Endeavour Silver Reports Operating Results

 

VANCOUVER - Bradford Cooke, Chairman and CEO of Endeavour Silver, commented, "We are gratified to report that Endeavour delivered another year of record financial and operating performance in 2009. Sales revenues were up for the fourth consecutive year thanks not only to our rising silver and gold production and higher precious metal prices, but also due to our metal sales strategy which beat the market average by 5%. Cash costs fell and profit margins rose for the second year in a row with EBITDA turning positive for the first time in Endeavour's five year operating history. Clearly, our capital expansion programs continue to bear fruit."

"The Company successfully opened two new mines during the year, one in each of our two operating districts in Mexico, Guanacevi and Guanajuato, thereby facilitating the next phase of growth at both operations. New high grade silver-gold discoveries were made in both Guanacevi and Guanajuato, thereby confirming once again the prolific exploration potential of these two historic mining districts. New property acquisitions helped Endeavour's exploration performance in 2009 and should do so again this year."

"In 2010, management is forecasting Endeavour's sixth consecutive year of growing silver production, up another 20% to the 3.1 million oz range. Cash costs are expected to drop into the US$5.50 per oz range. Assuming a US$16 average silver price in 2010, Endeavour should generate in the order of US$31 million in mine operating cash-flow this year."

Endeavour invested US$18.0 million on capital projects in 2009, including US$12.3 million on mine development, US$1.4 million on plant improvements and US$4.3 million on equipment, vehicles and buildings. The main focus was on Guanacevi ($12.4 million) where over 4 km of mine development was completed, including the new Porvenir Dos mine, 50% advancement of the Santa Cruz access ramp, and the North Porvenir pump station, electrical substations and ventilation raise. At Guanajuato, capital expenditures ($4.7 million) focused on the development of the Lucero and Bolanitos mines, including over 2.7 km of mine development and installing a new cone crusher to increase by 20% the capacity of the plant.

The company’s address is 301-700 West Pender Street, Vancouver, BC V6C 1G8, 604.685.9775, fax: 604.685.9744.