Rebuilding Silver and Gold Growth Portfolio: Endeavour Silver Positioned to Unlock Value with Terronera Project

• Endeavour Silver Corp, a mining company based in Mexico, currently operates two mines and is building the Terronera project which is expected to start production by Q4 of 2024, doubling their production and halving costs.
• The company's primary focus at the Beaver Creek conference is to connect with institutional investors and keep shareholders updated about the company's progress.
• The company is open to acquiring distressed assets if they fit strategically and can be methodically integrated. They have a good market reputation and solid financials, with operating assets providing cash flow and additional debt to be added for the Teranera project.
• Despite political uncertainties in Mexico, Endeavour Silver believes Mexico remains a top jurisdiction for silver mining. The company emphasizes the global need for metals, especially with the push towards greener technologies.

About Endeavour Silver

Endeavour Silver Corp (TSX: EDR) is a silver and gold mining company operating two mines in Mexico - the Guanaceví mine in Durango state and the Bolañitos mine in Guanajuato state. The company is currently constructing its third mine, the Terronera project, also located in Jalisco state, which is expected to double the company's production and cut costs when it comes online in Q4 2024.

Endeavour Silver was founded in 2004 and has been steadily growing its portfolio of assets. The company produced 4.9 million ounces of silver and 52,967 ounces of gold in 2021 from its two operating mines. Endeavour Silver is led by CEO Dan Dickson, who has been with the company for 15-17 years in various roles.

Interview with Chief Executuve Officer, Dan Dickson

Key Developments: Construction Underway at Terronera

The key focus for Endeavour Silver right now is the development of its 100% owned Terronera project in Jalisco state. The company began construction of the mine in Q2 2023, with the first silver production expected in Q4 2024.

The Terronera project has Probable Mineral Reserves of 5.275 million tonnes grading 198 g/t silver and 2.11 g/t gold for 33.4 million ounces of silver and 357,000 ounces of gold. Over its initial 9-year mine life, the project is expected to produce an average of 3 million ounces of silver equivalents per year. Construction is being funded through a combination of cash flow from existing operations and debt financing. Endeavour Silver expects to draw down $120 million in debt by the end of 2023 to fund construction.

Bringing Terronera into production on time and on budget will be key for Endeavour Silver to significantly boost cash flow, lower costs, and improve its financial position. The added production and lower costs from Terronera are expected to transform Endeavour into a mid-tier precious metals producer.

Optimizing Existing Operations

While the flagship Terronera project advances, Endeavour Silver continues to optimize its two existing mines in Mexico. The company has implemented various initiatives to improve productivity and manage costs at Guanacevi and Bolañitos.

However, both Guanaceví and Bolañitos are older assets that are high-cost compared to the industry average. Bringing Terronera online will help offset the higher costs from these two mines. Endeavour plans to continue operating Guanacevi and Bolañitos to generate cash flow in the coming years, but the company's growth will be driven by its development pipeline.

Advancing Development Pipeline

Beyond Terronera, Endeavour Silver has an attractive pipeline of development assets to drive the next phase of growth. The company's key projects include:

• Parral Project - silver-gold project in Chihuahua state with potential for near-term production from underground mining. Endeavour plans to advance engineering studies and exploration drilling here.
• Pitarrilla Project - Endeavour acquired this major undeveloped silver project in Durango state in 2021. Pitarrilla hosts over 600 million ounces of silver resources and will be a cornerstone growth asset. Endeavour plans initial drilling here in late 2023.

Endeavour Silver will look to develop its pipeline of projects in parallel, leveraging cash flows from Terronera. The company will take a measured approach, advancing only projects that demonstrate robust economics. Additional acquisitions are also possible to further bolster the growth pipeline.

Maintaining a Strong Financial Position

Endeavour Silver has maintained a solid balance sheet even with the demands of constructing Terronera, ending 2022 with $78 million in cash and no debt. The company expects to have approximately $120 million in debt by the end of 2024 when Terronera construction is complete.

While this will add some leverage, Endeavour's management believes the debt level will be appropriate for the company as it joins the ranks of mid-tier precious metals producers. Cash flow from Terronera will be used to pay down debt and fund growth projects. Endeavour also has an at-the-market (ATM) equity program in place to provide financing flexibility if needed. However, the plan is to primarily rely on debt and cash flow to fund growth initiatives.

Maintaining financial strength will enable Endeavour Silver to advance its portfolio on its own terms, without excessive dilution or reliance on equity markets.

Managing Mexico Country Risk

All of Endeavour Silver's current operations and growth projects are located in Mexico. While Mexico is one of the world's premier silver mining jurisdictions based on geology, there has been rising country risk.

The current government has made anti-mining rhetoric in recent years regarding environmental impacts and taxes. However, no major changes have been implemented yet that directly impact Endeavour or the broader mining industry. Endeavour SIlver has strong in-country expertise to navigate Mexico's mining regulations and permitting processes. Open-pit mining does face more uncertainty in Mexico currently, but Endeavour is focused on underground mining which is seen as more favorable.

The upcoming elections in 2024 do present some political risks depending on the results. However, mining is a crucial sector of Mexico's economy, so nationalization of the industry is viewed as unlikely. Endeavour plans to closely monitor any election impacts.

Key Investor Takeaways

Endeavour Silver represents an attractively valued silver and gold producer, trading at discounted multiples compared to peers. Construction of the Terronera mine is the key catalyst that can re-rate the stock as it transforms into a mid-tier precious metals growth company.

In summary, key points for investors on Endeavour Silver include:

• Construction underway at Terronera project with first production in Q4 2024
• Terronera expected to double production to 6 million oz silver eqv per year by 2025
• All-in sustaining costs projected to decrease from $20/oz to $13/oz with Terronera
• Strong existing mine life with exploration upside across portfolio
• Solid balance sheet and cash flow to fund growth
• Advanced pipeline of development assets beyond Terronera
• Leverage and country risk are manageable concerns

Endeavour offers an attractive risk/reward opportunity for investors seeking leveraged silver and gold exposure. The company is poised for significant production growth and margin expansion as it rebuilds into a mid-tier precious metals producer.

The Investment Thesis for Endeavour Silver

Production Growth - Terronera will double Endeavour Silver's annual silver equivalent production to 6 million oz by 2025. This significant production growth provides leverage to rising precious metals prices.

Lower Costs - All-in sustaining costs are projected to decrease from $20/oz currently to $13/oz with Terronera. Lower costs mean higher profit margins when silver and gold prices increase.

Strong Mine Life - Proven & probable reserves support a 9-year initial mine life at Terronera. Existing mines also have additional mine life. Exploration success could further extend mine lives across the portfolio.

Advanced Growth Pipeline - Beyond Terronera, Endeavour has an attractive pipeline of development assets like Parral and Pitarrilla to support continued growth.

Undervalued Stock - Trading at discounted valuation multiples compared to peers. Terronera construction and transformed production profile could re-rate the stock higher.

Precious Metals Exposure - Endeavour offers leverage to silver and gold prices. These precious metals are expected to remain in deficit with prices supported.

Strong Leadership - CEO and management team have extensive mining experience. Good track record of building up the company over the past 15+ years.

Endeavour Silver offers investors excellent leverage to rising silver and gold prices through coming production growth, lower costs, an advanced pipeline, and an undervalued stock. The Terronera project is a key catalyst to unlock significant value in the next 2 years.