Endeavour Mining files Houndé PEA, completes in-fill drilling and advances feasibility study

VANCOUVER, March 12, 2013 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV), (ASX:EVR), (OTCQX:EDVMF) announces that the technical report for the Preliminary Economic Assessment ("PEA") of the Houndé Gold Project in Burkina Faso has been filed on SEDAR (www.sedar.com). In addition, in-fill drilling for the Houndé feasibility study demonstrates continued excellent continuity of the mineralized zones and has been completed ahead of schedule.

(All amounts in US dollars unless otherwise indicated)

The Feasibility Study for Houndé commenced in January 2013. Prior to that, Endeavour initiated an infill drilling program in October 2012 with the goal of converting the in-pit Inferred mineral resources to Measured and Indicated mineral resources. The drilling program was concluded in February 2013, with 41,365 metres in 369 drill holes completed. New highlights of the drilling include 73.9 m of 5.26 g/t gold and 38.0 m of 5.93 g/t gold (further results are summarized in Table 1 below). The drill results will be incorporated into an updated resource model which will be used in the pit design for the Feasibility Study. Metallurgical testing of samples sent in January is also well underway and geotechnical drilling is completed.

Neil Woodyer, CEO, stated

"The positive Houndé PEA released in January showed potential production of 161,000 ounces per year over ten years at a cost of less than $600 per ounce. Early completion of the infill drilling program supports the completion of the Feasibility Study by the end of the year. With Agbaou construction on schedule, a seamless transition of our mine-building team from Agbaou to Houndé is planned in early 2014. Endeavour's gold production is forecast to be over 550,000 ounces per year in 2016, including completion of the Tabakoto mill expansion in 2013, and production start-ups at Agbaou in Q1 2014 and Houndé in 2016."

Houndé PEA Highlights, on a 100% basis, include:

• Owner operated open pit mining and a potentially economic portion (including dilution and mineable extraction) of the resource of 28 million tonnes grading 2.0 g/t Au (at 0.91 g/t Au cut-off) yielding 1.78 million ounces of contained gold
• Estimated potential average annual production of 161,000 gold ozs per year over a 10 year mine life, with total life of mine production of 1.61 million ozs
• An average 91% process recovery at a milling rate of 8,000 tonnes per day supplying a conventional gravity/CIL circuit
• Initial start-up capital is estimated at $303 million with sustaining capital estimated at $57 million (excluding VAT and import duties)
• Total initial funding requirement is estimated at $345 million including start-up capital, VAT, import duties and certain first year equipment purchases
• Forecast life of mine direct cash cost of $563 per ounce (excluding royalties)
• The project yields, on an after-tax basis:

The Houndé PEA is available at www.sedar.com or www.endeavourmining.com.

Feasibility Study Activities

• The in-fill drilling program was completed about a month ahead of schedule and all drill holes assays have been returned. A summary of new drill hole intercepts is presented in Table 1 with new drill hole locations shown in Figure 1.
• Modeling of the mineralization, geology and alteration have commenced in preparation for an updated resource estimate as part of the feasibility study.
• Geotechnical drilling has been carried out over the preferred sites for the mill, tailings and water storage facilities and test pitting is in progress.
• Sterilization augur drilling and IP geophysical surveys are in progress; RC drilling will be used to evaluate any targets that were developed during the sterilization work.
• Pit geotechnical drilling is completed and the data has been delivered to the geotechnical consultants.
• Environmental base line data collection commenced in the beginning of the year and will continue for the rest of the year.
• Sufficient metallurgical results have been obtained to allow for the determination of initial mill sizing and power requirements.
• All studies are on schedule.

Table 1 - Highlighted new drill hole intercepts (see http://www.endeavourmining.com/i/pdf/2013-03-12_NR-DR.pdf for complete intercept table)

* Assays are capped at 30 g/t Au

Qualified Persons

Don Dudek, P.Geo, Senior Vice-President, Technical Services of Endeavour is a Qualified Person within the definition of that term in NI 43-101 and has supervised the preparation of the technical information contained in this news release.

Endeavour's RC and core sampling practices and preparation is in accordance with standard industry practices, including a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates. Sample preparation and fire assays were performed by SGS Laboratories in Ouagadougou.

About Endeavour Mining Corporation

Endeavour is a gold producer delivering growth. Endeavour owns three gold mines producing more than 300,000 ounces per year in Mali, Ghana and Burkina Faso that are generating significant operating cash flows to fund further expansion. Endeavour's gold production is forecast to be over 550,000 ounces per year in 2016, including the Tabakoto mill expansion in 2013, completion of construction of Agbaou Gold Mine in Côte d'Ivoire scheduled for Q1 2014 and a recently completed PEA that shows potential for 160,000 ozs per year from the Houndé Project in Burkina Faso in 2016.

Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR), and also trades on the OTCQX (symbol EDVMF).

On behalf of Endeavour Mining Corporation

Neil Woodyer
Chief Executive Officer

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

Image with caption: "Figure 1: Drill hole locations and highlighted drill intercepts shown relative to planned pits at Houndé Project (CNW Group/Endeavour Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20130312_C4129_PHOTO_EN_24472.jpg

SOURCE: Endeavour Mining Corporation