Name and Location
Houndé gold project, Burkina Faso.

Client
Houndé Gold Operation, Endeavour Mining’s Burkina Faso operating subsidiary.

Project Description
A National Instrument 43-101 compliant feasibility study completed on the Houndé project in November 2013 proved positive for an openpit gold mine. A subsequent update of the project’s resources and reserves, mine plan and project economics was completed in February 2015.

A 34% increase in the estimated mineral reserve at the Houndé project has resulted in greater output expectations and a longer mine life. The project has proven and probable reserves of 30.6-million tonnes, with an average grade of 2.1 g/t of gold.

An expansion of the Vindaloo deposit and the inclusion of two new deposits within 14 km of the proposed plant site have resulted in the Houndé mineral reserve increasing to 2.07-million ounces.

The enlarged reserve will result in total gold production of about 1.9-million ounces over a ten-year mine life, compared with the originally estimated 1.4-million ounces over an eight-year mine life.

The processing plant consists of a three-million-tonne-a-year primary crusher with a semiautogenous/ball crushing circuit to feed a gravity/carbon-in-leach plant.

Net Present Value/Internal Rate of Return
The project’s internal rate of return has increased from the previously estimated 22.4% to between 28% and 35%, with a gold price ranging from between A$1 200/oz and A$1 300/oz. The project’s net present value has been estimated at A$359-million from an initial estimate of A$230-million.

Value
The updated capital cost is estimated at $325-million (inclusive of contingency, working capital, and import duties), representing a 3.2% increase over the $315-million estimate in the November 2013 feasibility study.

Duration
Engineering, procurement and construction are estimated at between 18 to    20 months from board approval to first gold production.

Latest Developments
A detailed construction plan has been completed at the Houndé project.

Endeavour is now focusing on refining the Houndé operations plan, which includes the updated mine plan with the 2014 exploration additions.

The company is also reviewing operating costs in the context of reduced energy costs and the benefits of local currency-rate devaluation.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Endeavour Mining senior VP business development, Doug Reddy,
tel +1 604 609 6114 or
email investor@endeavourmining.com.