Slide 1: Unlocking Value at El Cubo
March 2013 Unlocking Value At El Cubo 1
Slide 2: Cautionary Note: Forward Looking Statements
Cautionary Note: Forward Looking Statements This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forwar
Slide 3: Introduction
Introduction One of North America’s fastest growing silver Endeavour Silver Corp: mining companies Three high grade silver-gold mines in Mexico; Producing Mines: Guanaceví, Bolañitos and El Cubo Recent acquisition of El Cubo Mine makes Recent Acquisition: Endeavour a mid-tier silver producer Five di
Slide 4: Market Snapshot
Market Snapshot Shares Issued: 99.7 million Fully Diluted: 105 million Recent Price: $5.46 Market Cap: $544 million Exchange Listings: NYSE:EXK TSX:EDR Silver and Gold % of Total Daily Volume (2012): 1.46 million shares Ag-Equivalent Resources 100% 93% Working Capital (31/12/12): $45 million 80% 70%
Slide 5: Operations Overview
Operations Overview Financial Performance 9 mths 2012 Sales Revenues: US$141.4 million Mine Op. Cash Flow: $83.0 million Operating Cash Flow: $56.3 million Adjusted Net Earnings: $27.3 million $0.29/share Operating Performance 9 mths 2012 12 mths 2012 Silver Production: 3,250,400 oz 4,485,426 oz Gol
Slide 6: Sustainability Programs
Sustainability Programs Safety • Won 1st, 2nd and 3rd place awards at Durango State mine rescue and first aid competitions • Reduced lost time accident frequency rate Health • Awarded Certificate of Healthy Company from the Durango State Secretary of Health • Rehabilitated the drinking water reservo
Slide 7: Core Assets
Core Assets Production Exploration Guanaceví San Sebastian Bolañitos Panuco El Cubo Guadalupe y Calvo El Inca Parral Three producing mines, Five exploration projects 7
Slide 8: Track Record
ENDEAVOUR FOCUSED ON GROWTH SILVER
Slide 9: Reserves/Resources: Fold Growth in Years
Reserves/Resources: 38 Fold Growth in 8 Years Silver and Silver Equivalent Reserves and Resources (million oz’s) 250 206 200 Silver Equivalents 150 142 Millions 121 100 Silver 90 88 76 71 62 59 53 46 47 50 41 41 14 16 4.7 5.4 Other 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Note: Silver equivale
Slide 10: Production: Fold Growth in Years
Production: 16 Fold Growth in 8 Years Silver and Silver Equivalent Annual Production 7 6.4 6 4.9 5 4.5 Silver Equivalents 4.3 4 Millions 3.7 3.3 3.3 3 2.8 2.6 Silver 2.5 2.35 2.15 2 1.5 1.35 1.1 0.95 1 0.35 0.4 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Note: Silver equivalents based on 50:1 sil
Slide 11: Guanaceví
GUANACEVÍ A High Grade, Underground, Silver-Gold Vein Mine 11
Slide 12: Guanaceví: A Top Mexican Silver District
Guanaceví: A Top 5 Mexican Silver District District Highlights: Location: Durango, Mexico Property: 4,076 hectares Infrastructure: State highway power grid local labour Past Production: 450 million oz Ag Deposit Type: Low sulfidation epithermal veins Operating Mines: Porvenir Norte Porvenir Cuatro S
Slide 13: Guanaceví: Currently Producing Above Rated Capacity
Guanaceví: Currently Producing Above Rated Capacity 2012 Production/ Reserves/Resources1: Production: 2.5 million oz Ag 7,874 oz Au 2.9 million oz Ag Eq. Proven & Probable: 9.3 million oz Ag Measured & Indicated: 23.7 million oz Ag Inferred: 11.9 million oz Ag Q4, 2012 Production Production: 519,059
Slide 14: Guanaceví: New High Grade Discovery at Milache
Guanaceví: New High Grade Discovery at Milache New Resource Estimate Indicated : • 5.3 million oz Ag • 15,600 oz Au Inferred: • 1.4 million oz Ag • 3,200 oz Au 14
Slide 15: Bolañitos
BOLAÑITOS A High Grade, Underground, Silver-Gold Vein Mine 15
Slide 16: Bolañitos: 2nd Largest Mexico Silver District
Bolañitos: 2nd Largest Mexico Silver District District Highlights: Location: Guanajuato, Mexico Property: 2,538 hectares Infrastructure: State road power grid local labour Past Production:1.2 billion oz Ag 5 million oz Au Deposit Type: Low sulfidation epithermal veins Operating Mines: Lucero Bolañit
Slide 17: Bolañitos: Currently Producing Above Rated Capacity
Bolañitos: Currently Producing Above Rated Capacity 2012 Production/Reserves/Resources1: Production: 1.67 million oz Ag 25,900 oz Au 3.0 million oz Ag Eq. Proven & Probable: 7.4 million oz Ag Measured & Indicated: 9.2 million oz Ag Inferred: 7.4 million oz Ag Q4, 2012 Production Production: 517,823
Slide 18: Bolañitos: New Discoveries Near Lucero
Bolañitos: New Discoveries Near Lucero New Resource Estimate Measured and Indicated: • 6.4 million oz Ag • 101,000 oz Au • 11.5 million oz Ag Eq. Inferred : • 1.7 million oz Ag • 28,100 oz Au • 3.1 million oz Ag Eq. 2013 Exploration Target • La Joya- Lana • La Luz- Plateros • Belen-Ericka 18
Slide 19: El Cubo
ENDEAVOUR FOCUSED ON GROWTH
Slide 20: El Cubo: A Great Fit for Endeavour in Guanajuato
El Cubo: A Great Fit for Endeavour in Guanajuato El Cubo Highlights: Location: Guanajuato, Mexico Property: 8,144 hectares Infrastructure: State roads power grid local labour Past Production: 80 million oz Ag 2 million oz Au Deposit Type: Low sulfidation epithermal veins Operating Mines: San Nicolas
Slide 21: El Cubo: Turn-Around Now Underway
El Cubo: Turn- Around Now Underway 2012 Production/Reserves/Resources1: Production: 0.3 million oz Ag 4,900 oz Au Bolañitos is Model for Turn-Around 0.5 million oz Ag Eq. Proven & Probable: 6.3 million oz Ag 250,000 $35.00 Measured & Indicated: 4.4 million oz Ag $30.00 Inferred: 11.4 million oz Ag 2
Slide 22: El Cubo: Capital Projects Well Underway
El Cubo: Capital Projects Well Underway 2012 Highlights • Underground development – 10,021 m completed • Underground drilling – 8005 m completed in 68 holes • New equipment delivered – 2 scoop trams, 5 mine tractors, 7 submersible pumps, 5 trucks, compressor tanks, ventilation fans, communications,
Slide 23: San Sebastian
~ ENDEAVOUR SILVER
Slide 24: San Sebastian: Historic Silver-Gold District
San Sebastian: Historic Silver-Gold District Property Highlights • Discovered in 1542, mined for centuries, largely un-explored • Four large silver-gold vein systems each 3 km long • Covers +50 small historic mines on +20 separate veins • Classic epithermal ore-bodies in Lower Tertiary andesites • L
Slide 25: San Sebastian: Emerging High Grade Discovery
San Sebastian: Emerging High Grade Discovery New Resource Estimate Indicated : Inferred: • 11.4 million oz Ag • 19.5 million oz Ag • 69,300 oz Au • 138,100 oz Au 25
Slide 26: Strong Financial Growth
Strong Financial Growth Revenue Per Share Cash Flow Per Share $2.00 $0.54 $0.60 $1.46 $0.50 $0.40 $1.50 $0.40 $1.07 $0.84 $0.30 $0.20 $1.00 $0.80 $0.66 $0.20 $0.10 $0.50 $0.00 -$0.10 -$0.05 $0.00 -$0.09 -$0.20 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Adjusted Earnings Per Share $0.60 $0.37
Slide 27: Attractive Peer Comparison
Attractive Peer Comparison EV/Oz Production P/CF (2012) $300 (2012) 20 18 241 228 252 17.2 15 $200 11.1 128 137 10 8.2 Silver 7.8 Ag Eq. 112 90 89 $100 62 64 5 $0 0 SSRI EXK SVM HL AG EXK SVM HL AG SSRI Cash Costs (2012) P/E (2012) $20 17.50 30 22.9 24.5 24.7 $15 22.6 9.02 20 15.3 $10 6.50 $5 2.34 3
Slide 28: Institutional Investors, Analysts Coverage
Institutional Investors, Analysts Coverage • Van Eck Associates • Ash Guglani, Salman • Renaissance Technologies • Dale Mah, Dundee • Neuberger Berman Management • Ben Asuncion, Haywood • Royce & Associates • Andrew Kaip, BMO • Polar Securities • Heiko Ihle, Euro Pacific Capital • Global X Managemen
Slide 29: Why Endeavour?
Why Endeavour? Experienced Board Building Quality Proven Track Record: and Management: Assets: On track to deliver 9th 300+ years in mining consecutive year of Low political risk, large industry organic growth districts, big veins, high grades, low cash costs Accretive New Compelling Organic Acquisi
Slide 30: Contact Us
Contact Us Endeavour Silver Corp. Suite 301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada mbrown@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775 30
Slide 31: Appendix
Appendix ENDEAVOUR 31 FOCUSED ON GROWTH
Slide 32: Why Silver?
Why Silver? • Silver is an Industrial Metal: Demand 2010 unlike gold, silver is consumed & the number of industrial uses is multiplying • Silver is a Precious Metal: like gold, silver is money & its role as a store of value and a hedge against monetary inflation is Denarius % Silver growing • Curren
Slide 33: Silver vs Gold
Silver vs Gold $SILVER Silver - Spot Price (EOD) CME © StockCharts.com 4Mar2013 Open 28.68 High 28.82 Low 22.43 Close 28.58 Volume 26.5K Chg +0.03 (+0.12%) = 41900 — $SILVER (Daily) 28.58 —§GOLD (Daily) 1572.50 48 1850 1800 1750 4700 1650 1600 1850 1500 1450 1400 1350 1300 1250 1200 4150 1100 1050 1
Slide 34: Management Team
Management Team Bradford Cooke Godfrey Walton Dan Dickson David Howe Luis Castro M.Sc., P.Geo. M.Sc., P.Geo. B.Com., CA M.Sc. Ing. Geo. Founder & CEO President & COO CFO VP, Operations VP, Exploration Terry Chandler Emilio Rivero Miguel Ordaz David Tingey B.Sc., P.Geo B.Sc. Ing. Geo. M.Sc., Eng. VP,
Slide 35: Board of Directors
Board of Directors Geoff Handley Mario Szotlender Bradford Cooke Godfrey Walton B.Sc. B.IR M.Sc., P.Geo. M.Sc., P.Geo. Chairman, Corp. Gov. Director Director Director & Nom. Chair Rex McLennan Ricardo Campoy Ken Pickering B.Sc., M.B.A B.Sc. P.Eng. Director, Audit Chair Director, Compensation Chair D
Slide 36: Sustainability Highlights 2012
Sustainability Highlights 2012 Safety • Won 1st, 2nd and 3rd place awards at Durango State mine rescue and first aid competitions • Reduced lost time accident frequency rate even with the sharp increase in hours worked due to the mine expansions at Guanacevi and Bolanitos and the acquisition of the
Slide 37: Sustainability Highlights 2012
Sustainability Highlights 2012 Education • Conducted mine skills training programs to provide career skills and job opportunities for the young and unemployed as well as cooking classes, ceramics courses and stone sculpting training programs to support cottage industries • Sponsored second year of f
Slide 38: Sustainability Highlights 2012
Sustainability Highlights 2012 Charities • Provided financial support for the following charitable causes: • "Mining for Miracles Campaign" to help build a new BC Children's Hospital • “Canucks for Kids Fund” to support children with medical needs • “Canuck Place Children's Hospice” to care for chil
Slide 39: Endeavour Reserves & Resources (as of Dec. 15, 2012)
Endeavour Reserves & Resources (as of Dec. 15, 2012) Tonnes Ag g/t Au g/t Ag oz Au oz Aq Eq Proven Guanacevi 423,000 243 0.52 3,308,000 7,000 3,658,000 Bolanitos 938,000 145 1.96 4,363,300 59,100 7,318,300 El Cubo 145,000 116 1.80 540,800 8,400 960,800 Total 1,506,000 170 1.54 8,212,100 74,500 11,93
Slide 40: Consolidated Mine Operations Table
Consolidated Mine Operations Table Comparative Table of Consolidated Mine Operations Period Plant T'put Ore Grades Recovered Ounces Recoveries Cash Cost Direct Cost Tonnes Ag(gpt) Au(gpt) Ag(oz) Au(oz) Ag(% ) Au(% ) $ per oz $ per tonne Production 2012 Year: Q1, 2012 193,759 229 1.33 1,072,491 6,321
Slide 41: Guanaceví Mine Operations Table
Guanaceví Mine Operations Table Comparative Table of Guanacevi Mine Operations Period Plant T'put Ore Grades Recovered Ounces Recoveries Cash Cost Direct Cost Tonnes Ag(gpt) Au(gpt) Ag(oz) Au(oz) Ag(% ) Au(% ) $ per oz $ per tonne Production 2012 Year: Q1, 2012 98,963 292 0.60 726,697 1,620 78.2 85.
Slide 42: Bolañitos Mine Operations Table
Bolañitos Mine Operations Table Comparative Table of Bolanitos Mine Operations Period Plant Ore Grades Recovered Ounces Recoveries Cash Cost Direct Cost Tonnes Ag(gpt) Au(gpt) Ag(oz) Au(oz) Ag(% ) Au(% ) $ per oz $ per tonne Production 2012 Year: Q1, 2012 94,796 163 2.10 345,794 4,701 69.5 73.6 (6.6
Slide 43: El Cubo Mine Operations Table
El Cubo Mine Operations Table Comparative Table of El Cubo Mine Operations Period Plant Ore Grades Recovered Ounces Recoveries Cash Cost Direct Cost Tonnes Ag(gpt) Au(gpt) Ag(oz) Au(oz) Ag(% ) Au(% ) $ per oz $ per tonne Production 2012 Year: Q1, 2012 - - - - - - - - - Q2, 2012 - - - - - - - - - Q3,
Slide 44: Operating Costs Breakdown
Operating Costs Breakdown Consolidated 17% Labour 26% Re-agents & Grinding 3% Fuel 4% Power Royalties 7% 7% Contractor Transportation/Refining 2% Explosives 19% 13% Tolled Ore 2% Bolañitos Guanaceví Labour 14% Labour 21% 23% Re-agents & Grinding Re-agents & Grinding 30% Fuel 6% Fuel Power 3% Power 5
Slide 45: Guanaceví: Reserve/Resource Long. Section
Guanaceví: Reserve/Resource Long. Section Endeavour Discovered Five New Silver Deposits In Five Years 773,000 tonnes @ 304 Ag gpt + 0.65 Au gpt = 7.55 million Oz Ag (8.4 million Oz Ag-Eq) 799,000 tonnes @ 231 Ag gpt + 0.39 Au gpt = 5.93 million Oz Ag (6.5 million Oz Ag-Eq) 2.8 million tonnes @ 217 A
Slide 46: Bolañitos: Daniela Vein Long. Section
Bolañitos: Daniela Vein Long. Section Daniela Discovery is 800m long x150m vertical x 3-10m thick 46