Mr. Dan Dickson reports

ENDEAVOUR SILVER ANNOUNCES Q2 2023 FINANCIAL RESULTS; EARNINGS CALL AT 10AM PDT (1PM EDT) TODAY

Endeavour Silver Corp. has released its financial and operating results for the three and six months ended June 30, 2023. All dollar amounts are in U.S. dollars.

"While we have been successful at managing the inflation trend over the last two years, costs are now outpacing our mitigation efforts. The Mexican peso has strengthened to a seven-year high against the U.S. dollar, which is impacting costs across our operations," stated Dan Dickson, chief executive officer. "Originally, our 2023 guidance had assumed a 20:1 Mexican peso per U.S. dollar exchange rate; however, the current rate is just under 17:1, representing a 14-per-cent increase. Our bottom line has been impacted twofold, through both inflation and foreign exchange. Cost control will continue to be a key focus for the operations group as cost pressures are expected to continue for the remainder of the year."

Q2 2023 highlights:

• Production tracking in line with guidance: 1,494,000 ounces (oz) of silver and 9,819 oz of gold for 2.3 million oz silver equivalent (AgEq) totalling 4.7 million oz AgEq for the first half of the year;
• Revenue: $50-million from the sale of 1,299,672 oz of silver and 9,883 oz of gold at average realized prices of $24.13 per oz silver and $1,976 per oz gold;
• Cash flow: $11.1-million in operating cash flow before working capital changes and $18.8-million in mine operating cash flow before taxes;
• Negative earnings due to non-cash item: Net loss of $1.1-million, or one cent per share. Adjusted earnings of $2.1-million after adjusting for a $3.2-million change in the fair value of investments;
• Higher costs due to strengthened peso and industry-wide inflation: Cash costs of $13.52 per oz payable silver and all-in sustaining costs of $22.15 per oz payable silver, net of gold credits. Costs were impacted by both inflationary pressures and a strengthened Mexican peso. During the year, the Mexican peso has appreciated by 14 per cent. Cash cost and all-in sustaining costs metrics were also impacted by lower silver grades at Guanacevi due to changes in mine sequencing. It is expected that grades will return to plan in Q3;
• Management continues to monitor macroeconomic conditions closely: Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the company's 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics of $12.27 per oz for cash cost and $21.11 per oz for AISC;
• Healthy balance sheet: Cash position of $43.5-million and working capital of $78.2-million. Cash decreased as funds were spent on development activities at Terronera;
• Metal inventory: Finished goods totalled 637,439 oz silver and 1,519 oz gold bullion inventory;
• Construction and development update at Terronera: The company has made significant progress on development activities, with overall construction progress 30 per cent complete. The project remains on schedule for initial production in Q4 2024 (see news release dated July 20, 2023);
• Terronera debt financing: Completion of the definitive loan documentation for the $120-million senior secured debt facility remains on track for execution in Q3 (see news release dated April 18, 2023);
• Filed at-the-market prospectus supplement for up to $60-million: Proceeds to be used for financing development of the Terronera mine and other growth initiatives, including the Pitarrilla and Parral properties, as well as prospective acquisitions and general working capital purposes (see news release dated June 27, 2023).

For the three months ended June 30, 2023, revenue increased by 62 per cent to $50-million (Q2 2022: $30.8-million).

Gross sales of $50.9-million in Q2 2023 represented a 61-per-cent increase over the $31.7-million in Q2 2022. Silver oz sold increased 116 per cent due to both increased production and the impact of withholding of a significant amount of silver finished goods inventory during Q2 2022. There was a 7-per-cent increase in the realized silver price resulting in a 131-per-cent increase in proceeds from silver sales. Gold oz sold increased 1 per cent with a 6-per-cent increase in realized gold prices resulting in a 7-per-cent increase in proceeds from gold sales. During Q2 2023 the company sold 1,299,672 oz silver and 9,883 oz gold, for realized prices of $24.27 and $1,955 per oz, respectively, compared with sales of 602,894 oz silver and 9,792 oz gold, for realized prices of $22.72 and $1,840 per oz, respectively, in the same period of 2022. In Q2 2023, London spot prices averaged $24.13 and $1,976, respectively.

The company increased its finished goods to 637,439 oz silver and slightly decreased its finished goods gold inventory to 1,519 oz gold at June 30, 2023, compared with 530,250 oz silver and 1,707 oz gold at Dec. 31, 2022. The cost allocated to these finished goods was $13.8-million as at June 30, 2023, compared with $7.4-million at March 31, 2023. At June 30, 2023, the finished goods inventory fair market value was $17.6-million, compared with $14.7-million at March 31, 2023.

After cost of sales of $37.5-million (Q2 2022 -- $26.3-million), an increase of 43 per cent, mine operating earnings were $12.5-million (Q2 2022: $4.5-million). The increase in the cost of sales compared with the prior period was driven by significantly higher silver ounces sold in the current period, a strengthened Mexican peso, and higher labour, power and consumables costs as the company, as well as the industry, have experienced significant inflationary pressures. Additionally, the company incurred increased royalty costs during Q2 2023 compared with the prior period.

The company had operating earnings of $5.4-million (Q2 2022: operating loss of $1.3-million) after exploration and evaluation costs of $4.3-million (Q2 2022: $3.8-million), general and administrative costs of $2.4-million (Q2 2022: $1.3-million), and a write-off of exploration properties of $400,000 (Q2 2022: $500,000).

Earnings before income taxes were $4.2-million (Q2 2022: loss before taxes of $8.8-million) after finance costs of $400,000 (Q2 2022: $300,000), a foreign exchange gain of $1.9-million (Q2 2022: loss of $300,000), and investment and other expenses of $2.7-million (Q2 2022: $6.9-million). The investment and other expenses during Q2 2023 primarily resulted from an unrealized loss on marketable securities and warrants of $3.2-million (Q2 2022: $7.6-million).

The company realized a net loss for the period of $1.1-million (Q2 2022: $11.9-million) after an income tax expense of $5.2-million (Q2 2022: $3.1-million). Current income tax expense increased to $4.4-million (Q2 2022 -- $1.3-million) due to increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $800,000 is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q2 2022: $1.8-million).

Direct operating costs on a per-tonne basis increased to $138.16, up 4 per cent compared with Q2 2022, due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure during 2022 and the first half of 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 consumables costs.

Consolidated cash costs per oz, net of byproduct credits, increased to $13.52 primarily driven by an increase in direct operating costs, an increase in royalties and special mining duties, partially offset by an increase in byproduct gold sales and increased silver production. AISC decreased by 4 per cent on a per-ounce basis compared with Q2 2022 due to the increase in cash costs and an increase in allocated corporate general and administrative expenses, partially offset by increased silver production and slightly lower sustaining capital expenditures.

Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the company's 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics.

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 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 Q2 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: Tuesday, Aug. 8, 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 0279 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 advancing construction of the Terronera project and exploring its portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Endeavour Silver's philosophy of corporate social integrity creates value for all stakeholders.

We seek Safe Harbor.