Mr. Bradford Cooke reports

ENDEAVOUR SILVER FORECASTS STEADY SILVER PRODUCTION IN 2014

Endeavour Silver Corp. has released its improved cash and debt positions at year-end and the company's consolidated operating guidance for 2014 for its three underground, silver-gold mines in Mexico, the Guanacevi mine in Durango state and the Bolanitos and El Cubo mines in Guanajuato state.

Production outlook

Endeavour plans to hold its silver production relatively steady in the range of 6.5 million to 6.9 million ounces compared with the 6.8 million ounces of silver it produced in 2013. Gold production is expected to be in the 65,000-to-69,000-ounce range and silver equivalent production is anticipated to be 10.4 million to 11.0 million ounces (at a silver:gold ratio of 60:1) as shown in the associated table.

                               FORECAST 2014 PRODUCTION  
   
                      Ag production    Au production    AgEq production        Tonnes/day
Mine                          (moz)            (koz)              (koz)             (tpd)

Guanacevi                2.6 -- 2.7       7.0 -- 8.0         3.0 -- 3.2    1,200 -- 1,300
Bolanitos                2.2 -- 2.4     36.0 -- 38.0         4.4 -- 4.7    1,450 -- 1,600
El Cubo                  1.7 -- 1.8     22.0 -- 23.0         3.0 -- 3.1    1,200 -- 1,550
Total                    6.5 -- 6.9     65.0 -- 69.0       10.4 -- 11.0    3,850 -- 4,450

Bradford Cooke, chief executive officer of Endeavour, commented: "After delivering tremendous production growth in 2013, we plan to hold production relatively steady for 2014, hone the operations and position the company for a turnaround in metal prices later this year. Our capital budget is significantly reduced this year which will help boost free cash flow.

"Our focus this year will be on further refining our operating and financial performance through initiatives to improve productivity, reduce operating costs and enhance cash flow at all three mines, as well as completing the operational turnaround at El Cubo. We have resumed exploration around the mines in order to replace depleted reserves and expand resources, but greenfields exploration will be minimized to drilling our emerging new, high-grade discovery at the San Sebastian property."

The main opportunity to expand production in 2014 is at El Cubo, where the plant is currently operating at 1,200 tonnes per day but has a capacity of 1,550 tonnes per day. Management plans a steady ramp-up of plant throughput during the year as mine development opens up the new Villalpando-Asuncion deposit for increased production. The main area of reduced production in 2014 is at Bolanitos where the plant is operating at its 1,600-tonne-per-day capacity and management has elected not to continue extra mine production for processing at the El Cubo plant as it did in 2013.

Bolanitos and El Cubo are both producing silver-gold concentrates for sale under one-year contracts to smelters because their attractive terms offer lower costs and higher profit margins compared with producing dore bars from the El Cubo leach plant at the current low metal prices.

At El Cubo, production will continue primarily from the Dolores, Villalpando, San Nicolas and Santa Cecilia veins as well as the emerging new Villalpando-Asuncion deposit. At Guanacevi, production will continue primarily from the Porvenir Norte, Porvenir Cuatro and Santa Cruz veins. Underground development of the new Milache discovery is awaiting permitting for development to start in 2014 and production to start in 2015. At Bolanitos, production will continue primarily from the Daniela, Karina, Lana and Bolanitos veins and mine development will open up the La Luz-Asuncion deposit.

Operating costs

Consolidated byproduct cash costs of silver production (net of gold credits) are expected to be in the $9-to-$10 range in 2014, largely due to the lower gold price and reduced gold production. Consolidated co-product cash costs of silver and gold production are anticipated to be around $13 to 14 and $800 to 850 per ounce, respectively.

All-in byproduct sustaining costs of production (including sustaining capex, exploration and G&A costs) are forecasted to be approximately $19 per ounce of silver produced and all-in co-product sustaining costs of production are predicted to be approximately $19 per ounce silver and $1,166 per ounce gold. Direct operating costs are estimated to be in the $95-per-tonne range.

Capital budget

Endeavour plans to invest $43.9-million on capital projects in 2014, including $34.6-million on mine development, infrastructure, equipment and exploration plus $9.3-million on plant upgrades, infrastructure, equipment and plant and exploration buildings.

The company has budgeted $20.9-million at El Cubo, $9.9-million at Bolanitos, $11.7-million at Guanacevi and $1.4-million for general capital, all of which should be covered by the company's anticipated 2014 cash flow.

Exploration expenditures

In 2013, Endeavour plans to spend $11.9-million on exploration. A total of 54,000 metres of drilling in about 120 holes are budgeted to test multiple exploration targets in addition to the underground mine exploration drilling. The company will focus on brownfields exploration around the three operating mines in order to replenish reserves and grow resources and mine lives, as well as expanding and permitting the emerging new high-grade silver-gold discovery in the Terronera vein on the San Sebastian property in Jalisco state.

Endeavour will also continue evaluating M&A opportunities in order to identify and possibly acquire a fourth operating mine while market valuations are low.

Cash position

Thanks to Endeavour's strong operating performance in the second half of 2013, the company was able to significantly add to its cash position and reduce its revolving bank line of credit balance by year-end. Net debt improved by about $19-million in the last six months of 2013, from cash of approximately $22-million and debt of $39-million at June 30, 2013, to cash of approximately $35-million and debt of $33-million at Dec. 31, 2013 (all currency figures unaudited).

Endeavour is on track to deliver another strong year of production in 2014, notwithstanding the lower metal prices, due to the company's philosophy of continuous improvement. With an improved balance sheet, Endeavour is well positioned financially to execute its business plan in 2014.

We seek Safe Harbor.