Slide 1: Endeavour Mining Corporate Presentation - January 2016
Endeavour Mining Corporate Presentation - January 2016 CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce rates, increases in market prices of mining consumables, possible are non-GAAP performance measures with no standard meaning variations in ore reserves, grade or recovery rates; failure of under IFR
Slide 3: Endeavour Overview
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, Bamako from 518koz in 2015 Houndé Project Ouagadougou Youga Mine – 2016 AISC t
Slide 4: Delivering Our Strategic Objectives
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 $100m $1,137/oz 575-600koz Guidance $80m 518koz Guidanc
Slide 5: Endeavour Outperformed its Peer Group in 2015
Endeavour Outperformed its Peer Group in 2015 2015 performance vs TSX gold index 2015 performance vs selected peer group 6% 9.00 Indexed to EDV share price (C$/share) Endeavour S&P / TSX Global Gold Index Gold (US$/oz) Nordgold 116% Banro 87% Endeavour 80% 8.00 Perseus 33% Roxgold 27% +80 Centamin 2
Slide 6: 2015 Production Exceeded Guidance
2015 Production Exceeded Guidance Production evolution 2013-2015, in koz +11% Insights: 518 • Agbaou strong performance with 466 Guidance: 475-500koz continued benefit from soft ore Guidance: 400-440koz • Tabakoto increased productivity from switching to owner mining and contractor fleet, and 324 be
Slide 7: Production Expected To Increase In 2016
Production Expected To Increase In 2016 Production guidance 2016, in koz +15% 575-600 Insights: • 2016 production in line with 2015 518 production rates (593koz with Ity 466 Guidance: 475-500koz on full year basis) Guidance: 400-440koz • Agbaou expected to return to normalized production after 324 r
Slide 8: Significant Reduction In All-in Cash Costs
Significant Reduction In All-in Cash Costs All-in Cash Cost Evolution (US$/oz) Insights: 1,160 1,137 1,120 • Significant reduction in AISC/oz over past 4 years, with 2015 AISC 1,080 Guidance: 985-1,070 expected to be slightly below 1,040 1,010 guidance range of US$930 – 980/oz 1,000 Guidance: 930-98
Slide 9: Continued G&A cost reduction
Continued G&A cost reduction • Reducing G&A costs Corporate G&A Cost Benchmark remains a focus US$ per ounce sold (US$/Au-eq oz) 1 167 • In early 2016, corporate reorganization 136 140 implemented to streamline 122 122 organizational and 114 operational efficiency: 90 – Closed Vancouver corporate 79
Slide 10: Sound Balance Sheet With Strong Liquidity
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* – $100 million of free cash flow g
Slide 11: Free cash flow expected to increase again in 2016
Free cash flow expected to increase again in 2016 2016 Forecast: AISC Margin and Free Cash Flow Insights: (US$ million, forecast) • At $1,150 gold price, AISC margin of approximately $148m in 2016, or $250/oz 2016 Production (ounces, guidance range mid-point) 587,500 oz • Free cash flow (before work
Slide 12: Implementing a long-term exploration strategy to replace reserves and generate discoveries
Implementing a long-term exploration strategy to continue to replace reserves and generate new discoveries 2015 Exploration achievements: Proven and Probable Reserves in Moz 100% basis – Agbaou: Drill results confirm oxide mineralization extensions +101% +100% – Ity: 1.5Moz of M+I resources added fr
Slide 13: Top Tier West African Projects with Experienced Construction Team
Top Tier West African Projects with Experienced Construction Team Peer Projects – Project Status, Reserves/Resources • Endeavour has 2 top-tier West African projects, and Project IRRs at US$1,300/oz plus one of the largest exploration packages • Houndé Project in Burkina Faso Fully permitted and awa
Slide 14: Endeavour Growth through 'Build and Acquire' Strategy
Endeavour Growth through ‘Build and Acquire’ Strategy +50% Houndé: FS in 2013, fully permitted for 2016 construction decision – potential ~800koz 800koz Q4/2017 production 700koz Ity Heap Leach: 5th mine, potential to extend to 2019/2020 with definition of additional resources and CIL reserves 575-6
Slide 15: Why West-Africa?
Why West-Africa? Most West African gold findings are located in the Birimian greenstone belt • 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
Slide 16: One of West Africa's Largest Gold Producers
One of West Africa's Largest Gold Producers 1,000 Incl. Houndé and 900 before Ity CIL 800 2014 Gold Production (West Africa only), koz Increased Production 700 + Ity acquisition 600 500 400 300 200 100 0 (2014) (2015) (2018) Perseus Teranga Resolute IAMGOLD Kinross Nord Gold Gold Fields Randgold End
Slide 17: Conclusion
Conclusion • High level of HSE exigency Operational • Optimize production and generate free cash flow across all mines Excellence • Decrease costs without limiting capex required to develop production • Lean corporate management • Houndé decision expected by H1 2016 Internal Growth • Extend Ity Heap
Slide 18: Appendix: Mine by Mine Summary
Appendix 1 Mine by Mine Summary CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 19: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quick Facts (on 100% basis) Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI Resources M&I: 13.9Mt @ 2.5 g/t for 1.109Moz Côte d’Ivoire (incl. of Reserves) Inferred: 2.1Mt @ 2.3 g/t for 0.154Moz Ity Mine Reserves 11.5Mt @ 2.5 g/t for 0.926Moz Agbaou Up to 2.2 Mtpa Gravity/
Slide 20: Agbaou Exploration Potential – Côte d'Ivoire
Agbaou Exploration Potential – Côte d’Ivoire • 47,620m drilled in 2015, totaling Agbaou Site Map 475 holes, with aim of replacing depletion and extending oxide ore mine life • Drill results confirmed the continuity of oxide mineralization at the pit extensions and at surrounding targets • Results in
Slide 21: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) Ownership 80% Endeavour, 20% government in Mali Resources M&I: 19Mt @ 3.0 g/t for 1.8Moz Mali (incl. of Reserves) Inferred: 18Mt @ 2.8 g/t for 1.6Moz Reserves 7Mt @ 3.7 g/t for 0.8Moz (~65% U/G @ 3.9 g/t) Processing Rate 1.6 Mtpa Gravity/CIL Plan Taba
Slide 22: Tabakoto Exploration Potential – Mali
Tabakoto Exploration Potential – Mali • Located on the same trend as Randgold’s Tabakoto Site Map 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
Slide 23: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Quick Facts (on 100% basis) 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% private Ownership Côte d’Ivoire investor Ity Mine Resources (HL + CIL) M&I: 57Mt @ 1.6 g/t for 2.9Moz (incl. of Reserves) Inferred: 9.4Mt @ 1.5 g/t for 0.46Moz Agbaou Mine Reserves (HL) 2.3Mt @ 2.4 g/t fo
Slide 24: Ity CIL Project – Côte d'Ivoire
Ity CIL Project – Côte d’Ivoire Quick Facts (on 100% basis)* Côte d’Ivoire 55% EDV, 30% SODEMI, 10% Côte d’Ivoire, 5% Ownership private investor Ity CIL Project Status DFS expected by mid-2016 Agbaou Production start date 2019E Mine Resources (HL + CIL) M&I: 57Mt @ 1.6 g/t for 2.9Moz Abidjan (incl.
Slide 25: Ity Exploration Upside – Côte d'Ivoire
Ity Exploration Upside – Côte d’Ivoire • Strategic exploration planning underway to Ity Site Map fully identify all exploration potential of this significantly underexplored area • Near-mine exploration has already outlined 1.5Moz of M+I resources from January to September of 2015 • Focused on ident
Slide 26: Youga Mine – Burkina Faso
Youga Mine – Burkina Faso Quick Facts (on 100% basis) Burkina Faso Ownership 90% EDV, 10% Burkina Faso Ouagadougou Youga & Ouaré Resources Houndé Project M&I: 17Mt @ 1.5g/t for 0.8Moz (incl. of Reserves) Youga Mine Inferred: 2.8Mt @ 1.6g/t for 0.14Moz Reserves 3.5Mt @ 1.8g/t for 0.2Moz Processing Ra
Slide 27: Nzema Mine – Ghana
Nzema Mine – Ghana Quick Facts (on 100% basis) Ownership 90% EDV, 10% government of Ghana Resources M&I: 36.7Mt @ 1.3 g/t for 1.590Moz Ghana (incl. of Reserves) Inferred: 7.6Mt @ 1.3 g/t for 0.311Moz Reserves 7.3Mt @ 2.1 g/t for 0.496Moz Processing Rate 1.6 Mtpa Gravity/CIL plant Nzema Accra Gold Re
Slide 28: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Ownership 90% EDV, 10% Burkina Faso Burkina Faso Status Fully permitted, awaiting investment decision Ouagadougou Production start date 2017E (if launched mid 2016) Houndé Project Youga Mine Resources M&I: 38Mt @ 2.1 g/t for 2.5Moz (incl. of
Slide 29: Summary Table: Endeavour's Operating Mines
Summary Table: Endeavour’s Operating Mines Agbaou Gold Mine Ity Gold Mine Nzema Gold Mine Tabakoto Gold Mine Youga Gold Mine 85% Endeavour, 10% Côte d’Ivoire, 55% Endeavour, 30% SODEMI, 80% Endeavour, 20% Mali 90% Endeavour; 10% Burkina Ownership 5% SODEMI 90% Endeavour, 10% Ghana 10% Côte d’Ivoire,
Slide 30: Mineral Reserves as at December 31, 2014
Mineral Reserves as at December 31, 2014 Mineral Reserves - Effective Date as of December 31, 2014; Except Ity, as of July 31, 2015 Proven Probable Proven & Probable Mine/Project 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 (,
Slide 31: Mineral Resources as at December 31, 2014
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 Measured Indicated Measured & Indicated Inferred Lower Mine/Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounc
Slide 32: Appendix 2: Corporate Insights
Appendix 2: Corporate Insights INTERMEDIATE GOLD PRODUCER DELIVERING PROFITABILITY
Slide 33: Endeavour's Team with Strategic Integration
Endeavour's Team with Strategic Integration Executive Team Board of Directors • Neil Woodyer • Michael E. Beckett Chief Executive Officer & Director Chairman • Sébastien de Montessus • Ian Cockerill President & Director Non-executive Director • Adriaan "Attie" Roux • Frank Giustra COO Non-executive
Slide 34: Q3 2015 and first 9-months All-in Sustaining Margin and AISC
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 fo
Slide 35: First 9-month 2015 Cash Cost Detail by Mine
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 7
Slide 36: Company Profile
Company Profile Share Price (December 31, 2015) Balance Sheet (December 31, 2015) Recent Share Price CDN$7.63 Cash position $110 million Market Cap CDN$354 million Drawn down from $350 million debt facility $240 million Av. daily shares traded in Q4-2015 105,692 Canada TSX:EDV Current Shareholder Di
Slide 37: Neil Woodyer CEO
Neil Woodyer CEO nwoodyer@endeavourmining.com +377 97 98 7130 Vincent Benoit EVP Strategy and Business Development vbenoit@endeavourmining.com +33 170 38 36 96 CREATING A PREMIER AFRICAN GOLD PRODUCER 37