Mr. Sebastien de Montessus reports

ENDEAVOUR REPORTS Q2 2023 RESULTS

Endeavour Mining PLC has released its operating and financial results for Q2 2023, with highlights provided in the table entitled "Q2 2023 and H1 2023 highlights."

Management will host a conference call and webcast today, Aug. 2, 2023, at 8:30 a.m. ET (1:30 p.m. BST). For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.

Copies of the management report and financial statements have been submitted to the national storage mechanism. The documents will shortly be available for inspection on the company's website and on-line at the national storage mechanism.

Sebastien de Montessus, president and chief executive officer, commented: "We are pleased with our achievements over the first half of the year. We have continued to deliver against our strategic objectives, leaving us well positioned to unlock near-term value for all of our stakeholders.

"In line with our strategy of actively managing our portfolio to focus on higher-quality assets, we closed the sale of our non-core Boungou and Wahgnion mines during the period. This focus on quality will be further enhanced by the brownfield expansion of Sabodala-Massawa and the Lafigue greenfield project, both of which remain on budget and on track to be commissioned next year, and will deliver significant growth.

"Alongside this year's investments in our organic pipeline, we are pleased to continue to deliver attractive shareholder returns and have declared an H1 2023 dividend of $100-million, which, on an annualized basis, represents $25-million more than the minimum dividend commitment for the year. Looking ahead, our goal is to increase our shareholder returns program further once our organic growth projects are complete, to ensure that our efforts to unlock growth benefit all stakeholders.

"On the operational front, we are on track to meet our full-year guidance for the 11th consecutive year, with our performance expected to increase into the second half of the year in light of the efforts over the past six months. Our relentless focus on cost and efficiency improvements has continued to identify optimization opportunities across the portfolio, leading to our decision to move forward with the 37 MWp [megawatts peak] PV [photovoltaic] solar facility at our Sabodala-Massawa mine, thereby redeploying a portion of the proceeds obtained from the sale of our non-core mines. This will significantly lower fuel consumption and power costs, while reducing greenhouse gas emissions once commissioned in early 2025.

"Looking further ahead, our exploration program continues to provide a strong platform for organic growth. Further, drilling at last year's Tanda-Iguela discovery in Cote d'Ivoire has exceeded expectations. With over 95,000 metres already drilling during the first half of the year, we have decided to increase the full year drill program to 180,000 metres and remain on track to publish a resource update later this year.

"I'd like to thank our team for their continued strong contributions over the first half of the year and look forward to progressing our strategy for the remainder of 2023."

Operating summary:

• Strong safety performance for the group, with a lost time injury frequency rate (LTIFR) from continuing operations of 0.06 for the trailing 12 months ending June 30, 2023.
• Following the sale of the Boungou and Wahgnion mines, as announced on June 30, 2023, and detailed herein, Endeavour 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 ounces to 125,000 oz at an AISC of $985 to 1,075 per oz and from the Wahgnion mine of 150,000 oz 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 decreased from 1,325,000 oz to 1,425,000 oz to 1.06 million ounces (Moz) to 1,135,000 oz, while AISC guidance from continuing operations improved by $45/oz to $895 to 950/oz.
• The group remains on schedule to achieve its updated FY 2023 production guidance from continuing operations, with performance weighted toward H2 2023, as previously guided.
• Q2 2023 production from continuing operations amounted to 268,000 oz, an increase of 24,000 oz, or 10 per cent, over Q1 2023, due to increased production from Hounde and Sabodala-Massawa as higher-grade ore was mined and processed, which was partially offset by a decrease in production at Ity, due to slightly lower grade, throughput and recovery rates, and at Mana due to the increased focus on underground development. Q2 2023 AISC from continuing operations amounted to $1,000/oz, an increase of $45/oz, or 5 per cent, over Q1 2023, due to higher costs at Ity, due to the increased use of self-generated power, and at Mana due to the higher open-pit strip ratio and an increased focus on underground development, which was partially offset by lower costs at Hounde and Sabodala-Massawa.
• H1 2023 production from continuing operations amounted to 511,000 oz, a decrease of 75,000 oz, or 13 per cent, over H1 2022, due to decreased production at Hounde and Sabodala-Massawa as an increased focus on stripping activity resulted in lower-grade ore being processed during the period, and at Mana due to an increased focus on underground development with supplemental ore being sourced from the lower-grade Maoula open pit, which was partly offset by increased production at Ity due to improved throughput and recoveries. H1 2023 AISC from continuing operations amounted to $978/oz, an increase of $150/oz, or 18 per cent, over H1 2022, due to higher AISC as a result of the lower production at Hounde, Mana and Sabodala-Massawa, which was partly offset by improved costs at Ity.

• A total sustaining capital expenditure of $49.3-million was incurred in H1 2023, of which $21.6-million has been incurred in Q2 2023, primarily related to waste development and mining equipment upgrades at Hounde and Sabodala-Massawa. The FY 2023 sustaining capital expenditure outlook for continuing operations has been reduced from $135-million to $110-million, due to a $15-million reduction at Ity, due to lower required plant maintenance, and a $10-million reduction at Mana as the ramp up of the new mining contractor at Wona underground is progressing slower than expected.
• A total non-sustaining capital expenditure of $143.3-million was incurred in H1 2023, of which $60.6-million has been incurred in Q2 2023, primarily related to prestripping activity at Hounde and Sabodala-Massawa, underground development at Mana, and TSF construction, embankment raises, and the Recyn project at Ity. The FY 2023 non-sustaining capital expenditure outlook for continuing operations has been increased from $160-million to $210-million, due to a $40-million increase at Ity, as its sustained strong performance and above-nameplate throughput requires bringing forward and accelerating the tailings storage facility (TSF) embankment raise and the construction of a new TSF. In addition, to further optimize Ity's processing plant and support an increase in mill feed, the construction of the mineral sizer has been launched. The increase in non-sustaining capital spend also includes $10-million for the construction of the solar power plant at Sabodala-Massawa, which was recently launched and is expected to be commissioned in early 2025.
• A total growth capital expenditure of $176.3-million was incurred as of H1 2023, of which $104.1-million has been incurred in Q2 2023, with $37.6-million incurred at Sabodala-Massawa, $53.8-million incurred at Lafigue, $7.9-million incurred for exploration permits and $4.8-million incurred at the Kalana project. Growth capital expenditure outlook for FY 2023 remains unchanged at $400-million.

Asset divestment of non-core Boungou and Wahgnion mines:

• On June 30, 2023, Endeavour 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, which is an African- and frontier-markets-focused strategic investment vehicle led by West African entrepreneurs.
• The total consideration is expected to exceed $300-million, and is composed of upfront and deferred cash considerations, and net smelter return royalties (NSR), as detailed below:
  • $130-million in the form of a reimbursement of historical shareholder loans.
  • $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 composed of 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 on Boungou commencing immediately for 4 per cent 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/oz, with further exploration upside and potential to convert resources to reserves.
  • An NSR on Wahgnion commencing immediately for 4 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/oz, with further exploration upside and potential to convert resources to reserves.

Shareholder returns program:

• In line with Endeavour's capital allocation framework, the company is pleased to continue to deliver attractive shareholder returns, despite the significant growth capital investments being undertaken this year, by declaring an H1 2023 dividend of $100-million, or approximately 40 cents per share. On an annualized basis, the H1 2023 dividend represents $25-million more than the minimum dividend commitment for the year of $175-million. Endeavour's goal is to increase its shareholder returns program once its organic growth projects are completed in 2024, thereby ensuring that its efforts to unlock growth immediately benefit all its stakeholders.
• Endeavour's H1 2023 dividend will be paid on Sept. 26, 2023, with an ex dividend date of Aug. 31, 2023, to shareholders of record on Sept. 1, 2023. The last day for currency election and DRIP (dividend reinvestment plan) elections will be Sept. 5, 2023.
• In addition, shareholder returns continued to be supplemented with share buybacks, with $9.2-million, or 400,000 shares, repurchased in Q2 2023 and $20.1-million, or 800,000 shares, in H1 2023. Since the commencement of the buyback program on April 9, 2021, a total of $257-million, or 11.5 million shares, have been repurchased as at June 30, 2023.
• As shown in the table entitled "Actual shareholder returns versus minimum commitment," Endeavour has returned $757-million to shareholders in the form of dividends and buybacks since its shareholder returns program began in late 2020 (first dividend payment in Q1 2021), inclusive of the H1 2023 dividend, which represents $334-million more than its minimum commitment for the period.

Earnings from continuing operations

The table entitled "Earnings from continuing operations" presents the earnings and adjusted earnings for Endeavour for the three-month periods ended June 30, 2023, March 31, 2023, and June 30, 2022, and the six-month periods ended June 30, 2023, and June 30, 2022, with accompanying explanations below.

Notes

Revenue increased by $42.9-million, from $481.2-million in Q1 2023 to $524.1-million in Q2 2023, due to a higher realized gold price in Q2 2023 of $1,943 per ounce compared with $1,902 per ounce for Q1 2023, exclusive of the company's revenue protection program, and an increase in gold sales from 252,000 oz in Q1 2023 to 269,000 oz in Q2 2023, following higher production at the Hounde and Sabodala-Massawa mines.

Revenue decreased by $89.6-million, from $1,094,9000 in H1 2022 to $1,005,300 in H1 2023, due to a decrease in gold sales from 583,000 oz in H1 2022 to 521,000 oz in H1 2023, lower gold sales volumes, partly offset by a higher realized gold price for H1 2023 of $1,923 per ounce compared with $1,870 per ounce for H1 2022.

Operating expenses increased by $30.4-million, from $171.4-million in Q1 2023 to $201.8-million in Q2 2023, largely due to increased mining costs at Hounde and Sabodala-Massawa, as more waste was expensed during the quarter following the restart of ore mining at Kari Pump and the start of mining at Niakifiri East, in addition to higher processing costs across the group as higher tonnes were milled during the quarter. Depreciation and depletion of $99.5-million in Q2 2023 was largely in line with the prior quarter, as increased depletion at Hounde and Sabodala-Massawa, due to increased quarterly production, was largely offset by decreased depletion at Ity and Mana, due to lower quarterly production.

Operating expenses increased by $15.2-million, from $358-million in H1 2022 to $373.2-million in H1 2023, largely due to increased volumes mined and processed at Ity and Hounde, and increases in fuel and key consumable costs, as well as foreign exchange impacts associated with the euro strengthening against the dollar. Depreciation and depletion decreased by $20.3-million, from $221.7-million in H1 2022 to $201.4-million in H1 2023, due to lower production volumes at Hounde, Sabodala-Massawa and Mana.

Royalties increased from $29.7-million in Q1 2023 to $31.8-million in Q2 2023, due to higher gold sales.

Royalties decreased from $64.7-million in H1 2022 to $61.5-million in H1 2023, due to lower gold sales.

Corporate costs of $14-million in Q2 2023 were largely consistent with the prior period.

Corporate costs increased from $20.8-million in H1 2022 to $27.5-million in H1 2023, due to higher employee and professional service costs, which were impacted by foreign exchange movements as the British pound sterling (GBP) strengthened against the U.S. dollar.

Impairments of mining interest and goodwill of $14.8-million was recognized against the Afema exploration properties in Ivory Coast, in Q2 2023, as no near-term activity is planned on the permits.

Exploration costs increased from $12.5-million in Q1 2023 to $14.5-million in Q2 2023, due to increased exploration expense at the Tanda-Iguela greenfield property in Ivory Coast.

Exploration costs increased from $15.1-million in H1 2022 to $27-million in H1 2023, largely due to the increased expense at the Tanda-Iguela property, which was discovered in Q4 2022.

The gain on financial instruments increased from a loss of $72-million in Q1 2022 to a gain of $31.1-million in Q2 2023, largely due to unrealized gains on gold collars, gold forwards and foreign currency contracts. The gain on financial instruments included unrealized gains on the gold collars and forward sales of $33.9-million, realized gains on foreign currency contracts of $1.4-million, realized gains on other financial instruments of $1.2-million, and realized gains on gold collars and forward contracts of $1.1-million, partially offset by a loss on the fair value of call rights of $4.7-million, an unrealized loss on foreign currency contracts of $1.4-million, and foreign exchange losses of $400,000.

The loss on financial instruments decreased from a loss of $66-million in H1 2022 to a loss of $40.9-million in H1 2023, and is composed of a fair value loss on the conversion option of convertible notes of $14.9-million, a loss on the fair value of call rights of $9-million, unrealized losses on gold collars and forward contracts of $6.7-million, foreign exchange losses of $5.3-million, realized losses on gold collars and forward contracts of $4.7-million, unrealized losses on foreign currency contracts of $2.5-million, and a loss on the change in fair value of contingent considerations of $600,000, partially offset by a realized gain on foreign currency contracts of $2.7-million and a gain in other financial instruments of $100,000.

As previously disclosed, in order to increase cash flow visibility during its construction phase, Endeavour entered into a revenue protection program, using a combination of zero-premium gold collars and forward sales contracts, to cover a portion of its 2023 and 2024 production:

• During Q2 2023, 30,000 oz were settled into forward sales contracts for an average gold price of $1,828/oz. For H2 2023, approximately 150,000 oz (75,000 oz per quarter) are expected to be delivered into a collar with a call price of $2,100/oz and a put price of $1,750/oz. In addition, approximately 60,000 oz (30,000 oz per quarter) are scheduled to be settled during H2 2023 in forward sales contracts, at an average gold price of $1,828/oz.
• For FY 2024, approximately 450,000 oz are expected to be delivered into a collar with a call price of $2,400/oz and a put price of $1,807/oz. In addition, during H1 2024, a total of approximately 70,000 oz (approximately 35,000 oz per quarter) are expected to be settled in forward sales contracts, with an average gold price of $2,033/oz.

As previously disclosed, Endeavour entered into a growth capital protection program designed to enhance cost certainty for a portion of its growth capital expenditure at its Sabodala-Massawa expansion and Lafigue growth projects. The group had entered into various foreign exchange forward contracts across both the euro and the Australian dollar over 2023 and 2024:

• During Q2 2023, 22.4 million euros were delivered into forward contracts at a blended rate of 1.02 euro:U.S., and $10-million (Australian) was delivered into forward contracts at a blended rate of 0.69 Australian:U.S.
• The total outstanding notional forward contracted quantum is approximately 45.3 million euros at a blended rate of 1.03 euro:U.S., split over 2023 and 2024 at approximately 71 per cent and 29 per cent, respectively, and approximately $21.6-million (Australian) at a blended rate of 0.69 Australian:U.S., split approximately 74 per cent and 26 per cent, respectively, over the same period.

Current income tax expense increased by $43.2-million, from $48.2-million in Q1 2023 to $91.4-million in Q2 2023, largely due to withholding taxes of $46.7-million recognized following local board approvals for cash upstreaming, and an increase in taxable earnings from the Sabodala-Massawa and Hounde mines.

Current income tax expense increased by $4.2-million, from $135.4-million in H1 2022 to $139.6-million in H1 2023, largely due to higher withholding tax expenses recognized in H1 2023 following the approval of dividends at Sabodala-Massawa in Q3 2022, which was partially offset by lower taxable earnings in H1 2023.

Deferred income tax recovery increased by $25.4-million, from $11.8-million in Q1 2023 to $37.2-million in Q2 2023, largely due to the recognition of the decreased deferred tax liability related to withholding taxes accrued in Q4 2022 of $35.1-million, which were recognized as current tax expenses this period. This was partly offset by higher deferred tax charges in relation to inventory.

Deferred income tax recovery increased by $53.4-million, from a deferred income tax expense of $4.4-million in H1 2022 to a deferred income tax recovery of $49.0-million in H1 2023, largely due to the timing of additional withholding taxes accrued in Q2 2022 in relation to Sabodala-Massawa and the impact of foreign exchange rate movements on deferred tax balances recognized in H1 2022.

Net comprehensive earnings from continuing operations increased by $85.8-million, from $15.4-million in Q1 2023 to $101.2-million in Q2 2023. The increase in earnings is largely driven by the mark-to-market of gold collars and forward contracts resulting in an unrealized gain compared with the unrealized loss in the prior quarter.

Net comprehensive earnings from continuing operations decreased by $37.6-million, from $154.2-million in H1 2022 to $116.6-million in H1 2023. The decrease in earnings is largely driven by lower earnings from mine operations due to lower production at the Hounde and Mana mines, and higher operating expenses.

Net comprehensive loss from all operations (as shown in the table entitled "Earnings from all operations") decreased by $107.8-million, from a gain of $20.4-million in Q1 2023 to a loss of $87.4-million in Q2 2023, largely due to a net loss from discontinued operations of $188-million, which includes a loss on disposal of $177.8-million that was realized during Q2 2023 following the sale of the Boungou and Wahgnion non-core mines.

For Q2 2023, adjustments included a net gain on financial instruments of $30-million, largely related to the unrealized gain on forward sales and collars, a gain on non-cash, tax and other adjustments of $4-million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balance, and other income of $2.6-million, partly offset by an impairment charge of $14.8-million related to the group's exploration permit portfolio.

For H1 2023, adjustments included a net loss on financial instruments of $36.2-million, largely related to the fair-value loss on the convertible option of convertible notes, and unrealized losses on forward sales and collars, a gain on non-cash, tax and other adjustments of $9.1-million that mainly relate to the impact of the foreign exchange remeasurement of deferred tax balance, partly offset by an impairment charge of $14.8-million related to the group's exploration permit portfolio and other expenses of $2.5-million.

Adjusted net earnings from continuing operations attributable to non-controlling interests increased from $16.7-million in Q1 2022 to $25.7-million in Q2 2023, due to higher earnings from the Hounde and Sabodala-Massawa mines, which was partially offset by higher exploration expenses. Adjusted net earnings from continuing operations attributable to non-controlling interests decreased from $44.4-million in H1 2022 to $42.3-million in H1 2023, due to lower earnings from the Hounde, Sabodala-Massawa and Mana mines, higher corporate costs, and higher tax expenses.

Adjusted net earnings attributable to shareholders for continuing operations decreased by $11.2-million, from $64.9-million (or 26 cents per share) in Q1 2023 to $53.7-million (or 22 cents per share) in Q2 2023, despite higher revenues, due to higher tax expenses, higher operating and exploration expenses, and higher earnings attributable to non-controlling interests.

Adjusted net earnings attributable to shareholders for continuing operations decreased by $99.2-million, from $217.9-million (or 88 cents per share) in H1 2022 to $118.7-million (or 48 cents per share) in H1 2023, due to lower volumes of gold sold at lower operating margins, higher corporate costs, higher exploration expenses and higher share-based compensation.

Conference call and live webcast

Management will host a conference call and webcast on Wednesday, Aug. 2, at 8:30 a.m. ET (1:30 p.m. BST) to discuss the company's financial results.

The conference call and webcast are scheduled at:

• 5:30 a.m. in Vancouver;
• 8:30 a.m. in Toronto and New York;
• 1:30 p.m. in London;
• 8:30 p.m. in Hong Kong and Perth.

The video webcast can be accessed on-line.

Analysts and investors are also invited to participate and ask questions by registering for the conference call on-line.

The conference call and webcast will be available for playback on Endeavour's website.

Qualified persons

Mark Morcombe, chief 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 Corp.

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.