Mr. Dan Dickson reports

ENDEAVOUR SILVER ANNOUNCES Q1 2023 FINANCIAL RESULTS; EARNINGS CALL AT 10AM PDT (1PM EDT) TODAY

Endeavour Silver Corp. has released its financial and operating results for the three months ended March 31, 2023. All dollar amounts are in U.S. dollars.

"We are pleased to report a solid start this year with consolidated production expected to meet full-year guidance," stated Dan Dickson, chief executive officer of Endeavour Silver. "Guanacevi continues to perform well, generating strong operating cash flow which we are reinvesting in the business. Industry-wide inflation pressures continue to persist, which, combined with a strengthening Mexican peso, are increasing our operating costs. We are working to manage our inputs in order to offset these cost pressures as we pursue productivity and efficiency initiatives."

Added Mr. Dickson: "On April 18, 2023, we reached a key milestone with the announcement of the project financing commitment of $120-million and a subsequent formal construction decision at Terronera. The successful execution of this underground mine development and mill is integral to achieving our growth goal to nearly double our production by 2025 and transform our cost profile. With a seasoned team of development personnel, we are moving forward confidently and look forward to establishing an exciting future for our stakeholders."

Q1 2023 highlights:

• Production tracking toward upper range of guidance -- 1,623,545 ounces (oz) of silver and 9,342 oz of gold for 2.4 million oz silver equivalent (AgEq);
• Revenue -- $55.5-million from the sale of 1,667,408 oz of silver and 9,126 oz of gold at average realized prices of $23.16 per oz silver and $1,917 per oz gold;
• Reduced earnings due to lower realized prices -- $6.5-million, or three cents per share, down 45 per cent from Q1 2022. Earnings before interest, taxes, depreciation and amortization (EBITDA) of $19.4-million, a decrease of 24 per cent from Q1 2022;
• Cash flow -- $12.5-million in operating cash flow before working capital changes, a decrease of 39 per cent from Q1 2022. Mine operating cash flow before taxes also decreased to $22.4-million;
• Higher costs due to strengthened peso and industry-wide inflation -- cash costs of $11.12 per oz payable silver and all-in sustaining costs of $20.16 per oz payable silver, net of gold credits. Cash costs were slightly above guidance due to a strengthening of the Mexican peso and increased labour, power and consumables costs. Management continues to work diligently to reduce costs and improve efficiencies where possible;
• Healthy balance sheet -- cash position of $61.6-million and working capital of $92.8-million. Cash decreased as funds were spent on development activities at Terronera.

Subsequent to Q1 2023:

• Company secures project financing and updates development plans for Terronera -- Societe Generale and ING Bank NV have entered into a commitment letter for a senior secured debt facility of $120-million. The company has optimized the project's operating flexibility from the National Instrument 43-101 feasibility study of the Terronera project filed in 2021. The revised scenario approves the construction of a 2,000-tonne-per-day process plant with an initial capital expenditure of $230-million (see news release dated April 18, 2023).
• Terronera derisked with over $58-million invested to date into development -- the board of directors has approved the construction of an underground mine and mill at Terronera. The company has made significant progress on development activities, with long-lead item procurement well advanced and a seasoned team of development personnel established on the ground (see news release dated April 20, 2023).

For the three months ended March 31, 2023, revenue, net of $600,000 of smelting and refining costs, decreased by 4 per cent to $55.5-million (Q1 2022 -- $57.7-million).

Gross sales of $56.1-million in Q1 2023 represented a 4-per-cent decrease over the $58.4-million in Q1 2022. Silver oz sold decreased by 3 per cent, due to a decrease in finished goods silver ounces available for sale as at Dec. 31, 2022, compared with Dec. 31, 2021, offset by increased silver production. There was a 5-per-cent decrease in the realized silver price, resulting in an 8-per-cent decrease in proceeds from silver sales. Gold oz sold increased by 9 per cent with a 3-per-cent decrease in the realized gold price, resulting in a 6-per-cent increase in proceeds from gold sales. During the period, the company sold 1,667,408 oz silver and 9,126 oz gold for realized prices of $23.16 and $1,917 per oz, respectively, compared with Q1 2022 sales of 1,717,768 oz silver and 8,381 oz gold for realized prices of $24.38 and $1,970 per oz, respectively. In Q1 2023, London spot prices for silver and gold averaged $22.55 and $1,890, respectively.

The company slightly decreased its finished goods silver inventory and slightly increased its finished goods gold inventory to 471,069 oz and 1,766 oz, respectively, at March 31, 2023, compared with 530,250 oz silver and 1,707 oz gold at Dec. 31, 2022. The cost allocated to these finished goods was $7.4-million at March 31, 2023, compared with $6.1-million at Dec. 31, 2022. At March 31, 2023, the finished goods inventory fair market value was $14.7-million, compared with $15.8-million at Dec. 31, 2022.

After cost of sales of $39.54-million (Q1 2022 -- $37.4-million), an increase of 6 per cent, mine operating earnings were $16-million (Q1 2022 -- $20.3-million). The cost of sales in Q1 2023 was impacted by a strengthened Mexican peso, and higher labour, power and consumables costs as the company, as well as the industry, have experienced significant inflationary pressures. The company also recognized increased royalty costs during Q1 2023 compared with the prior period as a higher percentage of the production at Guanacevi has come from the El Curso and El Porvenir concessions, which are subject to royalties.

The company had operating earnings of $6.9-million (Q1 2022 -- $12.6-million) after exploration and evaluation costs of $4.2-million (Q1 2022 -- $3.2-million) and general and administrative costs of $4.9-million (Q1 2022 -- $4.3-million. Exploration and evaluation costs increased primarily to additional spending on the recently acquired Pitarrilla project and general and administrative costs increased primarily due to investment in a new ERP (enterprise resource planning) system.

Earnings before income taxes were $12.5-million (Q1 2022 -- $18.9-million) after finance costs of $400,000 (Q1 2022 -- $300,000), a foreign exchange gain of $1.9-million (Q1 2022 -- $800,000), and investment and other income of $4-million (Q1 2022 -- $5.8-million). The increase in the foreign exchange gain is due to the strengthening of the Mexican peso which increases the value of peso-denominated working capital items. The investment and other income during Q1 2023 primarily resulted from an unrealized gain on marketable securities and warrants of $3.1-million (Q1 2022 -- $5.4-million).

The company realized net earnings for the period of $6.5-million (Q1 2022 -- $11.7-million) after an income tax expense of $6.1-million (Q1 2022 -- $7.2-million). Current income tax expense increased to $4.4-million (Q1 2022 -- $1-million) and deferred income taxes decreased to $1.7-million (Q1 2022 -- $6.2-million). During 2022, the changes in current and deferred taxes were driven primarily by the utilization of loss carryforwards at Guanacevi and during 2023 there were no further loss carryforwards available to offset against current income tax, and changes in deferred income taxes were primarily derived from changes in temporary timing differences between deductions for accounting versus deductions for tax.

Direct operating costs on a per-tonne basis increased to $132.11, up 8 per cent compared with Q1 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from increased inflationary pressure during 2022 and Q1 2023. As the Mexican peso strengthens, the company's Mexican-peso-denominated costs are increased in U.S.-dollar terms. Guanacevi and Bolanitos have seen increased labour, power and consumable costs.

Consolidated cash costs per oz, net of byproduct credits, increased to $11.12 primarily due to the higher direct costs per tonne slightly offset by a higher gold credit driven by higher gold production compared with Q1 2022. AISC decreased by 4 per cent on a per-ounce basis compared with Q1 2022 as a result of costs being allocated over increased ounces produced which offset the increased costs.

The complete financial statements and management's discussion and analysis can be viewed on the company's website, on SEDAR and on EDGAR. All shareholders can receive a hard copy of the company's complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Galina Meleger, vice-president of investor relations, at 604-640-4804, toll-free at 1-877-685-9775 or by e-mail at gmeleger@edrsilver.com.

Conference call

A conference call to discuss the company's Q1 2023 financial results will be held today at 10 a.m. PT/1 p.m. ET. To participate in the conference call, please dial the numbers below.

Date and time: Wednesday, May 10, 2023, at 10 a.m. PT/1 p.m. ET

Telephone: Toll-free in Canada and the United States: 1-800-319-4610

Local or international: 1-604-638-5340

Please allow up to 10 minutes to be connected to the conference call.

Replay: A replay of the conference call will be available by dialling (toll-free) 1-800-319-6413 in Canada and the U.S. or 1-604-638-9010 outside of Canada and the U.S. The replay passcode is 0037 followed by the pound key. The replay will also be available on the company's website.

About Endeavour Silver Corp.

Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing construction of the Terronera project and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Endeavour's philosophy of corporate social integrity creates value for all stakeholders.

We seek Safe Harbor.