inferred Resources Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) Daapleu Mont Ity / Ity Flat Gbeitouo Walter Zia NE Bakatouo Colline Sud Total Open Pits , , ,172 Existing Stockpiles Aires Teckraie Verse Ouest Total Stockpiles Total , , ,410 43

45 Ity Mine Exploration: High-grade Bakatouo discovery September 2016 All Ore Oxide / Transitional Ore Indicated Inferred Cutoff Pit Shell kt g/t Au koz kt g/t Au koz Grade g/t Constraint $ $ $ $ $

46 Ity Mine Exploration The largest portion of Endeavour s 2017 exploration budget has been allocated to the Ity area in light of its strong prospectivity and potential to further extend the lives of the CIL project and Heap Leach operations. A $10 million exploration program totaling approximately 50,000 meters has been planned for 2017 Exploration in 2017 focused on: Infill drilling at the Daapleu and Mount Ity deposits Infill drilling and extension drilling at the new Bakatouo and Colline Sud discoveries Conducting initial drilling campaigns on strong Auger anomalies such as the Yacetouo and Vavoua targets Ity Mine Drilling Targets 45

47 Ity: New High Quality Near Mine Exploration Targets 46

48 Greater Ity: Exploration Program in Tiepleu/Floleu Auger drilling Côte d Ivoire 10 km radius RC drilling 47

49 Ity Mine Exploration 80km underexplored Birimian corridor Endeavour consolidated an 80km underexplored Birimian corridor ontrend with its Ity mine in Côte d Ivoire Significantly increased its holdings in the Ity district from 178km² to 664km 2. The new Floleu (104km 2 ) and Toulepleu (382km 2 ) exploration tenements were obtained on a 100% ownership basis The previously 55%-held Tiepleu tenement (153km 2 ) was re-obtained on a 100% basis. An auger drilling program will be conducted on the 80km underexplored portion corridor along the Ity trend in 2017 Ity Mine Birimian corridor 48

50 Greater Ity Regional Gold in Soil (> 100 ppb) Anomalies PR609 East Cavally Several Targets Birrimian meta sediments and green belt Gnamapleu Granite-Gneiss PR558 Le Plaque Area Several Targets GUEYA area Several targets GBAMPLEU No Geochemical data at all No Exploration Historical Sparse 400x100m Grid on PR462 Except on few selected targets Mt BA Area Several targets 49

51 Greater Ity: Exploration Targets Toulepleu Auger drilling RC drilling 50

52 How significant is Greater Ity area? SEMAFO Mana (BF) vs EDV Greater Ity (CI) trend size comparison SEMAFO Controlled MANA TREND EDV Controlled Greater ITY TREND 51

53 Potential of Greater Ity Exploration Targeting discovery of between 4 to 6 Moz at an average cost of $11/oz over the next 5 years with a budget of ~$55M* Numerous high Potential targets have been identified within the Greater Ity area The whole controlled 80 km trend will be covered by an airborne geophysical survey for target generation in late 2016 (Mag/Spectro/VTEM ~700 Km 2 ) The exploration blocks contiguous with Ity Exploitation license have the potential for multi-millions ounce deposits or group of deposits which may constitute future stand alone operations (heap leach and or CIL) While Endeavour controls some 700 km² of Birimian grounds with similar geology around Ity, the targeted new ounces only represent the same number of ounces that have been already produced and discovered over the 35 km² of the mine present footprint. *Targeting to discover between 4 to 6 Moz with average grade between 2.0 and 3.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 52

54 Nzema Mine Ghana Nzema Mine Ghana Accra Quick Facts (on 100% basis) Ownership Resources (incl. of Reserves) Reserves Open Pit Strip Ratio Processing Rate Gold Recovery Mining Type Production AISC (mine-level) Expected Mine Life Royalty Corporate Tax 35% 90% EDV, 10% government of Ghana M&I: 1.3 g/t for 1.490Moz Inferred: 1.3 g/t for 0.244Moz 2.4 g/t for 0.356Moz 8.3 to 1 (2016A) 1.6 Mtpa Gravity/CIL plant 91% to 75% depending on ore type Open Pit Contractor Mining (BCM) 2014A 2015A 2016 Prelim 2017E 2014A $1,036/oz 2015A $1,064/oz 2016 Prelim $1,170/oz 2017E - $ /oz 4 years from current Reserves 5% (+1% 3rd party at Adamus pits) 115koz 110koz 88koz koz Recent and Upcoming catalysts Accomplished - Increased levels of purchased ore availability is strategically being used to improve the mine s economics, operating margins and in the preservation of the mine s reserves in-situ - Adamus pit push-back nearly completed in 2016 Upcoming Adamus pit cut back to be completed during Q Higher grades from Adamus pit to support AISC reduction Pre-stripping at Bokrobo deposit deposit expected to start in H

55 Nzema Mine Ghana Q Insights Production slightly decreased over the previous quarter as the higher grades mined was offset by lower purchased ore grades Production and AISC 23koz 20koz 20koz Production, koz 24koz AISC, US$/oz 24koz The Adamus pit push-back progressed well in 2016 and is expected to be completed in Q $1,133 $1,158 $1,266 $1,136 $1, Outlook Q Q Q Q Q Following the cutback, Nzema is expected to generate healthy cash flows for the coming years Adamus Pit Push-back As a result of the higher expected grades from the Adamus pit following the cutback, production is expected to increase to koz in 2017 while AISC are expected to decrease to $ /oz. To complement production from the Adamus pit, pre-stripping at the Bokrobo deposit is expected to start in the second half of the year. 54

56 Karma Mine Burkina Faso Karma Project Karma Mine Quick Facts (1) (on 100% basis) Ownership 90% EDV, 10% Burkina Faso Houndé Project Ouagadougou Resources (incl. of Reserves) Reserves Processing Rate M&I: 1.08 g/t for 2.621Moz Inferred: 1.13 g/t for 2.362Moz 0.89 g/t for 0.949Moz 4.0mtpa Heap Leach Gold Recovery 87% Mining Type Shallow open pit and free digging material with no blasting required, low strip ratio Production 2016 Prelim 2017E 62koz koz AISC (Mine-level) 2016 Prelim $750/oz 2017E - $ /oz Mine life Tax regime 8 years mine life based on reserves years from North Kao deposit (inferred resource) 3% - 5% sliding scale royalty / 17.5% Corporate tax Recent and Upcoming catalysts Accomplished - First gold production achieved on April 11 th Started leach pad ore stacking and irrigating in early March 2016 Upcoming - Benefit of higher grade Rambo pit 55

57 Karma Update Q Insights Commercial production was declared on October 1, 2016 Production continued to ramp up as the higher grade Rambo pit complemented ore feed from the GG2 pit and stacking capacity continued to improve 2017 Outlook Production in 2017 is expected to increase to koz as higher grade Rambo ore feed will complement that of the GG2 pit with contribution from the Kao pit in the later portion of the year. In addition, stacking capacity is expected to increase in the second half of the year following the completion of the plant optimization efforts. AISC are expected to range between $ /oz Capacity at the processing facility is expected to further increase in the second half of the year following the replacement of the front-end and other plant optimization activities, which are expected to amount to $35 million. Producing at a run-rate of koz per annum Production, koz 6,026oz 6,174oz 6,854oz 7,381oz 9,109oz June July August September October Process throughput continues to ramp-up 1.5 Mtpa June Ramp-up phase 2.5 Mtpa September 9,754oz November Process optimization 3.0 Mtpa December 9,985oz December 4.0 Mtpa Capacity expected by mid

58 NORTH KAO RESERVE CONVERSION EXTENDED MINE LIFE TO +10 YEARS North Kao infill drilling confirms the continuity of the previous inferred resource and improves the grade profile 314koz of resources amenable to heap leach processing converted to indicated status Indicated resource grade up 53% over the previous inferred grade to 1.22 g/t Au 262koz were subsequently converted to reserves, extending Karma s mine life to beyond 10 years The North Kao mineralized structure remains open to the north and the potential exists for additional subparallel zones 57

59 KAO North 2016 Drilling Section Infill Drilling Confirms Mineralization Continuity 58

60 Karma - Exploration In 2017, a $4 million exploration program totaling approximately 30,000 meters has been planned to drill nearmill targets such as Rambo West and Yabonsgo Beyond North Kao resource drilling, other exploration targets have potential to add up to 5 additional years of mine life with still ongoing evaluations 59

61 2017 Targets: YABONSGO Target (<10km from GG1) Yabonsgo is one of our next priority target RC AC 60

62 2017 Targets: Rambo West Rambo West is a near-mine obvious target AC Granodiorite RC sediments 61

63 Karma Exploration Targeting discovery of between 0.5 to 1.0 Moz at an average cost of $20/oz over the next 5 years with a budget of ~$15M to extend mine life to 15 years* New geological understanding and mapping in less than 6 months North Kao already added 2.5 year of mine life Near mine higher grades targets to be drilled in 2017 (Yabongso and Rambo West) Still ongoing evaluation and ranking of all exploration targets Beyond North Kao resource drilling, other exploration targets have potential to add up to 5 additional years of mine life with still ongoing evaluations *Targeting to discover between 0.5 to 1.0 Moz with average grade between 1.0 and 1.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 62

64 Houndé Project Burkina Faso 1 Based on 100% equity funding and equipment lease financing ²From production start Houndé Project Karma Project Ouagadougou Burkina Faso Quick Facts (on 100% basis) Ownership Status 90% EDV, 10% Burkina Faso Fully permitted, construction launched Production start date First gold pour expected Q Resources (incl. of Reserves) Reserves Mine Type LOM Strip Ratio 8.4 Processing Rate Gold Recovery 93% Upfront Capital (US$M) LOMP Summary (on 100% basis) M&I: 2.1 g/t for 2.551Moz Inferred: 2.6 g/t for 0.274Moz 2.1 g/t for 2.075Moz Open pit 3.0 Mtpa Gravity / CIL plant $328m, inclusive of $47m for the owner-mining fleet Processing Total ore processed, Mt 29.7 Gold grade, g/t 2.15 Contained gold, koz 2,057 Recovery rate, % 93% Production, koz 1,906 Operating Costs Mining costs, $/t moved 2.17 Processing costs, $/t Site G&A, $m/yr 9.8 AISC, US$/oz 709 Economic Returns 1 Gold Price (US$/oz) $1,150 $1,200 $1,250 $1,300 1,350 After-tax Project NPV (5%) $230 $286 $342 $398 $437 After-tax Project IRR 24% 28% 32% 36% 39% Payback, years²

65 Houndé Construction is progressing on-time and on-budget Significant achievements to date: Construction is progressing as planned, with over 50% completed by year-end Over 2 million man-hours have been worked without LTI The 38km long, 91kv overhead power line construction is 52% complete. First power from Sonobel is scheduled for August Open pit pre-strip mining at the Main Vindaloo open pit, adjacent the processing facility, commenced in late Detailed engineering of the processing facility along with the design HAZOP has been completed, also ahead of schedule in November CIL ring beam concrete pour was achieved in early August 2016, and the SAG and Ball Mill first lift on both plinths was completed by year-end. The construction of the water harvest dam decant tower is complete, with water already being pumped to the water storage dam two months ahead of schedule. Construction of the 300-person permanent accommodation village is approaching completion. Over 2,000 personnel including contractors are currently employed on-site, more than 94% of which are Burkinabe. Full back-up 26Mw backup power station has been awarded to JA Delmas. This is on schedule to be operational in Q The land compensation process has been successfully completed with resettlement commencing in early Procurement is approximately 60% complete $328m Total Capex (incl. $26m contigency) $210m Committed Capex (end of dec) Pouring Crusher West Wing Wall $100m Incurred Capex (end of Dec.) 64

66 Houndé Exploration Upside The Houndé exploration tenement covers +1,075km² within Burkina Faso s highly prospective Birimian belt Exploration Targets in Proximity to the Planned Mill Historically, exploration focus mainly on the Vindaloo trends At least 15 other significant targets were identified by previous limited drilling campaigns but remain largely untested All located within 20km from the planned mill High grade targets (+5g/t) will be explored in priority Following a two year period of no drilling exploration, activities will resume in 2017 with a $5 million program totaling approximately 45,000 meters. 65

67 Houndé Exploration: Main Promising Targets RC drilling Auger drilling 66

68 Houndé Exploration Burkina Faso Targeting discovery of between 2.5 to 3.5 Moz at an average cost of $15/oz over the next 5 years with a budget of ~$45M to extend mine life to +15 years* Our Houndé exploration portfolio is located within one of the most prospective areas of the Birimian greenstone belt of Burkina Faso Historical exploration already proved the occurrence of multiple major mineralized trends of Vindaloo type within these licences At least 15 significant targets were partially tested by previous drilling, and the majority of them remain undeveloped All defined exploration targets are located within a 20 km radius of the Houndé mill The high grade targets (Bouere, 5 to 6g/t and Kari Pump) will be developed as a priority in 2017 *Targeting to discover between 2.5 to 3.5 Moz with average grade between 1.8 and 2.5 g/t Au. The potential quantity of ounces is conceptual in nature since there has been insufficient exploration to define a mineral resource and since it is uncertain if exploration will result in the targets being delineated as a mineral resource. 67

69 Appendix

70 Endeavour is backed by La Mancha 30% holding Sawiris family s mining investment vehicle Long-term growth supportive investor with focus on creating regional leaders The Sawiris family is present across various sectors and businesses, ranging from construction and fertilizers to real estate and telecommunications 31% holding La Mancha vended-in the Ity mine and $63m of cash La Mancha then contributed $65m following the acquisition of Truegold Participated in bought deal with C$20m Endeavour has grown from a US$250m to a US$1.8B market cap since announcement of strategic partnership Partnership Announced 0 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 La Mancha vended-in the Frog s Leg and White Foil mines La Mancha then contributed $112m for acquisition of the Cowal mine Evolution has grown from a ~A$670m market cap to ~A$3.2B, since announcement of strategic partnership Partnership Announced 0.0 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 69

71 Net Free Cash Flow Breakdown First 9 months ended US$m Free cash flow (before Hounde, Karma, working capital, tax & financing costs) Hounde project costs 1 (45) (5) Karma proceeds from sales less mining costs capitalized and capital expenditure 2 (1) 0 Change in capital project working capital 3 (24) 0 Free cash flow (before operating working capital, tax & financing costs) Working capital changes as per statement of cash flows 4 (19) (21) Taxes paid 5 (12) (6) Interest paid (10) (9) Cash settlements on hedge programs and gold collar premiums and share appreciation rights 6 (15) (4) Other (foreign exchange gains/losses and other) (4) (16) Free Cash Flow before other items (31) 12 Cash received for Youga mineral property interests (net) 22 0 Bridge loan advanced to True Gold 7 (15) 0 True Gold cash acquired, less acquisition COC payments, less acquisition 8 (2) 0 expenses 9 Restructuring costs (18) 0 La Mancha anti-dilution proceeds with True Gold, Bought Deal proceeds, share option exercises, net of equity linked payments (SARs and PSU s) RCF, debt and lease repayments (109) (42) Cash inflow for the period 28 (30) 10 Insights: 1. Houndé spend fully on track with capex program 2. + net proceeds from sales +$34m - mining costs capitalized ($21m) - capital expenditure ($13m) 3. Includes Karma and Hounde associated WC 4. WC is expected to reverse in Q4 due to seasonal effect 5. Increased due to Ity inclusion in Includes: $10m hedge settlements, $4m gold collar premiums 7. Pre-acquisition loan to True Gold for Karma Capex 8. + Karma cash acquired +$10m - TGM change of control payments ($6m) - TGM transaction costs ($6m) 9. Combined ex-ceo, BOD and executive level restructuring costs and office consolidation 10. La Mancha for TG acquisition +$65m Option exercises +$13m Bought deal proceeds +$106m Net of SAR and PSU payments ($4m) *Includes financial fees, hedge settlements, realized loss on derivative financial instruments, realized foreign exchange loss on cash, and other non-operating cash adjustments. 70