Mr. Godfrey Walton reports

ENDEAVOUR SILVER SIGNS DEFINITIVE AGREEMENT TO ACQUIRE ORO SILVER RESOURCES AND ITS EL COMPAS GOLD-SILVER MINE PROPERTY AND LEASED PLANT FROM CANARC RESOURCE

Endeavour Silver Corp. has entered into a definitive agreement with Canarc Resource Corp. to acquire a 100-per-cent interest in Oro Silver Resources Ltd., a wholly owned subsidiary of Canarc. Oro Silver holds the El Compas gold-silver mine property and a five-year renewable lease on the 500-tonne-per-day (tpd) La Plata ore processing plant in Zacatecas, Mexico.

Pursuant to the agreement, Endeavour will pay Canarc $10.5-million by issuing 2,147,239 common shares of Endeavour at a deemed issue price of $4.89, representing the 10-day volume-weighted average price of Endeavour's shares on the Toronto Stock Exchange. Endeavour will assume Canarc's obligation to pay an aggregate of 165 troy ounces of gold from production to Marlin Gold Mining Ltd.

Closing will occur upon receipt of applicable regulatory approvals and the satisfaction of customary closing conditions, expected no later than June 30, 2016. The transaction was evaluated and negotiated by management led by Godfrey Walton, president and chief operating officer. The transaction was approved by the independent members of the Endeavour board. Due to his positions as chairman and director of Canarc, Bradford Cooke, chief executive officer, did not participate in any deal discussions or in the board meeting to review and approve the transaction.

Rationale for purchase and benefits to Endeavour

• The transaction provides Endeavour with the opportunity to acquire a high-quality, permitted gold-silver mine and a modern leased plant nearby, and recommence exploration and development on a fast track to production, pursuant to Endeavour's successful historic business model.
• The El Compas gold-silver mine project has good exploration potential to expand resources and good acquisition potential to consolidate stranded resources and exploration targets within the Zacatecas mining district to extend mine life.
• The 500 tpd La Plata plant was constructed by the Zacatecas state government in September, 2013, for processing minerals available from local small miners in the state. It last operated in October, 2014, was leased to Oro Silver in January, 2016, has fully permitted crushing, grinding, flotation and tailings circuits, and is located within 20 kilometres on mostly paved roads from the mine.
• The 3,990-hectare El Compass property hosts a current resource estimated in January, 2016, by Canarc and consists of 28 concessions fully permitted for mining. Of these, 22 concessions are subject to a 1.5-per-cent net smelter return royalty, while six concessions are subject to a 3.0-per-cent NSR royalty.
• Capital costs are estimated at less than $10-million (U.S.) and the time frame to develop the mine and refurbish the plant for production is estimated to be less than one year.
• Endeavour's short-term goal at El Compas will be to invest in exploration to upgrade and expand the resource, consolidate properties in the district to extend mine life, refurbish the plant, re-evaluate the economics to develop the mine, and complete a National Instrument 43-101 report this year.
• If successful, Endeavour would commence production at El Compas in 2017.

Mr. Walton commented: "We are pleased to add another high-quality mining property to our project portfolio, and we look forward to unfolding the full potential at El Compas and starting a new mining operation in another historic silver district in Mexico. El Compas should help our production and cash flow profiles while we develop our exciting new Terronera silver-gold mining project."

We seek Safe Harbor.