Mr. Sebastien de Montessus reports

ENDEAVOUR PUBLISHES 2022 SUSTAINABILITY REPORT

Endeavour Mining PLC has published its 2022 sustainability report with key environmental, social and governance (ESG) highlights presented in the table entitled "Sustainability highlights." The report and the ESG data centre are available at the company's website.

Sebastien de Montessus, president and chief executive officer, commented: "In 2022, we continued to make significant progress on our ESG strategy, which was formulated a few years ago following extensive consultation with a range of stakeholders, and is guided by the aims of the United Nations Sustainable Development Goals. Moreover, we were pleased with the recognition that our efforts have received from outside the company, with sector-leading ratings, reflecting the positive impact our business can have in the regions where we operate.

"In 2022, our total economic contribution to host countries amounted to over $1.9-billion, comprised of local procurement, salaries, taxes, royalties, dividends and other contributions to governments. In addition, to further contribute to the socio-economic development of the region, we invested significantly in local initiatives to improve access to water, education and health facilities within our local communities and across the region.

"Many of our ESG initiatives are carried out through the Endeavour Foundation, which we established to implement projects beyond our mines, and are focused at the regional, national and trans-border level. During 2022, we launched a number of initiatives, ranging from an investment in The Great Green Wall, which has the ambition to plant a wall of trees across the Sahel, in partnership with the Senegalese Agency for Reforestation and the Great Green Wall, education projects to develop the future pipeline of talent, funding scholarships, university placements and bursaries, as well as vocational training for young people to improve their employability and opportunities in life.

"As a responsible miner, we have continued to tackle climate change as we seek to meet our 2030 target of a 30-per-cent reduction in our carbon emissions intensity and net zero by 2050. For 2022, we set our first annual carbon emissions intensity target, which I'm pleased to report we beat. We also continued to progress a number of our decarbonization initiatives, including connecting our Mana mine to the national grid, and advancing the analysis for renewable solar projects at our Hounde and Sabodala-Massawa operations. Importantly, these initiatives have the dual benefit of optimizing processes, thereby reducing costs and improving our efficiencies, which further enhances the resilience of our business.

"Looking ahead, we continue to ensure we drive the right type of behaviour across our business. As such, for 2023, ESG performance targets will account for 30 per cent of the short-term incentive plan for the group, as well as 15 per cent of our long-term incentive plan. These weightings include measurement against targets for factors such as health and safety, carbon emissions reduction, and diversity and inclusion."

The 2022 sustainability report has been prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards (2021), including the mining and metals sector supplement. The report is also aligned with the Sustainability Accounting Standards Board (SASB) requirements, Task Force for Climate Related Financial Disclosures (TCFD), and the Local Procurement Reporting Mechanism (LPRM). It has been externally assured against key ESG performance indicators for both GRI and SASB.

Endeavour is also pleased to confirm that it has received external assurance for its compliance with the World Gold Council's (WGC) responsible gold mining principles (RGMPs) at the corporate level, and for its Ity and Hounde mines, in line with the WGC's timeline.

Two thousand twenty-two ESG performance

Two thousand twenty-two was a strong year for Endeavour's ESG activities, with important milestones achieved across the company's operations and in its engagement with host communities and countries, as shown in the table entitled "2022 ESG scorecard."

Environment

Endeavour has a zero harm approach to environmental management, which is underpinned by its environmental, biodiversity and energy management policies. In 2022, the group reported no significant environmental incidents or significant incidents involving cyanide.

Emissions and energy

Energy is a critical input for mining operations. It is also a significant business cost and a major source of Endeavour's GHG (greenhouse gas) emissions. Working to improve the efficiency of its operations, reduce energy use and associated costs, and lower emissions are key drivers of the long-term sustainability of the group. During 2022, Endeavour continued its progress toward its emissions targets with significant progress achieved:

• Endeavour achieved its FY 2022 emissions intensity target (total Scope 1 and 2) of less than 670 kilograms (kg) CO2e/oz (carbon dioxide equivalent per ounce), reporting 640 kg CO2e/oz for the year, advancing on the pathway toward its 30-per-cent reduction by 2030 target. The group's 2023 emissions intensity target is to report less than 640 kg CO2e/oz of gold produced.
• As shown in the table entitled "Emissions performance by mine," Endeavour's emissions intensity increased by 19 per cent in 2022 to 0.64 tCO2e (tonne carbon dioxide equivalent)/oz of gold produced, predominantly due to lower production volumes. Endeavour's overall carbon footprint in 2022 is composed of 58 per cent for Scope 1 emissions (amounting to 749,000 tCO2e), 10 per cent for Scope 2 emissions (amounting to 136,000 tCO2e) and 32 per cent for Scope 3 emissions (amounting to 415,000 tCO2e).

• Endeavour's total Scope 1 and 2 GHG emissions increased by 10 per cent in 2022, compared with 2021, due to an increase in Scope 2 emissions, which resulted from an increased use of thermal power by the national utility provider in Burkina Faso, impacting the emissions of purchased electricity in Burkina Faso, specifically for the Hounde mine:
  • Hounde: The rise in emissions was largely due to increased Scope 2 emissions driven by increased purchasing of electricity from the Burkina Faso grid, which adopted a higher market-based emission factor.
  • Ity: The increase in emissions was due to higher energy consumption related to increased usage of on-site power generation.
  • Mana: The reduction in emissions was due to lower total material movement, driven by the downsizing of the open-pit mining fleet as underground mining began to represent a larger portion of mining operations and the connection of the processing plant to the national grid.
  • Boungou: The reduction in emissions was largely due to lower production volumes.
  • Sabodala-Massawa: The increase in emissions was due to increased haulage distances as greater volumes of ore was trucked to the processing plant from the Massawa deposit, in addition to higher volumes of material moved and processed when compared with the prior year.
  • Wahgnion: The increase in emissions was due to higher mining rates as more material was moved at higher strip ratios during the year, in addition to longer haulage distances from the Samavogo pit that was accessed in the latter-half of the year.
  • Other: Other emissions increased compared with the prior year due to the collection of emissions associated with greenfield exploration, which had not previously been included, as well as the addition of emissions incurred at organic growth projects, such as the Lafigue project.
• For 2022, the company significantly improved its Scope 3 calculation methodology and expanded its reporting, resulting in an increase in Scope 3 to 414,641 tCO2e, compared with 226,883 tCO2e in 2021. Purchased goods and services (category 1) accounted for 45 per cent of the group's Scope 3 emissions, and fuel and energy related activities (category 3) accounted for 43 per cent.
• As shown in the table entitled "Energy performance by mine," energy use was 10 million GJ (gigajoules) for 2022, resulting in an energy intensity of 7.48 GJ per ounce of gold produced, marking a slight increase of 3 per cent year-on-year. The decrease in energy use was largely due to lower energy needs at the Mana mine as the Wona open-pit activities were wound down as the mine moved to underground mining, partially offset by increased energy intensity at Wahgnion, Boungou and Sabodala-Massawa due to lower production.

Water stewardship

Endeavour seeks to maximize water reuse and recycling through closed-circuit configurations, which helps to reduce overall consumption. To improve the group's water stewardship and efficiency rates, Endeavour set its first group-wide water target, which aims to recycle and reuse an average of 70 per cent for 2023. Key highlights for the year are listed below:

• As shown in the table entitled "Water performance by mine," the total water withdrawal for the group in 2022 was 14,198 megalitres (ML), an increase of 50 per cent over 2021 due largely to tailings dam raises at the Wahgnion and Sabodala-Massawa mines, which prevented drawing from rainfall water that was deposited onto the tailing facilities, thereby impacting water recycling rates.
• Total water withdrawal intensity for the group increased to 0.0105 ML of water per ounce of gold produced, which was approximately a 70-per-cent increase over the prior period, due to the previously mentioned impact of the tailings dam raises compounded by lower production across the group.
• Water reused and recycled decreased to 57 per cent in 2022 from 67 per cent in 2021, due to the previously mentioned impact of tailings raises at the Wahgnion and Sabodala-Massawa mines, preventing access to deposited water in the tailings storage facilities.

Tailings storage facilities management:

• All of Endeavour's operational tailings were audited in 2022 against the ICMC (International Cyanide Management Code) and did not record any significant incidents involving cyanide during 2022.
• In 2022, 23.5 million tonnes of tailings were produced. All pertinent information on the group's tailing storage facilities is published annually on the company's website as part of the investor mining and tailings safety initiative.

Biodiversity

Following the development of the group's biodiversity strategy in 2021, Endeavour set its first annual biodiversity targets in 2022, which was to protect 600 hectares of land across its tenements, and to preserve 10 hectares per mine for land and biodiversity restoration:

• In 2022, 1,837 hectares were successfully protected, comprising 1,695 hectares at the Sabodala-Massawa mine, 12 hectares at the Ity mine and 130 hectares through the Great Green Wall initiative in Senegal.
• 30 hectares were also restored across the group's sites, achieving 50 per cent of the 2022 target, with a 2023 target to reclaim 60 hectares across the group.

Social and economic benefits

Endeavour has the potential to have a positive impact on the communities and host countries where it operates by offering a range of socio-economic development opportunities, from employment, upskilling its work force, and supporting local businesses and community projects such as health care, education and economic development.

Supporting local economies

Endeavour prioritizes in-country suppliers of goods and services, as well as the development of domestic manufacturing and supply chains, which in turn, multiplies the group's positive impact on the local, regional and national economies of host countries, strengthens local businesses, and creates direct and indirect employment opportunities. The majority of the group's supply chain sources key supplies from either in-country or within the West African region. In addition, Endeavour contributes to national economies through the group's significant tax and royalty payments to host governments, as well as continuing to prioritize investments into host community development projects.

Key highlights for the year are listed below:

• As shown in the table entitled "Host country economic contribution indicators," in 2022, Endeavour's total economic contribution to host countries, including social investments, was $1.9-billion, a decrease from $2-billion in 2021, due to lower production.

• The group's total procurement for 2022 was $1.4-billion, a decrease from $1.6-billion in 2021 due to the disposal of the Karma mine in March, 2022, resulting in a decrease in in-country procurement from $1.3-billion in 2021 to $1.1-billion in 2022. In spite of this overall decrease, the group sourced 81 per cent of its procurement from host countries during 2022, representing a 1 percentage point increase over 2021:
  • Endeavour supported approximately 1,600 national and local businesses in Ivory Coast, Senegal, Burkina Faso and Guinea in 2022. Procurement from national owned and local-impacted community suppliers totalled $388-million and $28-million, respectively, for 2022.
  • Endeavour paid $533-million to host governments in the form of taxes, royalties and dividends, $224-million in gross employee wages, salaries and benefits, and payroll taxes, $688-million in operating costs excluding employee costs, $23-million in social investments, and $5-million in royalties to third parties for the 2022 financial year.
  • In 2022, Endeavour invested a total $23-million in social investments, including $16-million contributed to the Local Development Mining Funds, and $7-million invested in a range of community projects, including the Endeavour Foundation and ECODEV, the group's impact investing fund.

Growing local talents

Endeavour operates in a number of diverse jurisdictions and recognizes that its operations blend a wide range of nationalities, cultures and abilities. At the end of 2022, the group had a total work force of 14,140 people, a 1-per-cent decrease from 14,258 in 2021, and comprised 5,659 employees and 8,481 contractors.

Key highlights from 2022 are listed below:

• Endeavour's strong record of employing nationals continued in 2022, with 94 per cent of Endeavour's work force from host countries, marginally lower than 2021.
• 57 per cent of senior management were West African, comprising 44 per cent nationals, 8 per cent regional West African expatriates and 5 per cent from host communities.
• In 2022, 262 national employees were promoted based on newly acquired skills, either gained on the job or through formal training programs made available to them. In 2022, 504 young nationals gained valuable job experience through internships across Endeavour's sites, a 43-per-cent increase over 2021.
• Overall, 9 per cent of employees were women, with 12 per cent of those in management roles and 12 per cent in technical or supervisory roles.
• At the leadership level, at the end of the year, the executive management committee had 13-per-cent female representation and 27 per cent of direct reports to members of the executive management committee were women.
• In 2023, Endeavour has included a gender diversity target as part of the group's 2023 annual bonus, targeting 15 per cent female new hires, with an upper stretch target of 20 per cent.

Ethical business:

• In 2022, Endeavour received 17 complaints through the anonymous whistleblower system and none of them were related to bribery or corruption.
• The group had no reported or identified cases of bribery or corruption in 2022, similar to 2021.
• There were no substantiated reports of human rights abuse received in 2022, similar to 2021. Endeavour's modern slavery statement is available on its website.

Outlook 2023

Endeavour's targets for 2023 are detailed in the table entitled "2023 ESG targets."

Group and executive compensation plans

Endeavour has measurable ESG targets in place that form part of its executive compensation scheme. The ESG component of the short-term incentive scheme (annual) and long-term incentive scheme (three-year) are 30 per cent and 15 per cent, respectively, with targets presented in the table entitled "Group and executive ESG KPIs [key performance indicators]," and further detailed in the annual report available on the company's website.

External ESG recongition

Endeavour is pleased that its commitment to increase its ESG disclosure and transparency, along with its ambitious ESG initiatives, has resulted in external recognition, which reflects the positive impact that its business can have in the regions where it operates.

External ESG rating agencies have ranked Endeavour as a sector-leading company, as summarized below:

• Endeavour's Sustainalytics score has improved from the 72nd percentile in 2019 to the ninth percentile (first percentile equals lowest risk) for 2022, ranking the company fourth among its gold mining peers;
• MSCI ESG rating has improved from BBB in 2019 to AA in 2022, placing Endeavour in the top 25th percentile;
• S&P Global ESG score improved from a 49th-percentile ranking in 2020 to an 86th-percentile ranking in 2022, prompting Endeavour to be included in the Dow Jones Sustainability Index in 2023;
• Endeavour's CDP climate change score has improved from a D-minus in 2019 to a B-minus in 2022, while the water score remained a C for 2022.

Endeavour also received a number of awards and recognition last year, as summarized below:

• In Burkina Faso, Endeavour won the Best RSE Initiative award with our program "Elites de Demain," which focuses on ensuring a strong pipeline of future talent by offering scholarships to study mining-related courses to students from the company's three host countries.
• Endeavour's Mana mine, in Burkina Faso, was awarded the Burkinabe national distinction "Chevalier de l'ordre de la sante et de l'action social, avec agraphe sante," or "Knight of the Order of Merit for Health and Social Action," for its work to combat HIV/AIDS.
• Two Endeavour female employees, Laetitia Gadegbeku-Ouattara and Maimouna Guembre, recognized by Women in Mining United Kingdom as part of the 2022 cohort of the "100 Global Inspirational Women in Mining."

Qualified persons

Mark Morcombe, chieff operating officer of Endeavour Mining, a fellow of the Australasian Institute of Mining and Metallurgy, is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, and has reviewed and approved the technical information in this news release.

About Endeavour Mining PLC

Endeavour Mining is one of the world's senior gold producers and the largest in West Africa, with operating assets across Senegal, Ivory Coast and Burkina Faso, and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian greenstone belt across West Africa.

A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates.

We seek Safe Harbor.