Slide 1: Houndé Project Construction Launch
EDV-TSX Endeavour Mining April 2016 Houndé Project Construction Launch Picture of Houndé Resettlement Site Cleared CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 2: Speakers
Speakers: Neil Woodyer Vincent Benoit Chief Executive Officer & Director EVP – Strategy and Business Development Sébastien de Montessus Jeremy Langford President & Director EVP - Construction Services Adriaan "Attie" Roux Ota Hally Chief Operating Officer Chief Financial Officer Richard Thomas EVP –
Slide 3: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equip
Slide 4: Houndé is positioned to be Endeavour's flagship low cost mine
Endeavour starts construction of its Houndé Project Houndé is positioned to be Endeavour’s flagship low cost mine • Improves the overall quality of our portfolio • In line with objective of increasing Group production to Mali Essakane +900koz at AISC of <$800/oz with +10 year mine life Inata (IAMGOL
Slide 5: Project Summary
Houndé Project Summary Project Summary Houndé project optimization and 2015 Updated 2016 implementation plan completed in Mine Plan Optimized Case Change February 2016 Reserves and Resources Reserves , Moz1 2.08 2.08 M+I Resources, Moz1 2.55 2.55 • Detailed review and optimization of Capex and Minin
Slide 6: Solid Production and Low AISC
Houndé Project: Solid Production and Low AISC 235kozpa at AISC of US$610/oz on average over the first 4 years 265koz 231koz Exploration upside expected 223koz 218koz to fill this shortfall 184koz 116koz $901/oz $645/oz $662/oz $648/oz $506/oz $496/oz Year 1 Year 2 Year 3 Year 4 Year 5 to 8 Year 9 to
Slide 7: Potential to Significantly Extend Houndé's Mine Life
Houndé Exploration Upside • The Houndé exploration tenement Exploration Targets in Proximity to the Planned Mill covers +1,075km² within Burkina Faso’s highly prospective Birimian belt • Historically, exploration focus mainly on the Vindaloo trends • At least 15 other significant targets were identi
Slide 8: Project is Fully Financed with Significant Headroom
Houndé Project is Fully Financed with Significant Headroom Sources of Financing (US$m) Capex Spend (US$m) ~500-550m Fully financed with FCF providing +50% funding headroom Total Capex: ~$350m $328m 50 + Free Cash 62 Flow of 2016 – 2017 20 110 $110m 115 56 52 52 35 17 Cash Undrawn Proceeds La Mancha
Slide 9: Gold Revenue Protection Program
Gold Revenue Protection Program Limit Debt Drawdown Gold Revenue Protection Program : Gold Option Collar Strategy • Gold Option Contracts aim to increase Gold price in US$/oz 1,500 Upside on 50% of the certainty of the free cash flow during production the construction period Collar “written calls” s
Slide 10: Increases the Quality of our Portfolio
Houndé Increases the Quality of our Portfolio Ranks amongst the highest quality West African mines Lowest cost mines Highest cost mines 600 Production, kozpa Tarkwa 550 500 Akyem 450 Essekane 400 350 Loulo Ahafo 300 Gounkoto Siguiri 250 Bissa Mana Chirano Tongon Tasiast Houndé Syama Lefa Edikan 200
Slide 11: Houndé ranks amongst West-Africa's top tier cash generating mines
Houndé Increases the Quality of our Portfolio Houndé ranks amongst West-Africa’s top tier cash generating mines All-in Sustaining Margin at US$1,150/oz, in US$m US$m 275 150 125 100 75 50 25 0 -25 -50 Mana Tasiast Chirano Ahafo Bonikro Agbaou Siguiri Bissa Gounkoto Lefa Tarkwa Essekane Loulo Sadiola
Slide 12: Clear Path to Build a +900koz Producer at <US$800/oz AISC
Clear Path to Build a +900koz Producer at <US$800/oz AISC Gold Production Profile (100%) AISC Houndé $1,137 Karma Current mines +900koz $1,010 $922 $870-920* 517koz 535-560koz* 462koz ~$800 317koz 220koz 167koz 83koz 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E *Excluding Karma CREATING A PREMIER
Slide 13: Project Details
Houndé Project Details CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 14: Reserves and Resources
Houndé Reserves and Resources • No change in Reserves and Resources since Dec 31, 2014, following successful June-Nov 2014 exploration programs • Vindaloo deposits (88% of reserves oz) benefit from 2003 Mining Code (17.5% tax rate) while Bouéré and Dohoun are under 2015 Mining code (27.5% tax rate)
Slide 15: Mining
Mining • All deposits are amenable to conventional open pit mining methods adopting drilling, blasting, trucks and shovels • Pits reach depths of up to 175m • Owner mining option selected • Mining fleet is equipped with a moving capacity in excess of 35Mt per year • Mining costs revised from $2.03/t
Slide 16: Site Layout and Infrastructure Advantages
Site Layout and Infrastructure Advantages Houndé General Site Layout • Property accessed by 250 km paved highway, 3 hours drive from Ouagadougou • 25km from rail line that extends to port of Abidjan • Power supply from Sonabel, national utility • Water supply is mostly recycled process water; with s
Slide 17: Processing Plant
Processing Plant • 3.0Mtpa (9,000 t/d) throughput • SAG / ball mill grinding circuit • Conventional gravity and CIL Circuit • Similar to other plants operated by Endeavour • Average LOMP recovery rate of 93% • LOMP throughput blend of 88% primary ore and 12% saprolite + transition ores • Cost optimi
Slide 18: Project Capex
Houndé Project Capex • Capex was fully scoped and optimized by Endeavour and 2016 Optimized Case, in US$m Lycopodium Mining (inclusive of $47m for the fleet) 75 Owner Project Costs 68 • Upfront capital cost of $328m, inclusive of $47m for the Treatment Plant Costs 57 owner-mining fleet, in line with
Slide 19: Construction Led By Experienced Team
Houndé Construction Led By Experienced Team Significant Construction track record 6 West-African projects built by Endeavour’s core construction team • Endeavour’s core construction team Built by Endeavour’s construction team for Endeavour has been together for +10 years SENEGAL Built by Endeavour’s
Slide 20: Community and Social Responsibility
Community and Social Responsibility Benefits for Burkina Faso and the local population New houses built for resettlement program • Local employment: (400 houses to build) – Construction period to employ 1,800 people; 90% of which Burkinabé – 470 employed during production phase; 90% of which Burkina
Slide 21: Questions and Answers
Questions and Answers CREATING A PREMIER AFRICAN GOLD PRODUCER 20
Slide 22: 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 21