Mr. Dan Dickson reports

ENDEAVOUR SILVER REPORTS 2023 FINANCIAL RESULTS: EARNINGS CONFERENCE CALL AT 9AM PST (12PM EST) TIME

Endeavour Silver Corp. has released its financial and operating results for the fourth quarter and year ended Dec. 31, 2023. All dollar amounts are in U.S. dollars.

"The path to growth is never a straight line, so our ability to rise above challenges defines our success. During 2023, we kept focused on our main goals while successfully navigating industry challenges," commented Dan Dickson, chief executive officer of Endeavour Silver. "From a cost perspective, all Mexican miners faced overarching challenges, with persistent cost pressures across various channels. Our operations team demonstrated their resolve to overcome a significant challenge at Guanacevi by elevating both mine and mill productivity levels above planned targets. As the remediation efforts extended into early Q4, the positive momentum from these initiatives reduced Q4 2023 cost metrics compared to Q3 2023 and will carry forward into the upcoming year."

Mr. Dickson added: "With operating costs at their peak, we remain focused on cost discipline to offset inflationary and foreign exchange pressures while improving productivity. Bringing Terronera into production in late 2024 will provide the base we need for significant production growth and margin expansion as we move down the cost curve. We believe that project execution is our pathway to adding long-term value as we position ourselves as a top silver investment vehicle for investors seeking industry-leading growth."

2023 financial highlights:

• Production in line with guidance -- consolidated production of 5,672,703 silver ounces and 37,858 gold ounces for silver equivalent production of 8.7 million ounces, representing the company's third consecutive year of meeting or exceeding production guidance;
• Revenue -- Revenue of $205.5-million from the sale of 5,669,760 ounces of silver and 37,186 ounces of gold at average realized prices of $23.76 per ounce silver and $1,968 per ounce gold;
• Multiple items resulted in escalated annual costs; significant improvement in Q4 -- cash costs of $13.49 per ounce payable silver were above guidance due to a strengthened Mexican peso and inflationary pressures; and lower production and all-in sustaining costs of $22.93 per ounce were above guidance due to the aforementioned higher costs; fourth quarter cash costs of $12.54 per ounce payable silver and all-in sustaining costs of $21.48 per ounce signal visible improvement from third quarter costs due to remedial measures implemented at Guanacevi as productivity improved;
• Healthy balance sheet -- cash position of $35.3-million and $42.5-million in working capital; cash decreased in Q4 as funds were spent on development activities at Terronera; during Q4, the company raised gross proceeds of $39.3-million through issuances, primarily to finance the activities at Terronera;
• Cash flow -- $37-million in operating cash flow before working capital changes and mine operating cash flow before taxes of $64.4-million;
• Net income -- net earnings of $6.1-million, or three cents per share, were impacted by inflationary pressures, foreign exchange and higher realized metal prices compared with the prior year;
• Construction continues on schedule at the Terronera mine -- concrete work is well advanced and erection of steel for the grinding and flotation areas has started at year-end (see news release dated Feb. 12, 2024); overall project progress reached 43 per cent and the project remains on track for commissioning in Q4 2024.

Year ended Dec. 31, 2023

For the year ended Dec. 31, 2023, revenue, net of $2.4-million of smelting and refining costs, decreased by 2 per cent to $205.5-million (2022: $210.2-million).

The decrease in revenue is attributed to lower production compared with 2022 but was partially offset by higher precious metal prices realized during the year. During the period, the company sold 5,669,760 ounces silver and 37,186 ounces gold for realized prices of $23.76 per ounce and $1,968 per ounce, respectively, compared with sales of 6,464,869 ounces silver and 38,868 ounces gold for realized prices of $22.07 per ounce and $1,814 per ounce, respectively, in 2022.

After cost of sales of $168.9-million (2022: $158.6-million), an increase of 6 per cent, mine operating earnings were $36.6-million (2022: $51.5-million). The increase in cost of sales, despite lower sales, was due to higher costs as a result of inflation on a number of direct inputs, the impact of the appreciation of the Mexican peso on labour costs and direct inputs, and higher royalty costs. Royalties increased 25 per cent to $22.2-million (2022: $17.8-million) due to increased mining of the high-grade El Curso and El Porvenir extensions at the Guanacevi operation, which are subject to significant royalty rates.

The company had operating earnings of $8.7-million (2022: $23.5-million) after exploration, evaluation and development costs of $15.1-million (2022: $16.2-million), general and administrative costs of $12.4-million (2022: $10.6-million), and a write-off of exploration properties of $400,000 (2022: $700,000). In 2022, there were also care and maintenance costs of $600,000 related to the El Compas mine, which was sold in late 2022.

Earnings before income taxes were $18.2-million (2022: $25-million) after finance costs of $1.4-million (2022: $1.3-million), a foreign exchange gain of $4.7-million (2022: $1.9-million), a net gain on disposal of assets of $7.1-million primarily generated by the gain on the sale of the Cozamin royalty (2022: $2.5-million primarily from the gain on the sale of El Compas mine), and investment and other expense of $800,000 (2022: $1.6-million).

The company realized net earnings for 2023 of $6.1-million (2022: $6.2-million) after a tax expense of $12.1-million (2022: $18.7-million). Current income tax expense increased to $11.3-million (2022: $6.4-million) while deferred income tax expense decreased to $800,000 (2022: $12.4-million) The deferred income tax expense of $800,000 is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax. During 2022, the changes in deferred taxes were driven primarily by the utilization of loss carryforwards at Guanacevi, with no further loss carryforwards available to offset against current income tax in 2023.

Direct operating costs on a per-tonne basis increased to $141.72, up 8 per cent compared with 2022 due to higher operating costs. Guanacevi and Bolanitos have seen increased labour, power and consumable costs primarily driven by inflationary pressure as well as the impact of a strengthened Mexican peso. Direct costs per tonne increased to $171, up 10 per cent compared with 2022 due to the increase in direct operating costs as well as the increase in royalty costs.

Consolidated cash costs per ounce, net of byproduct credits, increased to $13.49 primarily due to the higher direct costs per tonne and a reduction in production, partially offset by higher gold credits. All-in sustaining costs increased 15 per cent to $22.93 per ounce in 2023 due to the higher cash costs and an increase in allocated general and administrative expenses, partially offset by a decrease in capital expenditures.

Consolidated cash costs per ounce, net of byproduct credits, of $13.49 exceeded cash cost guidance of a range between $10 and $11, primarily due to higher direct costs, which were impacted by a strengthened Mexican peso and higher inflationary pressure than anticipated. Cash costs, on a per-ounce basis, were also impacted by realized production being on the lower end of guidance. All-in sustaining costs (AISC) of $22.93 on a per-ounce basis were above guidance of $19 to $20 per ounce and similarly impacted by the increased costs.

The complete financial statements and management 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 annual 2023 financial results will be held today at 9 a.m. PT/12 p.m. ET. To participate in the conference call, please dial the numbers as follows.

Date and time:  Monday, March 11, 2024, at 9 a.m. PT/12 p.m. ET

Telephone numbers

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 1-800-319-6413 in Canada and the United States (toll-free) or 1-604-638-9010 outside of Canada and the United States. The replay passcode is 0627 followed by the number sign. The replay will also be available on the company's website.

About Endeavour Silver Corp.

Endeavour is a mid-tier precious metal 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.