Mr. Neil Woodyer reports

ENDEAVOUR MINING REPORTS 2012 ALL-IN MARGIN OF $130 MILLION AND UPDATES 2013 OUTLOOK

Endeavour Mining Corp. has released strong financial and operational results for 2012 with production of 310,778 ounces of gold, including full 2012 production from the Tabakoto mine. Endeavour acquired the Tabakoto mine (and the Hounde and Kofi projects) on Oct. 18, 2012, which requires Endeavour's audited financial results to include only the 75-day operating period from Oct. 18 to Dec. 31, 2012, for Tabakoto. For 2012, Endeavour's all-in sustaining cash cost per ounce produced was $1,077 leading to an all-in sustaining margin of $130-million. The guidance range for 2013 all-in sustaining cash cost per ounce is $1,055 to $1,155, which includes revised cash cost guidance ranges for the Nzema and Tabakoto mines.

(All amounts are in U.S. dollars unless otherwise indicated.)

Financial and operating highlights 2012:

• Gold production in 2012, adjusted for the partial year, including Tabakoto, was 220,462 ounces.
• Gold sold in 2012, adjusted for the partial year, including Tabakoto, was 218,887 ounces, which generated a mine cash margin of $179-million (equivalent to 107,366 ounces of gold), and after corporate costs, sustaining capital and near-mine exploration expenses generated an all-in sustaining margin of $130-million (equivalent to 78,038 ounces of gold).
• Total cash cost per ounce produced was $767.
• Including royalties, corporate costs, sustaining capital and near-mine exploration, the all-in sustaining cash cost per ounce produced in 2012 was $1,077.
• The all-in sustaining margin was 36 per cent.
• During 2012, Endeavour invested $106-million in new mine construction, development and exploration, leading to free cash flow of $24.7-million after all operating and development activities.
• Adjusted net earnings were $35.8-million or 13 cents per share for the year.
• As of Dec. 31, 2012, Endeavour had cash and cash equivalents of $105.9-million and 27,000 ounces of gold ($45.2-million) with long-term debt of $200-million drawn from a corporate facility.
• Endeavour's attributable proven and probable mineral reserves have increased to a total of 2.5 million ounces, and attributable measured and indicated resources (inclusive of reserves) totalled 6.4 million ounces, plus 2.6 million ounces inferred.

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

Neil Woodyer, chief executive officer, stated: "Two thousand twelve was another successful year of delivering on operational guidance while also achieving significant growth for our company. Our Nzema and Youga mines produced 200,476 ounces exceeding our guidance range of 180,000 to 192,000 ounces at a cash cost per ounce of $701 compared to a guidance range of $670 to $690.

"In October, 2012, we acquired our third operating mine, Tabakoto in Mali, and two attractive projects, Hounde in Burkina Faso and Kofi in Mali. In our view, Tabakoto was underperforming due to a lack of working capital, poor management structures, overuse of contractors and excessive site staffing levels. We closed the Avion corporate office in Toronto in November and redirected Tabakoto mine management to report to Endeavour's COO and senior operations team in Accra. In December, we started a major restructuring initiative, which has included a 20-per-cent reduction in site staff levels during Q1 2013, the termination of the open-pit mining contractor in January, 2013, and the implementation of cost budgeting and mine reporting systems, which were inadequate under previous management. During the 75-day postacquisition stub period, Tabakoto produced 19,985 ounces at a cash cost per ounce of $1,250, and, with the restructuring now under way, cash costs at Tabakoto have started to improve significantly during January and February, 2013.

"During 2013, we expect to increase gold production from our three mines to between 310,000 and 345,000 ounces with growth coming from the nearly complete mill expansion at Tabakoto, while focusing on managing our costs. As a result of slower than expected access to the higher-grade ore at Nzema's Adamus pits, we have revised our 2013 cash cost guidance at Nzema to $850 to $900 per ounce. In addition, we are increasing our 2013 cash cost guidance for Tabakoto to $880 to $920 per ounce due to the time lag for implementing and realizing the benefit of the cost savings measures. Over all, our gold production guidance remains unchanged.

"Based on mid-guidance production and revised cash costs and assuming a $1,600 gold price, during 2013, we expect to generate approximately $160-million of all-in sustaining margin, after all operating costs, royalties, sustaining capital, corporate and near-mine exploration expenses.

"Agbaou construction is on schedule with all major construction contracts and the mining contract awarded in line with the budget. Approximately 65 per cent of the total construction cost has been committed with production on schedule for Q1 2014.

"The Hounde project, in Burkina Faso, is in feasibility study and has the potential to add to our production in 2016, and Kofi has exciting exploration potential to round off our future growth profile.

"Endeavour is pleased to improve the transparency and understanding of financial performance for our shareholders, as well as for our government partners, by reporting all-in sustaining cash costs and margins. During 2012, we sold 218,887 ounces of gold and after all operating costs, royalties, sustaining capital, corporate and near-mine exploration expenses, we had $130-million remaining for a 36-per-cent margin. We then invested $106-million in new mine development and exploration, for free cash flow of $25-million in the year. Endeavour is in a rapid internal growth period with high-quality development projects. It's important we focus on managing costs and optimizing our current operations and development projects."

     ADJUSTED NET EARNINGS RECONCILIATION FOR THE YEAR ENDED DEC. 31, 2012
                                                                              Year ended
                                                                           Dec. 31, 2012
                                                                         $ millions (U.S.)

Net (loss) attributable to shareholders of Endeavour                              ($15.5)
Change in unrealized loss/(gain) -- gold price protection program                  (15.6)
Change in fair value of Cdn currency share purchase warrants                        (9.7)
One-off corporate costs                                                              3.3
Acquisition costs                                                                    5.8
Gold reserve settlement                                                              1.5
Deferred income tax expense                                                         30.4
Loss/(gain) on disposal of mining interests                                          0.3
Year 2013 gold hedge settlements (Nzema and Tabakoto)                               17.3
One-time Ghanaian tax audit assessment                                               4.7
Loss on marketable securities                                                        9.6
Writedown of investment in associate                                                 3.6
Adjusted net earnings after tax                                                    $35.8

Full-year 2012 operational results and outlook

Nzema gold mine:

• Ghana gold production of 109,447 ounces (including 10,253 ounces from purchased ore) at a cash cost of $722 per ounce produced (excluding purchased ore) compared with guidance of $680 to $700 per ounce;
• Cash costs higher than expected for full-year 2012 mainly due to higher costs in fourth quarter 2012 from processing lower-grade ore as Nzema transitioned into the Adamus pits (previously known as Anwia and Teleku-Bokazo), which has taken longer than expected;
• Continued mining and processing of lower-grade material from the upper portion of the Adamus pits into first quarter 2013; accordingly, production has been below budget and cash costs are expected to be elevated in first quarter 2013 before improving as higher-grade portions of the Adamus pits are accessed;
• Guidance 2013 is for production of 100,000 to 110,000 ounces at a revised cash cost of $850 to $900 per ounce (previous cost guidance was $780 to $820 per ounce) due to slower than expected transition to full production at the Adamus pits, which contain higher-grade ore reserves.

Youga gold mine, Burkina Faso:

• Gold production in 2012 of 91,030 ounces at a cash cost of $678 per ounce produced compared with guidance of $655 to $675 per ounce;
• Another year of strong performance; generated $85.7-million of operating cash flow from mine operations compared with $59.7-million for the year ended Dec. 31, 2011;
• The 2013 guidance reflects the decreased ore grade as compared with 2012 as scheduled in the Youga mine plan and remains unchanged at 75,000 to 85,000 ounces at a cash cost of $740 to $780 per ounce.

Tabakoto gold mine, Mali:

• Full-year gold production was 110,301 ounces. Gold production for the 75-day operating period from Oct. 18 to Dec. 31, 2012, was 19,985 ounces at a cash cost of $1,250 per ounce produced.
• In line with standard industry practice, Endeavour has applied more prudent accounting judgments that resulted in including certain expenditures, previously included in capitalized amounts in Avion's presentation of Tabakoto performance, to be included now as operating costs.
• The Tabakoto mine is undergoing a significant restructuring and reorientation, including:
• • Avion corporate office closed in November, 2012, eliminating all corporate management roles.
  • Tabakoto mine management reports directly to Endeavour's chief operating officer and operations management team in Accra, Ghana.
  • Underground resource development is a priority, along with rigorous mining planning, as well as renegotiation with the underground contract miner regarding a longer-term, more cost-effective contract.
  • The company terminated an open-pit mining contractor in January, 2013, and initiated the use of a rented owner fleet.
  • The total work force has been reduced from approximately 1,950 in November, 2012, to fewer than 1,575 at the end of February, 2013. Once the mill expansion is complete and the construction contractors leave the site, the work force will be below 1,450.
  • A major business systems upgrade has been started to ensure that mine operations have timely access to production and cost information.
• Guidance for 2013 is for production of 135,000 to 150,000 ounces, and, due to the significant changes and the time lag for implementing and realizing the benefit of the cost savings measures, the 2013 cash cost guidance has been revised to $880 to $920 per ounce (previous cost guidance was $830 to $870 per ounce).
• Increased production will be driven by expansion of the Tabakoto mill, which is nearing completion on schedule. Currently, hot commissioning of the mill is continuing, and ramp-up of throughput is scheduled to occur during April, such that second-half production is expected to be higher than in the first half.
• The benefits of the expansion are expected to lower cash costs per ounce in the second half of the year. The company also expects to see lower costs as a result of cost-cutting measures started late last year, including staff reductions.
• Underground development at Segala restarted during fourth quarter 2012 and overcame the difficult ground encountered in March, 2012. Ramp development rates have improved significantly into first quarter 2013, with the ramp now extending over 350 metres from the portal.

Agbaou gold mine construction:

• Construction remains on schedule to achieve gold production during first quarter 2014. Costs are also on target as all major contracts have been finalized within the cost estimates of the feasibility study and over 65 per cent of capital costs are now committed.
• Recent months have seen significant progress in the physical build at the mine (now over 50 per cent finished), including completion of major concrete pours for the mill, initial deliveries of structural steel, camp construction nearing completion, access road finished, and tailings storage facility and water storage dam construction well advanced.
• Key operations personnel, including the general manager, have been recruited.
• Five-year mining contract was awarded to BCM International Ltd., within the cost estimates of the feasibility study.
• The project continues to enjoy strong community support, with crop compensation 100 per cent complete and relocation construction for 250 residents nearing conclusion.

Production guidance 2013 and all-in margin forecast:

• Total 2013 gold production guidance is between 310,000 to 345,000 ounces at an average cash cost of $840 to $880 per ounce, including the revised cost guidance for Nzema and Tabakoto.
• Using mid-guidance production and cash costs and assuming a $1,600 gold price, the 2013 forecast mine cash margin is approximately $213-million (equivalent to 133,047 ounces of gold), and after corporate costs, sustaining capital and near-mine exploration expenses, the forecast all-in sustaining margin is approximately $166-million (equivalent to 103,672 ounces of gold).
• The 2013 estimate for all-in sustaining cash cost per ounce produced is $1,055 to $1,155.
• During 2013, Endeavour plans to invest approximately $200-million in new mine construction, development and exploration, leading to a forecast negative free cash flow of approximately $34-million after all operating and development activities.
• Endeavour is in a strong financial position to finance its internal growth, with $151-million of cash and gold bullion on hand as of Dec. 31, 2012.

Financing activities and reconciliation of cash position for 2012:

• The corporation has accumulated a holding of 27,000 ounces of gold bullion with a cost of $46.2-million (fair value of $45.2-million) at Dec. 31, 2012, to offset long-term gold hedging partially while maintaining financial flexibility.
• In December, 2012, the corporation reduced its gold hedge program by closing out the 2013 gold hedge positions at Tabakoto (12,132 ounces at an average of $800 per ounce) and Nzema (10,000 ounces at $1,061.75 per ounce) for a total cash settlement of $17.3-million. The close-out of the 2013 hedge deliveries means that all of Endeavour's 2013 gold production will be sold into the spot market.
• In December, 2012, the corporation repaid the $28-million outstanding balance under the credit facility with Banque Atlantique Mali, which had been used by Avion to advance the Tabakoto mill expansion in 2011 and 2012.
• In December, 2012, the corporation drew down the remaining $100-million of its $200-million four-year revolving corporate loan facility to maintain a high level of cash liquidity after financing the gold bullion position, buying back the 2013 hedges and repaying Banque Atlantique Mali credit facility.

Conference call details

Management will host a conference call to discuss the 2012 results on March 28, 2013, as detailed herein. The call will feature presentations from Mr. Woodyer, chief executive officer, Attie Roux, chief operating officer, and Christian Milau, chief financial officer.

Analysts and interested investors are invited to participate using one of the dial-in numbers provided herein.

                      DIAL-IN NUMBERS
International                               1-201-689-8433   
North American toll-free                    1-877-407-0832   
Australian toll-free                    0011-800-2246-2666                                                       

The conference call can also be accessed through the Endeavour webcasts website.

The conference call will be held and webcast on March 28, 2013.

            CONFERENCE CALL TIMES

7 a.m.              In Vancouver              
10 a.m.             In Toronto and New York   
2 p.m.              In London                 
10 p.m.             In Perth                  
1 a.m.              In Sydney (March 29, 2013)

The call will be archived for later playback on Endeavour's website until March 28, 2014.

Qualified persons

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

Gerard de Hert, EurGeol, Endeavour's vice-president of exploration, is a qualified person under NI 43-101 and has reviewed and approved the mineral reserve and resource information contained in this news release.

We seek Safe Harbor.