. Beat upper-end of full-year production guidance and bottom-end of AISC guidance
Highlights • Q4-2018 production up 25% over Q3-2018 to 174koz and AISC down 13% to ~ $715/oz
• FY-2018 production up 52% over the prior year to 612koz, beating the top end of the 555-590koz guidance
• FY-2018 AISC down ~$30/oz over the prior year to ~ $745/oz, well below the guidance range of $760 - 810/oz
• FY-2019 production expected to increase to 615 - 695koz and AISC expected to remain low at $760 - 810/oz
• Ity CIL construction progressing on-budget and ahead of schedule with the dry plant commissioning completed, and first gold pour expected in early Q2-2019
• Following the strong success achieved in 2018, exploration will continue to be a strong focus in 2019 with a company-wide exploration program of $45-50m

George Town, January 24, 2019 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its preliminary financial and operating results for the fourth quarter and full year 2018, with highlights provided in the table below.

Table 1 : Preliminary Key Operational and Financial Highlights

(for continuing operations) QUARTER ENDED YEAR ENDED
Dec. 31, Sep. 30, Dec. 31, Dec. 31, Dec. 31, FY-18
2018 2018 2017 2018 2017 vs. FY-17
Gold Production, koz 174 139 151 612 403 +52%
All-in Sustaining Cost1, $/oz ~715 820 674 ~745 774 (4%)

1 This is a non-GAAP measure.

Sébastien de Montessus, President & CEO, stated: "Our strong performance across all of our mines in Q4 capped a successful year for Endeavour during which we beat our production guidance and ended with AISC capped a successful year for Endeavour during which we beat our production guidance and ended with AISC lower than the guided range while maintaining a strong safety record. The first full-year contribution from Houndé, coupled with the successful management of our portfolio, have sustainably decreased our all-in sustaining costs to below our strategic target of $800/oz.

2019 is expected to be another strong year as we look forward to the first gold pour at the Ity CIL plant in early Q2, where construction continues to progress ahead of schedule and on budget. Meanwhile, we will maintain an aggressive exploration program to build on the significant success achieved thus far.

Over the past two years, we have diligently worked to transform our portfolio, investing nearly $1 billion into the business. Once Ity CIL commences production, we expect to enter a period of sustained strong free cash flow generation with a continued focus on return on capital employed. In line with this approach, we have optimized our business plans with a greater emphasis on free cash flow metrics and intend to release working capital from the available low-grade stockpiles.

2019 is a pivotal year as the efforts we have made thus far are expected to generate significant growth in 2020 and beyond - Ity CIL will benefit from a full-year's production and Houndé from the newly discovered high-grade Kari Pump deposit."

STRONG Q4-2018 PERFORMANCE; BEATING FULL-YEAR GUIDANCE

Continued strong safety record in 2018 with a low Lost Time Injury Frequency Rate ("LTIFR") of 0.16 across the group.

Q4-2018 group production from continuing operations increased by 25% over the previous quarter to 174koz and AISC declined by 13% to circa $715/oz due to a strong quarter at all mines.

Full-year 2018 production from continuing operations increased by 52% over the prior year to 612koz, beating the top end of the 555 - 590koz guidance, while AISC from continuing operations decreased by circa $30/oz from prior year to circa $745/oz, well below the guidance range of $760 - 810/oz. 2018 benefited from a full-year of production at Houndé, and a better production and AISC performance at Ity and Karma, which more than compensated for the expected lower performance at Agbaou.
The Tabakoto sale closed on December 24, 2018, and will be deconsolidated in the year-end financial statements.

T able 2 : Group Production, koz


(All amounts in koz, on a 100% basis) THREE MONTHS ENDED YEAR ENDED
Dec. 31, Sep. 30, Dec. 31, Dec. 31, Dec. 31, 2018 FULL-YEAR
GUIDANCE
2018 2018 2017 2018 2017
Agbaou 44 31 43 141 177 140 - 150
Ity 21 21 17 85 59 60 - 65
Karma 33 26 21 109 98 105 - 115
Houndé 76 61 69 277 69 250 - 260
PRODUCTION FROM CONTINUING OPERATIONS 174 139 151 612 403 555 - 590
Tabakoto (divested in December 2018) 30 26 28 115 144 115 - 130
Nzema (divested in December 2017) - - 24 - 116 n.a. - n.a.
TOTAL PRODUCTION 203 165 203 727 663 670 - 720

Table 3 : Preliminary Group All-In Sustaining Costs, US$/oz


(All amounts in US$/oz) THREE MONTHS ENDED YEAR ENDED
Dec. 31, Sep. 30, Dec. 31, Dec. 31, Dec. 31, 2018 FULL-YEAR
GUIDANCE
2018 2018 2017 2018 2017
Agbaou ~775 954 690 ~820 647 860 - 900
Ity ~625 730 869 ~720 906 790 - 850
Karma ~750 841 918 ~830 834 780 - 830
Houndé ~580 638 335 ~565 335 580 - 630
Corporate G&A ~35 44 35 ~35 34 30 - 30
Sustaining Exploration ~5 14 13 ~10 16 10 - 10
GROUP AISC FROM CONTINUING OPERATIONS ~715 820 674 ~745 774 760 - 810
Tabakoto (divested in December 2018) ~1,315 1,420 1,411 ~1,330 1,148 1,200 - 1,250
Nzema (divested in December 2017) - - 855 - 859 n.a. - n.a
GROUP AISC ~800 917 776 ~840 869 840 - 890

The realized gold price from continuing operations (net of the Karma stream) amounted to $1,199/oz and $1,229/oz for respectively Q4-2018 and the full year ended December 31, 2018

HOUNDÉ MINE

Q4 vs Q3-2018 Insights
A record quarter was achieved as production increased, mainly due to significantly higher grades following the end of the rainy season.
• Tonnes of ore mined increased as mining activities ramped up following the end of the rainy season. Mining continued to focus on the Vindaloo Main and Vindaloo Central pits. The strip ratio was lower than initially planned due to a shift in the mine plan which delayed stripping to 2019.
• Tonnes milled increased slightly, continuing to perform nearly 30% above nameplate capacity. The ore blend continued to be mainly transitional/fresh ore. Oxide ore represented 34% of the mill feed, up from 32% in Q3-2018.
• Processed grades markedly improved as higher-grade areas of both the Vindaloo Main and Vindaloo Central pits became accessible following the end of the rainy season. In addition, the higher-grade ore mined was selectively processed while the lower-grade ore was stockpiled.
• Recovery rates decreased slightly, however remaining at the level assumed in the Optimized Study.

AISC decreased due to higher production, lower unit mining costs associated with reduced water pumping requirements following the end of the rainy season, as well as the reduction in sustaining capital expenditures.

Table 4 : Houndé Quarterly Performance Indicators


For The Quarter Ended Q4-2018 Q3-2018 Q4-2017
Tonnes ore mined, kt 1,736 1,413 663
Strip ratio (incl. waste cap) 5.9 6.0 13.8
Tonnes milled, kt 1,063 1,006 813
Grade, g/t 2.38 2.02 2.75
Recovery rate, % 93% 94% 95%
PRODUCTION, KOZ 76 61 69
Cash cost/oz ~510 519 194
AISC/OZ (preliminary) ~580 638 335

FY-2018 vs FY-2017 Insights
Production increased significantly as 2018 benefited from a full year of production since commercial production began in Q4-2017. As guided, AISC increased as last year's production benefited from processing primarily high-grade oxide material. Stockpiles grew in 2018, amounting to 2.0Mt at 1.1g/t containing 70koz at year-end.

2018 Performance vs Guidance
Production totalled 277koz, significantly exceeding full-year guidance of 250-260koz due mainly to both the mining activities and the process plant performing above their nameplate capacities.AISC amounted to circa $565/oz, well below the guided $580-630/oz range due to the outperformance of the operation and a lower than planned strip ratio in the second of half the year following a shift in the mine plan which delayed higher stripping to 2019.

Table 5 : Houndé Yearly Performance Indicator


For The Year Ended Dec. 31, Dec. 31,
2018 2017
Tonnes ore mined, kt 5,822 1,222
Strip ratio (incl. waste cap) 6.1 13.1
Tonnes milled, kt 3,948 813
Grade, g/t 2.29 2.75
Recovery rate, % 94% 95%
PRODUCTION, KOZ 277 69
Cash cost/oz ~460 194
AISC/OZ (preliminary) ~565 335

2019 Outlook
Houndé is expected to produce between 230-250koz in 2019, continuing to out-perform its feasibility study estimates, at an AISC of $720-790/oz.
• Mining is expected to continue in the Vindaloo deposit, while ore extraction at the Bouere deposit is expected to start in late H1-2019. The strip ratio is expected to increase in 2019, due to both the mine plan sequence and to the carry-over of stripping delayed from 2018.
• Throughput is expected to remain above nameplate capacity while the ore blend is expected to shift from the current mix of ~30% oxide ore and ~70 % transitional/fresh ore feed to mainly fresh ore by year-end, resulting in higher operating costs.
• Despite the expected higher grades mined, the average processed grade is expected to decline due to the use of lower-grade stockpiles. This marks a change compared to the previous mine plan due to the company's strategic focus on reducing working capital.
• Sustaining costs are expected to increase from $6 million to circa $35 million mainly due to the increased strip ratio, a TSF raise and components to be purchased for fleet maintenance.

Approximately $7 million of non-sustaining expenditure is planned for 2019, mainly for the Bouéré pre-strip, road, and resettlement.

AGBAOU MINE

Q4 vs Q3-2018 Insights
Production increased as expected mainly due to a significant increase in milled grade following the waste extraction efforts over the course of the year which gave access to higher grade areas.
• Ore mined increased due to greater extraction at the South Pit as less stripping was necessary. Waste extraction efforts continued in the West pit, resulting in an increase in the overall strip ratio.
• Mill throughput increased as the proportion of fresh ore processed decreased from 15% to 12%.
• Processed grades increased due to the change in mining sequence giving access to higher grade ore.
• Recovery rates improved slightly due to a lower proportion of fresh ore processed.

All-in sustaining costs decreased, mainly due to increased gold sales, which were offset slightly by higher sustaining costs driven by increased waste capitalisation activity.
Table 6: Agbaou Quarterly Performance Indicators


For The Quarter Ended Q4-2018 Q3-2018 Q4-2017
Tonnes ore mined, kt 481 625 826
Strip ratio (incl. waste cap) 13.6 10.1 7.7
Tonnes milled, kt 708 669 760
Grade, g/t 2.21 1.54 1.85
Recovery rate, % 95% 94% 93%
PRODUCTION, KOZ 44 31 43
Cash cost/oz ~600 791 608
AISC/OZ (preliminary) ~775 954 690

FY-2018 vs FY-2017 Insights
Production decreased as guided, as low-grade stockpile feed supplemented the mine feed to allow waste capitalization activity to progress quicker in 2018. In addition, mining was constrained to lower grade areas. AISC increased, as guided, due to the higher sustaining costs associated with the waste capitalisation activity, the impact of lower production, and higher operating costs related to mining and processing a greater volume of fresh and transitional ore. Stockpiles declined in 2018, amounting to 1.6Mt at 0.6g/t containing 32koz at year-end.

2018 Performance vs Guidance
Production totalled 141koz, achieving the lower end of the guided 140-150koz range. AISC amounted to circa $820/oz, well below the guided $860-900/oz range as a portion of the planned waste capitalization was shifted to 2019 and more oxide material was processed compared to the initial plan.

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