Mr. Bradford Cooke reports

ENDEAVOUR SILVER REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER 2021; EARNINGS CONFERENCE CALL AT 10AM PDT (1PM EDT) TODAY

Endeavour Silver Corp. has released its financial results for the three months ended March 31, 2021. The company operates three silver-gold mines in Mexico: the Guanacevi mine in Durango state, the Bolanitos mine in Guanajuato state and the El Compas mine in Zacatecas state. All currency figures are in U.S. dollars.

Bradford Cooke, chief executive officer, commented: "We are off to a good start in 2021, with the mining operations meeting our production plans notwithstanding the severe weather events that caused a slowdown of production during the first quarter. As a result, our operating costs were a bit higher than plan but we expect costs to be lower going forward.

"Revenue, cash flow and earnings were all sharply higher in Q1 2021 compared to Q1 2020. The sale of El Cubo helped boost our earnings, offset by our decisions to hold back some metal inventory from sale near the end of the first quarter as well as elevated general and administrative expenses.

"The Terronera feasibility study is on track for completion in the third quarter and exploration is ongoing at each of our mines and projects to test highly prospective targets. We have a busy year ahead, as our attention turns to developing our next core asset at Terronera."

2021 first quarter highlights:

• Metal production: produced 1,039,710 ounces of silver, up 22 per cent, and 10,894 oz of gold, up 31 per cent, in line with guidance of 1.9 million oz of silver equivalent (AgEq), up 26 per cent, at an 80:1 silver:gold ratio, compared with Q1 2020;
• Gross sales: total of $35.1-million, up 58 per cent, from the sale of 623,379 oz of silver and 10,663 oz of gold at average realized prices of $27.17 per oz silver and $1,703 per oz gold. Held 523,235 oz silver and 1,123 oz gold of bullion inventory and 6,582 oz silver and 566 oz gold in concentrate inventory. Management withheld metal from sale during the price correction over last two weeks of March;
• Operating costs: cash cost of $7.86 per oz payable silver, flat year on year, and all-in sustaining cost (AISC) of $19.94 per oz payable silver, up 8 per cent year on year, both net of gold credits;
• Cash flow: $5.2-million in cash flow from operations before working capital changes, up 205 per cent compared with Q1 2020, as the company accumulated finished goods, invested in exploration activities and advanced the Terronera feasibility study;
• Net earnings: earnings of $12.2-million or eight cents per share, up sharply compared with a loss of $15.9-million in Q1 2020 due to the reversal of the historical impairment of the El Cubo asset sold in April, offset by increased exploration activities, evaluation activities and higher tax expense. Excluding the impairment reversal, the adjusted earnings resulted in a loss of $4.5-million. At quarter-end, the finished golds inventory was carried at a cost of $8.0-million compared with the fair market value of $15.9-million;
• Agreement to sell the El Cubo assets: advanced the sale of the El Cubo assets in Guanajuato, Mexico, to Vangold Mining Corp. for $15-million in cash and share payments with up to $3-million in contingent payments, with the transaction closing April 9, 2021;
• Balance sheet: cash position of $86.0-million, up 473 per cent, and working capital of $113.1-million, up 316 per cent compared with Q1 2020. Raised $30.1-million in equity financing through an ATM (at the market) facility. Only term liabilities are equipment loans of $8.7-million, entered into in previous years to upgrade the mobile fleet.

Financial overview

In Q1 2021, net revenue increased 58 per cent to $34.5-million as a result of higher metal prices and increased production. As a result, mine operating cash flows, operating cash flows and EBITDA (earnings before interest, taxes, depreciation and amortization) all increased significantly compared with Q1 2020. The company recognized earnings of $12.2-million compared with a loss of $15.9-million in Q1 2020. An impairment reversal of $16.8-million was recognized as a result of classifying the El Cubo mine and related assets and liabilities as held for sale in relation to the April 9 sale.

Cost of sales for Q1 2021 was $28.8-million, an increase of 16 per cent over the cost of sales of $24.8-million for the same period of 2020. The increase in cost of sales was primarily related to significantly higher royalty costs and labour costs, partially offset by improved productivity at the Guanacevi and Bolanitos operations. Royalties increased 187 per cent to $2.5-million due to higher realized prices and the increased mining of the high-grade Porvenir Cuatro extensions at the Guanacevi operation, which is subject to the significantly higher royalty rates.

The company increased its finished goods silver and gold inventory to 529,817 oz and 1,689 oz, respectively, at March 31, 2021, compared with 116,484 oz silver and 1,459 oz gold at Dec. 31, 2020. The cost allocated to these finished goods was $8.0-million at March 31, 2021, compared with $3.6-million at Dec. 31, 2020. At March 31, 2021, the finished goods inventory fair market value was $15.9-million, compared with $5.8-million at Dec. 31, 2020.

Financial results

For the period ended March 31, 2021, the company generated net revenue of $34.5-million, an increase of 58 per cent compared with $21.9-million. Gross sales of $35.1-million in Q1 2021 represented a 57-per-cent increase over the $22.8-million for the same period in 2020. There was a 6-per-cent decrease in silver ounces sold and a 77-per-cent increase in the realized silver price resulting in a 66-per-cent increase to silver sales. There was a 43-per-cent increase in gold ounces sold with a 4-per-cent increase in realized gold prices resulting in a 49-per-cent increase in gold sales. During the period, the company sold 623,379 oz silver and 10,663 oz gold, for realized prices of $27.17 and $1,703 per oz, respectively, compared with sales of 665,500 oz silver and 7,454 oz gold, for realized prices of $15.33 and $1,633 per oz, respectively, in the same period of 2020. For the three months ended March 31, 2021, silver and gold spot prices averaged $26.26 and $1,794, respectively.

After cost of sales of $28.8-million (Q1 2020 -- $24.8 million), mine operating earnings amounted to a $5.7-million (Q1 2020 -- loss of $2.9-million) from mining and milling operations in Mexico.

Excluding depreciation and depletion of $7.5-million (Q1 2020 -- $6.0-million) and stock-based compensation of $100,000 (Q1 2020 -- $100,000), mine operating cash flow before taxes was $13.3-million in Q1 2021 (Q1 2020 -- $4.3-million). Operating earnings were $14.3-million (Q1 2020 -- loss of $8.6-million) after exploration and evaluation expenditures of $4.1-million (Q1 2020 -- $2.4-million), general and administrative expense of $3.5-million (Q1 2020 -- $2.0-million), and El Cubo care and maintenance costs of $500,000 (Q1 2020 -- $1.3-million). An impairment reversal of $16.8-million was recognized as a result of classifying the El Cubo mine and related assets and liabilities as held for sale in relation to the April 9 sale.

Net earnings amounted to $12.2-million (eight cents per share) compared with a net loss of $15.9-million (loss of 11 cents per share) in Q1 2020.

Current income tax expense increased to $700,000 (Q1 2020 -- $300,000) related to an increase in special mining duty, while deferred income tax expense of $3.1-million was recognized due to the estimated use of loss carry forwards to reduce taxable income at Guanacevi and Bolanitos (Q1 2020 -- $1.9-million).

Direct operating costs per tonne in Q1 2021 increased 16 per cent to $112.36 compared with Q1 2020 due to higher operating costs at Guanacevi and Bolanitos, offset by lower costs at El Compas. Guanacevi and Bolanitos have seen increased labour costs and increased third party ore purchased at Guanacevi compared with the prior year. Including royalties and special mining duty, direct costs per tonne increased 24 per cent to $126.23. Royalties increased 187 per cent to $2.5-million as increased production from the El Curso concession at Guanacevi and higher prices substantially increased the royalty expense. The higher prices and higher grades increased special mining duty expense to $400,000 for Q1 2021.

Consolidated cash costs per ounce, net of byproduct credits (a non-IFRS (international financial reporting standards) measure and a standard of the Silver Institute), was flat at $7.86, as the higher grades and higher prices offset the higher direct costs per tonne. All-in sustaining costs (also a non-IFRS measure) increased 8 per cent to $19.84 per ounce in Q1 2021 as a result of higher corporate general and administrative costs and increased capital expenditures at Guanacevi to accelerate mine development within the El Curso orebody. In Q1 2020 corporate general and administrative included a $1.1-million mark-to-market recovery of deferred share units expense whereas the mark-to-market recovery was $200,000 in Q1 2021.

The condensed consolidated interim financial statements and management's discussion and analysis can be viewed on the company's website, on SEDAR and on EDGAR.

Conference call

A conference call to discuss these results will be held today, Tuesday, May 11, at 10 a.m. Pacific Daylight Time (1 p.m. Eastern Daylight Time). To participate in the conference call, please dial the numbers below. No pass code is necessary:

Toll-free in Canada and the United States:  1-800-319-4610

Local Vancouver:  604-638-5340

Outside of Canada and the U.S.:  604-638-5340

A replay of the conference call will be available by dialling 1-800-319-6413 in Canada and the U.S. (toll-free) or 604-638-9010 outside of Canada and the U.S. The required pass code is 6594 followed by the number sign. The replay will also be available on the company's website.

About Endeavour Silver Corp.

Endeavour Silver is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project toward a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. The company's philosophy of corporate social integrity creates value for all stakeholders.

    CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (LOSS)                        
      (expressed in thousands of dollars, except for per-share amounts)                
                                                                                                
                                                       Three months ended March 31
                                                              2021            2020

Revenue                                                    $34,466         $21,927
Cost of sales
Direct production costs                                     18,728          16,800
Royalties                                                    2,460             857
Share-based payments                                           118              91
Depreciation, depletion and amortization                     7,496           6,023
Writedown of inventory to net realizable value                   -           1,042
                                                            28,802          24,813
Mine operating earnings (loss)                               5,664          (2,886)
Expenses
Exploration and evaluation                                   4,130           2,382
General and administrative                                   3,523           2,005
Care and maintenance costs                                     521           1,345
Impairment reversal of
non-current assets (loss)                                  (16,791)              -
                                                            (8,617)          5,732
Operating earnings (loss)                                   14,281          (8,618)
Finance costs                                                  291             310
Other income (expense)
Foreign exchange (loss)                                       (694)         (4,917)
Investment and other (loss)                                  2,751              49
                                                             2,057          (4,868)
Earnings (loss) before income taxes                         16,047         (13,796)
Income tax expense (recovery)
Current income tax expense                                     671             266
Deferred income tax expense (recovery)                       3,127           1,864
                                                             3,798           2,130
Net earnings (loss) and comprehensive
earnings (loss) for the period                              12,249         (15,926)
Basic earnings (loss) per share based
on net earnings (loss)                                        0.08           (0.11)
Diluted earnings (loss) per share based
on net earnings (loss)                                        0.07           (0.11)

We seek Safe Harbor.