Mr. Dan Dickson reports

ENDEAVOUR SILVER ANNOUNCES Q3 FINANCIAL RESULTS; EARNINGS CONFERENCE CALL AT 10AM PST (1PM EST) TODAY

Endeavour Silver Corp. has released its unaudited financial and operating results for the three and nine months ended Sept. 30, 2023. All amounts reported are in United States dollars.

"Our third quarter was challenging on a number of fronts, marking the lowest quarterly production for the company in over two years. We were negatively impacted by several factors; however, reduced productivity at Guanacevi is what led to a production shortfall. This reduced productivity was the result of mine sequencing changes that were initiated to improve access and ventilation, which have resulted in a significant reduction in ore grades. These lower silver and gold grades, combined with lower precious metals prices, a stronger Mexican peso, and increased operating development and maintenance and repairs, have negatively impacted our financial performance this quarter," stated Dan Dickson, chief executive officer. "With mine sequencing back on track in Q4, we are now mining in wider, higher-grade areas of the orebody, which has significantly improved mine output and grades. While there is never a good time for these corrective measures to be taken, especially with additional macro pressures, they were necessary, and we have already seen the benefits from the actions implemented in the third quarter."

Q3 2023 highlights:

• Production tracking in line with guidance: 1,148,735 ounces (oz) of silver and 9,089 oz of gold for 1.9 million oz silver equivalent (AgEq), totalling 6.5 million AgEq oz for the nine months ended Sept. 30, 2023;
• Revenue: $49.4-million from the sale of 1,370,032 oz of silver and 8,760 oz of gold at average realized prices of $23.99 per oz silver and $1,948 per oz gold;
• Cash flow: $3.3-million in operating cash flow before working capital changes and $10.6-million in mine operating cash flow before taxes;
• Negative earnings: Net loss of $2.3-million, or one cent per share. Adjusted net loss of $7.4-million after adjusting for a $7-million gain on disposal of the Cozamin royalty and a $1.9-million reduction in the fair value of investments;
• Significant production shortfall at Guanacevi, among other items, resulted in escalated costs: Cash costs of $17.94 per oz payable silver and all-in sustaining costs of $29.64 per oz payable silver, net of gold credits. Cost metrics were significantly impacted by lower production at the Guanacevi mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September. Macro pressures, such as inflation, and a strengthened Mexican peso also contributed to higher costs;
• Management continues to monitor costs: Additional repair work related to the plant shutdown continued for the first week of Q4 and increased operating development continued into Q4 to access high-grade ore and open more stopes. Although cost pressures will continue, management anticipates that cost metrics will improve as productivity and production will return to expected levels;
• Healthy balance sheet: Cash position of $41-million and working capital of $75.9-million. Cash decreased as funds were spent on development activities at Terronera. During Q3 2023 the company raised gross proceeds of $23.4-million through equity issuances, primarily to finanace these activities;
• Construction and development update at Terronera: The company has made significant progress on development activities, with overall construction progress 38 per cent complete. The project remains on schedule for initial production in Q4 2024 (see news release dated Oct. 26, 2023);
• Obtained $120-million project financing for Terronera: Societe Generale and ING Capital LLC (together with ING Bank NV) have signed a definitive credit agreement for a senior secured debt facility of $120-million (see news release dated Oct. 10, 2023).

For the three months ended Sept. 30, 2023, revenue increased by 25 per cent to $49.5-million (Q3 2022: $39.7-million).

Gross sales of $49.9-million in Q3 2023 represented a 24-per-cent increase over the $40.3-million in Q3 2022. Silver oz sold increased by 3 per cent, primarily due to the timing of silver sales with less silver withheld during the current quarter offsetting the decrease in silver production. Compared with Q3, 2022, there was a 25-per-cent increase in the realized silver price resulting in a 29-per-cent increase in silver sales. Gold oz sold decreased 1 per cent with a 16-per-cent increase in realized gold prices resulting in a 15-per-cent increase in gold sales. The decrease in gold ounces sold is primarily driven by the 1-per-cent decrease in gold production as gold inventory levels are comparable. During the period, the company sold 1,370,032 oz silver and 8,760 oz gold, for realized prices of $23.99 and $1,948 per oz, respectively, compared with sales of 1,327,325 oz silver and 8,852 oz gold, for realized prices of $19.24 and $1,678 per oz, respectively, in the same period of 2022. For the three months ended Sept. 30, 2023, the realized prices of silver and gold were within 2 per cent of the London spot prices. Silver and gold London spot prices averaged $23.57 and $1,928, respectively, during the three months ended Sept. 30, 2023.

The company decreased its finished goods to 424,217 oz silver and slightly increased its finished goods gold inventory to 1,689 oz gold at Sept. 30, 2023, compared with 637,439 oz silver and 1,519 oz gold at June 30, 2023. The cost allocated to these finished goods was $11-million as at Sept. 30, 2023, compared with $13.8-million at June 30, 2023. At Sept. 30, 2023, the finished goods inventory fair market value was $12.9-million, compared with $17.6-million at June 30, 2023.

After cost of sales of $46.7-million (Q3 2022: $34.5-million), an increase of 35 per cent, mine operating earnings were $2.8-million (Q3 2022: $5.1-million). The increase in the cost of sales compared with the prior period was driven by a strengthened Mexican peso and higher labour, power and consumables costs as the company, as well the industry, has experienced significant inflationary pressures. Additionally, the company incurred increased royalty costs during Q3 2023 compared with the prior period. At Guanacevi additional operating development, decreased mine productivity, an increase in the purchase of third party ore and additional repair costs associated with the plant shutdown also negatively impacted costs. Including royalties and special mining duty, direct costs per tonne increased 21 per cent to $176.37. Compared with Q3, 2022, royalties have increased 77 per cent from $2.8-million to $4.8-million with the increase occurring at Guanacevi. At Guanacevi the increase in royalty expense recognized during Q3 2023 is due to the increase in production coming from concessions subject to royalties and an increase in the realized silver price. The royalty increased to 13 per cent from 9 per cent when the realized silver price crossed a price threshold of $20 per oz.

The company had an operating loss of $3.8-million (Q3 2022: $1.3-million) after exploration and evaluation costs of $4.2-million (Q3 2022: $4-million) and general and administrative expense of $2.4-million (Q3 2022: $2.2-million). In the three months ended Sept. 30, 2022, the operating loss also included $200,000 in care and maintenance costs related to the suspension of the operations at the El Compas mine.

Earnings before income taxes were $800,000 (Q3 2022: $1.7-million) after a gain on the sale of the Cozamin royalty of $7-million (Q3 2022: $2.8-million, finance costs of $300,000 (Q3 2022: $300,000), a foreign exchange loss of $400,000 (Q3 2022: foreign exchange gain of $800,000), and investment and other expenses of $1.6-million (Q3 2022: $300,000).

The company realized a net loss for the period of $2.3-million (Q3 2022: $1.5-million) after an income tax expense of $3.1-million (Q3 2022: $3.2-million). Current income tax expense decreased to $3.1-million (Q3 2022: $3.2-million) due to decreased profitability impacting the income tax and special mining duty, while deferred income tax expense of $900,000 is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q3 2022: $2-million).

Direct operating costs on a per-tonne basis increased to $152.04, up 16 per cent compared with Q3 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure during the last half of 2022 and into 2023. As the Mexican peso strengthens, the company's Mexican-peso-denominated costs are increased in U.S.-dollar terms. Guanacevi and Bolanitos have experienced increased labour, power and consumables costs. Additionally, the company incurred increased royalty costs during Q3 2023 compared with the prior period. At Guanacevi additional operating development, decreased mine productivity, an increase in the purchase of third party ore and additional repair costs associated with the plant shutdown also negatively impacted costs

Consolidated cash costs per oz, net of byproduct credits, increased to $17.94 primarily driven by a reduction in silver production, an increase in direct operating costs, an increase in royalties and special mining duties which are partially offset by an increase in byproduct gold sales. AISC increased by 46 per cent on a per-ounce basis compared with Q2 2023 due to the increase in cash costs and decreased silver production.

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 Q3 2023 financial results will be held today at 10 a.m. PST/1 p.m. EST. To participate in the conference call, please dial the numbers below.

Date and time: Tuesday, Nov. 7, 2023, at 10 a.m. PST/1 p.m. EST

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 0484 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.