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Development | Terronera

A unique opportunity in the silver industry - Mexico’s next silver development

Terronera, Endeavour’s next core asset

Terronera represents Endeavour’s next core asset – future flagship mine, located in San Sebastian del Oeste, a historic silver mining district in Jalisco State, Mexico. Since acquiring the property in 2010, Endeavour has completed six independent technical reports, including a recent NI 43-101 feasibility study (see news release dated September 9, 2021) and over 105,000 metres of drilling.

The feasibility study supports a high-grade, silver-gold underground mining operation, producing an average of 3.3 million payable oz silver and 32,874 payable oz gold per year over a 12-year mine life. A 1,700 tpd mechanized, underground, ramp access mine and plant will be built over a 24-month period; once a formal construction decision has been granted.

Key permits required to begin construction are in place and minor permit amendments and extensions are being filed to align with the final design. Endeavour is preparing for initial earthworks and intends to make a formal construction decision subject to completion of a financing package and receipt of amended permits.

A video webcast and detailed investor presentation, prepared to accompany the NI 43-101 feasibility study and related news release, is available here.

2021 Feasibility Study by Wood Plc

Silver Price

20.00

Gold Price

1,575

Silver:Gold Ratio

79:1

Operating Statistics

LOM Tonnes Processed LOM (thousands)

7,380

Life of Mine (Years)

12.0

Average silver grade (g/t)

197

Average gold grade (g/t)

2.25

Silver equivalent grade (g/t) (Base Prices)

374

Average silver recovery

87.7%

Average gold recovery

76.3%

LOM payable Ag ounces produced (millions)

39.3

LOM payable Au ounces produced (thousands)

393

LOM payable Ag Eq ounces produced (millions)

70.3

Avg annual payable Ag ounces produced (millions)

3.3

Avg annual payable Au ounces produced (thousands)

33

Avg annual payable Ag Eq ounces produced (millions)

5.9

Capital Expenditure Statistics

Initial Capital Expenditure (millions)

175.0

Process Capacity (tonnes per day)

1,700

LOM Sustaining Capital

108.5

Total LOM Project Capital

283.5

Operating Cost Metrics

LOM Gross Revenue (millions)

1,406.2

LOM Gross COS (millions)

639.7

LOM EBITDA (millions)

759.5

After Tax LOM Free Cash Flow (millions)

311.4

Cash costs net of by-product (per silver ounce)

0.52

All-in sustaining (per silver ounce)

3.24

Cash costs by Silver Equivalent (per silver ounce)

9.10

All in sustaining Silver equivalents (per silver ounce)

10.62

Total Direct Production Costs (per Tonne)

86.68

Mining Costs (per tonne)

30.58

Processing Costs (per tonne)

25.47

General and Administrative (per tonne)

10.90

Treatment & Refining Charges (per tonne)

15.26

Royalty Costs (per tonne)

4.46

Financial Rate of Return Metrics

After Tax Project Net Present Value (millions) (5%)

174.1

After Tax Internal Rate of Return (%)

21.3

Pay Back Period (years)

3.6

Exploration Potential

Several identified opportunities remain to enhance the value of the Terronera Project, which will be evaluated during the construction phase. The main Terronera and La Luz vein orebodies are both open to a certain extent to surface and at depth. There are three main areas with significant potential to increase mineral resources: (i) the deep central area, (ii) the central-north part and (iii) the shallow part of the Santa Gertrudis – El Hundido area. As per the news release dated June 8, 2021, the Company announced that it has intercepted high-grade silver-gold mineralization in a number of structures near the Terronera vein, highlighting the potential of the area. Four structures (the San Simon, Fresno, Pendencia and Lindero veins) are located immediately to the southeast of the Terronera vein. The Los Cuates vein is located ~10 kilometres to the northwest of the Terronera Project.

Technical Reports

NI 43-101 TECHNICAL REPORT ON THE FEASIBILITY STUDY OF THE TERRONERA PROJECT Jalisco State, Mexico

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