Endeavour significantly increases Free Cash Flow on record production and lower AISC

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> Gold production up 11% to 517koz, exceeding production guidance of 475-500koz

> All-in Sustaining Cost down 9% to $922/oz, below guidance of $930-980/oz

> All-in sustaining margin up 4% to $122m, despite an 8% decline in realized gold price

> Free Cash Flow before tax, working capital & financing costs more than doubled to $85m, exceeding guidance of $80m^[1] 

> Free Cash Flow of $34m, turning positive with increased production and lower AISC/oz

> Cash balance increased to $110m and net debt reduced to $144m after debt repayment of $60m in 2015

> Adjusted net earnings attributable to shareholders tripled to $42m, or $0.99 per share

George Town, March 3, 2016 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is pleased to announce its financial and operating results for the fourth quarter and full year 2015, with highlights provided in the table below.

Table 1: Key Operational and Financial Highlights

Neil Woodyer, CEO of Endeavour, stated: "The strong 2015 financial results are the culmination of several years of asset development and optimization. We are now ideally positioned as the major pure West-African multi-operation gold mining company, with a demonstrated capacity to generate significant cash flows even at lower gold prices, as witnessed last year. 

In addition, our strengthened balance sheet and significant liquidity sources give us the needed financial flexibility to continue our growth strategy."

Production increased by 11% to 516,646 ounces

• Endeavour produced a total of 516,646 ounces of gold in 2015, inclusive of Ity's post-acquisition production of 5,689 ounces. Excluding the Ity mine, Endeavour's production amounted to 510,957 ounces, exceeding the 2015 production guidance of 475,000 to 500,000 ounces, as the strong performance from Agbaou and Tabakoto more than offset the slight declines at Nzema and Youga.  

Table 2: Gold Production by mine, oz

• Agbaou achieved record production in 2015, up 24% over the previous year, mainly due to a 20% increase in mill throughput and the continued benefit of mining free-dig oxide ore

• Tabakoto increased production by 19% over the previous year as the mine benefited from the start of mining of the Kofi C open pit and the full ramp-up of the Segala underground mine.

• Nzema's production declined only slightly compared with the previous year as the mine strategically increased purchased ore to improve the mine's operating margins, and to preserve reserves in-situ.

• The Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015. During 2015, the Ity Mine produced a total of 80,807 ounces.

• Subsequent to the year ended December 31, 2015, on February 29, 2016, Endeavour announced that it had sold the Youga Gold Mine in Burkina Faso for $25.3 million.

All-In Sustaining Cost decreased by 9% to $922/oz

• Endeavour's Group All-in Sustaining Cost ("AISC") decreased by 9% over the previous year to $922/oz mainly due to lower operating costs, specifically at Agbaou and Tabakoto, as well as the benefit of the decline in crude oil prices and favorable exchange rates against the US$.

• Agbaou reduced its mine-level AISC by 7% over the previous year to $576/oz, primarily due to a lower strip ratio and a decrease in milling cost per tonne driven by larger volumes.  

• Tabakoto reduced its mine-level AISC by 20% over the previous year to $1,067/oz, as lower fuel prices and switching to owner mining led to a decrease in mining costs (open pit reduced from $4.6 to $2.6/t, and underground reduced from $51 to $40/t).

• Sustaining capital increased from $31 million to $48 million, up $27/oz, mainly due to increased underground development at the Tabakoto mine and capitalized waste at Agbaou.

• Corporate costs and sustaining exploration costs remained fairly constant on a total dollar spent basis.

Table 3: Group All-In Sustaining costs, $/oz

*Ity Mine is included for the post-acquisition period of November 28 to December 31, 2015.

Increased Cash Flow generation despite lower realized gold price

• All-in sustaining margin increased by 4% to $122 million as the increased production and lower AISC/oz more than compensated for the lower realized gold price.

• Free cash flow (before working capital, tax & financing costs) increased by 143% to $85 million as non-sustaining capital returned to normalized levels. In 2014, non-sustaining capital included $46 million for Tabakoto (Kofi C open pit and Segala underground development, Cement Rock Fill plant, and equipment purchase). In 2015, the $37 million non-sustaining capital consisted of $19 million for Tabakoto underground development, $8 million in non-sustaining exploration, $7 million at the Houndé project, $2 million for Ity, and $1 million at Nzema.

• Free cash flow shifted from an outflow of $11 million to a positive $34 million generated in 2015, as a result of reduced non-sustaining capital.

Table 4: Simplified Cash Flow Statement

*Includes financial fees, lease repayments, hedge settlements, realized loss on derivative financial instruments, unrealized foreign exchange loss on cash, and other non-operating cash adjustments. **Includes $63m of cash received from La Mancha and minority cash interest in Ity operating entity, net of transaction fees
                                                                                                                                                                   

Decreased Net Debt by 43%, improving debt ratio to 0.9x

• Endeavour voluntarily repaid $60 million of its drawn down debt against the revolving credit facility ("RCF") during the year, reducing its net debt by 43% to $144 million.

• The net debt to operating EBITDA ratio has improved to 0.9 times, a 50% decrease from the prior year's position.

• Endeavour finished the year with a sound balance sheet with strong liquidity sources including its cash position of $110 million undrawn RCF capacity of $110 million, and its 2016 cash flow generation. The group also has a $75 million in-principle commitment from La Mancha (Naguib Sawiris) to help finance its growth strategy.

Table 5: Net Debt Reduction

Adjusted Net Earnings per Share increased by 191%

• Earnings from mine operations were $107 million in 2015 compared with $76 million for the previous year, further illustrating Endeavour's improvement in both operating and cost management areas.

• Net earnings attributable to shareholders were $18 million, or $0.42 per share, compared with net losses of $274 million, or ($6.62) per share, in the same period in 2014. For the year ended December 31, 2014 the company incurred an impairment expense on mining interests and related assets of $366 million, while no such expenses were incurred in the year ended December 31, 2015.

• Adjusted earnings attributable to shareholders were $42 million, or $0.99 per share, in 2015, an increase of 191% compared with $14 million, or $0.34 per share, in the previous year.

Table 6:  Net Earnings

*Mainly adjusted for impairment charges, transaction fees, FX gain and losses. For more details, see Company MD&A.

2016 Guidance - Updated following the Youga Sale

• Subsequent to the Youga mine sale on February 29, 2016, Endeavour has updated its 2016 production guidance to 535,000 to 560,000 ounces at an AISC of $870 to $920/oz.

• At a gold price of $1,150/oz and using the mid-point of 2016 production and AISC/oz guidance ranges, Endeavour is projecting an AISC margin of approximately $140 million in 2016, or $255/oz. 

• In 2016, non-sustaining project capital is expected to be $48 million, up from $37 million in 2015, with details by mine provided in the Table 8 below.

• Free cash flow (before working capital movement, tax and financing costs) is projected to be $90 million, representing $175 per ounce, with approximately $30 million sensitivity per $50 per ounce gold price movement.

• Exploration costs of $20 million have been allocated towards programs focused on reserve replacement and mine life extensions, with $6 million toward sustaining exploration programs and $14 million toward non-sustaining exploration programs. 

Table 7: 2016 Production and AISC/oz Guidance by mine

¹Gold production is on a 100% consolidated basis. Actual mine ownership is Agbaou - 85%, Nzema - 90%, Tabakoto - 80%, Youga - 90%, Ity - 55%.   ²Estimate for the pre-sale period ended February 29, 2016.

Table 8: 2016 Free Cash Flow before Working Capital, Tax and Financing Costs
assuming a gold price of 1,150 $/oz 2016

Project and Exploration Update

• The Houndé project construction decision is scheduled for the second quarter of 2016

• The Ity CIL feasibility study is expected to be completed in the third quarter of 2016

• A strategic review of our exploration portfolio is underway to establish our long-term exploration strategy and to prioritize targets

Conference call and live webcast

Management will host a conference call and live webcast on Friday, March 4, 2016, at 9:00 am Toronto time (EST), 2.00pm London time (GMT); 3.00pm Paris time (CET), to discuss the Company's financial results. 

The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/p944mzru

Analysts and interested investors are also invited to participate and ask questions using the dial-in numbers below:
International:                                       +1 212 444 0412
North American toll-free:                     1 877 280 2342
UK toll-free:                                         0800 279 5004
Australian toll-free:                               1 800 027 830

Confirmation code:                               4692288

A replay of the conference call and webcast will be available on Endeavour's website.

Vincent Benoit

EVP - Strategy & Business Development
+33 (0)1 70 38 36 96
vbenoit@endeavourmining.com

Martino De Ciccio

VP - Strategy & Investor Relations
+33 (0)1 70 38 36 95
mdeciccio@endeavourmining.com

Brunswick Group LLP

Carole Cable, Partner
+44 7974 982 458
ccable@brunswickgroup.com

Adriaan "Attie" Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.

Endeavour Mining is a TSX-listed intermediate gold mining company which operates 4 West African mines in Côte d'Ivoire, Mali, and Ghana. In 2016, it expects to produce between 535,000 and 560,000 ounces at an all-in sustaining cost of US$870 to US$920 per ounce, after adjustment of the recent Youga sale. Endeavour Mining is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.

This news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis for the year ended December 31, 2015.