Slide 1: Endeavour Mining Corporate Presentation April 2016
TSX:EDV Endeavour Mining April 2016 Corporate Presentation 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 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 3: Endeavour Mining Overview
Endeavour Mining Overview Intermediate West African Gold Producer with 4 Producing Mines at Low AISC SENEGAL – 2015 production: 517 koz MALI Tabakoto Mine Karma – 2016 production: 535-560koz GAMBIA Project – 2015 AISC : 922 US$/oz BURKINA FASO GUINEA- Bamako – 2016 AISC: US$870 - 920/oz BISSAU Ouaga
Slide 4: Building A Premier African Gold Producer
Building A Premier African Gold Producer Current Gold Production Profile (100%) and AISC (Mine-Level, US$/oz) 1,000 $1,2 $1,137 +900koz Strategic Objective 900 $1,1 800 for 2018-2020 700 $1,010 $1,0 $922 ~ 900 koz 600 500 462koz 517koz $90 YEARLY PRODUCTION 400 $800 $80 317koz 300 $70 < 800$/oz 200
Slide 5: 4 Strategic Levers
Dynamic Portfolio Management AISC, US$/oz Portfolio Strategic Matrix 4 Strategic Levers $1,100/oz Decreased costs from >1,300/oz $1,050/oz 1 Youga OPERATIONAL (40-45koz) Nzema $1,000/oz EXCELLENCE (110-130koz) Tabakoto (155-175koz) $950/oz 2 Cut-back Optimization PROJECT + exploration DEVELOPMENT $9
Slide 6: Operational excellence – Delivering objectives
1 Operational excellence – Delivering objectives 1) Increase Production 2) Decrease All-in Sustaining Cash Costs Production, on a 100% basis in koz AISC, in US$/oz +11% $1,137/oz 535-560koz 517koz 466koz -9% $1,010/oz 324koz $922/oz $870-920/oz 2013A 2014A 2015A 2016 Guidance 2013A 2014A 2015A 2016
Slide 7: Operational excellence – Mine production and AISC
1 Operational excellence – Mine production and AISC Group AISC Production, All-in Sustaining Cash Costs, decreased by 9% in koz on a 100% basis in US$/oz $1,010 200 +32% in 2014 $922 2016E 2015 2014 621 in 2015 Agbaou 181 180 576 650-700 +19% 165 -175 160 2016E 2015 2014 155 -175 Tabakoto 1,335 151
Slide 8: Operational excellence – Improved Balance Sheet
1 Operational excellence – Improved Balance Sheet • Net debt reduced by 43% in 2015, from US$254 million to US$144 million with US$60 million debt voluntarily reimbursed • Strong liquidity and financing sources of $352 million and improved net debt position supports: – Karma ramp-up from final commi
Slide 9: Operational excellence – Free cash flow expected to increase
1 Operational excellence – Free cash flow expected to increase • At US$1,150 gold price, AISC margin of 2016 production guidance of 535-560koz at AISC of US$870-920/oz approximately US$138m in 2016, or Production Guidance1, ounces AISC Guidance, $/oz US$255/oz Agbaou 165,000 - 175,000 Agbaou 650 - 7
Slide 10: Develop Projects: Houndé and Ity CIL are top tier projects
2 Develop Projects: Houndé and Ity CIL are top tier projects West African Peer Projects: $1,000/oz 2 top-tier West African Mine life and All-in cost (including Capex) projects: 1. Houndé Project in Burkina Faso, $950/oz All-in Cash Cost, US$/oz (AISC + Initial Capex) Banfora construction started wit
Slide 11: Endeavour starts construction of its Houndé Project
2 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 <$800/oz with +10 year mine life Inata (IAMG
Slide 12: Houndé Project is Fully Financed with Significant Headroom
2 Houndé Project is Fully Financed with Significant Headroom Sources of Financing (US$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 $110m 115 56 52 52 35 17 Cash Undrawn Proceeds La Manch
Slide 13: Gold Revenue Protection Program Limit Debt Drawdown
2 Gold Revenue Protection Program Limit Debt Drawdown Gold Revenue Protection Program : Gold Option Collar Strategy • Gold Option Contracts aim to increase Gold price in US$/oz 1,500 Upside on 50% of the certainty of the free cash flow during production the construction period Collar “written calls”
Slide 14: Houndé Increases the Quality of our Portfolio
2 Houndé Increases the Quality of our Portfolio Ranks amongst the highest quality West African mines Lowest cost mines Highest cost mines 600 Tarkwa 550 500 Akyem 450 Essekane Production, kozpa 400 350 Loulo Ahafo 300 Gounkoto Siguiri Bissa Mana Chirano 250 Tongon Tasiast Houndé Syama Lefa Edikan 20
Slide 15: Unlock Exploration Value – Long-term planning underway
3 Unlock Exploration Value – Long-term planning underway • One of the largest exploration packages in Most West African gold findings are located in the Birimian greenstone belt West Africa • Capital constrains since 2010 have limited exploration to focus primarily on replenishing mined ounces • A s
Slide 16: Opportunistic M&A to increase quality of portfolio
4 Opportunistic M&A to increase quality of portfolio • Priority is Internal growth before M&A 2015-2016 transactions improved quality of portfolio consideration • M&A is driven by value creation and Youga Mine cash-flow per share increase, NOT Strategic Partnership divestment Acquisition of producti
Slide 17: Why True Gold?
4 Why True Gold? Karma Production Profile • Fits with our M&A criteria : AISC (US$/oz) Production based on reserves (koz) 160 – Production-ready with immediate 140 cash flow generation 120 Objective of converting – 110-120koz low-cost production at 668 639 636 existing inferred 100 80 AISC of ~US$70
Slide 18: Combination with True Gold Mining
4 Combination with True Gold Mining • All share offer: – Each True Gold common share exchanged for 0.044 of an Endeavour Mining common share – 43% premium based on each company’s closing price as at March 3, 2016 and 33% based on 20-day VWAP – Share consideration represents a value of ~C$0.57 per Tr
Slide 19: Benchmarking vs Peers – Gold Production
Benchmarking vs Peers – Gold Production 2016E Gold Production (kozs)(1) +900 795 794 786 655 555 537 526 480 422 412 370 285 256 236 236 100 2015 – 2018E Annual Gold Production Growth (2) 20.9% 20.4% 20.1% 15.4% 14.8% 14.3% 10.9% 6.8% Average: 7.3% 5.5% 4.7% 3.8% 2.8% 0.8% (1.8%) (7.7%) B2Gold PF ED
Slide 20: Benchmarking vs Peers – 2016E Price / Cash Flow
Benchmarking vs Peers – 2016E Price / Cash Flow • With continued strong execution of Endeavour’s existing asset portfolio, and Karma brought into production the combined company is expected to generate significant operating and free cash flow 2016E Price / Operating Cash Flow 12.1x 9.4x 8.6x 8.3x 6.
Slide 21: Conclusion: Endeavour's Re-rating has begun
Conclusion: Endeavour’s Re-rating has begun 400.0 1,400,000 Volume (shares) EDV (C$) TSX Global Gold (C$) Gold price (US$) 350.0 +135% 1,200,000 since announcement of strategic partnership with La Mancha 300.0 1,000,000 250.0 800,000 200.0 600,000 150.0 Strategic partnership La Mancha 400,000 announ
Slide 22: Appendix 1: Asset Description
Appendix 1: Asset Description CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 23: 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 24: Agbaou Mine – Côte d'Ivoire
Agbaou Mine – Côte d’Ivoire Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Agbaou achieved record production in 2015, up 24% over the previous year with a 20% increase in mill throughput Mining and continued benefit from mining free-dig oxide ore Waste (k
Slide 25: 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 26: 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 27: Tabakoto Mine – Mali
Tabakoto Mine – Mali Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Tabakoto increased production by 19% over the Mining previous year as the mine benefited from the Waste (kt) 1,314 2,286 6,407 6,453 start of mining of Kofi C open pit and the full Ore Mi
Slide 28: 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 29: 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 30: Nzema Mine – Ghana
Nzema Mine – Ghana Quarter ended Dec 31 Full year ended Dec 31 Insights: 2014 2015 2014 2015 OperationalData • Nzema’s production remained fairly constant Mining over the previous year as the mine strategically Waste (kt) 1,826 1,063 6,963 4,096 increased the levels of purchased ore to Ore Mined - o
Slide 31: 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 32: Ity Mine – Côte d'Ivoire
Ity Mine – Côte d’Ivoire Full Year Post acquisition period Insights: 2015 (Nov 28 to Dec 31, 2015) OperationalData • The Ity Mine is included for the post- Mining acquisition period of November 28 to Waste (kt) 5,465 368 December 31, 2015, in the company’s 2015 Ore Mined - open pit (kt) 1,021 63 fin
Slide 33: 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 34: 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 35: Houndé Project – Burkina Faso
Houndé Project – Burkina Faso Quick Facts (on 100% basis) Karma Project Ownership 90% EDV, 10% Burkina Faso Status Fully permitted, awaiting investment decision Ouagadougou Production start date 2017E (if launched mid 2016) Burkina Faso Houndé Project Resources M&I: 37.9Mt @ 2.1 g/t for 2.551Moz (in
Slide 36: 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 37: Houndé Project Summary
Houndé Project Summary Project Summary Houndé project optimization and 2015 Updated 2016 Change implementation plan completed in Mine Plan Optimized Case 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 38: Karma Project – Burkina Faso
Karma Project – Burkina Faso Karma Mine Quick Facts (1) (on 100% basis) Karma Project Ownership 90% True Gold, 10% Burkina Faso Resources M&I: 75.2Mt @ 1.08 g/t for 2.621Moz Ouagadougou (incl. of Reserves) Inferred: 65.3Mt @ 1.13 g/t for 2.362Moz Houndé Project Reserves 33.2Mt @ 0.89 g/t for 0.949Mo
Slide 39: Overview of Truegold's Assets: Karma Exploration Upside
Overview of Truegold’s Assets: Karma Exploration Upside 7 DRILL DISCOVERIES 7.1m @ 6.6g/t Au 70.5m @ 1.9g/t Au 45 NEW DRILL READY TARGETS 233 SIGNIFICANT GOLD ANOMALIES 6.0m @ 29.5g/t Au • 866km² land package 16.3m @ 0.9g/t Au • ~90 km strike length of regional unconformity 5.6m @ 12.61g/t Au • Seve
Slide 40: Overview of Truegold's Assets: Liguidi – Exploration Portfolio
Overview of Truegold’s Assets: Liguidi – Exploration Portfolio • One of the largest gold-in-soil anomalies in the country 53 km2 GOLD ANOMALY • In situ anomaly sits above large, underlying gold system • Situated in Markoye regional structure that hosts multiple +5 million ounce deposits • Highly enc
Slide 41: Endeavour's strategic positioning in a fast-growing gold region
Endeavour’s strategic positioning in a fast-growing gold region Gold production by region, • Endeavour strategically in Moz (2006-2014 comparison) positioned as a pure West- Moz 2006 2014 -11% African multi-operation gold 30 miner • West-Africa is expected to continue to be a fast-growing gold regio
Slide 42: Reserve and Resource Table
Reserve and Resource Table As at December 31, 2015 P&P Reserves M&I Resources Inferred Resources Resources inclusive of reserves (Mt) Au g/t (koz) (Mt) Au g/t (koz) (Mt) Au g/t (koz) Agbaou Mine 13.2 2.4 1,027 14.4 2.54 1,180 1.2 1.71 65 Tabakoto Mine 6.4 3.5 725 18.5 3.09 1,844 9.0 3.55 1,023 Nzema
Slide 43: 2015 Depletion replacement
2015 Depletion replacement Proven and Probable Reserves • Successful exploration replenished in Moz 100% basis nearly all of M&I resource ounces +29% 5.9 depleted in 2015 -0.1 5.8 4.5 +1.6 -0.5 – Agbaou fully replaced 2015 soft +0.3 material mined during and added an additional year of free-dig Rese
Slide 44: Appendix 2: Company Information
Appendix 2: Company Information CREATING A PREMIER AFRICAN GOLD PRODUCER
Slide 45: Endeavour Mining – Management Team
Endeavour Mining – Management Team Neil Woodyer – Founder & CEO Patrick Bouisset – Exec VP Exploration • Former CEO of Lloyds International Trading, a subsidiary of Lloyds • Former Executive VP Exploration & New Ventures of La Mancha Bank plc • +20 years at Total – in charge of exploration activitie
Slide 46: Endeavour Mining – Board of Directors
Endeavour Mining – Board of Directors Michael E. Beckett – Chairman, Non-executive Director Miguel Rodriguez – Non-executive Director • Former chair of Ashanti Goldfields & former Managing Director of • Director of D.Societe Financiere in Geneva Consolidated Gold Fields • Former Economic Minister &
Slide 47: 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 46