ENDEAVOUR REPORTS RECORD Q2-2021 RESULTS;
WELL POSITIONED TO ACHIEVE TOP-HALF OF FULL YEAR PRODUCTION GUIDANCE

London, 4 August, 2021 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ('Endeavour' or the 'Group' or the 'Company') is pleased to announce its financial and operating results for Q2-2021 and H1-2021, with highlights provided in Table 1 below. Management will host a conference call and webcast on Wednesday 4 August, at 8:30 am ET / 1:30 pm BST. For instructions on how to participate, please refer to the conference call and webcast section at the end of the news release.

Table 1: Consolidated Highlights¹

¹All amounts include Teranga assets from 10 February, 2021 ²This is a non-GAAP measure. Refer to the non-GAAP measure section of the Management Report. ³From Continuing Operations excludes the Agbaou mine which was divested on 1 March, 2021. ⁴LTM means last twelve months.

Sebastien de Montessus, President and CEO, commented: “Our strong Q2 performance positions us well to achieve the top half of our production guidance for the full year, as all our mines are continuing to perform well and we have quickly integrated the Teranga assets within our business.

Our strong free cash flow generation has significantly improved our balance sheet strength and bolstered our ability to reward shareholders. We paid our first dividend of $60 million in Q1 for the 2020 fiscal year, and today we are declaring an interim dividend of $70 million for H1-2021, placing us on track to deliver more than the guided minimum dividend of $125 million for the full year. Given our near zero Net Debt to adjusted EBITDA leverage ratio, we have been supplementing our shareholder return programme with share buybacks, having repurchased $70 million of shares since April.

Our growth pipeline continues to develop with the Sabodala-Massawa phase 1 expansion on track to be completed in Q4-2021 while Definitive Feasibility Studies are progressing well for the Sabodala-Massawa Phase 2 expansion, Fetekro, and Kalana projects.

We have enjoyed further exploration success, with significant discoveries made at Ity, Houndé, Sabodala-Massawa and Fetekro, where updated resources are expected to be published later this year. Overall, the group is on track to delineate over 2.5 million ounces of Indicated resources in 2021, which represents significantly more than the expected annual depletion and contributes to our portfolio’s longevity.

We are also very pleased to have successfully completed our listing on the premium-segment of the London Stock Exchange in June and remain on track to be included into the UK and European indexes.

These achievements leave Endeavour well positioned for the remainder of the year and beyond.”

UPCOMING CATALYSTS

The key upcoming expected catalysts are summarized in the table below.

Table 2: Key Upcoming Catalysts

LONDON STOCK EXCHANGE LISTING

• Endeavour’s premium listing on the London Stock Exchange (“LSE”) was successfully completed on 14 June 2021, positioning Endeavour as the largest pure-play gold producer listed on the premium segment of the LSE.

• Endeavour is well positioned to be included in the upcoming FTSE Russell index quarterly review based on its recent re-domicile to the UK and subject to its trading liquidity being above the required threshold. Membership changes to the indices are expected to be communicated by FTSE Russell on 1 September 2021 with potential inclusion becoming effective on the 20 September 2021.

• In addition, Endeavour expects to be eligible for inclusion in the MSCI Europe index, with index rebalancing occurring on 30 November 2021 following the semi-annual review which is expected to be completed by mid-November.
  
  

SHAREHOLDER RETURNS PROGRAM

• As disclosed on 7 June 2021, Endeavour has implemented a shareholder returns programme that is composed of a minimum progressive dividend that may be supplemented with additional dividends and buybacks, providing the prevailing gold price remains above $1,500/oz and that Endeavour’s leverage remains below 0.5x Net Debt / adjusted EBITDA.

• The minimum progressive dividend policy has a target of distributing at least $500 million to shareholders over the next three years. Minimum dividends are set at $125 million, $150 million and $175 million for FY-2021, FY-2022, and FY-2023 respectively, payable semi-annually, significantly higher than our inaugural FY-2020 dividend of $60 million.

• Endeavour is pleased to declare its H1-2021 interim dividend of $70 million or $0.28 per share based on its current issued share capital, which represents 56% of the minimum dividend for FY-2021, highlighting its strong commitment to paying supplemental shareholder returns. The ex-dividend date for the interim dividend will be 9 September 2021 and the record date will be 10 September 2021. The dividend will be paid on or about 28 September 2021 (the “Payment Date”).

• Shareholders of shares traded on the Toronto Stock Exchange will receive dividends in Canadian Dollars (“CAD”), but can elect to receive United States Dollars (“USD”). Shareholders of shares traded on the London Stock Exchange will receive dividends in USD, but can elect to receive Pounds Sterling (“GBP”). Certificated shareholders will receive dividends in USD but can elect to receive dividends in GBP or CAD. Currency elections must be made by shareholders prior to 17:00 GMT on 13 September 2021. Dividends will be paid in the default or elected currency on the Payment Date, at the prevailing USD:CAD and USD:GBP exchange rates on 15 September 2021. This dividend does not qualify as an “eligible dividend” for Canadian income tax purposes. The tax consequences of the dividend will be dependent on the particular circumstances of a shareholder.

• Shareholder returns are being supplemented through the Company’s share buyback programme. A total of $70 million of shares have been repurchased since the start of the buyback programme on 9 April 2021 until end of July 2021, of which $59 million or 2.7 million shares were repurchased in Q2-2021.
  
  

ON TRACK TO ACHIEVE FY-2021 GUIDANCE

• Strong H1-2021 performance of 756koz at an AISC of $860/oz positions the Group well to meet the top-half of its FY-2021 production guidance of 1,365-1,495koz at an AISC of $850-900/oz.

• H2-2021 will benefit from the full consolidation of the Sabodala-Massawa and Wahgnion mines, which have been consolidated starting from the closing date of the Teranga Gold acquisition of 10 February 2021.

• Group sustaining and non-sustaining capital expenditure outlook for FY-2021 remains in line with initial guidance of $173 million and $201 million, respectively.
  
  

Table 3: H1-2021 Performance vs. FY-2021 Guidance

CASH FLOW AND LIQUIDITY SUMMARY

The table below presents the cash flow and Net Debt position for Endeavour for the three and six month period ending 30 June, 2021, with accompanying notes below.

Table 4: Cash Flow and Net Debt Position

¹Net Debt and Adjusted EBITDA are Non-GAAP measures. Refer to the non-GAAP measure section of the Management Report.

NOTES:

1) Operating cash flows increased by $102.5 million from $197.9 million (or $0.99 per share) in Q1-2021 to $300.5 million (or $1.19 per share) in Q2-2021 mainly due to higher gold sales at a higher realised price as well as lower operating costs and a working capital inflow, which more than offset the higher income taxes paid and the foreign exchange losses incurred. Operating cash flow before non-cash working capital from all operations increased by $22.2 million from $263.4 million (or $1.27 per share) in Q1-2021 to $285.7 million (or $1.13 per share) in Q2-2021. Notable variances are summarised below:

• Gold sales increased by 57koz over Q1-2021 to 421koz in Q2-2021 due to the benefit of a full quarter of production from the newly acquired Sabodala-Massawa and Wahgnion mines, together with strong performances at Houndé and Ity. The realised gold price for Q2-2021 was $1,791/oz compared to $1,749/oz for Q1-2021. Total cash cost per ounce decreased from $751/oz in Q1-2021 to $729/oz in Q2-2021 due to the inclusion of the lower cost Wahgnion and Sabodala-Massawa mines for the full quarter

• Income taxes paid increased by $82.9 million to $106.5 million in Q2-2021 reflective of the timing of provisional payments based on full year 2020 earnings

• Working capital was an inflow of $14.8 million in Q2-2021 due to the reduction in receivable balances and inventories. Specifically, VAT receivables at Houndé decreased and certain corporate receivables were received in Q2-2021. There was also a reduction in inventory stockpiles and finished gold inventories at Ity, Sabodala-Massawa and Wahgnion

• Acquisition and restructuring costs of $14.5 million in Q2-2021 related to the Teranga acquisition and integration as well as restructuring costs

2) Cash flows used by investing activities increased from Q1-2021 to $137.3 million in Q2-2021 due to increased expenditures on mining interest including sustaining capital and non-sustaining capital:

• Sustaining capital from continuing operations increased by $13.9 million from Q1-2021 to $41.5 million in Q2-2021 due to higher sustaining capital at Boungou, Houndé and Ity primarily due to planned waste capitalisation

• Non-sustaining capital from continuing operations increased slightly in Q2-2021 to $58.3 million, due to increases at Wahgnion and increases in non-mining capital expenditure which were mostly offset by decreases at Ity, Mana and Houndé

• Growth capital spend decreased by $15.4 million from Q1-2021 to $12.6 million in Q2-2021 and primarily relates to the Massawa expansion with the remainder for ongoing Definitive Feasibility Studies (“DFS”) studies

3) Cash flows used by financing activities increased by $256.4 million to $191.8 million in Q2-2021 mainly due to a higher net repayment of long-term debt in Q2-2021, which was $120.0 million and payments for the acquisition of own shares, as part of the ongoing share buyback programme, of $59.5 million, which started in Q2-2021.

4) At quarter-end, Endeavour’s liquidity remained strong with $832.9 million of cash on hand and $220.0 million undrawn of the RCF. The Company will seek to reduce its cash balance in the upcoming quarters by continuing to pay down its debt.

5) Endeavour's corporate loan facility was increased from $430.0 million to $800.0 million in Q1-2021 to retire Teranga’s various higher cost debt facilities. In Q2-2021 $120.0 million was repaid on the facility with $580.0 million drawn on the facility at quarter-end.

6) Net Debt amounted to $77.1 million at quarter-end, a decrease of $84.9 million during the quarter despite dividend payments of $60.0 million and $59.5 million of shares repurchased. In H1-2021, Net Debt increased by $152 million compared to the beginning of the year as approximately $332 million of Net Debt was absorbed from Teranga in Q1-2021.

7) The Net Debt / Adjusted EBITDA (LTM) leverage ratio ended the quarter at a healthy 0.07x, down from 0.16x in Q1-2021, and well below the Company’s long-term target of less than 0.50x, which provides flexibility to continue to supplement its shareholder return programme while maintaining headroom to fund its organic growth. The ratio has improved by 93% from the corresponding period last year when the ratio stood at 1.00x.

EARNINGS FROM CONTINUING OPERATIONS

The table below presents the earnings and adjusted earnings for Endeavour for the three and six month period ending 30 June, 2021, with accompanying notes below.

Table 5: Earnings from Continuing Operations

NOTES:

8) Revenue for Q2-2021 was $753.4 million compared to $635.8 million for Q1-2021. The increase in revenue in Q2-2021 was mainly due to higher gold sales in Q2-2021 due to the benefit of a full quarter of production from the newly acquired Sabodala-Massawa and Wahgnion mines, together with strong performances at Houndé and Ity and a higher realised gold price for Q2-2021 of $1,791/oz compared to $1,749/oz for Q1-2021.

9) Operating expenses and depreciation and depletion increased for Q2-2021 compared to Q1-2021 due to the addition of the Wahgnion and Sabodala-Massawa mines, which were acquired on 10 February, 2021, for the full quarter.

10) Royalties were $43.9 million for Q2-2021, compared to $44.4 million in Q1-2021. Royalty expenses remained stable as the decrease in realised gold price was offset by increased production from the Wahgnion and Sabodala-Massawa mines acquired on 10 February, 2021.

11) Corporate costs were $15.9 million for Q2-2021 compared to $11.4 million for Q1-2021. The increase in corporate costs are primarily due to costs associated with listing on the LSE as well as additional corporate costs following the integration of Teranga.

12) Acquisition and restructuring costs were $14.5 million in Q2-2021 compared to $12.2 million in Q1-2021. Costs slightly increased in Q2-2021 compared to the comparative period due to the acquisition of Teranga on 10 February 2021 and the costs related to the integration of the entity into the Endeavour Group.

13) The loss on financial instruments was $14.8 million in Q2-2021 compared to a gain of $42.1 million in Q1-2021. The loss in Q2-2021 is mainly due to the net impact of a loss on change in fair value of the warrant liabilities and call rights of $5.3 million and $7.0 million respectively, and foreign exchange losses of $7.2 million. The gain in Q1-2021 is primarily due to the net impact of the unrealised gain/(loss) on convertible senior bond derivative of $30.0 million, loss on foreign exchange of $6.2 million, and a loss on change in fair value of warrant liabilities of $1.5 million.

14) Current income tax expense was $44.5 million in Q2-2021 compared to $72.1 million in Q1-2021. Current income tax expense for Q2-2021 decreased compared to Q1-2021, despite the inclusion of the Wahgnion and Sabodala-Massawa mines acquired in Q1-2021, due to an adjustment to the income tax accrual upon finalisation of the FY-2020 income tax filings. Income taxes paid of $106.5 million in Q2-2021 were materially higher than income taxes expensed reflecting higher provisional payments made at the end of the 2020/2021 tax year.

15) Net comprehensive earnings were $148.9 million for Q2-2021 compared to $110.9 million in Q1-2021. The increase in earnings was related to higher earnings from mine operations due to the addition of Wahgnion and Sabodola-Massawa, as well as a lower income tax expense, which contained one-off expenses related to the divestment of Agbaou in Q1-2021.

16) Adjustments relate mainly to loss/(gain) on financial instruments, loss on discontinued operations, deferred income tax, share based compensation, non-recurring items and acquisition and restructuring costs.

17) Adjusted Net Earnings attributable to shareholders for continuing operations were $183.1 (or $0.73 per share) in Q2-2021 compared to $93.2 million (or $0.45 per share) in Q1-2021.

OPERATIONS REVIEW SUMMARY

• Continued strong safety record for the Group, with a Lost Time Injury Frequency Rate (“LTIFR”) of 0.16 for the trailing twelve months ending 30 June, 2021.

• The acquisition of Teranga Gold was completed on 10 February, 2021 and the Sabodala-Massawa and Wahgnion assets have been consolidated into the financial statements from this date. The sale of Endeavour's non-core Agbaou mine closed on 1 March, 2021, and has been classified as a discontinued operation.

• A stronger than guided performance was achieved in Q2-2021 due to outperformance at Houndé and Ity which benefited from less rainfall than usual.

• Production increased 18% in Q2-2021 over Q1-2021 to 409koz, while AISC decreased by $15/oz to $853/oz, due to the full benefit of consolidated production from Sabodala-Massawa and Wahgnion, and the strong operational performance as noted above.

Table 6: Consolidated Group Production

¹Included for the post acquisition period commencing 10 February, 2021. ²Divested on 1 March, 2021.

Table 7: Consolidated All-In Sustaining Costs¹

¹Included for the post acquisition period commencing 10 February, 2021. ²Divested on 1 March 2021.

OPERATING ACTIVITIES BY MINE

Boungou Gold Mine, Burkina Faso

Table 8: Boungou Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Gold production significantly decreased relative to Q1-2021, as greater throughput was offset by lower grades. Mining and mill feed was constrained to lower grade areas as the larger mining fleet was focused on waste extraction at the East pit.

  • Total tonnes mined was higher following the commissioning of additional mining equipment during Q1-2021. Mining activities continued to focus on the West pit with total tonnes of ore mined increasing as a result of the lower strip ratio and the benefit of mining on the top benches. Pre-stripping activities at the East pit continued during Q2-2021.

  • Tonnes milled increased in Q2-2021 relative to Q1-2021 as higher mill utilisation resulted from improved mining fragmentation of the ore, as well as the benefit of improvements made to the SAG mill, pebble crusher and vertical tower mill which started in Q4-2020 following the restart of mining.

  • Average processed grade decreased during Q2-2021 as the mill feed was mainly sourced from the lower grade areas of the West Pit, as the higher grade areas were targeted during the restart of mining activities in Q4-2020 and Q1-2021.

• AISC per ounce increased during Q2-2021 compared to Q1-2021 due to the decrease in head grade and higher sustaining capital (an increase of $165 per ounce) due to waste stripping. Unit mining and unit processing costs decreased due to increased efficiencies as a result of additional mining equipment commissioned in Q1-2021 and improved mining fragmentation.

• Sustaining capital expenditures of $9.0 million during Q2-2021 mainly related to waste capitalisation at the West pit and the TSF lift.

• Non-sustaining capital expenditure of $3.9 million during Q2-2021 mainly related to pre-stripping at the East pit.
  
  

2021 Outlook

• Boungou is well positioned to meet its FY-2021 production guidance of 180 - 200koz, while AISC are expected to continue to trend above the guided $690 - 740 per ounce range as a result of higher fuel prices and increased security costs.

• Plant feed is expected to continue to be sourced from the West Pit with waste stripping activities continuing at the East Pit throughout the year. Mill throughput is expected to remain broadly consistent with H1-2021 performance, along with average processed grades, while recovery rates are expected to slightly decline due to the ore characteristics.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $19.0 million, of which $13.1 million has been incurred in H1-2021. The non-sustaining capital spend outlook for FY-2021 also remains unchanged compared to the initial guidance of $22.0 million, of which $8.4 million has been incurred in H1-2021.

Houndé Gold Mine, Burkina Faso

Table 9: Houndé Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production significantly increased due to higher average processed grades, as the high grade Kari Pump ore contributed a higher proportion of the mill feed during the quarter

  • Total tonnes mined decreased as a result of decreased availability of mining equipment, as scheduled maintenance and repairs were carried out, as well as mining progressing to deeper elevations. This contributed to the decrease in tonnes of ore mined as the strip ratio remained fairly constant over the previous quarter. Ore tonnes mined were primarily sourced from the Kari Pump and Vindaloo Centre deposits with mining at Vindaloo Main focusing on waste stripping.

  • Tonnes milled slightly decreased despite the higher proportion of oxide ore from the Kari Pump pit, as a result of an increase in interruptions to the grid power supply and the increased reliance on generators.

  • Average gold grade milled increased along with recoveries due to the increase in the proportion of high grade oxide ore sourced from Kari Pump and a localised nugget effect in the higher grade zones of Kari Pump.

• AISC decreased, despite higher unit costs and sustaining capital spend, due to the increase in production from the higher grade oxide ore sourced from Kari Pump which resulted in increased gold sales. Mining unit costs increased due to scheduled maintenance, higher haulage costs associated with Kari Pump, and increased blasting and grade control drilling carried out during the quarter. Unit processing costs increased, despite an increase in oxide ore processed, due to higher power costs, as generator utilisation increased due to interruptions to the grid power supply.

• Sustaining capital expenditure of $8.6 million during Q2-2021 mainly related to the waste capitalisation at Vindaloo Main.

• Non-sustaining capital expenditure of $3.0 million during Q2-2021 mainly related to costs associated with the development of the Kari West mining area.
  
  

2021 Outlook

• H1-2021 performance was stronger than scheduled due to good mining productivities achieved during the Kari Pump pre-stripping enabling, increased access to high grade oxide ore. As such, Houndé is on track to meet the top half of its FY-2021 production guidance of 240—260koz, with AISC expected to achieve the guided $855—905 per ounce range.

• Mining activities in H2-2021 will continue to focus on Kari Pump, supplemented by contributions from Bouéré and Vindaloo Centre pits. Mining is expected to focus on lower grade areas during the wet season and as a greater focus is placed on waste stripping activities, primarily related to Vindaloo Main pit and Kari West where the pre-strip is expected to be completed in late 2021. Throughput is expected to slightly decline in H2-2021, while recovery rates are expected to remain similar to H1-2021 and processed grade is expected to be lower following the higher grades brought forward in Q2-2021.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $39.0 million, of which $13.3 million has been incurred in H1-2021. The non-sustaining capital spend outlook for FY-2021 also remains unchanged compared to the initial guidance of $13.0 million, of which $9.7 million has been incurred in H1-2021.

Ity Gold Mine, Côte D’Ivoire

Table 10: Ity Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production was ahead of expectation due to the increased average processed grade and gold recovery rate as higher grade ore was brought forward in the mine plan

  • Total tonnes mined, together with total ore mined, decreased in Q2-2021, due to a decrease in mining equipment availability, as scheduled maintenance was carried out on the excavators. The strip ratio also remained relatively stable. Mining activity continued at the Ity, Bakatouo, Daapleu, Walter, Colline Sud and Flotouo pits with an increase in ore being sourced from the heap dumps.

  • Tonnes milled continued to perform above nameplate capacity due to high plant uptime as well as a high proportion of oxide materials from the Daapleu, Bakatouo, Colline Sud pits and the heap dumps, with fresh ore sourced from Daapleu, Bakatouo and Ity pits.

  • Average gold grade milled increased in Q2-2021 due to an increase in the grade of the ore sourced from the Daapleu and Bakatouo pits.

  • Despite the higher proportion of transitional and fresh ore processed in Q2-2021, recovery rates increased, as higher quality material from Flotouo was treated preferentially displacing the more viscous Verse Ouest material.

• AISC per ounce increased due to higher unit mining costs as a result of longer hauling distance for ore mined from the newly commissioned Flotouo and Walter pits as well as the transition to contractor mining. In addition, unit processing costs increased due to the increase in the proportion of transitional and fresh material and the higher reagent consumption due to an increase in the proportion of Daapleu ore processed. Higher power costs impacted AISC by approximately $20/oz due to increased utilisation of generators as a result of temporarily reduced grid power availability. The cost increase was also impacted by higher sustaining capital expenditure.

• Sustaining capital expenditures of $7.1 million during Q2-2021 mainly relates to waste capitalisation at the Ity, Bakatouou and Daapleu pits.

• Non-sustaining capital expenditures of $8.4 million during Q2-2021 mainly relates to the TSF stage 3 lift, the Le Plaque haul road construction and river diversions as well as small processing plant upgrades.

• During Q2-2021, Ity transitioned from owner mining to contract mining with Societe de Forage et des Travaux Publics (“SFTP”), a local contractor who are already performing contract mining services at Endeavour’s Karma and Boungou mines. As a part of the transition, the mining fleet at Ity was sold to SFTP for approximately $24.2 million.
  
  

2021 Outlook

• H1-2021 performance was stronger than scheduled due to the benefit of a good processing performance with a combination of higher throughput, grade, and recovery. As such, Ity is on track to meet the top half of its FY-2021 production guidance of 230—250koz, with AISC expected to achieve the top-end of the guided $800—850 per ounce range

• Waste extraction activities are expected to ramp up at the Ity pit in H2-2021 as stripping which was deferred from H1-2021 is carried out. As a result, the proportion of ore mined from Bakatouo, Daapleu and Colline Sud is expected to decrease in H2-2021. Throughput is expected to be slightly lower in H2-2021 compared to H1-2021 due to the onset of the wet season, while the average processed grade is expected to be lower due to a higher proportion of feed from historical lower grade stockpiles.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $28.0 million, of which $12.3 million has been incurred in H1-2021. Non-sustaining capital spend for FY-2021 is expected to amount to approximately $40.0 million, of which $20.4 million has been incurred in H1-2021. This increase compared to the initial H1-2021 guidance of $27.0 million is due to initiation of new optimization initiatives, primarily associated with reducing reagent consumption and enhancing recoveries.

Karma Gold Mine, Burkina Faso

Table 11: Karma Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production increased due to the higher average grade stacked and the higher gold recovery rate, which offset a modest decrease in tonnes stacked.

  • Total tonnes mined increased slightly due to an additional load and haul unit, with an increase in strip ratio at GG1 as a higher proportion of transitional ore tonnes were mined. Ore continued to be sourced from the GG1 and Kao North pits.

  • Ore tonnes stacked decreased due to slightly lower stacking availability and utilisation. Ore tonnes from the GG1 and Kao North pit were mostly oxide material with a blend of transitional materials that were supplemented with stockpiles.

  • The stacked ore grade increased mainly due to a higher average grade sourced from the North Kao pit while the average grade from the GG1 pit also increased slightly.

  • The recovery rate increased due to the lower proportion of ore from the GG1 pit and the higher proportion of oxide material stacked, which has a higher associated recovery rate.

• AISC per ounce decreased due to the increased production and associated gold sales which offset the higher mining strip ratio and higher unit processing and G&A costs. Processing unit costs were higher as a result of increased cyanide consumption and the lower Q2-2021 stacking capacity, while G&A unit costs increased as operation management patents taxes were incurred during the quarter.

• Sustaining capital expenditure was $0.3 million during Q2-2021 and related to mining pit dewatering boreholes and other site equipment upgrades.

• Non-sustaining capital expenditure was $2.1 million during Q2-2021, which was related to construction of new cells within the heap leach pad.

2021 Outlook

• Given its strong H1-2021 performance, Karma is well positioned to meet its FY-2021 production guidance of 80—90koz at an AISC of $1,220—$1,300 per ounce

• Mining activity is expected to focus on the GG1 pit for the remainder of the year. As a result of the increase in transitional material mined from the GG1 pit, processed grades and recoveries are expected to be lower in H2-2021, while ore stacked is expected to decrease in Q3-2021 due to the wet season, before returning to normal levels in Q4-2021

• The sustaining capital outlook at Karma is expected to be significantly lower than the $11.0 million guided as a result of the waste development being included as an operating cost for 2021. The non-sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $5.0 million, of which $2.9 million has been incurred in H1-2021.

Mana Gold Mine, Burkina Faso

Table 12: Mana Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production slightly decreased due to a reduction in the average processed grade which was partially offset by an increase in plant throughput and recoveries.

  • Total open pit tonnes of ore mined was higher as a result of the lower strip ratio, following the planned waste development at the Wona South pit in Q1-2021, which provided access to a wider ore floor to be mined. In Q2-2021 ore was mainly sourced from Wona Main and Wona South Pits while mining at Wona North Stage 3 completed during Q1-2021.

  • Total underground ore tonnes mined decreased as underground mining focused on development and backfilling.

  • Tonnes milled increased due to an increase in mill availability and better mining fragmentation, which resulted in higher plant throughput. The ore processed in both Q1-2021 and Q2-2021 was mainly fresh material, sourced from both the open pit and underground mines.

  • The average processed grade was lower during Q2-2021 due to a decrease in the proportion of ore sourced from the higher grade underground mine and from the open pit Wona Main deposit.

• AISC increased due to higher sustaining capital spend and increased open pit and underground unit mining costs. The open pit unit mining costs increased due to higher production drilling and blasting activities in the fresh ore areas of Wona South pit, as well as higher underground unit mining costs as a result of increased stope activity costs, which was partially offset by lower unit processing costs due to improved fragmentation.

• Sustaining capital expenditure of $5.2 million during Q2-2021 mainly relates to underground development and waste capitalisation.

• Non-sustaining capital of $21.1 million during Q2-2021 mainly relates to open pit waste development, the TSF raise and other infrastructure projects.

2021 Outlook

• Given its strong H1-2021 performance driven by strong mill throughput and grades, Mana is well positioned to meet its FY-2021 production guidance of 170 - 190koz at an AISC of $975 - 1,050 per ounce

• In H2-2021, ore will continue to be sourced from the Siou underground mine while open pit mining activities at Siou are expected to wind down. Following optimization studies completed in Q2-2021, Wona will be pursued as an underground operation rather than being continued as an open pit operation and eliminate the need for a large pit cut-back. Underground development at Wona will therefore be expedited, with decline development expected to commence in Q3-2021. Mill throughput and grades are expected to be slightly lower in H2-2021, compared to H1-2021, while recovery rates are expected to remain similar.

• The total sustaining and non-sustaining capital spend outlook for FY-2021 remains unchanged. As a result of the reduction in required stripping activities at Wona, following the decision to shift to underground mining, the FY-2021 sustaining capital outlook is expected to be significantly lower than the $27.0 million guided, of which $8.0 million has been incurred in H1-2021. Due to the reallocation of capital for the Wona underground development, the non-sustaining capital outlook for FY-2021 is expected to amount to slightly more the $62.0 million guided, of which $45.2 million has been incurred in H1-2021.

Sabodala-Massawa Gold Mine, Senegal

Table 13: Sabodala-Massawa Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production increased in Q2-2021 compared to Q1-2021 (full quarter basis) mainly due to higher processed grades which more than offset the slightly lower recoveries.

  • Tonnes mined increased due to favourable mining conditions experienced in Q2-2021 as a result of the improved haul road profile, improved mining sequencing, additional equipment and increased productivity of shovels and excavators. Tonnes of ore mined increased due to the aforementioned reasons as well as the lower strip ratio. Mining activities in Q2-2021 continued to progress on the Massawa permit with Sofia Main and Sofia North contributing 70% and 30% of total ore mined respectively.

  • Total tonnes milled increased in Q2-2021, due to increased mill availability and utilisation, despite the increase in fresh material milled which resulted in a slight decrease in recoveries

  • The average processed grade for the period benefited from the high grade ore from the Sofia Main pit

• AISC per ounce decreased in Q2-2021 compared to Q1-2021 (for post consolidation period commencing 10 February, 2021) mainly due to the decrease in the strip ratio and lower sustaining capital spend per ounce sold ($90/oz vs. $185/oz) and the lower processing unit cost which more than offset the higher unit mining costs (higher due to increased haulage cost).

• Sustaining capital expenditure of $8.9 million during Q2-2021 mainly relates to purchases of additional mining equipment, TSF raise and planned waste capitalisation.

• Non-sustaining capital expenditure of $5.2 million during Q2-2021 mainly relates to the relocation activities of the Sabodala village, the new haul road and infrastructure developments at the Massawa permit mining areas.
  
  

2021 Outlook

• Given its strong H1-2021 performance, Sabodala-Massawa is well positioned to meet its FY-2021 production guidance of 310—330koz at an AISC of $690—740 per ounce, for the post acquisition period commencing on 10 February 2021.

• The Sofia Main and Sofia North pits will continue to contribute the majority of the ore mined for the remainder of 2021, while waste extraction at Sofia North is expected to increase in H2-2021. Mill throughput and process grades are expected to slightly decrease in H2-2021, compared to Q2-2021, while recovery rates are expected to remain similar.

• The sustaining capital spend outlook for FY-2021 is expected to be slightly above the previously guided $35.0 million, of which $18.4 million has been incurred in H1-2021, due to investments in mining fleet and additional equipment. The non-sustaining capital spend outlook for FY-2021 is expected to be slightly below the guided $47.0 million, of which $9.7 million has been incurred in H1-2021 due to the deferral of spend on the Sabodala relocation construction and development costs as a greater focus is placed on mining the Sofia pits.
  
  

Wahgnion Gold Mine, Burkina Faso

Table 14: Wahgnion Performance Indicators

Q2-2021 vs Q1-2021 Insights

• Production decreased in Q2-2021 compared to Q1-2021 (full quarter basis) despite higher mill throughput, due to the lower average grade processed

  • Total tonnes and ore mined remained fairly consistent. Ore mined was sourced mainly from the Nogbele North and Nogbele South pits and supplemented with ore from the Fourkoura pit where mining commenced earlier this year.

  • Tonnes milled increased as a result of planned maintenance which was carried out in Q1-2021, leading to increased mill availability in Q2-2021. The mill feed blend and recoveries remained consistent with Q1-2021, with minimal transitional ore and a 60/40 split between oxide and fresh ore.

  • Average grade milled decreased slightly as the proportion of lower grade ore sourced from the Nogbele South deposit increased during the quarter.

• AISC per ounce increased in Q2-2021 compared to Q1-2021 (for post consolidation period commencing 10 February, 2021) mainly due to increased sustaining capital per ounce sold and higher unit mining and processing costs. Both mining and processing unit costs were higher as a result of increased fuel costs, with increased drilling and blasting and haulage costs also contributing to the higher unit mining cost.

• Sustaining capital expenditure of $2.5 million during Q2-2021 mainly relates to waste capitalisation and other mining equipment and IT infrastructure upgrades.

• Non-sustaining capital expenditure of $9.0 million during Q2-2021 mainly relates to the TSF stage 2 raise, construction of the airstrip and resettlement costs.
  
  

2021 Outlook

• Given its strong H1-2021 performance, Wahgnion is well positioned to meet its FY-2021 production guidance of 140—155koz at an AISC of $940—990 per ounce, for the post acquisition period commencing on 10 February 2021.

• Mining is expected to continue at Nogbele North, Nogbele South, and Fourkoura pits with significant waste development continuing throughout the year. Plant throughput is expected to decrease in H2-2021 compared to H1-2021 due to the wet season and a higher proportion of fresh ore being processed, while process grades are expected to increase and recovery rates to slightly decline.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $14.0 million, of which $3.4 million has been incurred in H1-2021, with the remaining spend mainly related to waste extraction. The non-sustaining capital spend outlook for FY-2021 also remains unchanged compared to the initial guidance of $26.0 million, of which $12.8 million has been incurred in H1-2021. The H2-2021 non-sustaining spend mainly relates to construction of a second TSF cell.
  
  

EXPLORATION AND DEVELOPMENT ACTIVITIES

• Exploration efforts remain on track to discover over 2.5 million ounces of Indicated resources in 2021, which represents significantly more than the expected depletion for the year.

• Following significant exploration success in H1-2021, updated resource estimates are expected to be published in H2-2021 notably for Ity, Houndé, Sabodala-Massawa, and Fetekro.

• A total of over 312,000 meters have been drilled across the group during H1-2021, amounting to a total spend of $50 million, which represents more than half the guided annual spend of $70-90 million as the exploration programme is more heavily weighted towards the first half of the year to take advantage of the dry season.
  
  

Table 15: Consolidated Exploration Expenditures¹

¹Consolidated exploration expenditures include expensed, sustaining, and non-sustaining exploration expenditures. Amounts may differ from Management Report due to rounding.

Boungou mine

• An exploration programme of up to $7.0 million has been planned for 2021, of which $4.6 million was spent in H1-2021 consisting of 24,307 meters of drilling across 245 drillholes. The exploration efforts were focused on delineating near mine targets and the area between the East and West pit.

• Drilling conducted in H1-2021 at Natougou NW identified a zone of higher-grade mineralisation trending north-northwest that extends for over 700 meters and remains open to the north. In H2-2021 drilling will focus on delineating this trend. Drilling at Natougou SE, Natougou SW and West Flanc targeted the extension of existing mineralised trends and the evaluation of inferred resources.

• At Boungou NW, H1-2021 drilling evaluated the continuation of the Boungou Shear Zone mineralisation. Initial results are promising and a complete review of all drill results in H2-2021 will guide follow-up drilling in 2022.

Houndé mine

• An exploration programme of up to $7.0 million has been planned for 2021 of which $6.8 million was spent in H1-2021 consisting of 68,871 meters of drilling across 630 drillholes. The exploration efforts were focused on Vindaloo South, Mambo and the intersection between Kari Gap and Kari Center.

• Drilling has confirmed that the Mambo target, located 12km from the Houndé plant, has the potential to be a significant discovery with mineralisation that extends over 800 meters in length and 200 meters wide and remains open to the southwest, northeast, and at depth. During H2-2021, step out drilling will target lateral extensions of Mambo to the southwest and northeast. A maiden resource at Mambo is expected to be published in H2-2021.

• During H1-2021 exploration in the Kari Area and at Vindaloo South was focussed on delineating mineralised extensions which will be pursued in H2-2021.

Ity mine

• An exploration programme of $9.0 million has been planned for 2021 of which $6.2 million was spent in H1-2021 consisting of 45,144 meters of drilling across 441 drillholes. The exploration efforts were focused on Le Plaque South (Delta Extension), West Flotouo (Verse Ouest), Daapleu Deep, Yopleu-Legaleu and the junction between Bakatouo and Walter.

• Drilling on the West Flotouo target, which was informed following a re-interpretation of structural and geological data, led to the discovery of a high grade mineralised lenses immediately below the former Flotouo dump, located in proximity to the plant. A maiden resource is expected to be published in late 2021.

• Drilling in the Le Plaque area focussed on extending mineralisation at Le Plaque South and Yopleu-Legaleu. An updated Le Plaque resource is expected to be published in late 2021.

• Drilling conducted at Daapleu confirmed that mineralisation extends at least 300 meters downdip of the current pit design and the target will be delineated further in H2-2021.

• Drilling at the junction between the Bakatouo and Walter deposits confirmed mineralisation is continuous and that it remains open at depth, and will therefore be further explored in H2-2021.

Karma mine

• In H1-2021, exploration work was carried out as part of the advanced grade control drilling programme, with the aim of delineating near mine extensions and expediting their incorporation in the current mine plan. The focus was on Kao Main, Kao north, Rambo, GG1, GG2, Anomaly B and Kanongo, which will be pursued in H2-2021.

Mana mine

• An exploration programme of up to $8.0 million has been planned for 2021 of which $7.1 million was spent in H1-2021 consisting of 59,620 meters of drilling across 459 drillholes. The exploration efforts were focused on oxide open pit targets, such as Maoula, and on evaluating underground targets at Siou and Nyafe.

• Drilling conducted at Maoula confirmed and extended mineralisation in the western and eastern lenses of the deposit. In H2-2021, exploration work will continue to focus on defining indicated resources and extending the mineralised trend to the southwest, where the deposit remains open. Some delineation drilling was also conducted at Kona North, T2K and Bana West where generally lower grade and non-continuous mineralisation was intercepted.

• Deeper drilling conducted at Siou South, intersected higher grade mineralised zones adjacent to the planned underground development. In H2-2021 further drilling will focus on delineating these higher grade zones.

• At Nyafe, historic drilling and exploitation activities were largely restricted to defining and mining oxide ore due to the refractive nature of the sulphide mineralisation. Scout diamond holes drilled beneath the pits confirmed the down-dip continuation of the structures and higher grade mineralisation. Further drilling is planned to start in late 2021.

Sabodala-Massawa mine

• An exploration programme of up to $13.0 million has been planned for 2021 of which $3.5 million was spent in H1-2021 consisting of 46,439 meters of drilling across 414 drillholes. The exploration efforts were focused on Samina, Tina and other non-refractory targets within the Massawa area. Following the exploration success, an updated resource is expected to be published in late 2021.

• Drilling conducted at the Samina deposit focussed on extending the 500 meters mineralised strike length to over 900 meters, while mineralisation remains open to the north.

• Drilling conducted at the Tina deposit focussed on expanding the inferred resources defined in 2019. The mineralised strike length has been extended by over 300 meters and the deposit remains open to the north and southeast.

• Drilling conducted at the Sofia North deposit followed up on the previously identified Sofia North extension. The extension has been identified to extend over 800 meters along strike and is 150 meters wide, remaining open to the north.

• During the remainder of 2021, exploration work will be focussed on defining resources at Samina, Tina and the Sofia North Extension as well as follow up drilling on other Massawa project area targets.

Wahgnion mine

• An exploration programme of up to $12.0 million has been planned for 2021 of which $2.6 million was spent in H1-2021 consisting of 9,565 meters of drilling across 81 drillholes. The exploration efforts focused on Nogbele North and Nogbele South deposits, targeting the continuation of mineralised structures between the Nogbele pits.

• Exploration efforts are expected to ramp up in H2-2021, and will continue to focus on the extension and expansion of the Nogbele mineralisation. Additionally, the north-northeast continuation of the Fourkoura deposit and the Hillside target will be tested for extensions. Reconnaissance drilling at various attractive targets such as Kafina West and Korindougou will also be completed in H2-2021.

Fetekro project

• In H1-2021, Fetekro was the largest greenfield exploration focus with a total of $6.4 million spent on exploration work.

• In total 43,300 meters of drilling were completed in H1-2021 and 54,117 meters have been completed since the last resource update, published in August 2020. An updated resource estimate is expected to be published in late 2021 due to successful drilling which has focused on extending the Fetekro resource into Lafigué North and in the area between Lafigué Center and Lafigué North.

• At Lafigué North, the exploration programme focused on converting a portion of the remaining inferred resources into indicated resources. At the area between Lafigué Center and Lafigué North, infill drilling focused on delineating recently identified shallow, subparallel, stacked mineralised lenses located outside of the current resource.

• The DFS remains on track to be completed by year-end 2021 with the mining permit expected to be granted in Q3-2021.

Kalana project

• During H1-2021 optimisation of the pre-feasibility study continued, with a particular focus on ore sorting.

• In H2-2021 PFS optimization work will continue along with work on advancing the resettlement site and completion of the Environmental Permit. The DFS remains on track to be completed in Q1-2022.

Afema exploration property

• In H1-2021, Endeavour completed the initial exploration programme initiated by Teranga, drilling 8,347 meters at the Woulo Woulo prospect. Since its discovery in 2020, over 210 drill holes, totalling 31,492 meters of drilling have been completed at Woulo Woulo Main, Woulo Woulo West and Woulo Woulo East.

• An initial resource of 4.196MT at 1.10g/t Au for 148,000 ounces of indicated resources and 3.175MT at 1.03g/t Au for 105,000 ounces of inferred resources have been defined at Woulo Woulo, with further work in H2-2021 focussed on expanding the mineralised trend and delineating other high priority targets within the Afema permit. For associated resource calculation technical notes, please reference the below section entitled “AFEMA’S WOULO-WOULO AREA RESOURCE MODELING”.

• At Woulo Woulo Main the mineralised unit extends over 2.5 km and remains open along strike to the north and south and at depth. The host unit at Woulo Woulo is a highly fractured and veined altered felsic Intrusive which is observed to be approximately 40 to 50 meters thick, occasionally swelling to more than 80 meters in thickness. The mineralized global envelope appears to be quite continuous, with some thinner individual lenses. Higher grade mineralisation has been identified in the north and south extents of Woulo Woulo’s main mineralised unit, with average grades between 1.0 – 1.5g/t gold around the center.

Bantou exploration property

• At Bantou, during H1-2021 exploration work on the Karankasso JV permits focussed on completing soil geochemical surveys and ground geophysical surveys to help advance high priority targets ahead of the Dynkikongolo permit approval, and the start of the resource conversion drilling programmes in H2-2021 on Bantou and Bantou North deposits.

Siguri exploration property

• At Siguiri, a total of 23,000 meters of drilling will start in early H2-2021 on two promising targets that were selected in H1-2021.
  

CONFERENCE CALL AND LIVE WEBCAST

Management will host a conference call and webcast on Wednesday 4 August, at 8:30 am ET / 1:30 pm BST to discuss the Company's financial results.

The conference call and webcast are scheduled at:
5:30am in Vancouver
8:30am in Toronto and New York
1:30pm in London
8:30pm in Hong Kong and Perth

The webcast can be accessed through the following link:
https://edge.media-server.com/mmc/p/j5h3ojje

Analysts and investors are also invited to participate and ask questions using the dial-in numbers below:
International: +44 (0) 2071 928338
North American toll-free: +18778709135
UK toll-free: +44 (0) 8002796619

Confirmation Code: 2858954

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

QUALIFIED PERSONS

Clinton Bennett, Endeavour's VP 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 ("NI 43-101") and has reviewed and approved the technical information in this news release.

CONTACT INFORMATION

ABOUT ENDEAVOUR MINING CORPORATION

Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire 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. Endeavour is admitted to listing and to trading on the London Stock Exchange and the Toronto Stock Exchange, under the symbol EDV.

For more information, please visit www.endeavourmining.com.

This document represents Endeavour’s half-yearly report for the purposes of the Disclosure and Transparency Rules (“DTRs”) issued by the UK Financial Conduct Authority (DTR 4.2).

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This document contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are “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, the success of exploration activities, the anticipated timing for the payment of a shareholder dividend and statements with respect to future dividends payable to the Company’s shareholders, the completion of studies, mine life and any potential extensions, the future price of gold and the share buyback programme. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates", believes”, “plan”, “target”, “opportunities”, “objective”, “assume”, “intention”, “goal”, “continue”, “estimate”, “potential”, “strategy”, “future”, “aim”, “may”, “will”, “can”, “could”, “would” and similar expressions .

Forward-looking statements, while based on management's reasonable estimates, projections and assumptions at the date the statements are made, 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 or completion of divestitures; risks related to international operations; risks related to general economic conditions and the impact of credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; Endeavour’s financial results, cash flows and future prospects being consistent with Endeavour expectations in amounts sufficient to permit sustained dividend payments; the completion of studies on the timelines currently expected, and the results of those studies being consistent with Endeavour’s current expectations; actual results of current exploration activities; production and cost of sales forecasts for Endeavour meeting expectations; 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; extreme weather events, natural disasters, supply disruptions, power disruptions, accidents, pit wall slides, 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 legislation, regulation of mining operations, tax rules and regulations and changes in the administration of laws, policies and practices in the jurisdictions in which Endeavour operates; disputes, litigation, regulatory proceedings and audits; adverse political and economic developments in countries in which Endeavour operates, including but not limited to acts of war, terrorism, sabotage, civil disturbances, non-renewal of key licenses by government authorities, or the expropriation or nationalization of any of Endeavour’s property; risks associated with illegal and artisanal mining; environmental hazards; and risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic.

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.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with the Company's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.

NON-GAAP MEASURES

Some of the indicators used by Endeavour in this press release represent non-IFRS financial measures, including “all-in sustaining cost”, “net debt”, “adjusted EBITDA”, “cash flow from continuing operations”, “total cash cost per ounce” and “net earnings”. These measures are presented as they can provide useful information to assist investors with their evaluation of the pro forma performance. Since the non-IFRS performance measures listed herein do not have any standardized definition prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the non-GAAP measures section of the Company’s most recently filed management discussion and Analysis for a reconciliation of the non-IFRS financial measures used in this press release.

AFEMA’S WOULO-WOULO AREA RESOURCE MODELING

The geological models, statistical analysis and resource estimates were prepared by Kevin Harris, CPG is Endeavour Mining's Vice President Resources and a Qualified Person as defined by NI 43-101. The Woulo-Woulo Mineral Resource Estimate (MREs) was developed within the Afema project area in Leapfrog Geo and Geovia Surpac software. Mineral Resource estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101.

The mineralisation model for Woulo-Woulo was developed in Leapfrog Geo with the drilling data as of 18 June, 2021. Twelve mineralised domains were defined within the approximately 2.9 km strike length of the deposit defined so far. The gold assays from the drill holes were composited to one-meter intervals within the mineralised wireframes and capped by the mineralised domain, or not at all depending on the high-grade outliers within the individual lens. Four of the domains were capped at 10 g/t Au and the remainder were not capped. The spatial relationship of the gold grade distribution was analysed for each mineralized domain using directional variograms. The majority of the lenses showed a good continuity of gold grade along strike and down-dip and were used to establish ordinary kriging (“OK”) estimation parameters. Density parameters were determined by weathering zone. The saprolite is 1.8 t/m³, saprock is 2.2 t/m³ and fresh rock is 2.8 t/m³. The gold grade was estimated using Ordinary Kriging (OK), constrained by the mineralised domains. The grade was estimated in multiple passes to define the higher confidence areas and to extend the grade into areas of extrapolated mineralization. The grade estimation was validated by visually comparing drilling data and block grades, comparing inverse distance squared and OK estimated grades and by swath plots comparing block grades and composite grades.

No Measured resources have been estimated. The mineralisation was classified as Indicated and Inferred Mineral Resources depending on the sample spacing, number samples, confidence in mineralised zone continuity and geostatistical analysis. The Indicated Mineral Resource was defined by least three-drill holes within a 50 meter search using a minimum of 7 and a maximum of 20 samples. Inferred Mineral Resource classification was defined by a minimum of three samples within a 75 meter search.

The Mineral Resources were constrained by $1,500/oz gold price within a Whittle pit optimisation and a 0.50 g/t Au cut-off grade. The Whittle pit shell optimisations assumed a base mining cost of $2.50/t and an adjusted ore mining and haulage cost of $2.50/t for oxide, $3.25/t for transition and $3.75/t for fresh rock, a mining recovery of 95%, mining dilution of 10%, a pit slope of 40o, average gold recovery of 90%, a processing and G&A cost of $16.00/t for oxide, $18.00/t for transition and $20.00/t for fresh rock, and a gold selling cost (royalty, refining and selling) of $70/oz.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.

Corporate Office: 5 Young St, Kensington, London W8 5EH, UK

Table of Contents

This Management Report should be read in conjunction with Endeavour Mining plc’s (“Endeavour ”, the “Company”, or the “Group”) condensed interim consolidated financial statements for the three and six months ended 30 June 2021 which has been prepared in accordance with UK adopted International Accounting Standard 34-Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards (“IFRS”) or (“GAAP”) and are included in section 2.1 of the unaudited interim condensed financial statements for the three and six months ended 30 June 2021, as well as the audited consolidated financial statements for the years ended 31 December 2020 and 2019 and notes thereto which has been prepared in accordance with IFRS. This Management Report is prepared as an equivalence to the Company’s Management Discussions & Analysis (“MD&A”) which is the Canadian filing requirement in accordance with National Instrument 51-102, Continuous Disclosure Obligations (“NI 51-102”), and includes all of the disclosures as required by NI 51-102.

This Management Report contains “forward-looking statements” that are subject to risk factors set out in a cautionary note contained herein. The reader is cautioned not to place undue reliance on forward-looking statements. All figures are in United States Dollars, unless otherwise indicated. Tabular amounts are in thousands of United States Dollars, except per share amounts and where otherwise indicated. This Management Report is prepared as of 3 August 2021. Additional information relating to the Company is available, including the Company’s prospectus (available on the Company’s website at www.endeavourmining.com) and the Company’s Annual Information Form (available on SEDAR at www.sedar.com).

1. BUSINESS OVERVIEW

1.1. OPERATIONS DESCRIPTION

Endeavour is a multi-asset gold producer focused on West Africa and dual-listed on the Toronto Stock Exchange (“TSX”) and the London Stock Exchange (“LSE”) under the symbol EDV on both exchanges. The Company’s assets include five mines (Houndé, Mana, Boungou, Wahgnion and Karma) in Burkina Faso, the Ity mine in Côte d’Ivoire, the Sabodala-Massawa mine in Senegal, six development projects (Fetekro, Kalana, Bantou, Nabanga, Golden Hill and Afema) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali, Senegal, and Guinea. On 10 February 2021, Endeavour completed the acquisition of Teranga Gold Corporation (“Teranga”), a TSX-listed gold company which owned the Sabodala-Massawa and Wahgnion mines, as well as certain development and exploration assets. On 1 March 2021, the Company completed the disposition of its Agbaou mine in Côte d’Ivoire.

As a leading global gold producer and the largest in West Africa, Endeavour is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders, and the communities where it operates.

2. HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2021

Table 16: Consolidated Highlights

¹ Revenue and ealized gold price are inclusive of the Sabodala-Massawa and Karma streams.
² This is a non-GAAP measure. Refer to the non-GAAP measure section of this Management Report.

3. ENVIRONMENT, SOCIAL AND GOVERNANCE

Endeavour is committed to being a responsible gold miner, creating long-term value and sharing the benefits of its operations among all its stakeholders, including employees, host communities and shareholders. As the largest gold miner in West Africa and a trusted partner, Endeavour’s operations have the potential to provide a significant positive impact on the economies and social development of its local communities and host countries, while inimizing their impact on the environment.

Environment, social and governance (“ESG”) policies, systems and practices are embedded throughout the business and the Company reports annually on its ESG performance via its Sustainability Report. A dedicated sustainability governance structure has been established with an Environment, Sustainability and Governance Committee at board level, which the management of the ESG Committee reports into.

The Responsible Gold Mining Principles (“RGMPs”)

The RGMPs were launched by the World Gold Council, the industry body responsible for stimulating and sustaining demand for gold, to reflect the commitment of the world’s leading gold producers to responsible mining. The RGMPs provide a comprehensive ESG reporting framework that sets out clear expectations as to what constitutes responsible gold mining to help provide confidence to investors, supply chain participants and ultimately, consumers.

The RGMPs consist of ten umbrella principles and fifty-one detailed principles that cover key ESG themes. Member companies have three years to comply with the RGMPs and are required to obtain external assurance on their conformance to the RGMPs.

During 2020, Endeavour received external assurance on its first RGMP, 1.7 Accountabilities and Reporting and continued to progress on the implementation of the other RGMPs, including commissioning an independent external readiness assessment to confirm Endeavour’s internal gap assessment (conducted in 2019) and to provide additional recommendations in preparation for external assurance. For the year ended 31 December 2020, Endeavour received external assurance on seven RGMPs, the details of which are included in the Company’s 2020 Sustainability Report.

Responding to Climate Change

Being responsible stewards of the environment is critical to the Group’s long-term success. The Group has been reporting on its Scope 1 and Scope 2 greenhouse gas emissions since 2017 and Scope 3 emissions since 2019.

In Q2-21, Endeavour launched an augmented ESG strategy to reflect Company’s increased size. Central to the strategy is protecting the environment, with a core focus on tackling climate change, water stewardship, conserving biodiversity as well as plastic waste, a material issue in its host countries.

As part of Endeavour’s journey to net zero by 2050, the Company is working on its roadmap to reduce its greenhouse gas emissions intensity by 30% by 2030. Among the eight levers identified to reduce emissions, the Company has identified that switching to renewable power has the most potential. Solar power is expected to form a core part of the Group’s energy mix going forward, starting with the solar power plant project at the Houndé mine.

To support this commitment, 25% of the 2021 long-term executive compensation award (vesting in 2023) is tied to the successful implementation of a carbon reduction strategy and the commissioning of at least one significant renewable energy power plant.

Sustainability Update

During Q2-2021, Endeavour published its 2020 Sustainability Report. This Report marks a new milestone in the Company’s disclosure with the continued enhancement of transparency and the adoption of standards set by the Task Force on Climate-related Financial Disclosures (“TCFD”) and the Sustainability Accounting Standards Board (“SASB”). In addition, external assurance was obtained for the first time on key ESG indicators.

To increase transparency on local procurement, Endeavour has also adopted the Local Procurement Reporting Mechanism (“LPRM”), a framework created by Mining Shared Value to support transparency within the supply chain and standardize information on mine site procurement.

Endeavour’s 2020 sustainability highlights include:

• 95% of the Group’s workforce is from host countries and 66% of senior management is from West Africa

• 74% of total procurement, amounting to approximately $622 million, spent on in-country suppliers, supporting over 2,000 national and local businesses

• Distribution of $894 million in economic value to host countries, including $262 million in taxes and royalties

• Invested $24 million, equivalent to $27 per ounce of gold produced, in local communities and host countries, including $6 million to support the fight against COVID-19

• Successful decrease in malaria cases by 19% and the Group’s malaria incidence rate by 38%

• Fourth consecutive year of no significant environmental incidents, since annual sustainability reporting began

• Greenhouse gas emission intensity (CO2-equivalent per oz gold produced) reduced by 13% compared to 2018

• Significantly improved CDP Climate Change score from D- to C and achieved a C for Water Security performance

Launch of an augmented ESG Strategy

During the quarter, Endeavour announced an updated ESG strategy to reflect its increased size and scale. Endeavour’s ESG strategy is centered around two key pillars: investing in host countries and protecting the environment (as detailed above). These two pillars are underpinned by a strong governance framework and linked to clear, measurable ESG-related executive compensation targets (as outlined in the 2021 Management Information Circular).

The Company has also created the Endeavour Foundation, which will be its primary vehicle to implement its social investments and sustainability projects at the regional and national levels. The Endeavour Foundation’s focus areas are health, particularly malaria, education, access to water and energy, and economic development. The Endeavour Foundation will supplement the efforts being undertaken by ECODEV, an economic development fund established by Endeavour to support local economic growth by promoting and investing in the creation of long-term, sustainable, small and medium enterprises.

3.1. HEALTH AND SAFETY

Endeavour puts the highest priority on safe work practices and systems. The Company’s ultimate aim is to achieve “zero harm” performance. The following table shows the safety statistics for the trailing twelve months ended 30 June 2021. The Group’s lost time injury frequency rate (“LTIFR”) continues to be well below the industry benchmark.

Table 17: LTIFR² and TRIFR³ Statistics for the Trailing Twelve Months ended 30 June 2021 ¹

¹Data relating to the acquired SEMAFO and Teranga entities have been included from their acquisition date.
²LTIFR = Number of LTIs in the Period x 1,000,000 / Total people hours worked for the period.
³Total Recordable Injury Frequency Rate (“TRIFR”) = Number of (LTI+Fatalities+Restricted Work Injury+Medical Treated Injury+First Aid Injury) in the period x 1,000,000 / Total people hours worked for the period.
⁴ “Non Operations” includes Corporate, Kalana and Exploration.

3.2. COVID-19 RESPONSE

Since the outbreak of the global COVID-19 pandemic, Endeavour has focused on the well-being of its employees, contractors and local communities, while ensuring business continuity. In addition, host governments in Côte d’Ivoire, Burkina Faso, Senegal and Mali have taken strict and pro-active measures to minimise overall exposure in their countries.

Protecting the well-being of employees, contractors, and local communities

• Endeavour has implemented a range of preventative measures at all its sites, including social distancing, health screening, augmented hygiene and restricted access to sites. During Q2-21, this has also included vaccination awareness campaigns across sites and offices.

• Endeavour has donated key medical equipment and supplies to regional, community and on-site medical centres across all four countries of its projects and operations and continues to monitor the needs of its communities.

• A range of community programmes have been implemented during the pandemic, including micro-credit programmes, which have helped to support people in host communities whose livelihoods were impacted by the pandemic, and e-learning programmes in Burkina Faso to facilitate access to distance learning for students.

Business continuity response plan

• In early March 2020, Endeavour put in place a business continuity plan to mitigate the risks and potential impact of the global COVID-19 pandemic, which has three levels of response:

  • Level 1, which the Group is currently operating under, involves a range of preventative measures including temperature checks, restricted access to sites, social distancing, increased hygiene standards and mandatory quarantine periods for employees arriving in-country, while otherwise continuing operations as normal.

  • Level 2 is designed to be initiated should COVID-19 become more prevalent in the countries in which the Group operates and involves comprehensive restrictions on movement into and out of the mines. Under these circumstances, Endeavour’s mines would be isolated, but mining operations and the shipment of gold would continue.

  • Level 3 involves the full or partial suspension of mining and processing operations.

• The Company’s cloud-based strategy ensures that employees who need to work from home are able to access all the relevant applications, systems and collaboration tools needed to perform their duties. In addition, the Company’s cyber security response has been updated and is constantly tracked in light of the increased cyber security risk generally observed during the pandemic.

4. OPERATIONS REVIEW

The following tables summarises operating results for the three and six months ended 30 June 2021 and 30 June 2020.

4.1. Operational Review Summary

• Q2-2021 consolidated production from continuing operations amounted to 408,992 ounces, an increase of 284,431 ounces or 228% compared to Q2-2020. Group production increased due to higher production at Houndé, Ity and Karma as well as the addition of the Mana and Boungou mines which were acquired on 1 July 2020 and the Wahgnion and Sabodala-Massawa mines which were acquired on 10 February 2021. Group AISC from continuing operations decreased by 9% or $85 per ounce primarily due to the inclusion of lower cost Wahgnion and Sabodala-Massawa mines during the quarter as well as lower cost at Houndé due to lower sustaining capital expenditure.

• H1-2021 consolidated production from continuing operations increased by 474,260 ounces or 176% which was more than double that of H1-2020, as a result of the addition of four new mines (Mana, Boungou, Wahgnion and Sabodala-Massawa) since the end of Q2-2020. AISC for all operations decreased by $56 per ounce or 6% to $860 per ounce due to the inclusion of lower cost Wahgnion and Sabodala-Massawa mines during the quarter as well as lower cost at Houndé due to lower sustaining capital.

Table 18: Group Production

¹Included for the post acquisition period commencing 10 February, 2021.
²Divested on 1 March, 2021.

Table 19: Group All-In Sustaining Costs¹

¹This is a non-GAAP measure.
²Included for the post acquisition period commencing 10 February 2021.
³Divested on 1 March 2021.

4.2 Boungou Gold Mine, Burkina Faso

Table 20: Boungou Key Performance Indicators⁴

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

² Non-cash operating expenses relates to the reversal in the period of the fair value adjustment of inventory on hand at the acquisition date.
³ All-In Margin is calculated as revenue less all-in costs for the period.
⁴ Analysis of operations is only for the period after its acquisition by Endeavour on 1 July 2020.

Q2-2021 Insights

• Production of 38,802 ounces on account of ore milled from lower grade areas of the West pit offsetting higher plant throughput which resulted from good fragmentation of mined materials as well as good recovery rates.

  • Tonnes mined in the quarter focused on a combination of pre-stripping of the top oxide benches in the West Pit Phase 3 and fresh waste rock in West Pit Phase 2 and with pre-stripping activity in the East Pit, following completion of mobilisation of the mining contractor fleet. Tonnes of ore mined was mainly sourced from the West pit.

  • Tonnes milled benefited from high throughput associated with good fragmentation of material mined as well as operational improvements made to optimise feed to the SAG mill, pebble crusher and vertical tower mill.

  • Processed grade was lower as mill feed was mainly sourced from lower grade areas of the West Pit per the mining sequence.

• AISC was $950 per ounce due to planned sustaining capital expenditures, which were partially offset by lower unit mining costs associated with the low strip ratio and higher portion of oxide ore mined, and a lower unit processing cost due to higher throughput.

• Sustaining capital expenditure was $9.0 million and related predominantly to waste capitalisation at the West pit and the commencement of the TSF wall raise #3.

• Non-sustaining capital expenditure was $3.9 million and related to pre-stripping at the East pit.

H1-2021 Insights

• Strong production during Q1-2021 offset the decrease in production during Q2-2021 as a result of lower average processed grade despite higher plant throughput.

  • Total tonnes mined was high, which is attributable to ramp up of mining activities following the commissioning of additional mining equipment during Q1-2021 and the benefit of mining on the top benches as well as lower strip ratio during Q2-2021. Pre-stripping activities at the East pit which started in Q1-2021 continued during Q2-2021. Tonnes of ore mined was mainly sourced from the West pit during H1-2021.

  • Tonnes milled increased through the period as a result of the higher mill utilisation due to better mining fragmentation, as well as the benefit of operational improvements to optimise the feed to the SAG mill, pebble crusher and vertical tower mill.

  • Average processed grade decreased during the period as the mill feed was increasingly sourced from the lower grade areas of the West Pit towards the end of the period, in accordance with the mining sequence, following completion of mining of the higher grade areas which required minimal waste stripping during the restart of mining activities in Q4-2020 and Q1-2021.

• AISC per ounce increased during Q2-2021 compared to Q1-2021 due to an increase in sustaining waste capital. Unit mining and unit processing cost decreased in Q2-2021 compared to Q1-2021, benefiting from increased tonnes mined and processed.

• Sustaining capital expenditures of $13.1 million during H1-2021 related to waste capitalisation at West pit and the commencement of the TSF wall raise #3.

• Non-sustaining capital expenditure of $8.4 million related to pre-stripping at the East pit.
  
  

2021 Outlook

• Boungou is well positioned to meet its FY-2021 production guidance of 180 - 200koz, while AISC are expected to continue to trend above the guided $690 - 740 per ounce range as a result of higher fuel prices and increased security costs.

• Plant feed is expected to continue to be sourced from the West Pit with waste stripping activities continuing at the East Pit throughout the year. Mill throughput is expected to remain broadly consistent with H1-2021 performance, along with average processed grades, while recovery rates are expected to slightly decline due to the ore characteristics.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $19.0 million, of which $13.1 million has been incurred in H1-2021. The non-sustaining capital spend outlook for FY-2021 also remains unchanged compared to the initial guidance of $22.0 million, of which $8.4 million has been incurred in H1-2021.
  
  

2021 Exploration Programme

• An exploration programme of up to $7.0 million has been planned for 2021, of which $4.6 million was spent in H1-2021 consisting of 24,307 meters of drilling across 245 drillholes. The exploration efforts were focused on delineating near mine targets and the area between the East and West pit.

• Drilling conducted in H1-2021 at Natougou NW identified a zone of higher-grade mineralisation trending north-northwest that extends for over 700 meters and remains open to the north. In H2-2021 drilling will focus on delineating this trend. Drilling at Natougou SE, Natougou SW and West Flanc targeted the extension of existing mineralised trends and the evaluation of inferred resources.

• At Boungou NW, H1-2021 drilling evaluated the continuation of the Boungou Shear Zone mineralisation. Initial results are promising and a complete review of all drill results in H2-2021 will guide follow-up drilling in 2022.
  

4.3 Houndé Gold Mine, Burkina Faso

Table 21: Houndé Key Performance Indicators

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details.
² All-In Margin is calculated as revenue less all-in costs for the period.

Q2-2021 vs Q2-2020 insights

• Production increased significantly relative to Q2-2020 due to higher plant throughput from the addition of high grade oxide materials sourced from the Kari Pump area while recovery rate remained consistent with prior periods.

  • Tonnes of ore mined increased due to an increase in the proportion of oxide ore tonnes mined and a lower strip ratio. Mining was focused on high grade oxide ore at Kari Pump and supplemented by fresh ore from the Vindaloo Center and Bouéré pits. Mining ramped up at Kari Pump following pre-stripping in Q2-2020 and the planned waste stripping in Q1-2021.

  • Tonnes milled increased due to the increased milling rate that resulted from higher proportion of oxide ore in the blend.

  • Average gold grade milled increased due to the benefit of higher grade ore from the Kari-Pump and Bouéré pits, supplemented by lower amounts of lower grade fresh ore from Vindaloo Center.

• AISC decreased due to lower sustaining capital which was offset by higher unit mining cost as a result of more tonnes sourced from the Kari Pump area which has a longer hauling distance. Processing unit costs remained consistent.

• Sustaining capital of $8.6 million is related to waste capitalisation at the Vindaloo Main pit.

• Non-sustaining capital of $3.0 million is related to the costs associated with the development of the Kari West pit.
  
  

H1-2021 vs H1-2020 Insights

• Production increased due to increased throughput and higher average processed grades, mainly as a result of the ramp-up of the Kari Pump deposit.

  • Tonnes of ore mined increased mainly due to the ramp up at the Kari Pump pit, which allowed further optionality in the mine plan compared to prior periods when Kari Pump was at the pre-stripping stage.

  • Tonnes milled increased as mill throughput improved due to the higher proportion of oxide ore from the Kari Pump pit, offsetting the higher volumes of fresh ore from the Vindaloo Main and Bouéré pits.

  • Average gold grade milled increased due to the addition of the high grade Kari Pump ore, which was supplemented by ore from the Vindaloo Main and the Bouéré pits.

• AISC decreased due to lower unit mining costs as a result of a lower strip ratio as well as the decrease in sustaining capital, which was slightly offset by higher royalties associated with the higher realised gold price, higher unit processing cost associated with scheduled maintenance and higher unit G&A costs as a result of increase in patent taxes and insurance with the commencement of mining Kari pump area.
  
  

2021 Outlook

• H1-2021 performance was stronger than scheduled due to good mining productivities achieved during the Kari Pump pre-stripping enabling, increased access to high grade oxide ore. As such, Houndé is on track to meet the top half of its FY-2021 production guidance of 240—260koz, with AISC expected to achieve the guided $855—905 per ounce range.

• Mining activities in H2-2021 will continue to focus on Kari Pump, supplemented by contributions from Bouéré and Vindaloo Centre pits. Mining is expected to focus on lower grade areas during the wet season and as a greater focus is placed on waste stripping activities, primarily related to Vindaloo Main pit and Kari West where the pre-strip is expected to be completed in late 2021. Throughput is expected to slightly decline in H2-2021, while recovery rates are expected to remain similar to H1-2021 and processed grade is expected to be lower following the higher grades brought forward in Q2-2021.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $39.0 million, of which $13.3 million has been incurred in H1-2021. The non-sustaining capital spend outlook for FY-2021 also remains unchanged compared to the initial guidance of $13.0 million, of which $9.7 million has been incurred in H1-2021.

2021 Exploration Programme

• An exploration programme of up to $7.0 million has been planned for 2021 of which $6.8 million was spent in H1-2021 consisting of 68,871 meters of drilling across 630 drillholes. The exploration efforts were focused on Vindaloo South, Mambo and the intersection between Kari Gap and Kari Center.

• Drilling has confirmed that the Mambo target, located 12km from the Houndé plant, has the potential to be a significant discovery with mineralisation that extends over 800 meters in length and 200 meters wide and remains open to the southwest, northeast, and at depth. During H2-2021, step out drilling will target lateral extensions of Mambo to the southwest and northeast. A maiden resource at Mambo is expected to be published in H2-2021.

• During H1-2021 exploration in the Kari Area and at Vindaloo South was focussed on delineating mineralised extensions which will be pursued in H2-2021.

4.4. Ity Gold Mine, Côte d’Ivoire

Table 22: Ity CIL Key Performance Indicators

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details.
² All-In Margin is calculated as revenue less all-in costs for the period.

Q2-2021 vs Q2-2020 insights

• Production was ahead of expectation as higher-grade ore was brought forward in the mine plan and there was also higher throughput, higher processed average grade, as well as higher plant recovery rate while the prior quarter production was lower due to prioritising waste extraction.

  • Tonnes ore mined increased due to higher mining fleet availability and lower strip ratio. Ore extraction increased at Ity pit which benefited from lower strip ratio compared to Q2-2020 due to the planned cutback. In addition, mining activities commenced at the Walter pit and the Flotouo low grade dump providing greater operational flexibility.

  • Tonnes milled increased and performed above nameplate due to increased plant operating time as well as a higher proportion of oxide materials from the Daapleu, Bakatouo, Heap Dump, Flotouo dump and Colline Sud pits, with a slight increase in fresh blend sourced from Daapleu, Bakatouo and Ity pits.

  • Processed grade increased due to the benefit of the higher grade ore from the Bakatouo pit, which was supplemented with ore from the Daapleu and Walter pits.

  • Despite the higher proportion of transitional and fresh ore processed in Q2-2021, recovery rates increased, as higher quality material from Flotouo was treated preferentially displacing the more viscous Verse Ouest material.

• AISC per ounce increased due to higher unit mining costs as a result of longer hauling distance for ore mined from the newly commissioned Flotouo and Walter pits as well as the transition to contractor mining. In addition, unit processing costs increased due to the increase in the proportion of transitional and fresh material and the higher reagent consumption due to an increase in the proportion of Daapleu ore processed. Higher power costs impacted AISC by approximately $20/oz due to increased utilisation of generators as a result of temporarily reduced grid power availability. The cost increase was also impacted by higher sustaining capital expenditure.

• Sustaining capital expenditure of $7.1 million related primarily to waste stripping at the Ity, Walter and Colline Sud pit.

• Non-sustaining capital expenditure of $8.4 million mainly related to the construction of the Stage 3 raise of the Tailings Storage Facility (“TSF”), the Le Plaque haul road construction, and the Cavally river diversion.

• During Q2-2021, Ity transitioned from owner mining to contract mining with Societe de Forage et des Travaux Publics (“SFTP”), a local contractor who are already performing contract mining services at our Karma and Boungou mines. As a part of the transition, the mining fleet at Ity were sold to SFTP for approximately $24.2 million.
  
  

H1-2021 vs H1-2020 Insights

• Production increased due to the higher throughput and higher processed grades.

  • Despite the slightly higher strip ratio in H1-2021, tonnes of ore mined increased due to higher mining fleet availability and commencement of mining at the Walter, Colline Sud and Flotouo pits, which in turn provided greater operational flexibility.

  • Tonnes milled increased due to increased mill utilisation and the supplemental processing of oxide ore through the surge bin.

  • Average gold grade milled increased in H1-2021 due to the higher grade ore sourced from the Bakatouo and Daapleu pits, whereas in H1-2020 a higher proportion of the mill feed was supplemented by lower grade oxide stockpiles, as mining was focused on waste extraction.

  • The higher proportion of fresh ore sourced from Daapleu in H1-2021 resulted in a slight decrease in recovery rates.

• AISC per ounce increased due to higher mining and processing unit costs and increased sustaining capital as a result of higher capitalised waste. The higher unit mining costs were a result of the longer haul distance for ore mined from the newly commissioned Walter and Flotouo pits, while the higher processing costs are due to a higher proportion of fresh ore being processed.

2021 Outlook

• H1-2021 performance was stronger than scheduled due to the benefit of a good processing performance with a combination of higher throughput, grade, and recovery. As such, Ity is on track to meet the top half of its FY-2021 production guidance of 230—250koz, with AISC expected to achieve the top-end of the guided $800—850 per ounce range.

• Waste extraction activities are expected to ramp up at the Ity pit in H2-2021 as stripping which was deferred from H1-2021 is carried out. As a result, the proportion of ore mined from Bakatouo, Daapleu and Colline Sud is expected to decrease in H2-2021. Throughput is expected to be slightly lower in H2-2021 compared to H1-2021 due to the onset of the wet season, while the average processed grade is expected to be lower due to a higher proportion of feed from historical lower grade stockpiles.

• The sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $28.0 million, of which $12.3 million has been incurred in H1-2021. Non-sustaining capital spend for FY-2021 is expected to amount to approximately $40.0 million, of which $20.4 million has been incurred in H1-2021. This increase compared to the initial H1-2021 guidance of $27.0 million is due to initiation of new optimization initiatives, primarily associated with reducing reagent consumption and enhancing recoveries.
  
  

2021 Exploration Programme

• An exploration programme of $9.0 million has been planned for 2021 of which $6.2 million was spent in H1-2021 consisting of 45,144 meters of drilling across 441 drillholes. The exploration efforts were focused on Le Plaque South (Delta Extension), West Flotouo (Verse Ouest), Daapleu Deep, Yopleu-Legaleu and the junction between Bakatouo and Walter.

• Drilling on the West Flotouo target, which was informed following a re-interpretation of structural and geological data, led to the discovery of a high grade mineralised lenses immediately below the former Flotouo dump, located in proximity to the plant. A maiden resource is expected to be published in late 2021.

• Drilling in the Le Plaque area focussed on extending mineralisation at Le Plaque South and Yopleu-Legaleu. An updated Le Plaque resource is expected to be published in late 2021.

• Drilling conducted at Daapleu confirmed that mineralisation extends at least 300 meters downdip of the current pit design and the target will be delineated further in H2-2021.

• Drilling at the junction between the Bakatouo and Walter deposits confirmed mineralisation is continuous and that it remains open at depth, and will therefore be further explored in H2-2021.

4.5. Karma Gold Mine, Burkina Faso

Table 23: Karma Key Performance Indicators

¹Revenue and realised gold price are inclusive of the Karma stream.
²Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

³ All-In Margin is calculated as revenue less all-in costs for the period.

Q2-2021 vs Q2-2020 insights

• Production increased due to the increased stacking rate and higher average grade stacked offset by lower recovery rates on account of higher tonnage of GG1 ore stacked.

  • Total ore tonnes mined decreased slightly due to the increase in strip ratio at GG1 as higher transitional ore tonnes were mined. Ore continued to be sourced from the GG1 and Kao North pits.

  • Ore tonnes stacked slightly increased as a higher proportion of coarse material from the GG1 pit was available, with stacker availability and utilisation remaining consistent. Ore tonnes from the GG1 and Kao North pit were mostly oxide with a blend of transitional materials. The proportion of transitional material increased with stacked tonnes being supplemented by stockpiles.

  • The stacked ore grade increased due to a higher average grade sourced from the North Kao pit while the average grade from the GG1 remained flat.

  • Recovery rate decreased due to the increased proportion of ore from the GG1 pit and an increased proportion of transitional ore, which has a lower associated recovery rate.

• AISC per ounce increased due to increased mining strip ratio, with the completion of Kao North phase 3 and commencement of phase 4, lower recovery rate and higher royalties, which was partially offset by slightly lower mining and processing unit cost.

• Sustaining capital expenditure was $0.3 million and related to mining pit dewatering boreholes and other site equipment upgrades.

• Non-sustaining capital expenditure was $2.1 million, which was related to construction of new cells within the heap leach pad.

H1-2021 vs H1-2020 Insights

• Production decreased despite the higher ore tonnes stacked due to lower grade material being stacked and lower recovery rates.

  • Ore tonnes mined decreased due to increased strip ratio and reduced mining at the Kao North pit which was partially offset by increased mining at the GG1 pit.

  • Ore tonnes stacked increased due to higher stacker utilisation which permitted stockpile to be processed to supplement the mill feed.

  • The average stacked grade decreased due to higher proportion of the low grade GG1 and low grade supplemental stockpile ore stacked in H1-2021 compared to H1-2020 where a higher proportion of the high grade Kao North ore was stacked.

  • Recovery rate decreased due to the increased GG1 ore and the transitional ore stacked, which has a lower associated recovery rate.

• AISC per ounce increased due to higher strip ratio, higher royalties as well as lower recovery rates.

• Sustaining capital expenditure was $0.5 million and related to mining pit dewatering boreholes and other site equipment upgrade.

• Non-sustaining capital expenditure was $2.9 million and related to construction of new cells within the heap leach pad compared to non-sustaining costs in Q1-2020 related to the completion of the stacking system upgrades.

Outlook

• Given its strong H1-2021 performance, Karma is well positioned to meet its FY-2021 production guidance of 80—90koz at an AISC of $1,220—$1,300 per ounce.

• Mining activity is expected to focus on the GG1 pit for the remainder of the year. As a result of the increase in transitional material mined from the GG1 pit, processed grades and recoveries are expected to be lower in H2-2021, while ore stacked is expected to decrease in Q3-2021 due to the wet season, before returning to normal levels in Q4-2021.

• The sustaining capital outlook at Karma is expected to be significantly lower than the $11.0 million guided as a result of the waste development being included as an operating cost for 2021. The non-sustaining capital spend outlook for FY-2021 remains unchanged compared to the initial guidance of $5.0 million, of which $2.9 million has been incurred in H1-2021.
  
  

2021 Exploration Programme

• In H1-2021, exploration work was carried out as part of the advanced grade control drilling programme, with the aim of delineating near mine extensions and expediting their incorporation in the current mine plan. The focus was on Kao Main, Kao north, Rambo, GG1, GG2, Anomaly B and Kanongo, which will be pursued in H2-2021.
  
  

4.6. Mana Gold Mine, Burkina Faso

Table 24: Mana Key Performance Indicators⁴

¹ Non-GAAP measure. Refer to the non-GAAP Measures section for further details.

² Non-cash operating expenses relates to the reversal in the period of the fair value adjustment of inventory on hand at the acquisition date.
³ All-In Margin is calculated as revenue less all-in costs for the period.
⁴ Analysis of operations is only for the period after its acquisition by Endeavour on 1 July 2020.

Q2-2021 Insights

• Production of 49,167 ounces is due to a higher plant throughput rate and utilisation, good recovery rates associated with ore milled from the Wona South pit and offset by lower average processed grades from the underground mine.

  • Open pit ore tonnes mined was higher following the planned waste development at the Wona South pit which provided access to a wider ore floor to be mined.

  • Total underground tonnes mined was lower due to reduced development ore meters advanced and fewer stope ore tonnes available for mining.

  • Tonnes milled increased due to an increase in mill availability and utilisation following the scheduled plant maintenance in Q1-2021 and higher plant throughput rate due to the softer ore characteristics in Wona South compared to Wona North.

  • The average processed grade decreased due to lower open pit grades mined from the Wona South Pit.

• AISC was higher due to high open pit unit mining costs as a result of increased production drilling and blasting activities in the fresh ore areas of Wona South pit, as well as higher underground unit mining cost due to additional ground support installed. The higher costs were partially offset by lower processing unit costs due to improved power supply from newly installed generators.

• Sustaining capital of $5.2 million is related to underground development to create new stoping levels.

• Non-sustaining capital expenditure of $21.1 million was mainly related to open pit waste capitalisation at the Wona South Stage 3 pit and TSF raise.

H1-2021 Insights

• Production in Q2-2021 decreased compared to Q1-2021 due to a reduction in the average processed grade which was slightly offset by the increase in plant throughput.

  • Total open pit tonnes of ore mined was higher in Q2-2021, as a result of the lower strip ratio, following the planned waste development at the Wona South pit in Q1-2021 and final benches of mining in the Wona North Stage 3 pit. In Q2-2021 ore was mainly sourced from Wona Main and Wona South Pits while mining at Wona North Stage 3 completed during Q1-2021.

  • Total underground ore tonnes mined in Q2-2021 decreased as underground mining focused on development and backfilling.

  • Tonnes milled increased in Q2-2021 due to an increase in mill utilisation and average throughput per hour due to the softer ore characteristics of Wona South pit which resulted in the higher plant throughput. The ore processed in both Q1-2021 and Q2-2021 was mainly fresh materials, sourced from both the open pit and underground mines.

  • The average processed grade was high due to higher processed grade sourced from Wona Main pit during Q1-2021 despite the lower average grade during Q2-2021.

• AISC was higher but remains within guidance due to higher open pit unit mining costs in Q2-2021 compared to Q1-2021 as a result of higher production drilling and blasting activities in the fresh ore areas of Wona South pit, as well as higher underground unit mining costs as a result of increased stope activity costs.

• Sustaining capital expenditures of $8.0 million are related to underground development, as well as heavy mobile equipment.

• Non-sustaining capital of $45.2 million primarily related to open pit waste development, and a TSF raise.

Outlook

• Given its strong H1-2021 performance driven by strong mill throughput and grades, Mana is well positioned to meet its FY-2021 production guidance of 170 - 190koz at an AISC of $975 - 1,050 per ounce.

• In H2-2021, ore will continue to be sourced from the Siou underground mine while open pit mining activities at Siou are expected to wind down. Following optimization studies completed in Q2-2021, Wona will be pursued as an underground operation rather than being continued as an open pit operation and eliminate the need for a large pit cut-back. Underground development at Wona will therefore be expedited, with decline development expected to commence in Q3-2021. Mill throughput and grades are expected to be slightly lower in H2-2021, compared to H1-2021, while recovery rates are expected to remain similar.

• The total sustaining and non-sustaining capital spend outlook for FY-2021 remains unchanged. As a result of the reduction in required stripping activities at Wona, following the decision to shift to underground mining, the FY-2021 sustaining capital outlook is expected to be significantly lower than the $27.0 million guided, of which $8.0 million has been incurred in H1-2021. Due to the reallocation of capital for the Wona underground development, the non-sustaining capital outlook for FY-2021 is expected to amount to slightly more the $62.0 million guided, of which $45.2 million has been incurred in H1-2021.

2021 Exploration Programme

• An exploration programme of up to $8.0 million has been planned for 2021 of which $7.1 million was spent in H1-2021 consisting of 59,620 meters of drilling across 459 drillholes. The exploration efforts were focused on oxide open pit targets, such as Maoula, and on evaluating underground targets at Siou and Nyafe.

• Drilling conducted at Maoula confirmed and extended mineralisation in the western and eastern lenses of the deposit. In H2-2021, exploration work will continue to focus on defining indicated resources and extending the mineralised trend to the southwest, where the deposit remains open. Some delineation drilling was also conducted at Kona North, T2K and Bana West where generally lower grade and non-continuous mineralisation was intercepted.

• Deeper drilling conducted at Siou South, intersected higher grade mineralised zones adjacent to the planned underground development. In H2-2021 further drilling will focus on delineating these higher grade zones.

• At Nyafe, historic drilling and exploitation activities were largely restricted to defining and mining oxide ore due to the refractive nature of the sulphide mineralisation. Scout diamond holes drilled beneath the pits confirmed the down-dip continuation of the structures and higher grade mineralisation. Further drilling is planned to start in late 2021.

4.7. Sabodala-Massawa Gold Mine, Senegal

Table 25: Sabodala-Massawa Key Performance Indicators⁵