Slide 1: Acquisition of True Gold Mining
Endeavour Mining Acquisition of True Gold Mining CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 2: Transaction Highlights
Transaction Highlights Endeavour to acquire True Gold for CDN$0.57 per share – True Gold shareholders receive 43% spot premium1 and 33% 20d VWAP premium1 – On an issued share basis, True Gold is valued using spot price at CDN$226 million and using 20d VWAP at CDN$191 million Mine and Project Locatio
Slide 3: Transaction Highlights
Transaction Highlights Intelligent growth of low cost production – Endeavour Mining has a successful “buy and build” strategy focused on growing its low cost gold production – The Karma Mine provides a material upgrade to the recently divested Youga Mine – Proactive portfolio management focused on c
Slide 4: Indicative Terms – C$0.57 Offer Value
Indicative Terms – C$0.57 Offer Value • 0.044 Endeavour shares for every TGM share, equivalent to C$0.57 per TGM share (close, March 3, 2016) Offer: • Offer to be conducted via court-approved Canadian plan of arrangement • Endeavour to provide TGM with US$15 million Bridge Financing • Spot close: 43
Slide 5: Pro Forma Ownership & Capital Structure
Pro Forma Ownership & Capital Structure Current Ownership Structure La Mancha Liberty M&M (Sawiris) 19% 30% Teck 11% Other EDV Other TGM 70% 69% Pro Forma Ownership Structure Liberty M&M 4.0% La Mancha Issued and Outstanding Pro Forma Issued Pro Forma Shares (M) Shares (M) Ownership Other TGM (Sawir
Slide 6: Overview of True Gold’s Karma Mine
Overview of True Gold’s Karma Mine CREATING A PREMIER AFRICAN GOLD PRODUCER 6
Slide 7: Karma Heap Leach Project – Overview
Karma Heap Leach Project – Overview 110k – 120k oz/year at AISC/oz ~$700 (years 1-5) – 90% owned by True Gold – Mine is currently in construction, estimated at +96% complete – Simple, open pit mining, heap leach processing (4Mtpa) in semi-arid location with flat terrain – Resources of 75.2Mt at 1.08
Slide 8: Karma Project – Site Plan
Karma Project – Site Plan CREATING A PREMIER AFRICAN GOLD PRODUCER 8
Slide 9: Karma Project – Exploration Upside
Karma Project – Exploration Upside 70.5m @ 1.9 g/t – 6 deposits: GG2, Rambo, Kao, North Kao, GG1, and Nami 7.1m @ 6.6g/t – Only 7 of 45 targets drilled to date, showing positive results: • Watinoma (70.5m @ 1.9 g/t) • Rambo West (22.5m @ 2.4 g/t) 16.3m @ 0.9 g/t • Yabonsgo (5.6m @ 12.6 g/t) • Rounga
Slide 10: Overview of Endeavour Mining
Overview of Endeavour Mining CREATING A PREMIER AFRICAN GOLD PRODUCER 10
Slide 11: Endeavour Overview
Endeavour Overview 4 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 535-560koz, Bamako from 518koz in 2015 Houndé Project Ouagadougou Youga Mine (Sold) – 2016
Slide 12: 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: 14.4Mt @ 2.5 g/t for 1.180Moz Côte d’Ivoire (incl. of Reserves) Inferred: 1.2Mt @ 1.7 g/t for 0.065Moz Ity Mine Reserves 13.2Mt @ 2.4 g/t for 1.027Moz Agbaou Up to 2.2 Mtpa Gravity/
Slide 13: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quick Facts (on 100% basis) Ownership 80% Endeavour, 20% government in Mali Resources M&I: 18.5Mt @ 3.1 g/t for 1.844Moz Mali (incl. of Reserves) Inferred: 9.0Mt @ 3.6 g/t for 1.023Moz Reserves 6.4Mt @ 3.5 g/t for 0.725Moz Processing Rate 1.4 Mtpa Gravity/CIL Plan Tabakoto Mine
Slide 14: Nzema Mine – Ghana
Nzema Mine – Ghana Quick Facts (on 100% basis) Ownership 90% EDV, 10% government of Ghana Resources M&I: 34.6Mt @ 1.3 g/t for 1.490Moz Ghana (incl. of Reserves) Inferred: 5.9Mt @ 1.3 g/t for 0.244Moz Reserves 4.7Mt @ 2.4 g/t for 0.356Moz Processing Rate 1.6 Mtpa Gravity/CIL plant Nzema Accra Gold Re
Slide 15: 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: 61.4Mt @ 1.6 g/t for 3.106Moz (incl. of Reserves) Inferred: 14.1Mt @ 1.5 g/t for 0.687Moz Agbaou Mine Reserves (HL+CIL) 30.4Mt @
Slide 16: 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: 37.9Mt @ 2.1 g/t for 2.551Moz (incl.
Slide 17: Ity CIL Project – Côte d’Ivoire
Ity CIL Project – Côte d’Ivoire Quick Facts based upon PFS (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: 61.4Mt @ 1.6 g/t for 3.106
Slide 18: Endeavour Mining’s Unlocking Exploration Value
Endeavour Mining’s Unlocking Exploration Value • With this new transaction, Endeavour will be able to enhance its exploration program over the long-term • Exploration Strategic review underway on our key targets to extend group average life of mine – Agbaou : strong proven potential with renewal of
Slide 19: Combination of Market Leaders
Combination of Market Leaders CREATING A PREMIER AFRICAN GOLD PRODUCER 19
Slide 20: Market Perspective – Combination of Market Leaders
Market Perspective – Combination of Market Leaders Relative Performance (September 2015 to Current) Performance vs Peer Group (September 2015 to Current) Endeavour Mining S&P / TSX Global Gold Index Golden Star 186% Gold (US$/oz) True Gold 225% +130% Endeavour Mining 130% Resolute 127% True Gold 108
Slide 21: Benefits to True Gold Shareholders
Benefits to True Gold Shareholders 1• True Gold shareholders receive a meaningful ownership stake in a larger diversified West African producer 2• Short-term US$15m bridge financing as a financing alternative that allows True Gold to maintain its current liquidity without additional gold streaming 3
Slide 22: Benefits to Endeavour Mining Shareholders
Benefits to Endeavour Mining Shareholders 1• Endeavour Mining is growing its low cost gold production – Replacing Youga (a mature mine) with Karma (+11 year mine, low cost) – Karma extends mine life, increases production, lowers group AISC and increases free cash flow generation 2• A value accretive
Slide 23: Growing Low Cost Gold Production
1 Growing Low Cost Gold Production Production Profile (2015 – 2018) Production Profile (2015 – 2018) with Houndé 1,000 koz $1,000 1,000 koz +900 koz 900 koz $980 900 koz 800 koz $960 800 koz 700 koz $940 700 koz $922 600 koz $920 600 koz $920 500 koz $900 500 koz $870 -$25 400 koz $880 400 koz 300 k
Slide 24: Value Accretion
2 Value Accretion Contribution Analysis Ownership (pre-money) 50% 60% 70% 80% 90% 100% EDV TGM Total EDV • TGM shareholders Accretion become 20.9% owners Operational Metrics 2P Reserves (attributable); Moz 4.6 0.9 5.4 15.8% • Contribution analysis M&I Resources (attributable); Moz 7.9 2.4 10.2 23.0%
Slide 25: Improved Financial Strength to Fund Growth
3 Improved Financial Strength to Fund Growth Endeavour Mining’s Liquidity Sources (US$M) Significantly decreased net debt position (US$M) $350M $300M $61.5M $301.5M $254M $300M $250M $250M $20M $194M $110M $200M $200M $143M $150M $150M $110M $110M $100M $100M $62M $69M $50M $50M $M $M EDV Cash Undra
Slide 26: Building a Premier African Gold Producer
4 Building a Premier African Gold Producer Endeavour Mining’s successful ‘buy and build’ strategy +900koz Youga: 1st acquisition, now a mature mine (sold Feb 2016) $1,137 900 koz $1,010 800 koz Nzema: 2nd acquisition, recapitalized Potential for 6 $922 700 koz Tabakoto: 3rd acquisition, mill expande
Slide 27: Conclusion
Conclusion Growing our low cost gold production – Karma extends mine life, increases production, lowers group AISC and increases free cash flow generation Enhancing portfolio to maximize cash flow – Karma provides a material upgrade to the recently divested Youga Mine Further enhancing financial pos
Slide 28: 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 28