Mr. Don Gray reports

ENDEAVOUR SILVER PROVIDES Q4 2023 CONSTRUCTION PROGRESS UPDATE ON THE TERRONERA MINE

Endeavour Silver Corp. has provided a Q4 2023 construction progress update for its Terronera project in Jalisco state, Mexico. All dollar references in this news release are United States dollars.

The Terronera project has made significant construction progress to date. Concrete work is well advanced, and erection of structural steel for the grinding and flotation areas has started. In early 2024, the company provided an updated initial capital cost (2024 updated scenario), which increased the project budget by $41-million to $271-million. This increase was primarily due to a stronger Mexican peso, continuing inflation and availability of bulk materials such as steel, piping and electrical supplies (see news release dated Jan. 24, 2024). As of Dec. 31, 2023, approximately $120-million had been invested in direct project expenditures, with project commitments totalling $171-million or 63 per cent of the updated budget. With an experienced and seasoned team leading the project, the company anticipates the schedule will remain in line with previous guidance, with initial production anticipated to start in the fourth quarter of 2024.

"Throughout 2023, we've achieved several major milestones across multiple fronts," commented Don Gray, chief operating officer. "We've concentrated our efforts on completing key items including earthworks for our Upper Mill platform, procurement of equipment and advances in plant concrete. Our underground mine development continues to advance rapidly as we look to start ore development sometime in Q2 2024. We're extremely satisfied with Terronera's progress thus far and remain committed to successfully completing and operating Endeavour's next core asset."

Q4 2023 construction and development highlights

As of Dec. 31, 2023, site works and activities included:

• Safety -- The company's strong on-site safety focus continues: The project finished 2023 with 172 days totalling over 600,000 man hours with no lost-time accidents.
• Progress -- Overall project progress reached 43-per-cent completion including a 3-per-cent reduction due to the adjusted weighting related to the 2024 updated scenario. The project remains on track for commissioning in Q4 2024.
• Engineering -- Detail engineering for the mill and infrastructure began transitioning to construction support toward the end of 2023. Excavation designs for the lower platform and detail design for tailing storage facility (TSF) have been advanced using supplemental geotechnical investigation results obtained in Q4 2023.
• Mine development -- Over 2,200 metres of underground development were completed in 2023. The in-house mining team has been successfully transitioning from using contracted to direct-hire labour with greater development efficiencies. Development was focused on portal 1, 2 and 4 declines for accessing ore and setting up the main ventilation circuit and haulage way; the portal 4 incline broke through to surface and preparations are under way to complete the portal structure in Q1 2024.
• Plant site -- Surface mill and infrastructure construction is now almost 50-per-cent complete; concrete works were well advanced to allow the start of vertical construction in early Q1 2024. The electromechanical contract was awarded and mobilization commenced.
  • Primary crusher -- Concrete has been completed for the jaw crusher foundation and the perimeter walls, including backfill and compaction.
  • Course ore stockpile and reclaim tunnel -- The coarse ore stockpile support walls have been completed along with the roof including the feeder chute imbeds. For the reclaim tunnel, concrete has been completed for two major roof sections with two sections remaining.
  • Grinding -- The concrete of the grinding area is nearly complete and being prepared for release to the general contractor to begin structural steel and mechanical installations.
  • Flotation -- The concrete of the flotation cell pedestals is nearly complete and being prepared for release to the general contractor to begin structural steel and mechanical installations.
  • Thickener -- The thickener tank support pedestals were completed and was backfill initiated. Concrete work has been started for the raw water, process water, thickener surge, and concentrate storage tank pedestals and foundations.
• Lower facilities platform and TSF -- Access road construction has commenced from the lower platform and TSF area to the Upper Mill platform.
• Procurement -- Focused on procuring bulk materials, including structural steel, piping and electrical cable, following a comprehensive scheduling for delivery that tracks construction requirements.
• On-site personnel -- The work force had increased to 126 employees and 400 contractor workers.
• Community relations -- Supporting the local municipality has continued to be a major focus with sponsoring cultural and community activities in the area.
• Environmental -- Environmental and social assessment initiatives continue according to schedule as outlined under the Equator Principal requirements for project loan financing.

2024 outlook and planning

Endeavour remains focused on advancing the Terronera project for initial production in Q4 2024, with a comprehensive schedule and plan under the 2024 updated scenario.

For Q1 2024, surface construction will focus on completing concrete work to allow structural steel erection, mechanical installations and initial electrical work for the crushing, coarse-ore stockpile, grinding, flotation and tailing thickener areas. Early in Q2, excavation is anticipated to be complete for the lower platform, which includes facilities such as the LNG (liquified natural gas) and power generation areas and the concentrate and tailing filtration areas. For Q2 and Q3, work is planned for all mill and infrastructure areas with mechanical completion and commissioning activities planned in Q4.

For the mine, development in portal 1, 2 and 4 declines will continue with first ore development anticipated in Q2. Initial long-hole mining is planned for Q3 and cut-and-fill mining is planned with ore being stockpiled for mill ramp-up. Development activities at La Luz are expected to begin in Q3 with portal construction and ramp advance to ore access anticipated in Q4. The critical path remains the TSF construction and advancing underground mine, where development efficiencies have been steadily increasing.

The company is well positioned to satisfy the Terronera project financing requirements and expects the first draw under the $120-million project loan debt facility in Q1 2024.

Dedicated project website

The company has launched a dedicated project website, serving as a virtual hub for the local community, key stakeholders and other interested parties to stay informed and engaged with the continuing progress of the Terronera project. The company invites all stakeholders to explore the latest updates, learn about the company's commitment to environmental stewardship and discover the positive impacts this venture will bring to local communities.

About the Terronera project

The Terronera project is a high-grade silver-gold project being developed in the San Sebastian mining district in Jalisco state, Mexico. It is located within the Sierra Madre volcanic belt, which hosts most of Mexico's gold and silver deposits. It is a low-sulphidation epithermal vein system that will be mined using a combination of long-hole and cut-and-fill techniques. The underground mine consists of two deposits, Terronera and La Luz, which will feed a centralized 2,000-tonne-per-day process plant. Based on the feasibility study, Terronera is expected to produce four million ounces of silver and 38,000 ounces of gold annually over its 10-year life.

For more information about the project and details of the feasibility study, the technical report is entitled "NI 43-101 Technical Report on the Feasibility Study of the Terronera Project, Jalisco State, Mexico," dated Oct. 21, 2021, with an effective date of Sept. 9, 2021, and it is available on the company website or under the company's name on SEDAR+.

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. The company's philosophy of corporate social integrity creates value for all stakeholders.

We seek Safe Harbor.