Endeavour Management Presentation

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GOLD PRODUCER 

WEST AFRICA 

CASH FLOW

Endeavour Management

Presentation

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Disclaimer & Forward Looking Statements

This presentation contains “forward-looking statements” including but not limited to, statements with respect to Endeavour’s plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible

variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.

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GOLD PRODUCER  WEST AFRICA  CASH FLOW

Endeavour in West Africa

• West African gold producer with four operating mines

producing between 400,000 and 440,000 oz in 2014

• Potential to add ~180,000 oz/yr by advancing Houndé

project in Burkina Faso – now in permitting

• Reserves of 4 million ounces and Measured and

Indicated Resources over 6 million ounces

• Workforce of over 3,500 in four countries

• Focused on developing our local workforce and

contributing to the communities we operate in

• Strong commitment to Safety, Health and the

Environment

Endeavour has expertise in exploration, project

development, construction and operations

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West African Projects

• Multiple operations, both open-pit and underground

• Accra-based operations management with:

–

COO and senior operations team

–

Group exploration

–

CSR, HSE and HR

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Company Profile

Capitalization Summary (May 31, 2014)

Shares in Issue 413,143,668

Options 24,977,544

Fully Diluted 438,121,212

Share Price (June 23, 2014)

Recent Share Price CDN$0.85

AUD$0.80

Market Cap CDN$351 million

Av. daily shares traded for May Canada TSE:EDV Australia ASX:EVR 1.3 million 0.1 million Shareholder Base Institutions 60-65% Retail 25-35% Insiders/Management 3%

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Growth Track Record - All in West Africa

2009

2010

2011

2012

2013

2014e

Focus Selecting

targets Growth through acquisitions

Optimization and building Agbaou

Ready for new opportunities Production Growth (ozs) 0 82,000 180,000 310,000 324,000 >400,000 2009 2010 2011 2012 2013 2014

Agbaou

Tabakoto

Nzema

Youga

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Côte d’Ivoire – Agbaou Mine

• Agbaou ownership is 85% Endeavour, 10%

government of Côte d’Ivoire, 5% SODEMI

• Acquired through takeover of Etruscan

Resources in 2010

• Located 200 km from the port city of Abidjan

• Construction started August, 2012

• First gold pour was November 29, 2013

• Completed ahead of schedule and under

budget

• Invested $150 million in mine construction

• Fourth gold mine in Côte d’Ivoire (others are

Tongon, Bonikro, Ity)

_Agbaou

Abidjan

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Agbaou Mine – Strong Performer

• Quick and successful ramp up in late 2013

• Started full commercial production January, 2014

• Performing above plan:

–

Higher than planned processed grades (approx. 5%

above plan)

–

Mill throughput averaged 5,400 tpd over the two

month period, above design capacity

–

Good recoveries (97% during Q1; forecast 93%

long-term)

• Average annual production of 100,000 ozs

• Strong cash flow generator due to:

–

Access to low cost grid power ($0.085/kWh)

–

Free dig ore in first few years

• Demonstrating strong, sustained performance:

−

Produced 24,086 oz in Q1

Mining on North Pit of Agbaou Truck Fleet at Agbaou

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Agbaou Employment

• 555 Personnel On-site; including 340 contractors

• 94% of Work force is Ivorian

• Creation of indirect jobs – estimated at 10+

indirect jobs per direct job

• Training in safety, machine and equipment

operating, maintenance and administration

• Excellent safety record

Note: These statistics reflect current employment levels and will change over time

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Ghana – Nzema Mine

• Endeavour’s operation centre is based

in Accra and services the region

• Nzema mine ownership is 90%

Endeavour, 10% government of Ghana

• Nzema was acquired during takeover

of Adamus Resources in 2011

• Located 280 km from Accra, and 70 km

from Takoradi

Nzema

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Nzema Mine

• Mine was started in April 2011

• Average annual production of over 100,000 ozs

• Demonstrating strong, sustained performance:

• Produced 28,847 oz in Q1

• Workforce: 682, including 455 contractors; only 3

expats

Nzema Process Plant Adamus Pit at Nzema

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Mali – Tabakoto Mine

• Tabakoto ownership is 80% Endeavour,

20% government in Mali

• Located 360 km west of Bamako; within

17 km of the Senegal border

• Tabakoto acquired through takeover of

Avion Gold

• Endeavour’s investments include:

–

Expanded plant capacity to 4,000 tpd

–

Changed to owner mining in

Tabakoto underground

–

Developing Segala underground

mine

–

Kofi permitted and contributes to

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Tabakoto Mine Complex

• Endeavour continues to invest in mine

development at Tabakoto and Segala

underground mines

• Transition to owner mining at Tabakoto

is progressing well:

–

Owner mining commenced effective

April 1

st

–

All underground activities now being

completed by Endeavour employees

–

Retained over 300 employees from the

contractor for high level of workforce

continuity, and focus on training Malian

workforce

• Workforce of 1896; including 558

contractors

Tabakoto Underground Mine Longitudinal Section Facing North East

• Production is transitioning from:

H2 2014

o Tabakoto Underground o Segala Underground o Djambaye II Open Pit

2015

o Tabakoto Underground o Segala Underground o Kofi C Open Pit

Q2 2014

o Tabakoto Underground o Djambaye II Open Pit o Stockpiles

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Segala Mine

• Segala underground mine now

contributing to Tabakoto mill feed

• At June 18, 2014:

–

Decline face at 203 metres below

surface

–

1,291 metres in the decline

–

3,751 metres of lateral development

on four levels to provide access to

the ore body

–

Levels access every 20 metres

vertically

• Main ore body is 20 metres wide on

average

• Long hole transverse method with

Cemented Rock Fill (CRF) will be used

to mine Segala

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Kofi Mine Permit Received

• Mining permit area includes 8 known

deposits that so far comprise resources of

Indicated 0.6 million ozs plus Inferred 0.6

million ozs

• Kofi C deposit reserves have already been

added to the Tabakoto production schedule

starting in 2015

–

2P Reserve

1

_{of 1.55 million tonnes}

at 4.3 g/t containing 213,000 ozs

–

38 km haulage to Tabakoto plant

• Work continues on conversion of resources

to reserves for the other Kofi deposits along

the haul route

• Excellent exploration potential on Tabakoto

property and on the Kofi Property, especially

on continuation of the Loulo trend

Kofi Property

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Burkina Faso – Youga Mine and Houndé Project

• Youga mine ownership is 90%

Endeavour, 10% government of

Burkina Faso

• Acquired through takeover of

Etruscan in 2010

• Located 200 km from Ouagadougou

-3 hours drive

• Also have the Hounde Project;

acquired in 2012 and is now in

permitting

Youga

Houndé

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Youga Mine

• Operations commenced in March 2008 and

461Kozs have been produced to end of 2013

• Produced 19,867 in Q1

• Low sustaining capital requirements

• Good cash flow generator

• Workforce of 715 including 339 contractors; with

22 expats

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Houndé Project – In Permitting

• Feasibility study completed in 2013

–

2P Reserve

1

_{of 25 million tonnes}

at 1.95 g/t containing 1.55 million ozs

–

3.0 Mtpa SAG/Ball mill and

Gravity/CIL

–

180,000 ozs per year over 8 years

–

AISC/oz of less than $800/oz

–

Upfront capital of $315M including

owner mining fleet

–

IRR 22.4% at $1,300/oz (post tax)

• Submitted for permitting in Nov

2013

–

Public consultation meetings

completed

• Projects Team is now reviewing

and optimizing based on recent

Agbaou construction experience

Houndé FS General Site Layout Mine, Waste Dumps, and Plant Location

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Houndé Project – Exploration Potential

Houndé Property Targets and Trends

• Exploration Team developed

a work program based on

prior drilling which could

enhance the resource base

• Mineralized areas are

highlighted by

–

Gold in soil geochemistry

–

Geophysical signatures

–

Structural trends

• Known targets include

–

Parallel trends close to the

Vindaloo deposits

–

Douhoun, Grand Espoir,

Bouéré and Kari Pomp to the

northwest

–

Kopoi to the northeast

–

Vindaloo Far South, Soukou

and Kari Sud zones to the

south

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2014: focus on effectively managing our 4 mines

• Achieve production and cost guidance

• Remain focused on safety and respect for the

environment

• Continue to develop our local workforce and contribute

to the communities in which we operate

• Preparing to build Houndé Project

Endeavour is an excellent value proposition for

investors

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Neil Woodyer

CEO

[email protected]

+377 97 98 7161

SVP Business Development

[email protected]

+1 604 609 6114

Richard Thomas

EVP Technical Services

[email protected]

+377 97 98 7160

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Tabakoto Gold Mine, Mali

Tabakoto Gold Mine (80% Endeavour, 20% Mali) Kofi (84.4% Endeavour, 5.6% third-party, 10% Mali)

Resources

(incl. of Reserves, 100%)

M&I: 17.2Mt @ 3.0 g/t for 1.679Mozs (~52% U/G @ 4.7 g/t)

Inferred: 19.0Mt @ 2.6 g/t for 1.603Mozs (~59% U/G @ 4.6 g/t)

Reserves (100%) 6.9Mt @ 3.6 g/t for 0.794Mozs (~60% U/G @ 4.1 g/t)

Processing Rate 1.4 Mtpa Gravity/CIL Plan

Mining Type Tabakoto (UG), Segala (UG) & Djambaye II Open Pit Mine

Met. Recovery 92% - 95% Production 2012 – 110,301 ozs 2013 – 125,231 ozs 2014 Q1 – 33,472 ozs 2014e – 140,000 to 155,000 ozs Cash Costs ($/oz)

2013 - $972 2014 Q1 - $1,157 2014e - $790 to $840

Royalty 6%

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Agbaou Gold Mine, Côte d’Ivoire

Agbaou Gold Mine (85% Endeavour, 10% Côte d’Ivoire, 5% SODEMI)

Resources

M&I: 15.0Mt @ 2.3 g/t for 1.100Moz Inferred: 2.2Mt @ 2.3 g/t for 0.165Moz

Reserves (100%) 11.4Mt @ 2.4 g/t for 0.880Moz

Strip Ratio 7.9 to 1

Processing Rate Up to 1.6 Mtpa Gravity/CIL plant

Met. Recovery 92.5%

Mining Type Open Pit – Contractor Mining (BCM) Production

2013 – 6,132 ozs (during commissioning) 2014 Q1 – 24,086 ozs

2014e – 85,000 to 95,000 ozs Cash Costs ($/oz) 2014 Q1 – $594

2014e– $730 to $780

Expected Mine Life 8 years from current Reserves

Royalty 3% - 5% sliding scale

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Nzema Gold Mine, Ghana

Nzema Gold Mine (90% Endeavour, 10% Ghana)

Resources

M&I: 38.4Mt @ 1.4 g/t for 1.693Moz Inferred: 7.7Mt @ 1.3 g/t for 0.313Moz

Reserves (100%) 9.9Mt @ 2.1 g/t for 0.602Moz

Strip Ratio 3 to 1 (2013)

Processing Rate 1.6 to 2.1Mtpa Gravity/CIL plant

Met. Recovery 91% to 75% depending on ore type

Production

2012 – 109,447 ozs 2013 – 103,464 ozs 2014 Q1 – 28,487 ozs

2014e – 110,000 to 120,000 ozs Cash Costs ($/oz)

2013 - $917 2014 Q1 - $890 2014e – $780 to $830

Expected Mine Life 6 years from current Reserves

Royalty 5% (+1% third-party at Adamus pits)

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Youga Gold Mine, Burkina Faso

Youga Gold Mine (90% Endeavour; 10% Burkina Faso)

Resources (incl. of Reserves, 100%)

Youga & Ouaré

M&I: 15.5Mt @ 1.6g/t for 0.805Moz Inferred: 2.2Mt @ 1.4g/t for 0.099Moz

Reserves (100%) 4.0Mt @ 2.0g/t for 0.265Moz

Strip Ratio 4.3 to 1 (2013)

Processing Rate 1.0Mtpa Gravity/CIL plant

Met. Recovery 94% Production 2012 – 91,030 ozs 2013 – 89,448 ozs 2014 Q1 – 19,867 ozs 2014e – 65,000 to 70,000 ozs Cash Costs ($/oz)

2013 - $730 2014 Q1 - $680 2014e – $790 to $840

Expected Mine Life 2 years at current grade (with potential for 5+ years with satellite deposits and Ouaré)

Royalty 3% - 5% sliding scale