Mr. Sebastien de Montessus reports

ENDEAVOUR ANNOUNCES THE SALE OF ITS NON-CORE BOUNGOU AND WAHGNION MINES

Endeavour Mining PLC has closed the sale of its 90-per-cent interests in its Boungou and Wahgnion non-core mines in Burkina Faso to Lilium Mining, a subsidiary of Lilium Capital, an African and frontier markets focused strategic investment vehicle led by West African entrepreneurs. The total consideration is expected to exceed $300-million and comprises upfront and deferred cash considerations and net smelter return royalties (NSR), as detailed below.

Sebastien de Montessus, president and chief executive officer, commented: "In line with our strategy of actively managing our portfolio to focus management efforts on higher-quality assets, we are pleased to announce the sale of our non-core Boungou and Wahgnion mines to Lilium Mining.

"We believe that Lilium Mining is well positioned to continue to unlock value at the Boungou and Wahgnion mines, for the benefit of all stakeholders. Moreover, Lilium is a trusted Burkinabe-focused business that shares our commitment to operate the mines in the best interests of employees and local stakeholders.

"We wish to thank our Boungou and Wahgnion employees and local stakeholders for their commitment, professionalism and contribution to Endeavour's success over the past several years."

Terms of the agreement

Under the terms of the agreement, the total consideration consists of the following:

• $130-million to be received by July 31, 2023, in the form of a reimbursement of historical shareholder loans, which will be used to further strengthen the company's balance sheet as it progresses the construction of its growth projects;
• $25-million in deferred cash consideration payable in two instalments of $10-million and $15-million by end of Q4 2023 and end of Q1 2024, respectively;
• Deferred cash consideration comprising 50 per cent of the net free cash flow generated by the Boungou mine until $55-million has been paid, which is expected to occur by Q4 2024 based on the current gold price environment and mine plan;
• An NSR (net smelter return) on Boungou commencing immediately for 4.0 per fcent of gold sold. Endeavour expects the NSR on Boungou to generate approximately $52-million of cash over its life of mine based on current reserves, assuming a gold price of $1,850 per ounce (oz), with further exploration upside and potential to convert resources to reserves;
• An NSR on Wahgnion commencing immediately for 4.0 per cent of gold sold. Endeavour expects the NSR on Wahgnion to generate approximately $41-million of cash over its life of mine based on current reserves, assuming a gold price of $1,850 per oz, with further exploration upside and potential to convert resources to reserves.

The transaction constitutes a Class 2 transaction for Endeavour for the purposes of the United Kingdom Financial Conduct Authority's listing rules and, as such, does not require Endeavour shareholder approval. Based on the economic terms of the transaction, Endeavour will perform its purchase price adjustments with effect from May 1, 2023.

Updated group guidance

Following the sale of the Boungou and Wahgnion mines, Endeavour has updated its 2023 full year production and all-in sustaining cost (AISC) guidance to account for the removal of guided production from the Boungou mine of 115,000 to 125,000 oz at an AISC of $985 to 1,075 per oz and from the Wahgnion mine of 150,000 to 165,000 oz at an AISC of $1,250 to 1,350 per oz. As a result, the full year 2023 production guidance for continuing operations has decreased from 1,325,000 to 1,425,000 oz to 1.06 million to 1,135,000 oz, while AISC guidance from continuing operations has improved by $45 per oz to $895 to 950 per oz. This asset sale is expected to be more than offset by Endeavour's continuing construction activities as the group's production and AISC are expected to significantly improve next year as the Sabodala-Massawa brownfield expansion in Senegal and the Lafigue greenfield project in Ivory Coast remain on track to be commissioned in Q2 2024 and Q3 2024, respectively.

Advisers

Endeavour's legal adviser for the transaction was Norton Rose Fulbright. BMO Capital Markets acted as financial adviser for Lilium Mining.

Qualified persons

Mark Morcombe, COO 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.

We seek Safe Harbor.