endeavour silver corporate presentation june 2012
DESCRIPTION
Endeavour Silver Corp. (NYSE: EXK, TSX: EDR, FRANKFURT: EJD) is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted seven consecutive years of aggressive silver production and resource growth. The organic expansion programs now underway at Endeavour's two operating silver mines in Mexico combined with its strategic acquisition program should help Endeavour achieve its goal to become a premier, mid-tier silver mining company.TRANSCRIPT
1
Building a Premier
Mid-Tier Silver Producer
Corporate Presentation
June 2012
2
This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-
looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include, but are
not limited to, statements regarding Endeavour’s anticipated performance in 2012, including revenue, cash cost and capital cost forecasts, silver and gold
production, the anticipated completion of the El Cubo and Guadalupe y Calvo acquisitions, timing and expenditures to develop new silver mines and
mineralized zones, silver and gold grades and recoveries, cash costs per ounce, capital expenditures and sustaining capital and the use of the Company’s
working capital. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as
required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors
include, among others: fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and
U.S. dollar); fluctuations in the price of consumed commodities, changes in national and local governments, legislation, taxation, controls, regulations and
political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks
and hazards of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological
conditions, pressures, cave-ins and flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and
labour; the speculative nature of mineral exploration and development, reliability of calculation of mineral reserves and resources and precious metal recoveries,
diminishing quantities or grades of mineral reserves as properties are mined; the ability to complete the El Cubo and Guadalupe y Calvo acquisitions and their
successful integration,; risks in obtaining necessary licenses and permits, global market events and conditions and challenges to the Company’s title to
properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with
the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the
Company’s mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be
completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out
herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or
intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements
or information.
Cautionary Note: Forward Looking Statements
3
Introduction
• One of North America’s fastest growing silver
mining companies Endeavour Silver Corp:
• Two high grade producing silver-gold operations in
Mexico; Guanacevi Mines in Durango,
Guanajuato Mines in Guanajuato
Producing Mines:
• Acquisition of the El Cubo Mine in Guanajuato
makes Endeavour a premier mid-tier silver
producer
Accretive Acquisition:
• Four district-scale exploration properties in
Mexico; San Sebastian, La Brisa, Parral,
Guadalupe y Calvo
Exploration Projects:
• Create a premier senior silver producer (+10
million oz per year) through continued
organic growth and strategic acquisitions
Strategic Goal:
Investor Highlights
4
Proven Operating
Track Record:
966% production growth
in last 7 years
Compelling Organic
Growth:
60% expansion at
Guanajuato in 2012 to
1,600 tpd
Focus on Quality
Assets:
Large districts, big veins,
high grades, low costs
Strong Financials:
Working capital est.
US$175 million, no debt
Accretive New
Acquisition:
El Cubo Mine in
Guanajuato, same district
as current operation
Good Liquidity:
Listed on the NYSE, TSX,
Frankfurt
Pure Silver-Gold
Leverage:
75/25 silver/gold in dore,
no base metals
Experienced Board
and Management:
200+ years in mining
industry
Board and Management
5
Bradford Cooke
M.Sc., P.Geo.
Director
CEO
Godfrey Walton
M.Sc., P.Geo.
Director
President & COO
Mario Szotlender
B.IR
Director
Ricardo Campoy
B.Sc.
Director
Geoff Handley
B.Sc.
Chairman
Rex McLennan
B.Sc., M.B.A
Director
Dan Dickson
CA
CFO
David Howe
M.Sc.
VP, Operations
Barry Devlin
M.Sc., P.Geo.
VP, Exploration
Hugh Clarke
VP, Corporate
Communications
Miguel Ordaz
Ing.
Mexico Projects Director
Board of Directors
Additional Management
6
Business Model:
• Acquire under-explored,
under-performing mines
in historic silver districts
that are built, permitted,
staffed and about to close
• Invest the capital and
expertise needed to
discover new ore-bodies,
turn-around operations
and re-open the mines
• Expand silver resources
and reserves each year
to drive annual mine and
plant expansions which
fuel continuous growth
Three producing mines, Four exploration projects
Corporate Strategy
Reserves/Resources: 656% Growth Last 7 Years
7
Silver Equivalent Reserves and Resources (million oz’s)
Note: 2010 Silver equivalents based on 55:1 silver: gold ratio, base metals are not included
Other
Million
s
0
20
40
60
80
100
120
140
2004 2005 2006 2007 2008 2009 2010 2011
46
53
62
121
76
90
16
GJT
O
GC
VI
Oth
er
0
8
Silver Production: 966% Growth Last 7 Years
Annual Silver Production
0
1
2
3
4
5
6
2004 2005 2006 2007 2008 2009 2010 2011 2012
Million
s
GC
VI
GT
O
4.8-5.2
3.73
3.30
2.60
2.35 2.15
0.95
0.35
EC
Target
1.35
1 Peers include: AXR, CDE, FR, FVI, GPR, HL, PAAS, SSRI and SVM.
2 Calculated as the simple average of peer group production CAGR between 2004 and 2011 (emerging producers adjusted for their first full year of production).
Source: Intierra Ltd.
9
Cash Costs: 46% Lower Last 4 Years
$9.38
$9.03
$6.04
$5.71
$5.08
$2.59$2.44
$4.85
$4.13
$6.83
$-
$2.00
$4.00
$6.00
$8.00
$10.00
2007 2008 2009 2010 2011
$/o
z
Endeavour Cash Costs Peer Group Cash Costs
1 Peers include: AXR, CDE, FR, FVI, GPR, HL, PAAS, SSRI and SVM.
2 Calculated as the simple average of cash cost CAGR between 2007 and 2011.
Source: Intierra Ltd.
(14%) CAGR Peers1: 27% CAGR2
10
Gross Margin: Fastest Growth in Silver Sector
$2.17
$5.48
$9.48
$13.91
$30.53
$11.55
$14.51 $15.49
$19.62
$35.61
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
2007 2008 2009 2010 2011
$/o
z
Gross Margin Realized Silver Price
11
GUANACEVI
MINES
12
Guanacevi: A Top 5 Mexican Silver District
District Highlights:
• Located in the Sierra Madre
Occidental gold-silver belt
• Produced over 450 million oz
silver historically
• Multiple silver veins span 10 km x
5 km area
• Classic epithermal ore-bodies in
Lower Tertiary andesites
• Excellent infrastructure near paved
state highway, on state power
grid
• Porvenir Cuatro, Porvenir Dos,
Porvenir Norte & Santa Cruz
Mines now in production
• Now drilling new high-grade
mineralized zone at Milache
Guanacevi: Four Underground Mines
13
2011 Reserves/Resources1:
P+P: 13.5 million oz Ag
M+I: 19.9 million oz Ag
Inf: 15 million oz Ag
Q1 2012 Production
Production: 726,697 oz Ag
1,620 oz Au
Throughput: 1100 tpd
Grades: 292 gpt Ag
0.60 gpt Au
Recoveries: 78.2% Ag
85% Au
Mines: Porvenir Norte
Porvenir Dos
Porvenir Cuatro
Santa Cruz
Porvenir Norte is the largest mine
operating in the Guanacevi district
1) See Page 41-42 for details
Guanacevi: Upgrading the Mines & Plant
14
2012 Capital Projects:
Total: $21.3 million
Plant: Upgrading
conveyors, concentrate
handling, crushing,
expanding fine ore bins
Mine: New underground
development
Surface: New 115 Kv power
line
Mine: New underground
equipment
Plant Currently Operating at 1000 tonnes per day;
Expanding to 1200 tonnes per day in 2012
Guanacevi: Reserves and Resources
15 15
Endeavour Discovered Five New Silver Deposits In Five Years
773,000 tonnes @ 304 Ag gpt + 0.65 Au gpt = 7.55 million Oz Ag (8.4 million Oz Ag-Eq)
799,000 tonnes @ 231 Ag gpt + 0.39 Au gpt = 5.93 million Oz Ag (6.5 million Oz Ag-Eq)
2.8 million tonnes @ 217 Ag gpt + 0.42 Au gpt = 19.92 million Oz Ag (22.1 million Oz Ag-Eq)
2.0 million tonnes @ 217 Ag gpt + 0.40 Au gpt = 14.05 million Oz Ag (15.5 million Oz Ag-Eq)
16
GUANAJUATO
MINES
17
Guanajuato: 2nd
Largest Mexico Silver District
District Highlights:
• Located in the Sierra Madre
silver-gold belt
• Produced over 1.2 billion oz
silver historically and 5
million oz gold
• Three main vein systems span 20
km x 20 km area
• Classic epithermal ore-bodies in
Lower Tertiary andesites
• Excellent infrastructure- paved
state highway, on state
power grid
• Cebada, Bolanitos and Lucero
Mines now in production, 5
new ore bodies in last 5
years
• Now drilling multiple veins in
Bolanitos area
Vetas De
La Luz
Vetas De
Sierras
18
Guanajuato: Three Underground Mines
View of New Lucero South Mine Portal
2011 Reserves/Resources1:
P+P: 3.3 Million Oz Ag
M+I: 14.6 Million Oz Ag
Inf: 9.8 Million Oz Ag
Q1 2012 Production
Production: 345,794 Oz Ag
4,701 Oz Au
Throughput: 1000 tpd
Grades: 163 gpt Ag
2.10 gpt Au
Recoveries: 70% Ag
74% Au
Mines: Bolanitos/Lucero/
Cebada
Development: Lucero South/
Karina/ Fernanda/
Daniela
1) See Page 41-42 for details
Guanajuato: Expanding the Mines & Plant
19
Plant currently operating at 1000 tpd;
Expanding to 1600 tpd capacity by end of 2012
2012 Capital Projects:
Total: $20.6 million
Plant: Complete tailings
piping & pumps,
expand flotation cells
& concentrate
handling
Mine: New underground
development
Mine: New underground
equipment
Guanajuato: New Discoveries At Bolanitos
20
Recent Drill Results
• 250 gpt Ag, 5.35 gpt Au / 9.35 m
• 404 gpt Ag, 6.50 gpt Au / 7.35 m
• 448 gpt Ag, 14.0 gpt Au / 4.61 m
• 170 gpt Ag, 7.73 gpt Au / 7.14 m
2012 Exploration Targets
• Daniela-Karina
• La Joya- Puertocito
• La Luz- Asuncion
• Belen-Ericka
21
El Cubo Mines-New Acquisition
Endeavour Silver to Acquire El Cubo Silver-Gold Mine and Guadalupe y
Calvo Exploration Property From AuRico Gold
El Cubo: A Great Fit for Endeavour in Guanajuato
22
El Cubo Highlights:
• Discovered in the 1860’s more
than 300 years after mining began in
the Guanajuato District.
• Producing silver-gold mine currently
operating at 1200 tpd with 965
employees
• Produced 556,379 oz Ag and 8,670 oz
Au or 990,000 oz silver equivalents
in 2011 and over 80 million ounces
of silver & 2 million ounces of
gold historically
• Multiple silver-gold veins over 9 km
long, up to 10 m wide & 600 m deep
• San Nicolas Vein averaged 10-15 gpt Au
& 100-150 gpt Ag
• 61 mineral concessions covering 8,144
hectares, including several mine
adits, ramps and shafts and a 400 tpd
leach plant, plus a lease until May
2013 on the adjacent Las Torres Mine
Complex, which includes a 2,000 tpd
flotation plant owned by Fresnillo plc
Vetas De
La Luz
Vetas De
Sierras
El Cubo: Underground Silver-Gold Mine
23
Aurico 2011 Reserves/Resources1:
P+P: 18.5 million oz Ag
M+I: 8.3 million oz Ag
Inf: 26.7 million oz Ag
Aurico 2011 Production (9 months)
Production: 556,379 oz Ag
8,670 oz Au
Throughput: 1100 tpd
Grades: 80.5 gpt Ag
1.24 gpt Au
Recoveries: 83.9% Ag
84.8% Au
Mines: Villalpando
Peregrina
Development: Dolores
1) Endeavour has not verified Aurico’s reserves/resources, they are considered to be historic & should not be relied upon - See Page 40 for details
El Cubo: Dolores Discovery Cross Section
24
• New Dolores global mineral
inventory of 466,000 oz
AuEq includes potential
underground tonnage of
1.3 million tonnes @
3.98 gpt Au Eq for
159,000 AuEq
• Bulk tonnage open pit
potential near surface
• Present known vertical
interval of 200 m open at
depth
No Detectable on
Surface
1.6m @ 621 AgEq
5.8m @ 239 AgEq
4.1m @ 304 AgEq
2.03m @ 750 AgEq
10.4m @ 285 AgEq
1.7m @ 523 AgEq
2.6m @ 334 AgEq
DOLORES SE
New Drilling 2012
El Cubo: Transaction Details
25
• At Closing, Endeavour will pay AuRico US$200 million in cash or, at Endeavour’s
election, up to $100 million in Endeavour common shares priced at $9.06 and
the balance in cash
• Endeavour will pay up to an additional $50 million over the next three years, upon
the occurrence of certain events such as higher gold prices for a total of up to
$250 million
• Endeavour has sufficient cash on hand to meet the minimum $100 million cash
payment and has secured a bank line of credit to provide sufficient cash to meet
the maximum $200 million cash payment by Closing
El Cubo: Transaction Rationale
26
• Adds a third producing silver-gold mine (El Cubo) nearby Endeavour’s Guanajuato
mine and launches Endeavour into the mid-tier of primary silver producers
• Adds an advanced gold-silver exploration project (GyC) to Endeavour’s exploration
portfolio with further exploration potential
• Immediately accretive to Endeavour on NAVPS (23%1 ), AgEq production, reserves,
resources with substantial turn-around potential on cash-flow and cash costs
• Increases 2012 silver production by 12%-16% to 4.8-5.0 million oz based on Q1,
2012 production and 6 months production, potential to boost 2013 production
to 6 million oz Ag (9 million oz AgEq), revised production guidance to be
provided after Closing
• Aurico reports proven and probable reserves of 18.5 million oz Ag and 322,000 oz
Au, measured and indicated resources of 8.3 million oz Ag and 135% to 269,000
oz Au, and inferred resources of 26.7 million oz Ag and 548,00 oz Au2
• Increases prospective mineral land-holdings by six-fold and enhances Endeavour’s
exploration potential in Mexico
1 Assuming a purchase price of US$250 million ($100 million in cash and $150 million in shares). NAVPS based on analyst consensus estimates for El Cubo and Guadalupe y Calvo as at April 15, 2012.
Source: Thomson One Analytics and Bloomberg.
2 Endeavour has not verified Aurico’s reserves/resources, they are considered to be historic & should not be relied upon - See Page 40 for details
El Cubo: Operating Synergies
27
• Two mines in one district should lead to savings in administration, human resources
and purchasing
• Expertise in turning around two other underperforming mines at Guanacevi in 2004
and Guanajuato in 2007
• El Cubo mine methods and equipment are oversized, Bolanitos mine methods and
equipment are undersized, so swap methods and equipment to improve output
and productivity and reduce ore dilution and cash costs
• El Cubo has 965 employees producing 1.8 million oz Ag Eq. in 2012, Endeavour has
900 employees producing 3x that (5.5 million oz Ag Eq) in 2012 so retrain,
relocate or reduce work force at El Cubo
• Bolanitos currently produces silver-gold concentrates and trucks them 1000 km
north to the leach plant at Guanacevi, but El Cubo has a smaller older leach plant
and after a modernization and expansion program, Bolanitos will only truck 15 km
• Expertise in discovering new ore-bodies in old districts at Guanacevi and Guanajuato,
16 exploration targets identified for drilling at El Cubo
Guadalupe y Calvo: Prospective Gold-Silver Project
28
GyC Highlights
• Advanced gold-silver exploration project
• Well located & accessible in southern
Chihuahua State 300 km SW of
Chihuahua City
• Huge property covers 54,872 hectares,
most of the historic gold-silver district
• District produced 1.5+million oz Au & 20+
million oz Ag historically
• Two major veins up to 60 m wide & 6 km
long
• Classic epithermal ore-bodies in lower
tertiary andesites
• Aurico reports indicated resources of 7.6 million
oz silver and 126,000 oz gold and
inferred resources of 4.4 million oz silver
and 67,000 oz gold1
1 Endeavour has not verified Aurico’s reserves/resources, they are considered to be historic & should not be relied upon - See Page 40 or details
29
San Sebastian: Historic Silver-Gold District
• Discovered in 1542, mined for
centuries, largely un-explored
• Four large silver-gold vein systems
each 3 km long
• Covers +50 small historic mines on
+20 separate veins
• Classic epithermal ore-bodies in
Lower Tertiary andesites
• Located 40 km northwest of Puerto
Vallarta in Jalisco State
• One small mine (La Quiteria)
operates in the district
• Recent grab samples assay up to
11,824 gpt Ag, 40.3 gpt Au
Property Highlights
30
San Sebastian: New High Grade Discovery
TR02-1 1,489 gpt Ag, 0.85 gpt Au / 5.66m
TR12-1 500 gpt Ag, 1.15 gpt Au / 11.48m
TR13-1 222 gpt Ag, 10.73 gpt Au / 13.34m
TR15-1 287 gpt Ag, 1.08 gpt Au / 4.37m
RECENT DRILL RESULTS
31
Financial Performance:
Operating Performance:
2012 Guidance (Before El Cubo):
Financial Performance: Annual Growth
2010 2011 Q1 2012
Sales Revenues: US$86.5 million US$128.0 million US$49.0 million, Up 39%
Mine Op. Cash Flow: $45.0 million $86.4 million $32.0 million, Up 30%
Operating Cash Flow: $32.7 million $47.4 million $28.8 million, Up 96%
Adjusted Net Earnings: $ 1.7 million $32.4 million $19.6 million
$0.02/share $0.37/share $0.22/share
2010 2011 Q1 2012
Silver Production 3,285,634 oz 3,730,128 oz 1,072,491 oz, Up 19%
Gold Production 17,711 oz 21,807 oz 6,321 oz, Up 26%
Realized Silver Price $19.62 $35.61 $33.10 per oz
Silver Production: 4.3 million oz, Up 14%
Gold Production: 26,000 oz, Up 24%
Cash Cost: US$5.50 - $6.00
10.8
10.2
9.4
8.2
7.1
5.1
4.7
1.2
0.4
(6.8)
Silver
Standard
Great
Panther
Alexco
Pan
American
First Majestic
Coeur
d'Alene
Endeavour
Endeavour
Pro Forma
Hecla
Fortuna
Silvercorp
20.9
9.5
7.2
7.1
5.3
5.0
3.7
2.5
2.0
1.5
Pan
American
Coeur
d'Alene
Hecla
First Majestic
Silver
Standard
Silvercorp
Endeavour
Pro Forma
Endeavour
Fortuna
Alexco
Great
Panther
19.1
21.9
32 32
2011 Cash Costs2 2011 Silver Production
1
AgEq Resources3
(Moz Ag) ($US/oz Ag) (Moz AgEq)
Sen
ior
M
id-T
ier
Em
ergin
g
1 Presented on a silver only basis. Silvercorp production based on March 31 fiscal year end.
2 Cash cost net of by-product credits as reported. El Cubo cash costs calculated on the bases of ounces produced during 2011.
3 Reflects silver and gold reserves & resources only; equivalent calculations based on 55:1 silver to gold ratio.
4 Combination analysis for El Cubo includes production, cash costs and reserve & resource estimates from Guadalupe y Calvo. Endeavour has not verified Aurico’s reserves/resources, they are considered to
be historic & should not be relied upon
Source: Thomson One Analytics, Bloomberg and Intierra Ltd.
779
502
314
260
249
121
117
35
26
Pan
American
Silver
Standard
Coeur
d'Alene
Hecla
First
Majestic
Endeavour
Pro Forma
Silvercorp
Endeavour
Fortuna
Alexco
Great
Panther
1,734
1,820
4
4
A Premier Low-Cost Mid-Tier Producer
4
• EXK: NYSE EDR: TSX EJD: Frankfurt Exchange Listings:
•88.0 Million Shares Issued:
•6.1 Million (adds $30 Million) Warrants/Options:
•94.2 Million Fully Diluted:
•US $9.62 Share Price (June 8, 2012):
•US $847 Million Market Cap:
• 1.5 Million Shares (TSX & NYSE) Daily Volume (3 Mo. Ave.):
• Fresnillo Plc 3.2% Strategic Shareholder:
33
•BMO (Andrew Kaip), CIBC (Brian Quast), Euro
Pacific Capital (Heiko Ihle), Haywood (Chris
Thompson), Salman Partners (Ash Guglani)
Analyst Coverage:
Share Capital
34
• Deliver 8th consecutive year of growth in revenues, cash flow, earnings, production,
reserves & resources
• Acquire El Cubo mine, 2012 focus on turning around mine operations and exploration,
then on expand production
• Expand Guanajuato mine 60% to 1600 tpd, now underway
• Expand Guanacevi mine 20% to 1200 tpd, now underway
• Expand reserves and resources by aggressive brown-fields exploration at three mines
• Make new discoveries by green-fields exploration at exploration properties
• Continue to acquire new silver-gold exploration properties to build project pipeline and
fuel organic growth
Near Term Catalysts for Growth
We have the core assets, management team, track record, balance
sheet and share structure to continue delivering out-performance
35
Contact Us
Endeavour Silver Corp.
Suite 301-700 West Pender Street
Vancouver, BC, V6C 1G8
Canada
www.edrsilver.com
Phone: 1-604-685-9775 Fax: 1-604-685-9744
Canada and US Toll-Free: 1-877-685-9775
36
Appendix
Why Silver?
37
• Silver is an Industrial Metal:
unlike gold, silver is
consumed & the number of
industrial uses is
multiplying
• Silver is a Precious Metal:
like gold, silver is money &
its role as a store of value
and a hedge against
monetary inflation is
growing
• Currency debasement is not
new – governments
throughout history have
“printed” money eg. Falling
silver % in the Roman
Denarius coin
Demand 2010
Denarius % Silver
38
Social Responsibility 2011 Highlights
• Endeavour Silver strives to improve the
quality of life for every employee &
each community in which it works by
operating in the most socially
responsible manner
• Placed 2nd
out of 20 teams in First Aid
& 3rd
out of 27 teams in Mine Rescue
at recent Mexico National Mine
Safety Competition
• Given two top national 2011 safety
awards for Guanacevi & Guanajuato
mines
• Granted Clean Industry Award for
environmental responsibility at
Guanacevi & another one pending for
Guanajuato
• Launched $1 million 5 year university
scholarship endowment program in
Canada & Mexico
• Funded 100 wheelchair program in
Mexico for people in need
AuRico Reserves & Resources (as of Dec. 31, 2011)
39
AuRico Reserves & Resources (as of Dec. 31, 2011)
Category Tonnes Au g/t Ag g/t AuEq g/t Au oz Ag oz AuEq oz AgEq oz
El Cubo
Proven 2,238,000 1.84 114 3.89 132,000 8,199,000 280,000 15,459,000
Probable 3,152,000 1.88 102 3.72 190,000 10,313,000 377,000 20,763,000
P & P Total 5,390,000 1.86 107 3.79 322,000 18,512,000 657,000 36,222,000
Measured 337,000 1.10 65 2.27 12,000 701,000 25,000 1,361,000
Indicated 3,874,000 2.07 61 3.17 257,000 7,600,000 395,000 21,735,000
M & I Total 4,211,000 1.99 61 3.10 269,000 8,301,000 420,000 23,096,000
Inferred 7,198,000 2.37 115 4.46 548,000 26,682,000 1,031,000 56,822,000
Grand Total 16,799,000 2.11 99 3.90 1,139,000 53,495,000 2,108,000 116,140,000
Guadalupe y Calvo
Indicated 2,523,000 1.55 93 3.25 126,000 7,585,000 264,000 14,515,000
Inferred 1,832,000 1.13 74 2.48 67,000 4,357,000 146,000 8,042,000
Grand Total 4,355,000 1.38 85 2.93 193,000 11,942,000 410,000 22,557,000
Global Reserves & Resources
P & P Total 5,390,000 1.86 107 3.79 322,000 18,512,000 657,000 36,222,000
M & I Total 6,734,000 1.82 73 3.16 395,000 15,886,000 684,000 37,611,000
Inferred Total 9,030,000 2.12 107 4.05 615,000 31,039,000 1,177,000 64,864,000
Global Total 21,154,000 1.96 96 3.70 1,332,000 65,437,000 2,518,000 138,697,000
Endeavour Reserves & Resources (as of Dec. 31, 2011)
40
Endeavour Reserves & Resources
Category Tonnes Au g/t Ag g/t AuEq g/t Au oz Ag oz AuEq oz AgEq oz
Global Reserves & Resources
P & P Total 2,088,000 1.01 250 5.56 67,500 16,807,800 373,096 20,520,300
M & I Total 5,953,000 1.28 191 4.75 244,600 36,515,700 908,522 49,968,700
Indicated (Parral) 1,631,000 0.90 49 1.79 47,200 2,589,900 94,289 5,185,900
M & I Total 7,584,000 1.20 160 4.11 291,800 39,105,600 1,002,811 55,154,600
Inferred 4,225,600 1.08 193 4.59 146,200 26,234,600 623,193 34,275,600
Inferred (various) 2,348,000 0.52 117 2.65 39,600 8,841,800 200,360 11,019,800
Inferred Total 6,573,600 0.88 166 3.90 185,800 35,076,400 823,553 45,295,400
Global Total 16,245,600 1.04 174 4.21 545,100 90,989,800 2,199,460 120,970,300
Endeavour Reserves & Resources (as of Dec. 31, 2011)
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Endeavour Reserves
Category Tonnes Ag g/t Au g/t Ag oz Au oz
Reserves proven & probable
Proven
Guanacevi 773,000 304 0.65 7,555,500 16,200
Guanajuato 337,000 189 2.41 2,045,400 26,100
Total proven 1,110,000 268 1.18 9,575,200 42,200
Probable
Guanacevi 799,000 231 0.39 5,935,400 10,100
Guanajuato 179,000 225 2.63 1,297,2000 15,200
Total probable 978,000 285 0.38 7,232,600 25,300
Total proven &
probable 2,088,000 250 1.01 16,807,800 67,500
Resources measured & indicated
Measured
Guanajuato 258,000 177 2.51 1,470,900 20,800
Total measured 258,000 177 2.51 1,470,900 20,800
Indicated
Guanacevi 2,849,000 217 0.42 19,922,300 38,800
Guanajuato 2,539,000 161 2.20 10,128,300 155,400
San Sebastian 307,000 199 0.55 1,968,000 5,400
Total indicated 5,695,000 175 1.09 32,018,600 199,600
Total measured &
indicated 5,953,000 175 1.15 33,489,500 220,400
Resources inferred
Guanacevi 2,013,000 217 0.40 14,050,900 26,200
Guanajuato 1,783,600 167 1.92 9,586,700 110,200
San Sebastian 354,000 211 0.52 2,404,100 5,900
Total inferred 4,150,600 195 1.07 26,041,700 142,300
Silver-Gold-Lead-Zinc Resources
Category Tonnes Ag
g/t
Au
g/t Ag oz Au oz
PB
(%)
Zn
(%)
Resources indicated
Parral 1,631,000 49 0.90 2,589,900 47,200 2.87 2.86
Total indicated 1,631,000 49 0.90 2,589,900 47,200 2.87 2.86
Resources inferred
Guanacevi 307,00 98 0.10 962,900 1,000 1.73 3.32
Parral 1,303,000 63 0.88 2,658,900 36,900 2.55 2.28
Arroyo Seco 738,000 220 0.07 5,220,000 1.700 0.65 0.18
Total inferred 2,348,000 117 0.52 8,841,800 39,600 1.85 1.76
El Cubo: Property, Mines, Veins & Geology
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43
Guanajuato: Daniela Vein Long. Section
Daniela Discovery is 800m long x150m vertical x 3-10m thick