Endeavour Provides Construction and Exploration Update For Ity Mine

ENDEAVOUR PROVIDES CONSTRUCTION AND EXPLORATION UPDATE FOR ITY MINE

CIL construction is on-time and on-budget · Maiden resource announced on ~25% of the Le Plaque area

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CIL CONSTRUCTION IS ON-TIME AND ON-BUDGET  

• Construction remains on-time and on-budget with first gold pour expected mid-2019
• Concrete works are tracking well, with all eight ring beams and the SAG mill foundation pour complete and ball mill foundation pour commencing
• EPCM design is progressing well with nearly 50% complete

MORE EXPLORATION SUCCESS: LE PLAQUE MAIDEN RESOURCE

• The 100%-owned Le Plaque target has the potential to be the next significant discovery following the recent Daapleu and Bakatouo discoveries, respectively 1.3Moz and 0.7Moz of Indicated resources1
  • The Le Plaque target, covering an area of 4km2, is located 5km south of the future CIL plant
  • Only the central portion, representing about 25% of the Le Plaque target, was drilled in 2017, in an area named Le Plaque Main, for which a maiden Indicated resource of 85koz at 2.70 g/t and an Inferred resource of 43Koz at 2.40 g/t was delineated
  • This maiden resource positions Le Plaque Main to be amongst Ity's highest grade deposits; 75% of the holes drilled in this area encountered intersects thicker than 2m with grades higher than 2g/t
  • Mineralization occurs from surface and remains open at depth and in several directions
  • A high resolution ground IP/resistivity survey is currently underway on the Le Plaque area which will be followed by a new drilling campaign in the coming months, with the goal of delineating the extensions and investigating other high-grade targets in proximity
• A $7m exploration program is planned for 2018 at Ity to further explore the Le Plaque target in addition to several other near-mill targets (including testing of extensions at the Mont Ity, Bakatouo and Daapleu deposits), and on greenfield targets located within the 100km corridor along the Ity mine   

Endeavour Mining (TSX:EDV)(OTCQX:EDVMF) is pleased to announce that good progress is being made on the construction of the CIL plant at its Ity Mine in Cote d'Ivoire, having achieved a major milestone with the completion of the CIL tanks ring beam concrete pours. Construction is progressing on-time and on-budget with the first gold pour expected mid-2019.

In addition, Endeavour is pleased to report a high-grade maiden Mineral Resource estimate for the central part of its Le Plaque discovery, located within 5km of the future CIL plant. The Le Plaque target, which covers an area of 4km2, has the potential to be the next significant discovery following the company's recent Daapleu and Bakatouo discoveries, and the maiden resource positions it to be amongst Ity's highest grade deposits. Only the central portion has been drilled to date, representing about 25% of the Le Plaque target, in an area named Le Plaque Main, for which a maiden Mineral Resource estimate has been delineated, as presented in Table 1 below. A new drilling campaign aimed at delineating the extensions and investigating other high-grade targets in proximity is planned for the remainder of 2018.

Table 1: Mineral Resource estimate for Le Plaque Main deposit

No Measured Resources have been estimated. The Mineral Resource estimates are reported in accordance with the National Instrument 43-101 and has been estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines". The mineral resource estimate is classified as "Indicated" and "Inferred" as defined by the CIM.

Patrick Bouisset, Executive Vice-President Exploration and Growth at Endeavour, said: "We are very pleased with the Le Plaque discovery as it continues to demonstrate the highly prospective nature of the Ity area. While we have only drilled a small portion of the target, its characteristics suggest it may have the potential to be the next significant discovery following the Daapleu, Mont Ity and Bakatouo discoveries. Importantly, with an Indicated Resource grade of 2.7g/t, compared with the current Ity CIL reserve grade of 1.5g/t², the Le Plaque area has the potential to further improve the asset's already robust production profile.

In 2018, we look forward to continuing exploration at the entire Le Plaque target, and several other near-mill targets, with the aim of delineating additional extensions. We are equally excited about our increased greenfield exploration focus with drilling initiating on a number of targets within the wider 100 km Ity corridor which we fully control."

ITY CIL PROJECT CONSTRUCTION UPDATE

Construction is progressing on-time and on-budget with the first gold pour expected mid-2019. The main milestones achieved to date include:

• Nearly 50% of the total capital cost of $412 million has already been committed.
• No LTI with over 800,000 man-hours worked.
• Concrete works are tracking well, with all eight ring beams and the SAG mill foundation pour complete and ball mill foundation pour commencing.
• Tailings storage facility (TSF) earthworks are progressing on schedule with 15% completed.
• EPCM design is progressing on-schedule with approximately 50% completed.
• Design work for the 90KV transmission line is complete and bush clearing is 70% completed.

Picture 1: CIL Ring Beams Poured

Picture 2: TSF Earthworks

ABOUT THE LE PLAQUE DISCOVERY

As illustrated in Figures 1, the Le Plaque area covers 4km², located within 5km of the Ity Mine complex and the future CIL plant location. Several high-grade mineralized trends stretching over 400 meters were identified, with the largest being a 2km long geochemical anomaly with best values >1,000ppb. The trends are all open along strike and at depth. To date, approximately 25% of the Le Plaque target was drilled, in an area named Le Plaque Main as shown in the Figure below.

In addition to the Le Plaque area, several other near-mill targets have been identified (as per the blue circles in Figure 1), which represents a small portion of the 100km corridor controlled by Endeavour.

Figure 1: Ity Near-Mine Exploration Targets

Subsequent to the Le Plaque discovery announced on May 29, 2017, a follow-up drilling campaign was undertaken in Q4-2017 on the Le Plaque Main area with the goal of delineating a maiden resource estimate and to confirm its high-grade mineralization. A total 48 holes of Reverse Circulation ("RC") drilling comprising 4,000 meters and a total of 76 holes of Diamond Drilling ("DD") comprising 10,028 meters have been drilled to-date on the area. The drilling campaign was highly successful with approximately 75% of the drilled holes encountering intersects thicker than 2 meters with grades greater than 2g/t Au.

Some of the selected best DD and RC drill intercepts of the Q4-2017 campaign, include (true thickness):

• Hole FL17-599:  24.00m @ 2.03 g/t
• Hole FL17-603:  6.00m @ 8.96 g/t
• Hole FL17-619:  7.00m @ 6.37 g/t
• Hole FL17-624:  15.00m @ 2.67 g/t
• Hole FL17-626:  11.50m @ 3.44 g/t
• Hole FL17-639:  7.00m @ 5.01 g/t
• Hole FL17-643 : 4.00m @ 59.41 g/t
• Hole FL17-646:  12.00m @ 3.50 g/t
• Hole FL17-655 : 8.50m @ 11.94 g/t
• Hole FL17-657:  16.50m @ 3.33 g/t
• Hole FL17-661 : 5.00m @ 7.49 g/t

As shown in Figure 2, the Le Plaque area appears to be geologically and structurally complex with mineralization being hosted in sheared and deformed rocks, with hydrothermal silica and phyllic alteration (sericite-silica-pyrite).

The Le Plaque target is mostly underlain by diorite and granodiorite intrusions, similar to those found at the Ity mining complex located 5km to the north, with subordinate skarn and volcano-sedimentary units. Regional scale structures transect the area in northeast, north and possibly northwest orientations, and some of these are interpreted as being associated with mineralization.

Figure 2: Le Plaque Main geological context and some Q4- 2017 best intercepts

Preliminary data from an ongoing high-resolution Gradient Induced Polarization/Resistivity survey of a 302km-line covering 7.7km² already suggests, when coupled with previous geological and drilling data, that mineralization remains open at depth and along strike in association with the continuation of host structures. At least three target areas with almost no drilling have been identified and will be drill-tested in coming months.

2018 drilling will also be guided with the integration of high helicopter borne combination Mag/Radiometric/VTEM geophysical surveys flown in 2017 by Geotech Ltd (Canada). Data collected to date suggests that extensions of the Le Plaque Main deposit are constrained by the lack of drill information.

As shown in the cross-sections in Figures 3 and 4, the controls of the mineralization are both lithological and structural. Most of the mineralized structures at Le Plaque Main deposit are found close to the intrusive contact between gently north-plunging granodiorite and diorite or skarn, suggesting a primary peri-batholithic mineralizing event.

Figure 3: Le Plaque Main ESE-WNW Cross-section

Figure 4: Le Plaque Main SW-NE Cross section

2018 EXPLORATION PROGRAM

An $7m exploration program has been planned for 2018 on the greater Ity trend to test the following targets:

ABOUT THE LE PLAQUE MAIN RESOURCE

The Le Plaque resources have been estimated based on the drill results published on May 29, 2017 and those completed in Q4-2017 as provided within the appendix of this press release.

The effective date of this resource estimate is February 5, 2018. The mineral resource is reported at a 0.50 g/t gold cut-off grade within Whittle optimized pit shells based the economic parameters described in the table below:

Table 2: Whittle Pit Shell Parameters

Preliminary metallurgical studies done on the Le Plaque Main deposit indicate the gold recoveries of the mineralized material are similar to the other deposits at the Ity Gold Mine.

The initial Le Plaque Main geological model was developed in Leapfrog 3D modelling software using available geology information from 76 diamond drill holes totaling 10,028 meters completed between 2015 and 2017, and from 48 RC holes totaling 4,000 meters completed between 2016 and 2017. The geological model and assay data guided the mineralization model. A total of 14 mineralized domains were interpreted and modelled into 3D wireframes within Geovia Surpac modelling software. The main mineralized zones have an average strike of  130 degrees azimuth dipping 40 degrees to the northeast. The drill holes gold assays were composited to one-meter intervals within the mineralized wireframes and capped at 25 g/t Au. Spatial analysis of the gold mineralization using variograms indicated a good continuity of the grades along strike and down dip of the mineralized zones.

Gold grades were interpolated using inverse distance squared constrained by the mineralized domains. Density values of the oxidized material vary from 1.4 to 1.5 based on weathering material type, while the fresh rocks density is 2.8. The mineral resource was modelled using a 3D block model built in Geovia Surpac. Measures were conducted to validate the accuracy of the estimate, including comparing results from the inverse distance to ordinary kriging estimation, swath plots comparison and visual review on section and plan view.

The disclosure of a mineral resource statement for the Le Plaque Main deposit is not deemed material to Endeavour as a whole. Therefore, the Company will not be filing a technical report in respect of this mineral resource estimate.

ASSAYS AND QUALITY ASSURANCE/QUALITY CONTROL

The Le Plaque-Floleu drill samples were prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Drill core (HQ and NQ) and Reverse Circulation percussion hammer chip samples were prepared on site at the SMI (Société des Mines d'Ity) exploration mechanical preparation facilities.

Up to the end of 2016 samples were analyzed using a standard 50-gram gold fire assay with an Atomic Absorption finish at Bureau Veritas Laboratories in Abidjan (independent lab). ICP-ES analysis was completed by ACME Laboratories Ltd. in Vancouver, Canada. Core and Reverse Circulation sampling and assay data were monitored through a quality assurance/quality control program designed to follow NI 43-101 and industry best practice.

In 2017 Endeavour entered into an agreement with SGS Cote d'Ivoire SA to establish and operate independent mineral assay laboratory services at Ity Mine operations. The services included dedicated sample preparation, leach, copper soluble and fire assay services for mine and grade control operations, as well as dedicated sample preparation and fire assay facilities for exploration samples.  All Le Plaque-Floleu samples in the 2017 calendar year were processed by SGS using a standard 50-gram gold fire assay with an Atomic Absorption finish (code FAA505). Sample collection followed established procedures, and sample submission included the same control samples and insertion procedures as used in previous campaigns with Bureau Veritas Laboratories in Abidjan. ICP-ES analysis (4 acid digest, code GE-IC40M) was completed by SGS Laboratories Ltd. in Burnaby, Vancouver, British Columbia, Canada

QUALIFIED PERSONS

The scientific and technical content of this news release related to exploration has been reviewed, verified and compiled by Gérard de Hert, EurGeol, Senior VP West Africa Exploration for Endeavour Mining.

Mr. de Hert has more than 19 years of mineral exploration and mining experience, and is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Jeremy Langford, Endeavour's Chief Operating Officer - Fellow of the Australasian Institute of Mining and Metellurgy - FausIMM, is a Qualiied Person under NI 43-101, and has reviewed an approved the technical information in this news release related to the CIL construction announcement.

The statistical analysis, geological modelling and resource estimation were prepared by
Kevin Harris, CPG.
Mr. Harris is Endeavour Mining's VP Resource Manager and is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

CONTACT INFORMATION

ABOUT ENDEAVOUR MINING CORPORATION

Endeavour Mining is a TSX listed intermediate African gold producer with a solid track record of operational excellence, project development and exploration in the highly prospective Birimian greenstone belt in West Africa. Endeavour is focused on offering both near-term and long-term growth opportunities with its project pipeline and its exploration strategy, while generating immediate cash flow from its operations.

Endeavour operates 5 mines across Côte d'Ivoire (Agbaou and Ity), Burkina Faso (Houndé, Karma), and Mali (Tabakoto)which are expected to produce 670-720koz in 2018 at an AISC of $840-890/oz. Endeavour's high-quality development projects (recently commissioned Houndé, Ity CIL and Kalana) have the combined potential to deliver an additional 600koz per year at an AISC well below $700/oz between 2018 and 2020. In addition, its exploration program aims to discover 10-15Moz of gold by 2021 which represents more than twice the reserve depletion during the period.

For more information, please visit www.endeavourmining.com.

Corporate Office: 5 Young St, Kensington, London W8 5EH, UK   

This news release 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. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.

APPENDIX A:

The table below presents the Reverse Circulation and Diamond drilling completed in Q4 2017 at Le Plaque Main. Additional results are available in the press release dated May 29, 2017, available on the Company's website and on SEDAR.

¹ As published in the September 20, 2017 press release entitled "Endeavour launches construction of Ity CIL project based on optimization study"
² As published in the September 20, 2017 press release entitled "Endeavour launches construction of Ity CIL project based on optimization study"

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CIL Ring Beams Poured
TSF Earthworks
SAG Mill Foundation
Ity Near-Mine Exploration Targets
Le Plaque Main geological context and some Q4 2017Best intercepts
Le Plaque Main ESE-WNW Cross section
Le Plaque Main SW-NE Cross section

Source: Endeavour Mining Corporation