Mr. Sebastien de Montessus reports

ENDEAVOUR ANNOUNCES THE SALE OF ITS NON-CORE AGBAOU MINE

Endeavour Mining Corp. has entered into an agreement to sell its 85-per-cent interest in its non-core Agbaou mine in Ivory Coast to Allied Gold Corp. for consideration of up to $80-million with further upside through its equity exposure and a net smelter return (NSR) royalty.

Sebastien de Montessus, president and chief executive officer of Endeavour, commented: "The sale of our interest in the Agbaou mine to Allied Gold is in line with our strategy of actively managing our portfolio to focus management efforts on high-margin, long-life core assets.

"Agbaou has been a highly cash generative asset, which facilitated the organic development of Hounde and Ity, and given that it has now become non-core to Endeavour, we firmly believe that this transaction is in the best interests of all of Agbaou's stakeholders, including the government of Cote d'Ivoire, local communities and the employees themselves. This transaction will ensure mining activities can continue for many years to come through the creation of the Bonikro-Agbaou complex.

"We are very proud of what we have accomplished at Agbaou as we have installed a strong and capable team, which is now led by an Ivorian general manager, supported by a number of local employees in leadership positions, ensuring we leave behind a strong legacy. I want to thank our Agbaou employees for their huge commitment, professionalism and contribution to Endeavour's evolution over the past years."

Allied Gold is a private African operator which notably owns the nearby Bonikro mine. Following the transaction close, the Bonikro-Agbaou operation will be composed of multiple open pits and two processing plants with a total milling capacity of over five million tonnes per annum, and will have the potential to produce over 285,000 ounces annually. Endeavour expects to capture the benefits of local synergies and exploration upside through its equity stake in Allied Gold and its NSR royalty.

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

• $20-million in cash payable in the first quarter of 2021;
• $40-million in Allied Gold shares; Endeavour has an option to sell the shares back to Allied Gold at the issue price, which expires on Dec. 31, 2022, or earlier if Allied Gold conducts an initial public offering before then;
• A contingent payment of up to $20-million, composed of $5-million for each quarter of 2021 where the average gold price exceeds $1,900 per ounce;
• An NSR royalty on ounces produced in excess of the Agbaou reserves estimated as at Dec. 31, 2019; the NSR royalty will be based on a sliding scale, linked to the average spot gold price as follows: 2.5 per cent if the gold price is at least $1,400 per oz, 2 per cent if the gold price is at least $1,200 per oz and less than $1,400 per oz, 1 per cent if the gold price is at least $1,000 per oz and less than $1,200 per oz, and 0 per cent if the gold price is below $1,000 per oz.

The transaction is expected to close on March 1, 2021.

About Agbaou

Located approximately 200 kilometres north of the port city of Abidjan, Ivory Coast, the Agbaou gold mine is an open-pit mining operation with a CIL (carbon-in-leach) processing facility, which is currently processing in excess of 2.0 million tonnes per annum. In the first nine months of 2020, the mine produced 76,713 ounces of gold at an AISC (all-in sustaining cost) of $1,013 per oz. Agbaou's measured and indicated resources, inclusive of reserves, as at Dec. 31, 2019, stood at 7.6 million tonnes at 2.14 grams per tonne gold containing 519,000 oz, while proven and probable reserves stood at 6.3 million tonnes at 1.58 g/t Au containing 321,000 oz. Based on known reserves, Agabou's mine life is expected to cease by the end of 2022, but Allied intends to extend the life of mine through continued regional exploration activities in the near term. Endeavour's carrying book value as at Sept. 30, 2020, for its interest in the Agbaou mine stood at $103-million and is expected to be below $90-million at year-end. Endeavour owns an 85-per-cent stake in the Agbaou mine, with the rest owned by the government of Ivory Coast (10 per cent) and Sodemi (5 per cent).

About Endeavour Mining Corp.

Endeavour Mining is a multiasset gold producer focused on West Africa, with two mines (Ity and Agbaou) in Ivory Coast, four mines (Hounde, Mana, Karma and Boungou) in Burkina Faso, four potential development projects (Fetekro, Kalana, Bantou and Nabanga) and a strong portfolio of exploration assets on the highly prospective Birimian greenstone belt across Burkina Faso, Ivory Coast, Mali and Guinea.

As a leading gold producer, Endeavour Mining is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the Toronto Stock Exchange under the symbol EDV.

Qualified person

Clinton Bennett, Endeavour's vice-president, metallurgy and process improvement, 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.

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