Endeavour Silver Initiates Major Mine Expansion at El Cubo; Raises Production Guidance and Reduces Cost Guidance for 2015 - Seite 2

Consolidated cash costs of production, net of gold by-product credits, are now expected to be around $9-$10 per oz of silver in 2015. Consolidated cash costs for silver and gold on a co-product basis should come in around $13-$14 and $900-$975 per oz respectively. The lower cash cost guidance is largely a function of reduced unit costs at El Cubo due to increased productivity related to the mine expansion.

All-in sustaining costs (AISC) net of gold by-product credits, in accordance with the World Gold Council standard, are now projected to be $16.00-$17.50 per oz of silver in 2015. Although the El Cubo mine expansion requires an increase in mine development capital, management was able to reduce some minor capital projects to optimize the AISC. When non-cash items such as stock based compensation are excluded, AISC net of gold by-product credits should pull back to $15.50-$17.00 per oz of silver.

On a co-product basis, AISC are predicted to be $18.00-$19.00 per oz silver and $1,150-$1,200 per oz gold. Direct operating costs are estimated to be in the $87-$90 per tonne range.

Revised Capital Budget

Endeavour plans to invest $36.5 million on capital projects in 2015, an increase of $3.8 million from the original estimate, in order to support the mine expansion at El Cubo. The total includes $30.0 million on mine development, infrastructure and exploration, $4.3 million on plant infrastructure, equipment and tailings and $2.2 million on miscellaneous items. The mine development capital is for accessing reserves and converting resources into reserves. Endeavour does not estimate reserves based on drill holes, only based on underground workings.

The Company has budgeted $18.7 million at El Cubo, up from the original estimate of $15.0 million. Capital spending at the other operations remains unchanged: $4.9 million at Bolañitos, $12.5 million at Guanaceví and $0.4 million for corporate items, all of which will be covered by the Company's anticipated 2015 cash flow.

Bradford Cooke, CEO of Endeavour Silver, commented, "We fulfilled our initial two year capital expansion and operating turn-around plans at El Cubo in December, but with precious metal prices still falling, it was clear we needed to do more to make El Cubo a viable mine. The current mine expansion will bring operating costs down further and should allow El Cubo to start generating free cash flow.