Mr. Neil Woodyer reports

ENDEAVOUR REPORTS FIRST QUARTER 2016 RESULTS; AISC CONTINUE TO DECREASE BELOW $900/OZ

Endeavour Mining Corp. has released its financial and operating results for the quarter ended March 31, 2016, with highlights provided herein. (Amounts are in U.S. dollars.)

First quarter 2016 highlights:

• Gold production of 132,000 ounces, on track to meet full-year guidance with higher production expected in the coming quarters;
• All-in sustaining cost further decreased to $900 per ounce ($889 per ounce excluding Youga, which was divested at the end of February), in line with full-year guidance of $870 to $920 per ounce;
• All-in sustaining margin up 54 per cent over the previous quarter to $37,000, lifted by lower AISC per ounce and higher gold prices;
• Free cash flow (before tax, working capital and financing costs) of $28-million, slightly above guidance;
• Net debt reduced to $136-million at quarter-end from $259-million as of March 31, 2015, and further reduced to $71-million following the La Mancha $65-million anti-dilution cash injection under the True Gold acquisition.

                  KEY OPERATIONAL AND FINANCIAL HIGHLIGHTS
                      (all amounts are in U.S. dollars) 
      
                                               Q1 2016       Q4 2015       Q1 2015

Gold production, oz                            131,567       136,844       123,744
Realized gold price, $/oz                       $1,192        $1,102        $1,219
AISC, $/oz                                         900           934           946
All-in sustaining margin, $/oz                     292           168           273
All-in sustaining margin, $M                        37            24            34
Free cash flow, $M (before WC, tax and
financing costs)                                    28            12            25
Net debt at period-end, $M                         136           144           259

Neil Woodyer, chief executive officer of Endeavour, stated: "Our first quarter results have met our expectations, and we are on track to achieve our objectives for 2016. The Agbaou and Ity mines are delivering excellent performance, and the underground Tabakoto mines should gain momentum in the coming quarters.

"Our group AISC has continued to decrease, achieving $889 per ounce from our current operations, which provides a solid cash generation foundation. We have also strengthened our financial position with the cash received from La Mancha following the close of the True Gold transaction.

"The second quarter will be important for Endeavour with the integration of True Gold's Karma mine and its ramp-up to commercial production, and the start of construction at our Hounde project, which will ultimately become our flagship low-cost mine.

"Updated guidance for 2016, which will include these recent developments, will be provided with the release of our second quarter results at the end of July."

Gold production and AISC on track to meet full-year guidance:

• Endeavour produced a total of 131,567 ounces of gold in the first quarter of 2016 and is on track to meet its full-year guidance as production is expected to increase in the coming quarters with stronger performance expected from the Tabakoto and Nzema mines.
• In line with guidance, all-in sustaining costs (AISC) decreased to $900 per ounce, down from $946 per ounce during the corresponding quarter of 2015, notably due to the addition of the low-cost Ity mine, and cost reductions at Agbaou and Tabakoto.
• Endeavour's AISC for its continuing operations, which excludes the divested Youga mine, averaged $889 per ounce during the first quarter of 2016.

                          GOLD PRODUCTION BY MINE, OZ
                           (on a 100-per-cent basis) 

                     Q1 2016         Q4 2015         Q1 2015      Full-year 2016 guidance

Agbaou                42,765          51,732          45,323              165,000-175,000
Tabakoto              38,542          41,546          33,574              155,000-175,000
Nzema                 19,757          23,076          26,979              110,000-130,000
Ity                   22,324           5,689               -                65,000-75,000
Youga                  8,179          14,801          17,868                  7,000-8,000
Groupwide            131,567         136,844         123,744              535,000-560,000

                   GROUP ALL-IN SUSTAINING COSTS, U.S. $ PER OUNCE
 
                                Q1 2016     Q4 2015     Q1 2015      Full-year 2016 guidance

Agbaou                             $525        $537        $577                    $650-$700
Tabakoto                          1,071       1,119       1,127                      920-970
Nzema                             1,158       1,133       1,194                    970-1,020
Ity                                 710         683           -                      800-850
Youga                             1,101         985         851                    980-1,030
Mine-level AISC/oz                  851         862         901                      820-870
Corporate G&A                        38          56          32                           38
Sustaining exploration               12          15          13                           11
Group AISC/oz                       900         934         946                      870-920
Group AISC/oz (excl. Youga)         889         926         973

Ity's production and AISC are included for the postacquisition period beginning Nov. 28, 2015. Youga's production and AISC are included for the presale period ended Feb. 29, 2016. Guidance for 2016 does not include production and costs associated to the Karma mine.

Agbaou mine:

• Agbaou continued its strong performance in first quarter 2016, returning to a normal production level after its record production in fourth quarter 2015. Agbaou continues to benefit from mining soft oxide ore leading to robust throughput and recoveries that are expected to continue toward the end of the year.
• The secondary crusher build remains on budget and on time with completion expected in third quarter 2016, which will provide increased flexibility once commissioned.
• Agbaou achieved record-low AISC in first quarter 2016, mainly due to the renegotiation of mining contract rates following an optimization of the mine plan, and decreased processing costs.

Tabakoto mine:

• Tabakoto's production remained fairly stable compared with previous quarters despite lower underground grades and volumes achieved as underground extraction was constrained by stope availability.
• Tabakoto's production is expected to improve in the coming quarters, lifted by higher grades and volumes as a result of increased stope availability following the underground development completed during the first quarter.

Ity mine:

• The Ity mine integration progressed well during the first quarter.
• Ity had a strong first quarter performance, with production slightly above guidance and AISC below guidance due to improved cost controls. Ore sourced during the quarter was amenable to high recovery rates and stacking on the leach pads.

Nzema mine:

• Nzema's production and AISC were negatively impacted by lower volumes of purchased ore, as ore suppliers are ramping up operations following the halt they experienced in late 2015 due to new permitting requirements imposed on them. As a result, lower-grade stockpiles were utilized during the quarter to maintain mill throughput.
• Nzema's performance is expected to improve in the coming quarters, as purchased ore tonnage is expected to continue to increase and Endeavour's own grades are expected to improve following completion of the pit cutback during fourth quarter 2016.

Youga mine:

• On Feb. 29, 2016, Endeavour announced that it had sold its end-of-life non-core Youga gold mine in Burkina Faso for $20-million.

Increased cash flow generation:

• All-in sustaining margin increased 54 per cent over the previous quarter to $37-million, lifted by lower AISC per ounce and higher gold prices. Free cash flow (before working capital, tax and financing costs) increased by 133 per cent over the previous quarter to $28-million.
• Notable non-sustaining capital expenditures during the first quarter of 2016 were Agbaou's secondary crusher build and Nzema's pushback for $3.7-million and $1.7-million, respectively.
• While Endeavour's all-in sustaining margin and free cash flow (before working capital, tax and financing costs) improved significantly over the previous quarter, and its first quarter 2016 free cash flow was impacted by a negative change in working capital, which is expected to return to positive in the coming quarters. This working capital movement was mainly due to phasing on accounts payables between fourth quarter 2015 and first quarter 2016.
• There were no interest payments made during first quarter 2016, as they are payable on a semi-annual basis with the next payments due in June and December.

Continued reduction in net debt:

• Endeavour significantly improved its balance sheet, with net debt reduced to $136-million as of March 31, 2016, from $259-million as of March 31, 2015. Following the La Mancha $65-million anti-dilution cash injection received with the True Gold acquisition close on April 26, 2016, its pro forma net debt further decreased to $71-million.
• Endeavour's ratio of net debt to operating earnings before interest, taxes, depreciation and amortization has significantly improved over the corresponding quarter of 2015, decreasing from 1.8 to 0.4 times, on a pro forma basis.
• Following quarter-end, Endeavour made a further $40-million voluntary repayment under the revolving corporate facility, resulting in a net drawn amount of $200-million.
• Endeavour has strong financing and liquidity sources, which include its $182-million cash position at the end of March on a pro forma basis, the anticipated Hounde mine equipment financing and the undrawn portion of the revolving credit facility, in addition to its strong cash flow generation.

Adjusted net earnings per share:

• Earnings from mine operations for first quarter 2016 remained stable at $27-million compared with $26-million for first quarter 2015.
• Total net earnings attributable to shareholders were $1-million, or two cents per share, compared with $9-million, or 22 cents per share, for the same period in 2015, due to the acquisition costs for Karma, as well as increased operating and corporate costs due to the first full quarter of operating the Ity mine.

                         NET EARNINGS AND ADJUSTED EARNINGS
                      ($ in millions except per-share amounts)    
                                                                 Q1 2016     Q4 2015     Q1 2015

Earnings from mine operations                                        $27         $13         $26
Net earnings (loss) and total comprehensive earnings (loss)            8         (22)         13
Portion attributable to shareholders                                   1         (25)          9
Basic earnings (loss) per share, $/share                            0.02       (0.51)       0.22
Adjusted net earnings (loss) attributable to shareholders*             3          (6)         11
Adjusted earnings per share, $/share                                0.05       (0.12)       0.27

* Mainly adjusted for transaction fees, foreign exchange gain and losses. 
For more details, see the company's management's discussion and analysis.

Other recent key achievements:

• On April 11, 2016, Endeavour announced that its 90-per-cent-owned Hounde project in Burkina Faso was fully financed and had entered the construction phase of its development, with first gold pour expected in fourth quarter 2017. Once in production, Hounde will become Endeavour's flagship low-cost mine with a 10-year mine life based on current reserves and an average annual production of 235,000 ounces at an AISC of $610 per ounce over the first four years.
• The acquisition of True Gold was completed on April 26, 2016, and the integration started immediately thereafter to support the ramp-up to commercial production of the Karma mine following its first gold on April 11, 2016. Endeavour will communicate its updated production guidance for 2016, inclusive of Karma, with its second quarter results.
• The Ity CIL definitive feasibility study is on track to be completed in the third quarter of 2016.
• A groupwide exploration strategic review is on track to be completed by the third quarter of 2016.

Conference call and live webcast

Management will host a conference call and live webcast on May 3, 2016, at 9 a.m. Toronto time (EST), to discuss the company's financial and operational results.

The conference call and live webcast are scheduled on May 3, 2016, at: 6 a.m. in Vancouver, 9 a.m. in Toronto and New York, 2 p.m. in London, and 9 p.m. in Hong Kong and Perth.

Analysts and interested investors are invited to participate and ask questions using the dial-in numbers below:

International:  1-646-254-3363

North American toll-free:  1-877-280-2342

United Kingdom toll-free:  0-800-279-4841

Australian toll-free:  1-800-027-830

Confirmation code:  5094920

A replay of the conference call and webcast will be available on Endeavour's website.

Qualified persons

Adriaan (Attie) 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.

We seek Safe Harbor.