Mr. Neil Woodyer reports

ENDEAVOUR MINING REPORTS Q3 GOLD PRODUCTION OF 49,468 OZS AND $40.7 MILLION OF OPERATING CASHFLOW

Endeavour Mining Corp. has released strong financial and operational results for the third quarter of 2012 (all amounts in U.S. dollars unless otherwise indicated). The results include operating cash flow from Youga and Nzema mine operations of $40.7-million and production of 49,468 ounces of gold. The third quarter results do not include results from the Tabakoto mine, acquired via the Avion transaction subsequent to quarter-end.

Neil Woodyer, chief executive officer, stated: "Our Nzema and Youga mines have delivered another strong quarter of production and cash flow, with our nine-month production totalling over 152,000 ounces and generating $121-million of operating cash flow. Now that we have completed the Avion acquisition and added a third mine, Tabakoto, our full year 2012 gold production is expected to be approximately 300,000 ounces and our growth pipeline has expanded. We plan to complete the Tabakoto mill expansion during the first half of 2013, which is expected to increase Tabakoto gold production to approximately 150,000 ounces per year. In addition, Agbaou has achieved its first construction milestone as concrete pouring began this month. The Agbaou mine is on schedule to contribute an additional 100,000 ounces per year from early 2014."

Third quarter/nine months 2012 financial and operational highlights

• Gold production at Youga and Nzema totalled 49,468 ounces for the third quarter and a total of 152,159 ounces were produced during the nine months ended September, 2012.
• Total cash cost (excluding royalties) was $644 per ounce produced at Youga and Nzema for the third quarter and for the nine months ended September, 2012, was $667 per ounce.
• Operating cash flow from Youga and Nzema mine operations was $40.7-million for the third quarter and totalled $121.2-million for the nine months ended September, 2012;
• Youga and Nzema remain on target to deliver full year production of approximately 200,000 ounces within total cash cost guidance of $670 to $690 per ounce (cost guidance excludes production from Nzema purchased ore which has a cash cost of approximately 58 per cent of spot gold price).
• Adjusted net earnings were $18.4-million, or eight cents per share, for the third quarter.
• During the nine months ended Sept. 30, 2012, the corporation invested $61.9-million from its operating cash flow into its operations and exploration programs. Of this, $54.9-million was capitalized and $7.0-million was expensed as exploration. These investments in operational improvements and growth include:
  • Sustaining capital at Nzema: $7.4-million;
  • Sustaining capital at Youga: $2.2-million;
  • Development capital at Nzema: $13.1-million;
  • Nzema and Youga near-mine exploration: $11.6-million;
  • Nzema sulphides project: $5.3-million;
  • Agbaou feasibility study (completed June, 2012): $4.5-million;
  • Agbaou 2012 near-pit design exploration: $4.0-million;
  • Agbaou construction spending: $9.4-million;
  • Regional exploration: $4.3-million;
• At Sept. 30, 2012, the corporation had cash and equivalents, and marketable securities of $130.5-million, which includes $100-million drawn from the $200-million corporate debt facility.
• Production from the newly acquired Tabakoto mine will be included in Endeavour's fourth quarter results for the operating period of Oct. 18, 2012, to Dec. 31, 2012.

Attie Roux, chief operating officer, stated: "Our mines are continuing to demonstrate strong and consistent performance as we focus on optimizations and cost controls. Our operations hub in Accra, Ghana, is proving to be very beneficial to integrating the newly acquired Tabakoto mine into our operations systems as we standardize mine reporting, share best practices and implement cost-saving initiatives, such as bulk buying of key reagents and parts. We are pleased with the start-up of construction activities and progress at Agbaou as our fourth mine begins to take shape."

Financial statements, and related management's discussion and analysis will be available on SEDAR, the Australian Stock Exchange website, OTC Markets website and in the investor relations section of Endeavour's website.

                             NZEMA GOLD MINE, GHANA -- QUARTERLY PRODUCTION 

                                                                        Q3 2012     YTD 2012   Full year guidance

Ore milled (000 t)                                                          555        1,616                       
Milled grade (g/t Au)                                                      1.78         1.78                       
Gold production (oz)                                                     26,942       82,780   102,000 to 112,000
Cash cost per ounce produced (US$/oz)                                      $710         $709                       
Cash cost per ounce produced (US$/oz) -- excluding purchased ore           $688         $675         $680 to $700

• Total mining volumes exceeded budget by 5 per cent during Q3.
• 26,942 total ounces produced in Q3 (including purchased-ore-related production of 1,672 ounces) exceeded budget by 1,698 ounces.
• During Q3, Nzema contributed $23.0-million toward $45.2-million of total operating cash flow from operations (adjusted to include add back of $4.5-million payment of a Nzema reclamation deposit that is recognized as restricted cash on the financial statements).
• During Q3, Nzema generated $10.1-million in earnings from mining operations.
• During Q3, installation of a backup diesel power plant advanced on schedule for completion by year-end.

                
                YOUGA GOLD MINE, BURKINA FASO -- QUARTERLY PRODUCTION

                                                Q3 2012     YTD 2012   Full year guidance

Ore milled (000 t)                                  261          772                        
Milled grade (g/t Au)                              2.90         2.90                        
Gold production (oz)                             22,526       69,379     85,000 to 90,000
Cash cost per ounce produced (US$/oz)              $565         $616         $655 to $675

• Total mined volumes were below budget by 37 per cent due to mining contractor maintenance problems that have since been addressed and volumes have returned to budgeted levels.
• Process plant treated a record 260,990 tonnes.
• Phase two of the Ghana grid power project, which aims to improve grid power supply quality and availability, was advanced toward target completion during the fourth quarter of 2012.
• During Q3, Youga contributed $22.2-million toward $40.7-million of total operating cash flow from mine operations.
• During Q3, Youga generated $19.6-million in earnings from mining operations.
• Drill results were announced from the preliminary-economic-assessment-stage Ouare project near Youga that show good potential to both increase the level of certainty of the resource as well as the overall size. Delivery of the PEA is anticipated during the fourth quarter.

Agbaou project development

Endeavour's Agbaou mine is in construction and remains on schedule to achieve gold production during the first quarter of 2014. During the third quarter of 2012, Endeavour received its mining permit from the government of Cote d'Ivoire and long-lead order items, including mills, transformers and power lines, were ordered. In addition, earthworks began in September, 2012, with areas now cleared for the camp, mine services area, contractor laydown yards and the plant. Furthermore, compensation has been completed for those areas and construction of the camp as well as some of the roads is in progress. Concrete pouring for the plant began during November, 2012.

On Aug. 15, 2012, positive drill results were announced that demonstrated potential to increase mineral resources and reserves near the planned pits at Agbaou.

Qualified persons

Adriaan Roux, PrSciNat, Endeavour's chief operating officer, qualified person under National Instrument 43-101, has reviewed and approved the technical information related to mining operations in this news release.

We seek Safe Harbor.