Endeavour Mining Corporate Presentation - January 2016
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. Forwardlooking 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 forwardlooking statements. Please refer to Endeavour s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business. 2
Endeavour Overview 5 producing mines at low AISC Sustained operational performance, having constantly increased production and decreased costs over past 4 years Tabakoto Mine 2016 production to increase to 575-600koz, from 518koz in 2015 2016 AISC to decrease to US$875-925/oz, from <US$930/oz in 2015 Bamako Ouagadougou Houndé Project Youga Mine Total Reserves of 6.1 Moz 1 Total M&I resources of 10.8 Moz plus 2.9 Moz Inferred 1 Attractive project pipeline Houndé Project fully permitted and preparing for construction decision in H1-2016 Ity CIL Project feasibility study expected mid-2016 Conakry Freetown Monrovia Ity Mine and CIL project Agbaou Mine Abidjan operations office Nzema Mine Accra Lomé Strong Balance sheet Net debt reduced by 44%, to US$143m as at end of 2015 Financing sources include $110m of cash, $110m of undrawn RCF, $75m in-principle commitment from La Mancha (Naguib Sawiris), and cash flow generation 1 See Appendix for details of mineral resources and mineral reserves, stated on a 100% basis ² Market data as at Jan 19, 2016 CREATING THE PREMIER AFRICAN GOLD PRODUCER Share price²: C$7.25 Market cap²: US$295m Issued shares: 59m EV²: US$438m
Delivering Our Strategic Objectives 1) Increase Production and Decrease Costs 2) Increase Cash Generation Production, on a 100% basis in koz AISC, in US$/oz Free cash flow before tax, WC & financing costs, in US$m Realized gold price, in US$/oz $1,137/oz 466koz 518koz 575-600koz +85% $1,392/oz realized $80m Guidance $100m Guidance 324koz $1,010/oz <$930/oz $875-925/oz $28m* $30m $1,264/oz realized Estimated with $1,157/oz Estimated with $1,150 2013 2014 2015 2016E 2013 2014 2015E 2016E 3) Reduce Net Debt 4) Extend Mine Life By Adding Reserves Net Debt, US$m Reserves on a 100% basis, in Moz -44% $227m $254m +101% 6.1Moz $143m 4.1Moz 3.0Moz 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-12 31-Dec-13 31-Dec-14 The preliminary 2015 production and other financial information provided are approximate figures and may differ from the final results included in the 2015 annual audited statements and MD&A See Appendix for details of mineral resources and mineral reserves, stated on a 100% basis, including the Ity mine. *Excludes Agbaou capex CREATING THE PREMIER AFRICAN GOLD PRODUCER 4
Indexed to EDV share price (C$/share) Endeavour Outperformed its Peer Group in 2015 2015 performance vs TSX gold index 2015 performance vs selected peer group Endeavour S&P / TSX Global Gold Index Gold (US$/oz) 9.00 8.00 7.00 6.00 5.00 4.00 3.00 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 80% 7% (11%) 6% Nordgold 116% Banro 87% Endeavour 80% Perseus 33% Roxgold 27% Centamin 24% SEMAFO 18% Asanko 13% Teranga 8% Randgold 7% Resolute 1% Golden Star (6%) AngloGold (6%) True Gold (8%) Pan African (19%) Acacia (20%) B2Gold (26%) Goldfields (28%) Avocet (34%) IAMGold (37%) Amara (37%) Aureus (65%) (100%) (75%) (50%) (25%) 0% 25% 50% 75% 100% 125% CREATING THE PREMIER AFRICAN GOLD PRODUCER 5
2015 Production Exceeded Guidance Production evolution 2013-2015, in koz 466 +11% 518 Guidance: 475-500koz Insights: Agbaou strong performance with continued benefit from soft ore 324 Guidance: 315-330koz Guidance: 400-440koz Tabakoto increased productivity from switching to owner mining and contractor fleet, and benefited from start of Kofi C open pit and full ramp-up of Segala underground 2013 2014 In oz, 100% basis 1 2014 Actual 2015 Actual 2015 Guidance 2015 Agbaou 146,757 181,365 150,000-155,000 Exceeded Nzema 115,129 110,302 110,000-115,000 In line Tabakoto 127,323 152,185 155,000-165,000 Slightly below Youga 76,561 68,407 60,000-65,000 Exceeded Sub-Total 465,770 512,259 475,000-500,000 Exceeded Ity 2 5,689 Grand-Total 465,770 517,948 Nzema strategically increased levels of purchased ore availability to improve the mine s economics and operating margins, and to preserve reserves in-situ 1 Actual mine ownership is Agbaou 85%, Nzema 90%, Tabakoto 80%, Youga 90%, Ity 55% 2 Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015. During 2015, the Ity Mine produced 80,807 ounces. CREATING THE PREMIER AFRICAN GOLD PRODUCER 6
Production Expected To Increase In 2016 Production guidance 2016, in koz +15% 575-600 Insights: 466 518 Guidance: 475-500koz 2016 production in line with 2015 production rates (593koz with Ity on full year basis) 324 Guidance: 400-440koz Agbaou expected to return to normalized production after record year Guidance: 315-330koz 2013 2014 2015 2016E Nzema expected to slightly increase with additional deliveries of high grade third-party ore In oz, 100% basis 1 2014 Actual 2015 Actual 2016 Guidance Agbaou 146,757 181,365 165,000-175,000 Nzema 115,129 110,302 110,000-130,000 Tabakoto 127,323 152,185 155,000-175,000 Youga 76,561 68,407 40,000-45,000 Ity 2 5,689 65,000-75,000 Total 465,770 512,259 575,000-600,000 1 Actual mine ownership is Agbaou 85%, Nzema 90%, Tabakoto 80%, Youga 90%, Ity 55% 2 Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015. During 2015, the Ity Mine produced 80,807 ounces. Tabakoto expected to increase as the operating improvements of 2015 are sustained in 2016 Increase in underground tonnage and overall increase in grade (Segal and Kofi C) Ity expected to slightly decrease due to lower grades CREATING THE PREMIER AFRICAN GOLD PRODUCER 7
Significant Reduction In All-in Cash Costs All-in Cash Cost Evolution (US$/oz) 1,160 1,137 1,120 1,080 1,040 Guidance: 985-1,070 1,010 Insights: Significant reduction in AISC/oz over past 4 years, with 2015 AISC expected to be slightly below guidance range of US$930 980/oz 1,000 960 920 880 840 2013 2014 Guidance: 930-980 <930 2015E Guidance 875-925 2016E Significant reduction in Tabakoto AISC due to increased production (higher grade) and operational efficiency Continued strong performance from Agbaou AISC, US$/oz 2014 Actual 2015 Guidance 2016 Guidance Agbaou 621 690-740 650-700 Nzema 1,036 1,000-1,050 970-1,020 Tabakoto 1,335 950-1,000 920-970 Youga 824 975 -,1025 980-1,030 Ity n/a n/a - n/a 800-850 Mine-level AISC/oz 954 883-933 830-880 + Corporate G&A 46 37 35 + Sustaining exploration 9 10 10 AISC/oz 1,010 930-980 875-925 Cost reductions are expected to continue in 2016, with AISC decreasing to US$875-925/oz 8
Centamin Endeavour 2016E Endeavour 2014 New Gold Centerra Acacia Golden Star Oceanagold Teranga SEMAFO Aurico Alamos Perseus Dundee Prec. B2Gold Primero Continued G&A cost reduction Reducing G&A costs remains a focus Corporate G&A Cost Benchmark US$ per ounce sold (US$/Au-eq oz) 1 167 In early 2016, corporate reorganization implemented to streamline organizational and operational efficiency: 114 122 122 136 140 Closed Vancouver corporate office and relocated to Paris, within same timezone as operations Closed operations office in Accra and relocated to Abidjan, in proximity to its core operations in Côte d Ivoire 31 35-29% 49 56 56 58 63 79 80 90 Ity general management transferred on-site 1 Based on company reports; Corporate G&A & share-based compensation per ounce sold, 12 months ended December 31, 2014 9
Avocet AngloGold B2Gold Endeavour 2014 Goldfields Nordgold Endeavour 2015 Resolute Pan African Perseus Centamin Acacia IAMGOLD Teranga Randgold SEMAFO Sound Balance Sheet With Strong Liquidity Net debt reduced by 44%, from US$254 million to US$143 million with $60 million debt reimbursed The Company s liquidity sources, at end of 2015, include: $110 million cash position $110 million undrawn RCF capacity * $100 million of free cash flow generation expected in 2016 (before working capital, tax and financing costs) In addition, $75 million in-principle commitment from La Mancha (Naguib Sawiris) to finance growth projects Net debt to Operating EBITDA ratio improved to 0.7 times, which compares to 1.8 times at the start of 2015 Significantly decreased net debt position Healthy Net debt / 2015E EBITDA ratio -$63m 4.7x $316m $253m $62m +$48m $110m $254m -$111m $143m 2.1x 2.0x 1.8x 1.6x 1.1x 0.7x 0.6x 0.4x -1.3x -1.1x -0.8x -0.6x -0.5x -0.4x -0.3x Dec-14 Dec-15 Dec-14 Dec-15 Dec-14 Dec-15 Debt Position** Cash Position Net Debt * RCF of US$350 million, maturity date March 2020, semi-annual reductions commencing September 2018, annual interest based on LIBOR + a 3.75% to5.75% margin. **Debt includes equipment finance lease Source: Factset broker consensus estimates for 2015E EBITDA CREATING THE PREMIER AFRICAN GOLD PRODUCER 10
Free cash flow expected to increase again in 2016 2016 Forecast: AISC Margin and Free Cash Flow (US$ million, forecast) 2016 Production (ounces, guidance range mid-point) 587,500 oz Gold price estimate US$1,150/oz Revenue $676m Less: AISC Costs (based on guidance range mid-point of $900)/oz $528m All-in sustaining margin (mid-guidance) $148m Less: Non-sustaining capital $34m Less: Non-sustaining exploration $14m Free Cash Flow (before WC, tax and financing costs) $100m Insights: At $1,150 gold price, AISC margin of approximately $148m in 2016, or $250/oz Free cash flow (before working capital movement, tax and financing costs) is projected to be $100m or $170/oz $30m sensitivity for a $50 per ounce gold price movement $20m exploration budget for reserve replacement and mine life extensions $6m for sustaining exploration and $14m for nonsustaining exploration Non-sustaining capital of $34m, which includes Agbaou secondary crusher ($12m) Nzema pit push-back ($12m) Houndé and Ity CIL projects ($5m each) 11
Implementing a long-term exploration strategy to continue to replace reserves and generate new discoveries 2015 Exploration achievements: Agbaou: Drill results confirm oxide mineralization extensions Ity: 1.5Moz of M+I resources added from January to September 2015 Tabakoto: Objective of replacing production depletion and extending high grade mine lives 2016 exploration objectives: Agbaou: Replace 2016 depleted reserves, and increase oxide ore availability Tabakoto: Replace underground 2016 depleted reserves and generate new inferred resources. Replace Kofi depletion within the Kofi Nord permit area Ity: Increase of short-term oxide ore to extend Heap Leach operation and define additional targets for CIL Proven and Probable Reserves in Moz 100% basis 3.0 31-Dec-12 +101% +100% 4.1 31-Dec-13 Measured and Indicated Resources in Moz 100% basis (inclusive of reserves) 7.6 Replenished existing mines + Ity 7.1 6.1 31-Dec-14 10.8 31-Dec-12 31-Dec-13 31-Dec-14 12
Top Tier West African Projects with Experienced Construction Team Endeavour has 2 top-tier West African projects, plus one of the largest exploration packages Peer Projects Project Status, Reserves/Resources and Project IRRs at US$1,300/oz Houndé Project in Burkina Faso Fully permitted and awaiting investment decision in H1-2016 High grade open pit reserves of 2.1Moz at 2.1 g/t Strong production with 240kozpa for first 3 years Low AISC of <U$720/oz over 10-year mine life Robust economics: after-tax IRR of 31% and NPV 5% of US$359m Ity CIL project in Côte d Ivoire Increased M&I resources from 0.2Moz to 2.9Moz plus 0.5Moz Inferred since 2011, generating CIL project Further resource and reserve expansion expected 1.4Moz at 1.6 g/t already converted to reserves with PFS Ity CIL DFS (expected mid-2016) should significantly improve economics due to larger mill size (3mtpa) and increased mining inventory Targeting +120kozpa at AISC of <US$750/oz over +10-year mine life Reserves Resources PEA/PFS Feasibility Study Permitted In Construction Production See Appendix for details of Mineral Reserves and Mineral Resources. Ity resource is inclusive of heap leach operation resource. 1 Otjikoto IRR at $1,350/oz and pre-tax. 2 Fekola IRR is pre-tax 13
Endeavour Growth through Build and Acquire Strategy +50% ~800koz 800koz Houndé: FS in 2013, fully permitted for 2016 construction decision potential Q4/2017 production x6.5 575-800koz 700koz 600koz Ity Heap Leach: 5 th mine, potential to extend to 2019/2020 with definition of additional resources and CIL reserves 518koz 500koz Agbaou: FS in 2012, construction and start up in 2013, low-cost operations 181 400koz Tabakoto: 3 rd acquisition, mill expanded, converted to owner mining, improved mill feed 300koz 152 Nzema: 2 nd acquisition, recapitalized 200koz ~80koz 110 100koz Youga: 1 st acquisition, now a mature mine 68 2010A 2011A 2012A 2013A 2014A 2015A 2016E 2017E 2018E 14
Why West-Africa? West Africa s Birimian greenstone belt is one of the most prospective and under-explored areas of the world West-Africa is a fast-growing gold region Endeavour has a successful track record of building and operating mines in West Africa Opportunity to consolidate region to benefit from cluster-based synergies Favorable mining jurisdictions Excellent and long-standing government relationships Most West African gold findings are located in the Birimian greenstone belt Côte d Ivorie: Largest Birimian holding yet low findings since underexplored % of Birimian Endownment found, Moz 110Moz 35% 8Moz 22% 12Moz 19% 11% 12Moz 10% 33Moz Côte d Ivoire Burkina Faso Ghana Guinea Mali 15
Avocet Newcrest Perseus Teranga SEMAFO Golden Star Resolute IAMGOLD Endeavour (2014) Kinross Nord Gold Endeavour & Ity (2015) Gold Fields Endeavour (2018) AngloGold Ashanti Newmont Randgold One of West Africa's Largest Gold Producers 1,000 Incl. Houndé and before Ity CIL 900 800 Increased Production + Ity acquisition 700 600 500 400 300 2014 Gold Production (West Africa only), koz 200 100 0 16
Conclusion High level of HSE exigency Operational Excellence Optimize production and generate free cash flow across all mines Decrease costs without limiting capex required to develop production Lean corporate management Internal Growth Houndé decision expected by H1 2016 Extend Ity Heap Leach and CIL DFS expected by mid-year 2016 Reassessment of long-term exploration strategy M&A Opportunities Opportunistic management of mine portfolio to improve its quality and extend mine life Possible bolt-on acquisitions in West Africa with a number of opportunities Seeking to benefit from country/site synergies 17
Appendix 1 Mine by Mine Summary
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 Gold Recovery Mining Type 85% EDV, 10% Côte d Ivoire, 5% SODEMI M&I: 13.9Mt @ 2.5 g/t for 1.109Moz Inferred: 2.1Mt @ 2.3 g/t for 0.154Moz 11.5Mt @ 2.5 g/t for 0.926Moz Up to 2.2 Mtpa Gravity/CIL plant - oxides; 1.6 Mtpa fresh ore Achieving 97% at present; 92.5% design Open Pit Contractor Mining (BCM) Production AISC (mine-level) Expected Mine Life Royalty Corporate Tax 2014A 2015A 2016F 2014A $621/oz 2015F $690 to $740/oz 2016F $650-$700/oz 7 years from current Reserves 3% - 5% sliding scale 25% (5 year corporate tax holiday) 147koz 181koz 165-175koz Recent and Upcoming catalysts Accomplished - Record year in 2015, up 23% YoY - Fully repaid shareholder loans in <2 years, in Nov 2015-2015 drill results confirmed oxide mineralization extensions Upcoming - Continue to benefit from the soft ore with high potential to add oxide reserves - US$12 million secondary crusher to be built in 2016 to maintain throughput despite harder rock mix CREATING THE PREMIER AFRICAN GOLD PRODUCER 19
Agbaou Exploration Potential Côte d Ivoire 47,620m drilled in 2015, totaling 475 holes, with aim of replacing depletion and extending oxide ore mine life Agbaou Site Map Drill results confirmed the continuity of oxide mineralization at the pit extensions and at surrounding targets Results include: 7.4 metres at 6.71 g/t at Omega 7.4 metres at 7.73 g/t at Gamma 6.8 metres at 3.18 g/t at Sigma In 2016, focus will continue on adding oxide material 20
Tabakoto Mine Mali Quick Facts (on 100% basis) Mali Ownership Resources (incl. of Reserves) Reserves 80% Endeavour, 20% government in Mali M&I: 19Mt @ 3.0 g/t for 1.8Moz Inferred: 18Mt @ 2.8 g/t for 1.6Moz 7Mt @ 3.7 g/t for 0.8Moz (~65% U/G @ 3.9 g/t) Tabakoto Mine Processing Rate Gold Recovery 92% - 95% 1.6 Mtpa Gravity/CIL Plan Bamako Mining Type Tabakoto (UG), Segala (UG) & Kofi C Open Pit Mine Production 2014A 2015A 2016F 127koz 152koz 155-175koz AISC (mine-level) Expected Mine Life 2014A $1,335/oz 2015F $900-$1,000/oz 2016F $920-970/oz 7 years from current Reserves Royalty 6% Corporate Tax 25% Recent and Upcoming catalysts Accomplished - In 2013 the mill was expanded from 2,000 tpd to 4,000 tpd - Segala ore production commenced in Q2 2014 and to full production by Q4 2014 - Kofi C deposit commenced production in Q1 2015 - In 2015, switch to owner and contractor fleet resulting in increased productivity Upcoming - Continue to optimize operation and reduce costs - Considerable potential to expand and replace reserves - Kofi B pre-stripping to start in H2-2016 CREATING THE PREMIER AFRICAN GOLD PRODUCER 21
Tabakoto Exploration Potential Mali Located on the same trend as Randgold s Loulo property which hosts >11 Moz After significantly optimizing and improving the mining operation, exploration to become a greater focus Objective of replacing production depletion and extending high grade Tabakoto and Segala underground mine lives Good exploration targets identified in the Kofi Nord permit area Tabakoto Site Map 22
Ity Mine Côte d Ivoire Ity Mine Côte d Ivoire Agbaou Mine Abidjan Quick Facts (on 100% basis) Ownership Resources (HL + CIL) (incl. of Reserves) Reserves (HL) Processing Rate 55% EDV, 30% SODEMI, 10% Côte d Ivoire, 5% private investor M&I: 57Mt @ 1.6 g/t for 2.9Moz Inferred: 9.4Mt @ 1.5 g/t for 0.46Moz 2.3Mt @ 2.4 g/t for 0.2Moz 950ktpa HL Gold Recovery 81% Mining Type Open pit / Heap Leach Production 2015A 2016F 81koz 65-75koz AISC (mine-level) 2016F $800-850/oz Mine life Royalty 3 years from current Reserves + addition potential 3% - 5% sliding scale Corporate Tax 25% Recent and Upcoming catalysts Accomplished - Gained majority ownership in 2014 - Producing at historic highs (+50% since 2012 level) - Increased heap leach capacity from 0.6mtpa to 1.0mtpa - Increased M&I resources since 2011 from 0.2Moz to 2.9Moz plus 0.5Moz Inferred Upcoming - Continued exploration success to prolong heap leach life at current production level - DFS underway for CIL project - Potential to increase ownership CREATING THE PREMIER AFRICAN GOLD PRODUCER 23
Ity CIL Project Côte d Ivoire Ity CIL Project Côte d Ivoire Agbaou Mine Abidjan Quick Facts (on 100% basis)* Ownership Status Production start date Resources (HL + CIL) (incl. of Reserves) Reserves (CIL) Mine Type Processing Plant 55% EDV, 30% SODEMI, 10% Côte d Ivoire, 5% private investor DFS expected by mid-2016 2019E M&I: 57Mt @ 1.6 g/t for 2.9Moz Inferred: 9.4Mt @ 1.5 g/t for 0.46Moz CIL: 28.0Mt @ 1.6 g/t for 1.4Moz Open pit 3.0Mtpa CIL (upgraded from 2.0mtpa in PFS) Upfront Capital (US$M) Approx. $300 LOMP Average Production LOMP Average AISC (mine-level) Mine life 120kozpa <US$725/oz +10 years Recent and Upcoming catalysts Accomplished - Positive PFS based on smaller mill size and not integrating all know deposits / resources - Positive metallurgical tests - Positive support from local government Upcoming - DFS underway expected to be completed by mid-2016 - Additional resource expansion expected to be included in DFS mining inventory - Potential to increase ownership *Parameters currently being evaluated in the DFS CREATING THE PREMIER AFRICAN GOLD PRODUCER 24
Ity Exploration Upside Côte d Ivoire Strategic exploration planning underway to fully identify all exploration potential of this significantly underexplored area Ity Site Map Near-mine exploration has already outlined 1.5Moz of M+I resources from January to September of 2015 Focused on identifying and developing new targets from resources to reserves in very close vicinity to the plant (< 2km) All targets are oxide ore type (> 2.5g/t Au) which should extend the heap leach mine life Currently testing Zia NE and Tontouo extensions 25
Youga Mine Burkina Faso Burkina Faso Ouagadougou Houndé Project Youga Mine Quick Facts (on 100% basis) Ownership Resources (incl. of Reserves) Reserves Processing Rate 90% EDV, 10% Burkina Faso Youga & Ouaré M&I: 17Mt @ 1.5g/t for 0.8Moz Inferred: 2.8Mt @ 1.6g/t for 0.14Moz 3.5Mt @ 1.8g/t for 0.2Moz 1.0 Mtpa Gravity/CIL plant Gold Recovery 94% Mining Type Production AISC (mine-level) Open Pit 2014A 2015A 2016F 2014A $824/oz 2015F $975 - $1,025/oz 2016F $980 - $1,030/oz 40-45koz 68koz 77koz Expected Mine Life Royalty 2 years at current grade (potential for 5 years with satellite deposits and Ouaré) 3% - 5% sliding scale Corporate Tax 17.5% Recent and Upcoming catalysts Accomplished - Commencement mining at the Zergore pit Upcoming - Start mining at Nanga deposit - Benefit from remaining stockpiles - Benefit from low sustaining cost requirements until end of life CREATING THE PREMIER AFRICAN GOLD PRODUCER 26
Nzema Mine Ghana Quick Facts (on 100% basis) Ghana Ownership Resources (incl. of Reserves) Reserves 90% EDV, 10% government of Ghana M&I: 36.7Mt @ 1.3 g/t for 1.590Moz Inferred: 7.6Mt @ 1.3 g/t for 0.311Moz 7.3Mt @ 2.1 g/t for 0.496Moz Processing Rate 1.6 Mtpa Gravity/CIL plant Nzema Mine Accra Gold Recovery Mining Type 91% to 75% depending on ore type Open Pit Contractor Mining (BCM) Production AISC (mine-level) Expected Mine Life Royalty 2014A 2015A 2016F 2014A $1,036/oz 2015F $1,000 to $1,050/oz 2016F $970-$1,020/oz 5 years from current Reserves 5% (+1% 3rd party at Adamus pits) 115koz 110koz 110-130koz Corporate Tax 35% 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 Upcoming - Benefit from accumulated ore stockpiles and increased purchased ore - Nzema pushback ($13 million) in 2016 to should give access to higher grades CREATING THE PREMIER AFRICAN GOLD PRODUCER 27
Houndé Project Burkina Faso Quick Facts (on 100% basis) Burkina Faso Ouagadougou Houndé Project Youga Mine Ownership Status 90% EDV, 10% Burkina Faso Fully permitted, awaiting investment decision Production start date 2017E (if launched mid 2016) Resources (incl. of Reserves) M&I: 38Mt @ 2.1 g/t for 2.5Moz Inferred: 3.2Mt @ 2.6 g/t for 0.27Moz Reserves Mine Type Processing Rate 31Mt @ 2.1 g/t for 2.1Moz Open pit 3.0 Mtpa Gravity / CIL plant Gold Recovery 94% Upfront Capital (US$M) LOMP Average Production LOMP Average AISC (mine-level) Expected Mine Life NPV @ 5% (US$1,250/oz) US$270 million, plus owner mining fleet US$55 million 190koz (with 240,000 ozs/yr for first 3 years) <US$720/oz +10 years US$359 million IRR (US$1,250/oz) 31% Recent and Upcoming catalysts Accomplished - Fully permitted and mining convention approved - Engineering work completed - Mining fleet and mill tenders complete - Experienced construction team in place Upcoming - Awaiting investment decision in H1-2016 CREATING THE PREMIER AFRICAN GOLD PRODUCER 28
Summary Table: Endeavour s Operating Mines Agbaou Gold Mine Ity Gold Mine Nzema Gold Mine Tabakoto Gold Mine Youga Gold Mine Ownership 85% Endeavour, 10% Côte d Ivoire, 5% SODEMI 55% Endeavour, 30% SODEMI, 10% Côte d Ivoire, 5% private 90% Endeavour, 10% Ghana 80% Endeavour, 20% Mali Kofi: 90% Endeavour, 10% Mali 90% Endeavour; 10% Burkina Faso Resources (incl. Reserves, 100%) M&I: 13.9Mt @ 2.5 g/t for 1.109Moz Inferred: 2.1Mt @ 2.3 g/t for 0.154Moz M&I: 59.1Mt @ 1.5 g/t for 2.920Moz Inferred: 9.7Mt @ 1.5 g/t for 0.458Moz M&I: 36.7Mt @ 1.3 g/t for 1.590Moz Inferred: 7.6Mt @ 1.3 g/t for 0.311Moz Reserves (100%) 11.5Mt @ 2.5 g/t for 0.926 Moz 2.3Mt @ 2.4 g/t for 0.173 Moz 7.3Mt @ 2.1 g/t for 0.496 Moz Strip Ratio 8 to 1 (2015); 11 to 1 LOM 9 to 1 LOM (Mont Ity pit) 6.2 to 1 (2015); 5.6 to 1 LOM Processing Rate Met. Recovery Production Cash Costs ($/oz) All-in Sustaining Costs ($/oz, Mine Level) Expected Mine Life Up to 2.2 Mtpa Gravity/CIL - oxides; 1.6 Mtpa fresh ore Achieving 97% at present; 92.5% design 2014 146,757 oz 2015 181,365 oz 2016e 165,000 to 175,000 oz 2014 $523 9m 2015 $466 2014 $621 9m 2015 $592 2016e - $650 to $700/oz 7 years from current Reserves M&I: 19.0Mt @ 3.0 g/t for 1.839Moz Inferred: 17.6Mt @ 2.8 g/t for 1.582Moz 6.7Mt @ 3.7 g/t for 0.807 Moz (~65% U/G @ 3.9 g/t) Tabakoto & Segala U/G: N/A Kofi B: 6 to 1 LOM Kofi C: 10 to 1 LOM Youga & Ouaré M&I: 17.0Mt @ 1.5g/t for 0.812Moz Inferred: 2.8Mt @ 1.6g/t for 0.141Moz 3.5Mt @ 1.8g/t for 0.202 Moz 4.0 to 1 (2015); 4.2 to 1 LOM 1 Mtpa Heap Leach 1.6 to 2.1 Mtpa Gravity/CIL 1.4 Mtpa Gravity/CIL 1.0 Mtpa Gravity/CIL Historical yield of between 75% and almost 80%. 2014 82,000 oz 2015 80,807 oz 2016e 65,000 to 75,000 oz 2014 $921 H1 2015 $696 2016e - $800 to $850/oz 3 years from current Reserves, potential for additions from Ity Resources Royalty 3% - 5% sliding scale 3% - 4% sliding scale 91% to 75% depending on ore type 2013 103,464 oz 2014 115,129 oz 2015 110,302 oz 2016e - 110,000 to 130,000 oz 2013 - $918 2014 - $880 9m 2015 $866 2014 - $1,036 9m 2015 $1,046 2016e - $970 to $1,020/oz 92% - 95% 94% 2013 125,231 oz 2014 127,323 oz 2015 152,186 oz 2016e 155,000 to 175,000 oz 2013 - $981 2014 - $1,172 9m 2015 $823 2014 $1,335 9m 2015 $1,048 2016e - $920 to $970/oz 5 years from current Reserves 5 years from current Reserves 2 years 5% (+1% 3 rd party at Adamus pits) 2013 89,448 oz 2014 76,561 oz 2015 68,407 oz 2016e 40,000 to 45,000 oz 2013 - $732 2014 - $742 9m 2015 $828 2014 - $824 9m 2015 $888 2016e $980 to $1,030/oz 6% 3% - 5% sliding scale Corporate Tax 25% (5 year corporate tax holiday) 25% 35% 25% 17.5% 29
Mineral Reserves as at December 31, 2014 Mineral Reserves - Effective Date as of December 31, 2014; Except Ity, as of July 31, 2015 Mine/Project Proven Probable Proven & Probable Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Gold Price Mt Au g/t (,000's) Mt Au g/t (,000's) Mt Au g/t (,000's) US$/oz Nzema 1 - Total 5.2 2.0 339 2.1 2.3 156 7.3 2.1 496 1,350 Attri butabl e - 90% 305 141 446 Youga 2 - Total 2.5 1.7 139 1.0 2.0 63 3.5 1.8 202 1,250 Attri butabl e - 90% 125 57 181 Agbaou 3 - Total 2.7 2.7 236 8.8 2.4 690 11.5 2.5 926 1,350 Attri butabl e - 85% 200 587 787 Tabakoto 4 - Total 2.3 3.3 249 4.4 4.0 558 6.7 3.7 807 1,350 Attri butabl e - 80-90% 202 470 672 Ity 5 HL - Total 2.3 2.4 173 2.3 2.4 173 1,150 Attributable - 55% 95 95 Ity 5 CIL - Total 28.0 1.6 1,429 28.0 1.6 1,429 1,150 Attri butabl e - 55% 786 786 Hounde 6 - Total 3.7 2.5 295 26.9 2.1 1,780 30.6 2.1 2,073 1,300 Attri butabl e - 90% 266 1,602 1,866 Total 1,258 4,849 6,105 Total Attributable 1,098 3,737 4,833 Note: Percent attributable at Tabakoto Kofi is weighted by contribution to reserves. Notes to Mineral Resources and Reserves available at www.endeavourmining.com/s/reserves.asp 30
Mineral Resources as at December 31, 2014 Mineral Resources (including Reserves) - Effective Date as of December 31, 2014; Except Ity, as of July 31, 2015 Mine/Project Measured Indicated Measured & Indicated Inferred Lower Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Cutoff Mt Au g/t (,000's) Mt Au g/t (,000's) Mt Au g/t (,000's) Mt Au g/t (,000's) Au g/t Nzema 1 - Total Youga 2 - Total Agbaou 3 - Total 23.7 7.3 2.9 1.4 1.3 2.8 1,040 317 255 13.0 9.7 11.1 1.3 1.6 2.4 550 494 854 36.7 17.0 13.9 1.3 1.5 2.5 1,590 812 1,109 7.6 2.8 2.1 1.3 1.6 2.3 311 141 154 Attri butabl e - 90% Attri butabl e - 90% Attri butabl e - 85% 936 285 216 495 444 726 1,431 730 942 280 127 131 0.5 0.5 0.5 Tabakoto 4 - Total 5.6 2.9 529 13.4 3.0 1,310 19.0 3.0 1,839 17.6 2.8 1,582 0.5 to Attri butabl e - 80-90% 433 1,110 1,543 1,315 1.0 Ity 5 - Total Hounde 6 - Total 27.3 3.7 1.4 2.6 1,191 305 31.8 34.1 1.7 2.0 1,729 2,242 59.1 37.8 1.5 2.1 2,920 2,546 9.7 3.2 1.5 2.6 458 273 Attri butabl e - 55% Attri butabl e - 90% 655 275 951 2,018 1,606 2,292 252 246 0 to 0.8 0.5 Total 3,637 7,179 10,816 2,920 Total Attributable 2,801 5,744 8,545 2,351 Note: Percent attributable at Tabakoto Kofi is weighted by contribution to resources. Notes to Mineral Resources and Reserves available at www.endeavourmining.com/s/reserves.asp 31
Appendix 2: Corporate Insights INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY
Endeavour's Team with Strategic Integration Executive Team Neil Woodyer Chief Executive Officer & Director Sébastien de Montessus President & Director Adriaan "Attie" Roux COO Ota Hally CFO Vincent Benoit EVP Strategy and Investor Relations Patrick Bouisset EVP Exploration Douglas Bowlby EVP Corporate Development Morgan Carroll EVP Corporate Finance and General Counsel Jeremy Langford EVP Construction Services Michael E. Beckett Chairman Board of Directors Ian Cockerill Non-executive Director Frank Giustra Non-executive Director Ian Henderson Non-executive Director Wayne McManus Non-executive Director Miguel Rodriguez Non-executive Director Naguib Sawiris Non-executive Director Neil Woodyer Chief Executive Officer & Director Sébastien de Montessus President & Director Richard Thomas EVP Technical Services 33
Q3 2015 and first 9-months All-in Sustaining Margin and AISC Three months ended September 30, 2015 Nine months ended September 30, 2015 US$ M In gold ozs AISC $/oz US$ M In gold ozs AISC $/oz Gold revenue $137.9 123,002 $444.5 377,468 Less: Royalties 6.7 5,933 $54 21.3 18,096 $56 Less: Cash costs for ounces sold 87.4 77,950 710 268.7 228,183 712 Mine cash margin 43.8 39,119 154.5 131,189 Less: Corporate G&A 4.7 4,233 39 13.2 11,190 35 Less: Sustaining capital 11.8 10,491 96 38.5 32,717 102 Less: Sustaining exploration 1.2 1,071 10 4.6 3,906 12 All-in sustaining margin / cost $26.1 23,325 $908 $98.2 83,376 $917 Numbers may not add due to rounding 34
First 9-month 2015 Cash Cost Detail by Mine Agbaou Nzema Tabakoto Youga Total Mining Physicals Total tonnes mined - Open pit 000t 15,331 6,707 6,874 6,249 Total ore tonnes - Open pit 000t 2,065 1,031 374 1,061 Total ore tonnes - Underground 000t - - 794 - Total tonnes milled 000t 1,917 1,337 1,195 783 Gold sold ozs 128,921 87,878 110,227 50,442 377,468 Unit cost analysis Mining costs - Open pit 1 $/t mined 2.62 4.58 2.67 3.86 Mining costs - Underground 1 $/t ore - - 62.25 - Processing and maintenance $/t milled 6.78 14.81 22.88 20.37 Site G&A $/t milled 6.19 6.73 16.87 8.83 Cash cost details Mining costs - Open pit $000s $35,472 $23,643 $12,326 $24,125 $95,566 Mining costs - Underground $000s - - 28,891-28,891 Processing and maintenance $000s 12,998 19,790 27,344 15,947 76,079 Site G&A $000s 11,866 8,992 20,159 6,914 47,931 Purchased ore at Nzema $000s 0 26,250 - - 26,250 Inventory adjustments $000s -251-2,581 2,026 (5,205) -6,011 Cash costs for ounces sold $000s $60,085 $76,094 $90,746 $41,781 $268,706 Royalties $000s $5,431 $5,890 $7,731 $2,258 $21,310 Sustaining capital $000s $10,801 $9,942 $17,024 $760 $38,527 Cash cost per ounce sold $/oz $466 $866 $823 $828 $712 Mine-level AISC per ounce sold $/oz $592 $1,046 $1,048 $888 $870 Other costs used to derive unit mining cost Capitalized O/P mining costs $000s $4,626 $7,059 $6,001 - Capitalized U/G mining costs $000s - - $20,516 - Numbers may not add due to rounding, 1 Includes capitalized mining costs 35
Company Profile Share Price (December 31, 2015) Balance Sheet (December 31, 2015) Recent Share Price CDN$7.63 Cash position $110 million Market Cap Av. daily shares traded in Q4-2015 Canada TSX:EDV CDN$354 million 105,692 Drawn down from $350 million debt facility Current Shareholder Distribution and Geographic Mix $240 million Capitalization Summary (December 31, 2015) Shares in Issue Options Warrants Fully Diluted 59.0 million 2.7 million none 61.7 million Shareholder Base Institutions 45-50% Retail 25-30% Insiders/Management 32% 36
Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7130 Vincent Benoit EVP Strategy and Investor Relations vbenoit@endeavourmining.com +33 170 38 36 96 37