Endeavour Reports Q2

ENDEAVOUR REPORTS Q2-2023 RESULTS2023 guidance on track • $100m dividend declared for H1-2023 • Growth projects on budget & on schedule

London, 2 August 2023 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce its operating and financial results for Q2-2023, with highlights provided in Table 1 below.

Table 1: Q2-2023 and H1-2023 Highlights

1 Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on 10 March 2022. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details. 3Last Twelve Months (“LTM”) Trailing EBITDA adj includes EBITDA generated by discontinued operations

Management will host a conference call and webcast today, 2 August 2023, at 8:30 am EST / 1:30 pm BST. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.

A copy of the Management Report and Financial Statements have been submitted to the National Storage Mechanism. The documents will shortly be available for inspection on our website and at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.Sebastien de Montessus, President and CEO, commented: “We are pleased with our achievements over the first half of the year. We have continued to deliver against our strategic objectives, leaving us well positioned to unlock near-term value for all of our stakeholders.

In line with our strategy of actively managing our portfolio to focus on higher quality assets, we closed the sale of our non-core Boungou and Wahgnion mines during the period. This focus on quality will be further enhanced by the brownfield expansion of Sabodala-Massawa and the Lafigué greenfield project, both of which remain on budget and on track to be commissioned next year, and will deliver significant growth.

Alongside this year’s investments in our organic pipeline, we are pleased to continue to deliver attractive shareholder returns and have declared a H1-2023 dividend of $100 million, which on an annualized basis represents $25 million more than the minimum dividend commitment for the year. Looking ahead, our goal is to increase our shareholder returns programme further once our organic growth projects are complete, to ensure that our efforts to unlock growth benefit all stakeholders.

On the operational front, we are on track to meet our full year guidance for the eleventh consecutive year with our performance expected to increase into the second half of the year in light of the efforts over the past six months. Our relentless focus on cost and efficiency improvements has continued to identify optimization opportunities across the portfolio leading to our decision to move forward with the 37MWp PV solar facility at our Sabodala-Massawa mine, thereby redeploying a portion of the proceeds obtained from the sale of our non-core mines. This will significantly lower fuel consumption and power costs while reducing greenhouse gas emissions once commissioned in early 2025.

Looking further ahead, our exploration programme continues to provide a strong platform for organic growth. Further drilling at last year’s Tanda-Iguela discovery in Côte d’Ivoire has exceeded expectations. With over 95,000 meters already drilling during the first half of the year, we have decided to increase the full year drill programme to 180,000 meters and remain on track to publish a resource update later this year.

I’d like to thank our team for their continued strong contributions over the first half of the year and look forward to progressing our strategy for the remainder of 2023.”

OPERATING SUMMARY

Table 2: Group Production

1 Continuing Operations excludes non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine divested on 10 March 2022.

Table 3: Group All-In Sustaining Costs

1 Continuing Operations excludes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on 10 March 2022. 2This is a non-GAAP measure, refer to the non-GAAP Measures section for further details

ASSET DIVESTMENT OF NON-CORE BOUNGOU AND WAHGNION MINES

SHAREHOLDER RETURNS PROGRAMME

Table 4: Actual Shareholder Returns vs. Minimum Commitment

CASH FLOW SUMMARY

The table below presents the cash flow and net debt position for Endeavour for the three month periods ended 30 June 2023, 31 March 2023, and 30 June 2022, and the six month periods ended 30 June 2023 and 30 June 2022 with accompanying explanations below.

Table 5: Cash Flow and Net Debt

1 From continuing operations.2Discontinued operations includes the non-core Boungou and Wahgnion mines which were divested on 30 June 2023 and the Karma mine which was divested on 10 March 2022.

NOTES:

1) Operating cash flows decreased by $46.5 million from $205.8 million (or $0.83 per share) in Q1-2023 to $159.3 million (or $0.64 per share) in Q2-2023 due to higher taxes paid across the portfolio, related to the timing of final tax payments for the 2022 tax year and provisional payments for the 2023 tax year.

Operating cash flows decreased by $189.1 million from $554.0 million (or $2.23 per share) in H1-2022 to $364.9 million (or $1.48 per share) in H1-2023 due to lower production, increased operating and exploration costs incurred, and higher tax payments.

Notable variances are summarised below:

2) Cashflows used in investing activities increased by $14.1 million from $200.3 million in Q1-2023 to $214.4 million in Q2-2023 as growth capital spend at the Sabodala-Massawa expansion and the Lafigué development project accelerated. Cashflows used in investing activities at quarter end for the divestment of the non-core Boungou and Wahgnion mines, net of cash disposed at the assets, amounted to $3.6 million.

Cashflows used in investing activities increased by $176.3 million from $238.4 million in H1-2022 to $414.7 million in H1-2023 largely due to the increases in growth capital incurred at the Sabodala-Massawa expansion, which was launched in Q2-2022, and the Lafigué development project, which was launched in Q4-2022.

3) Cash flows used in financing activities decreased by $238.4 million from an outflow of $155.7 million in Q1-2023 to an inflow of $82.7 million in Q2-2023 as the company drew down $155.0 million on the Company’s $645.0 million RCF to manage short term offshore cash flow requirements during the quarter. Financing cash outflows in Q2-2023 included cash settlement of call-rights of $28.5 million that was paid to Taurus in lieu of the call options received as part of the Teranga transaction, payments of financing and other fees of $18.6 million related to the coupon payments for the senior notes and the RCF, payments for the acquisition of the Company’s own shares through its share buyback programme of $9.2 million, payments for the settlement of shares of $6.1 million, repayment of finance and lease obligations of $5.3 million, settlement of the contingent consideration of $3.7 million and lease payments at the divested Boungou and Wahgnion mines of $0.9 million.

Cash flows used in financing activities were outflow of $73.0 million in H1-2023 which was largely consistent with the prior period.

EARNINGS FROM CONTINUING OPERATIONS

The table below presents the earnings and adjusted earnings for Endeavour for the three month periods ended 30 June 2023, 31 March 2023, and 30 June 2022 and the six month periods ended 30 June 2023 and 30 June 2022 with accompanying explanations below.

Table 6: Earnings from Continuing Operations

NOTES:

4) Revenue increased by $42.9 million from $481.2 million in Q1-2023 to $524.1 million in Q2-2023 due to a higher realised gold price in Q2-2023 of $1,943 per ounce compared to $1,902 per ounce for Q1-2023, exclusive of the Company’s Revenue Protection Programme, and an increase in gold sales from 252koz in Q1-2023 to 269koz in Q2-2023, following higher production at the Houndé and Sabodala-Massawa mines.

Revenue decreased by $89.6 million from $1,094.9 million in H1-2022 to $1,005.3 million in H1-2023 due to a decrease in gold sales from 583koz in H1-2022 to 521koz in H1-2023 lower gold sales volumes, partly offset by a higher realised gold price for H1-2023 of $1,923 per ounce compared to $1,870 per ounce for H1-2022.

5) Operating expenses increased by $30.4 million from $171.4 million in Q1-2023 to $201.8 million in Q2-2023 largely due to increased mining costs at Houndé and Sabodala-Massawa as more waste was expensed during the quarter following the restart of ore mining at Kari Pump and the start of mining at Niakifiri East, in addition to higher processing costs across the group as higher tonnes were milled during the quarter. Depreciation and depletion of $99.5 million in Q2-2023 was largely in line with the prior quarter as increased depletion at Houndé and Sabodala-Massawa due to increased quarterly production was largely offset by decreased depletion at Ity and Mana due to lower quarterly production.

Operating expenses increased by $15.2 million from $358.0 million in H1-2022 to $373.2 million in H1-2023 largely due to increased volumes mined and processed at Ity and Houndé and increases in fuel and key consumable costs as well as foreign exchange impacts associated with the Euro strengthening against the dollar. Depreciation and depletion decreased by $20.3 million from $221.7 million in H1-2022 to $201.4 million in H1-2023 due to lower production volumes at Houndé, Sabodala-Massawa, and Mana.

6) Royalties increased from $29.7 million in Q1-2023 to $31.8 million in Q2-2023 due to higher gold sales.Royalties decreased from $64.7 million in H1-2022 to $61.5 million in H1-2023 due to lower gold sales.

7) Corporate costs of $14.0 million in Q2-2023 were largely consistent with the prior period.Corporate costs increased from $20.8 million in H1-2022 to $27.5 million in H1-2023 due to higher employee and professional service costs, which were impacted by foreign exchange movements as the GBP strengthened against the USD.

8) Impairments of mining interest and goodwill of $14.8 million was recognised against the Afema exploration properties in Côte d’Ivoire, in Q2-2023, as no near-term activity is planned on the permits.

9) Exploration costs increased from $12.5 million in Q1-2023 to $14.5 million in Q2-2023 due to increased exploration expense at the Tanda-Iguela greenfield property in Côte d’Ivoire.

Exploration costs increased from $15.1 million in H1-2022 to $27.0 million in H1-2023 largely due to the increased expense at the Tanda-Iguela property, which was discovered in Q4-2022.

10) The gain on financial instruments increased from a loss of $72.0 million in Q1-2022 to a gain of $31.1 million in Q2-2023 largely due to unrealised gains on gold collars, gold forwards and foreign currency contracts. The gain on financial instruments included unrealised gains on the gold collars and forward sales of $33.9 million, realised gains on foreign currency contracts of $1.4 million, realised gains on other financial instruments of $1.2 million and realised gains on gold collars and forward contracts of $1.1 million, partially offset by a loss on the fair value of call rights of $4.7 million, an unrealised loss on foreign currency contracts of $1.4 million and foreign exchange losses of $0.4 million.

The loss on financial instruments decreased from a loss of $66.0 million in H1-2022 to a loss of $40.9 million in H1-2023 and comprised of a fair value loss on the conversion option of convertible notes of $14.9 million, a loss on the fair value of call rights of $9.0 million, unrealised losses on gold collars and forward contracts of $6.7 million, foreign exchange losses of $5.3 million, realised losses on gold collars and forward contracts of $4.7 million, unrealised losses on foreign currency contracts of $2.5 million and a loss on the change in fair value of contingent considerations of $0.6 million partially offset by a realised gain on foreign currency contracts of $2.7 million and a gain in other financial instruments of $0.1 million.

As previously disclosed, in order to increase cash flow visibility during its construction phase, Endeavour entered into a Revenue Protection Programme, using a combination of zero premium gold collars and forward sales contracts, to cover a portion of its 2023 and 2024 production.

As previously disclosed, Endeavour entered into a Growth Capital Protection Programme designed to enhance cost certainty for a portion of its growth capital expenditure at its Sabodala-Massawa expansion and Lafigué growth projects. The Group had entered into various foreign exchange forward contracts across both the Euro and the Australian Dollar over 2023 and 2024.

11) Current income tax expense increased by $43.2 million from $48.2 million in Q1-2023 to $91.4 million in Q2-2023 largely due to withholding taxes of $46.7 million recognised following local board approvals for cash upstreaming, and an increase in taxable earnings from the Sabodala-Massawa and Houndé mines.

Current income tax expense increased by $4.2 million from $135.4 million in H1-2022 to $139.6 million in H1-2023 largely due to higher withholding tax expenses recognised in H1-2023 following the approval of dividends at Sabodala-Massawa in Q3-2022, which was partially offset by lower taxable earnings in H1-2023.

12) Deferred income tax recovery increased by $25.4 million from $11.8 million in Q1-2023 to $37.2 million in Q2-2023 largely due to the recognition of the decreased deferred tax liability related to withholding taxes accrued in Q4-2022 of $35.1 million which were recognised as current tax expenses this period. This was partly offset by higher deferred tax charges in relation to inventory.

Deferred income tax recovery increased by $53.4 million from a deferred income tax expense of $4.4 million in H1-2022 to a deferred income tax recovery of $49.0 million in H1-2023 largely due to the timing of additional withholding taxes accrued in Q2-2022 in relation to Sabodala-Massawa and the impact of foreign exchange rate movements on deferred tax balances recognised in H1-2022.

13) Net comprehensive earnings from continuing operations increased by $85.8 million from $15.4 million in Q1-2023 to $101.2 million in Q2-2023. The increase in earnings is largely driven by the mark-to-market of gold collars and forward contracts resulting in an unrealised gain compared to the unrealised loss in the prior quarter.

Net comprehensive earnings from continuing operations decreased by $37.6 million from $154.2 million in H1-2022 to $116.6 million in H1-2023. The decrease in earnings is largely driven by lower earnings from mine operations due to lower production at the Houndé and Mana mines and higher operating expenses.

Net comprehensive loss from all operations (as shown in the table below) decreased by $107.8 million from a gain of $20.4 million in Q1-2023 to a loss of $87.4 million in Q2-2023 largely due to a net loss from discontinued operations of $188.0 million, which includes a loss on disposal of $177.8 million that was realised during Q2-2023 following the sale of the Boungou and Wahgnion non-core mines.

Table 7: Earnings from All Operations

14) For Q2-2023, adjustments included a net gain on financial instruments of $30.0 million largely related to the unrealised gain on forward sales and collars, a gain on non-cash, tax and other adjustments of $4.0 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balance and other income of $2.6 million, partly offset by an impairment charge of $14.8 million related to the Group’s exploration permit portfolio.

For H1-2023, adjustments included a net loss on financial instruments of $36.2 million, largely related to the fair value loss on the convertible option of convertible notes and unrealised losses on forward sales and collars, a gain on non-cash, tax and other adjustments of $9.1 million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balance, partly offset by an impairment charge of $14.8 million related to the Group’s exploration permit portfolio and other expenses of $2.5 million.

15) Adjusted net earnings from continuing operations attributable to non-controlling interests increased from $16.7 million in Q1-2022 to $25.7 million in Q2-2023 due to higher earnings from the Houndé and Sabodala-Massawa mines, which was partially offset by higher exploration expenses.

Adjusted net earnings from continuing operations attributable to non-controlling interests decreased from $44.4 million in H1-2022 to $42.3 million in H1-2023 due to lower earnings from the Houndé, Sabodala-Massawa and Mana mines, higher corporate costs and higher tax expenses.

16) Adjusted net earnings attributable to shareholders for continuing operations decreased by $11.2 million from $64.9 million (or $0.26 per share) in Q1-2023 to $53.7 million (or $0.22 per share) in Q2-2023, despite higher revenues, due to higher tax expenses, higher operating and exploration expenses, and higher earnings attributable to non-controlling interests.

Adjusted net earnings attributable to shareholders for continuing operations decreased by $99.2 million from $217.9 million (or $0.88 per share) in H1-2022 to $118.7 million (or $0.48 per share) in H1-2023 due to lower volumes of gold sold at lower operating margins, higher corporate costs, higher exploration expenses and higher share-based compensation.

SUMMARISED STATEMENT OF FINANCIAL POSITION

The following tables present the summarised statement of financial position and liquidity for Endeavour, with accompanying explanations below.

Table 8: Summarised Statement of Financial Position

NOTES:

17) Other current assets at the end of Q2-2023 consisted of $281.0 million of inventories, $255.7 million of trade and other receivables, $41.0 million of prepaid expenses and other and $60.5 million of other financial assets.

18) Mining interests decreased by $480.4 million from $4,593.7 million at the end of Q1-2023 to $4,113.3 million at the end of Q2-2023, largely due to the divestment of the non-core Boungou and Wahgnion mines.

19) Other long-term assets increased by $46.7 million from $453.3 million at the end of Q1-2023 to $500.0 million at the end of Q2-2023, largely due to the inclusion of the consideration from the divestment of the non-core Boungou and Wahgnion mines. Other long-term assets consist of $134.4 million of goodwill allocated to the Sabodala-Massawa and Mana mines, $220.7 million of long-term stockpiles not expected to be processed in the next twelve months at the Houndé, Ity and Sabodala-Massawa mines, and other financial assets of $144.9 million that primarily comprise deferred cash and NSR consideration elements of $134.7 million following the sale of the Boungou, Wahgnion and Karma mines, $40.0 million related to Allied Gold shares received as consideration upon the sale of Agbaou, and $28.1 million of restricted cash relating to reclamation bonds.

20) Income taxes payable decreased by $15.7 million from $259.5 million at the end of Q1-2023 to $243.8 million at the end of Q2-2023, largely due to the increased taxes paid during the quarter.

21) Long-term debt increased by $150.2 million from $854.0 million at the end of Q1-2023 to $1,004.2 million at the end of Q2-2023 due to the drawdown on the Company’s RCF during the quarter. Long-term debt at the end of Q2-2023 consisted of $496.1 million in senior notes and $515.0 million drawn on the RCF, which was partly offset by $6.9 million in deferred financing costs.Subsequent to quarter end, on 28 July 2023, Endeavour secured a syndicated term loan (the “Term Loan”) with local banking partners within the West African Economic Zone (“UEMOA”) for XOF 100.5 billion, locking in a competitive fixed rate, long term, financing solution to support the ongoing development of the Lafigué project. The Term Loan is a more tax-efficient funding source as it does not require bringing cash off-shore and incurring cash leakage through withholding taxes. The local entity, Société des Mines de Lafigué, is the borrower on the facility, which is guaranteed by Endeavour Mining plc. The Term Loan is for a principal amount of XOF 100.5 billion (approximately US$167.1 million) with a five year term, maturing in July 2028. The Term Loan bears interest at a fixed rate of 7.0% per annum, payable quarterly, while the principal will amortise in sixteen equal payments commencing 12 months after issue. There are no additional covenants associated with the term loan. There is an arrangement fee of 0.5% and an upfront fee of 0.5% payable on closing to the banking syndicate which includes Ecobank, Bridge Bank Group, Banque Atlantique, Orabank and United Bank for Africa.

Table 9: Summarised Statement of Financial Position

1Net debt, Adjusted EBITDA, and cash flow per share are Non-GAAP measures. Refer to the non-GAAP measure section in this press release and in the Management Report. 2Last Twelve Months (“LTM”) Trailing EBITDA adj. includes EBITDA generated by discontinued operations

22) At quarter end, Endeavour’s liquidity remained strong at $974.5 million, consisting of $844.5 million of cash and cash equivalents and $130.0 million available through the Company’s revolving credit facility.

23) Endeavour’s net debt position has increased by $120.2 million, from $50.3 million at the end of Q1-2023 to $170.5 million at the end of Q2-2023. The net debt / Adjusted EBITDA (LTM) leverage ratio increased from 0.04x at the end of Q1-2023 to 0.15x at the end of Q2-2023, but remains well below the Company’s long-term target of less than 0.50x, which provides flexibility to continue to supplement the Company’s shareholder return programme while maintaining headroom to fund organic growth.

OPERATING ACTIVITIES BY MINE

Houndé Gold Mine, Burkina Faso

Table 10: Houndé Performance Indicators

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

2023 Outlook

Ity Gold Mine, Côte d’Ivoire

Table 11: Ity Performance Indicators

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

2023 Outlook

Mana Gold Mine, Burkina Faso

Table 12: Mana Performance Indicators

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

2023 Outlook

Sabodala-Massawa Gold Mine, Senegal

Table 13: Sabodala-Massawa Performance Indicators

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

2023 Outlook

Plant Expansion

Launch of Solar Plant Construction

Boungou Gold Mine, Burkina Faso (divested 30 June 2023)

Table 14: Boungou Performance Indicators

Boungou Sale Insights

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

Wahgnion Gold Mine, Burkina Faso (divested 30 June 2023)

Table 15: Wahgnion Performance Indicators

Wahgnion Sale Insights

Q2-2023 vs Q1-2023 Insights

H1-2023 vs H1-2022 Insights

LAFIGUÉ DEVELOPMENT PROJECT

TANDA-IGUELA GREENFIELD PROJECT

Given the size and quality of the maiden resource delineated last year and the significance of the results obtained from the ongoing 2023 drilling programme, Endeavour is confident that Tanda-Iguela, located in northeast Côte d’Ivoire adjacent to the Ghanaian border, has the potential to be the Company’s next development project.

During H1-2023, a total of 95,455 meters have been drilled at Tanda-Iguela (~85% allocated to the Assafou deposit and 15% allocated to near-by targets) with ten drill rigs, significantly exceeding the 70,000 meter drill programme planned for FY-2023 due to the highly prospective results obtained. As a result, Endeavour has increased its greenfield budget and its drill programme for the year and expects to drill a total of 180,000 meters in FY-2023 on Tanda-Iguela. A resource update is expected to be published in late FY-2023.

As previously announced on 21 November 2022, a maiden resource for the Assafou deposit comprising of an Indicated resource of 14.9Mt at 2.33g/t containing 1.1Moz and an Inferred resource of 32.9Mt at 1.80g/t containing 1.9Moz was delineated within 15 months from first discovery. Given the exploration conducted in H1-2023, mineralisation has now been recognised over more than 3 kilometers and remains open along strike in both directions, as well as at depth. Preliminary testwork indicates high gravity recoverable gold and high overall recoveries above 95%. The Assafou deposit also benefits from favourable infrastructure, including a main road and high voltage grid power line within 20 kilometers of the project.

Figure 1: Assafou deposit drill programme

As shown in Figure 1, drilling at the Assafou deposit has accelerated and continues to yield significant results. A total of 81,760 meters of drilling were completed in H1-2023, of which 40,513 meters were completed in Q2-2023, significantly exceeding the 50,000 meters originally planned at Assafou for FY-2023.

During the quarter, exploration activities at the Assafou deposit continued to focus on converting the Inferred resources to Indicated status and delineating new resources along the over 3 kilometer mineralised strike length and at depth. Infill drilling has returned multiple high grade gold intercepts which confirms the continuity of the mineralisation within the Inferred resource to over 2 kilometers in length and 300 meters in width. Moreover, drilling has also confirmed the presence of high-grade mineralisation that remains open at depth. Step out drilling successfully increased the strike length of the mineralised envelope by approximately 900 meters, including 300 meters to the northwest and 600 meters to the southeast along the structural contact with Birimian basement rocks.

Figure 2: Section A1766 (True Width Uncapped)

As shown in Figure 2, mineralisation at the Assafou deposit is both disseminated and hosted in quartz veins, within the Tarkwaian sandstones. Mineralisation starts at surface and appears to be very continuous along strike, along the prominent northwest trending structure that separates the Tarkwaian sandstones from the Brimian mafic basement rocks. The deposit comprises a thick main (up to 60 metres) continuous lense, appearing to be low angle to flat-lying, overlaid by a series of stacked low angle dipping lenses, that are distributed from the surface (in the saprolite) down to over 200 meters depth, recognised so far. Some of the best drill intercepts, drilled through the thicker part of the mineralisation returned total cumulative intercepts exceeding 90 to 100 meters in true thickness with average grades above 3.00g/t gold.

For technical notes and drilling results from the Assafou drill programme, please see Appendix A below.

In addition to further drilling on the Assafou deposit, a total of 20,000 meters was planned for FY-2023 to test ten high priority targets identified within 6 kilometers of the Assafou deposit, with 13,695 meters of drilling already completed in H1-2023, as shown in Figure 3 below.

Figure 3: Tanda-Iguela regional targets1

1 Selected intercepts shown.

Drilling focused on identifying potential satellite deposits to the Assafou deposit with similar geology, hosted along structural contacts between the Tarkwaian basin rocks and the Birimian basement. The programme has returned encouraging results, namely at the Pala Trend 2 and 3 targets located 2 kilometers southwest of the Assafou deposit and at the Kongodjan target located 4 kilometers southeast of the Assafou deposit. In addition, ground and airborne geophysical survey have identified several other targets that merit reconnaissance drilling.

At the Pala targets, reconnaissance drilling has identified mineralised structures, similar to those that host the Assafou deposit. Drilling completed in Q2-2023 has demonstrated that mineralisation is continuous over 600 meters along a northwest strike and that it remains open in both directions and at depth.

At the Kongodjan target, the structural contact between the Tarkwaian basin rocks and the Birimian basement has been well defined through geophysics, confirming that the prospective structure hosting Assafou continues over 12 kilometers extending 4 kilometers southeast of Assafou to the Kongodjan target and 5 kilometers northwest of Assafou through the Gbabango target. Reconnaissance drilling at the Kongodjan target has intercepted mineralisation, thereby potentially outlining a new 3 kilometer long, untested corridor between Assafou and Kongodjan.

In H2-2023, the exploration programme will continue to delineate the Pala and Kongodjan targets to test the continuity and extent of the mineralisation while reconnaissance drilling will commence along the structure between Assafou and the Gbabango target located 5 kilometers to the northwest of Assafou.

EXPLORATION ACTIVITIES

Table 16: Q2-2023 and H1-2023 Exploration Expenditure and Revised 2023 Guidance1

1Exploration expenditures include expensed, sustaining, and non-sustaining exploration expenditures.

Houndé mine

Ity mine

Mana mine

Sabodala-Massawa mine

Lafigué project

Greenfield exploration

Boungou mine (divested on 30 June 2023)

Wahgnion mine (divested on 30 June 2023)

CONFERENCE CALL AND LIVE WEBCAST

Management will host a conference call and webcast on Wednesday 2 August, at 8:30 am EDT / 1:30 pm BST to discuss the Company's financial results.

The conference call and webcast are scheduled at:5:30am in Vancouver8:30am in Toronto and New York1:30pm in London8:30pm in Hong Kong and Perth

The video webcast can be accessed through the following link:https://edge.media-server.com/mmc/p/52ikoagj

Click here to add a Webcast reminder to your Outlook Calendar.

Analysts and investors are also invited to participate and ask questions by registering for the conference call dial-in via the following link:https://register.vevent.com/register/BI146a3a0f027c43aba052fb62c488fdc6

The conference call and webcast will be available for playback on Endeavour's website.

QUALIFIED PERSONS

Mark Morcombe, COO of Endeavour Mining PLC., a Fellow of the Australasian Institute of Mining and Metallurgy, is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the technical information in this news release.

CONTACT INFORMATION

ABOUT ENDEAVOUR MINING CORPORATION

Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Côte d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is admitted to listing and to trading on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.

For more information, please visit www.endeavourmining.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “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, the success of exploration activities, the expectation that an exploration permit will be received, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company’s shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions .

Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, 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 or completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour’s financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour’s current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; 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; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, 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 legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalisation of any of Endeavour’s property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.

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 www.sedar.com for further information respecting the risks affecting Endeavour and its business.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with the Company's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.

NON-GAAP MEASURES

Some of the indicators used by Endeavour in this press release represent non-IFRS financial measures, including “all-in margin”, “all-in sustaining cost”, “net cash / net debt”, “EBITDA”, “adjusted EBITDA”, “net cash / net debt to adjusted EBITDA ratio”, “cash flow from continuing operations”, “total cash cost per ounce”, “sustaining and non-sustaining capital”, “net earnings”, “adjusted net earnings”, “operating cash flow per share”, and “return on capital employed”. These measures are presented as they can provide useful information to assist investors with their evaluation of the pro forma performance. Since the non-IFRS performance measures listed herein do not have any standardised definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the non-GAAP measures section in this press release and in the Company’s most recently filed Management Report for a reconciliation of the non-IFRS financial measures used in this press release.

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APPENDIX A: TANDA-IGUELA TECHNICAL NOTES

Assafou Geology

Mineralisation at Assafou is mainly hosted in Tarkwaian sandstone at/or immediately in the vicinity of the structural contact with mafic Birimian basement rocks (mainly mafic rocks). Gold mineralisation occurs both as disseminated occurrences within pervasively altered sandstone and within, or at the edges of, quartz (±carbonate) veins and breccias that crosscut the altered sandstones. Alteration is reflected by an induration (silicification) and by the presence of sulphides (pyrite), disseminated within the matrix and distributed along the sandstone bedding. The more intense the silicification (and presence of pyrite), the more mineralised the sandstones tend to be.

The structural contact likely controlled the initial sandstone deposition (normal fault in extensional regime). It was then reactivated under a SSW-NNE compressive regime at the brittle-ductile transition, associated with strong mylonitisation and alteration (quartz, carbonate, pyrite, ± sericite, ± chlorite) of the basement rocks, and to mafic and felsic intrusions as dykes and sills. Gold mineralisation is likely to have occurred during this reversal, in the post-Tarkwaian reactivation event. Mineralising hydrothermal fluids are believed to have preferentially invaded the sandstones rather than the basement rocks, due to their higher initial porosity, permeability and competency.

Drilling, Assay, Quality Assurance / Quality Control Procedures

Reverse Circulation (“RC”) and Air Core (“AC”) drilling delivers material to the surface via a percussion hammer pushing pulverized rock into dual tube rods, which evacuate the material to the surface, facilitated by high pressure compressed air.

The samples are collected from the cyclone at surface at 1 metre intervals. The cyclone is cleaned after every 6 metre rod by flushing the hole. Additional manual cleaning is required in saprolitic or wet ground, closely monitored by the site geologist / geotechnician to ensure no sample to sample contamination occurs.

Samples are split at the drill site using several different riffle splitters, based on bulk sample weight. 2-5 kilograms laboratory samples and a second 2-5 kilograms reference sample are collected. Bulk and laboratory sample weights, in addition to moisture levels are recorded. Representative samples for each interval were collected with a spear, sieved into chip trays and retained for reference.

Drill core (PQ, HQ and NQ size) samples are selected by Endeavour geologists and cut in half with a diamond blade at the project site. Half of the core is retained at the site for reference purposes. Sample intervals are generally 1 metre in length.

All samples are transported by road to Bureau Veritas in Abidjan. Each laboratory sample is secured in poly-woven bags ensuring that there is a clear record of the chain of custody. On arrival samples are weighed. Complete samples are crushed to 2 mm (70% passing) with 1 kilogram split out for pulverization. The entire 1 kilogram is pulverized to 75μm (85% passing). A 50 gram sample is extracted and analysed for gold using standard fire assay technique. An Atomic Absorption (“AA”) finish provides the final gold value.

Blanks, field duplicates and certified reference material (“CRM’s”) are inserted into the sample sequence by Endeavour geologists at a rate of 1 of each samples type per 20 samples. This ensures that there is a 5% Quality Assurance / Quality Control (“QA/QC”) sample insertion rate applied to each fire assay batch. The sampling and assaying are monitored through analysis of these QA/QC samples. This QA/QC program was audited by a consultant, independent from Endeavour Mining and has been verified to follow industry best practices.

In 2021 and 2022, 1,757 samples were sent to ALS Ouagadougou for umpire (referee) analysis. Comparison of the Original analysis against the umpire analysis revealed a very strong Correlation Coefficient of 95.90% suggesting that the original assays provided by Bureau Veritas in Abidjan are accurate. Core sampling and assay data were monitored through a quality assurance/quality control program designed to follow NI 43-101 and industry best practice.

Full drill results are available by clicking here.

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