EDR PPT December 2010

8/8/2019 EDR PPT December 2010

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Expanding Silver Production,

Reserves and Resources inMexico

December 2010


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Cautionary Note: Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the United States privatesecurities litigation reform act of 1995 and forward-looking information within the meaning of applicable

Canadian securities legislation. Such forward-looking statements and information herein include, but are notlimited to, statements regarding Endeavours anticipated future performance, including silver and goldproduction, reserves and resources, timing and expenditures to expand mine and plant capacities and developnew mines, metal grades and recoveries, cash costs and capital expenditures. Forward-looking statements orinformation involve known and unknown risks, uncertainties and other factors that may cause the actual results,level of activity, performance or achievements of Endeavour and its operations to be materially different fromthose expressed or implied by such statements. Such factors include, among others: fluctuations in metal pricesand currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar); changes in national andlocal governments, legislation, policies, taxation, regulations; political or economic developments in Canada andMexico; management, operating or technical risks, hazards or difficulties in exploration, development andmining activities; inadequate insurance, or inability to obtain insurance; availability of and costs associated withmining inputs and labour; the speculative nature of mineral exploration and development, diminishing quantitiesor grades of mineral reserves as properties are mined; the ability to successfully integrate acquisitions; risks inobtaining necessary licenses and permits, and challenges to the companys title to properties; as well as thosefactors described in the section risk factors contained in the Companys most recent form 40F and AnnualInformation Form filed with the S.E.C. and Canadian securities regulatory authorities. Although the Company hasattempted to identify important factors that could cause actual results to differ materially from those contained in

forward-looking statements or information, there may be other factors that cause results to be materiallydifferent from those anticipated, described, estimated, assessed or intended. There can be no assurance that anyforward-looking statements or information will prove to be accurate as actual results and future events coulddiffer materially from those anticipated in such statements or information. Accordingly, readers should not placeundue reliance on forward-looking statements or information. The Company does not intend to, and does notassume any obligation to update such forward-looking statements or information, other than as required byapplicable law. We Seek Safe Harbor.


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Introduction: Who is Endeavour?

Endeavour Silver Corp: One of North Americasfastest growing silver

mining companies

Producing Assets: Two high grade silver-gold mines in Mexico; Guanacevi

Mines in Durango State and Guanajuato Mines in Guanajuato State

Exploration Projects: Three district-scale properties hold substantial

discovery potential; San Sebastian, Parral and Arroyo Seco

Take-Over Bid: Just launched a Cdn$0.12 all cash bid for Cream Minerals

Ltd. for their main asset, the Nuevo Milenio property in Mexico

Strategic Goal: Become a top mid-tier (5-10 million oz per year) primary

silver producer within two years through organic growth and strategic

acquisitions


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Highlights: Why Own Endeavour?

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Silver Leverage: 75/25 silver/gold and no base metals Mexico Advantage: Friendlyto mining, great exploration potential,

modern infrastructure, stable economy, low taxes

Quality Assets: Higher grade silver-gold ores

Strong Financials: Working capital June 30, 2010 = US$41.6 million

Good Liquidity: Recently added to S&P/TSX Small Cap Index

Experienced Management Team: 150 years in mining industry

Proven Track Record: 780% production growth in first 6 years Compelling Organic Growth: 50% production growth in next 2 years

Additional Acquisition Growth: Looking to find or buy mine # 3


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Share Capital: Leverage To Growth

Exchange Listings: EDR: TSX

EXK:NYSE-Amex

EJD: DB-Frankfurt

Shares Issued: 79.6 Million

Warrants/Options: 12.7 Million (adds $36.6 million) Fully Diluted: 92.2 Million

Share Price (Dec 1, 2010): US$ 6.40

Market Cap: US$ 509 Million

Daily Volume (3 months Avg): 1.6 Million Shares

Largest Shareholder: Fresnillo PLC 5%

5


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Silver vs. Gold: The Current Cycle

Silver typically lags gold, then plays catch-up, resulting in highlyleveraged investment opportunities. Silver: gold ratio - 49:1

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Highlights: 2010 Goals and Q3 Performance

Fifth consecutive year of record financial performance:

Sales revenue target: 30% growth (up 105% to $20.1 million in Q3/10)

EBITDA target: 50% growth (up 826% to $6.5 million in Q3/10)

Net earnings target: first full year of net profits forecast

Sixth Consecutive year of production growth:

Silver production target 3.1 million oz (up 20% to 797,054 oz in Q3/10)

Gold production target 15,000 oz (up 28% to 4,607 oz in Q3/10)

Silver equivalent production target 4.0 million oz (1.1 million oz in Q3/10)

Seventh consecutive year of reserve/resource growth:

Silver reserves/resources target 68 million oz (up 16% from 58.5 million oz in 2009)

Gold reserves/resources target 300,000 oz (up 10% from 274,000 oz in 2009)

Silver equivalent reserves/resources target 88 million oz (up16% from 76.3 million oz

in 2009)

d i il i


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Core Assets: Two Producing Silver Mines,Three Exploration Projects

Business Model:

Acquire under-explored mines inhistoric silver districtsthat are built,permitted and aboutto close

Invest the capital andexpertise needed todiscover new ore-bodies and re-openthe mines

Consolidate districtland-holdings andexpand silverresources, reservesand production Exploring historic silver mines

close to existing infrastructure


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Guanacevi: A Top 5 Mexican Silver District

District Highlights:

Located in the Sierra MadreOccidental gold-silver belt

Produced over 450 million ozsilver historically

Multiple silver veins span 10 km x5 km area

Classic epithermal ore-bodies in

Lower Tertiary andesites Accessed by paved state highway

4 hours NW of Durango City

On state power grid, ample labourand water available

Porvenir and Porvenir Dos Minesnow in production, two more

ore-bodies being developed in2010

District is ripe for consolidation toensure long mine life

Now drilling multiple high-gradeveins in San Pedro area

G i U d d M h i d


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Guanacevi: Underground, Mechanized,Ramp Access Mine

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Q3, 2010 Summary

Reserves/Resources:

P+P: 15.0 million oz Ag

M+I: 17.8 million oz Ag

Inf: 9.6 million oz Ag

Production: 585,000 oz Ag

1,545 oz Au

Throughput: 815 tonnes per day

Grades: 330 gpt Silver

0.8 gpt Gold

Recoveries: 74% Ag

83% Au

Operations: North Porvenir

Porvenir Dos

Porvenir Cuatro

Santa CruzPorvenir Norte is the largest mine

operating in the Guanacevi district


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Guanacevi: Upgrading the Plant

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Capital Projects:

Expand milling circuit

Expand leach circuit

Re-habilitate flotationcircuit

New Merrill Crowe circuit

New silver refinery

New lab, warehouse,

security Expand tailings pond

Expand crushing circuit(October 2010)

Currently operating at 775 tpd

Targeting 1000 tpd capacity in 2010

Expanded Crushing

Circuit

Expanded CCD Circuit

G i R /R


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Guanacevi: Reserves/ResourcesLongitudinal Section

Endeavour Discovered Five New Silver Deposits In Five Years

UnderDevelopment

UnderDevelopment

CurrentProduction

NORTH PORVENIR MINE SANTA CRUZ MINEORVENIR DOSORVENIR MINE CUATRO

G j t Th 2 d L t Sil


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Guanajuato: The 2nd Largest SilverDistrict In Mexico

District Highlights:

Located in the Sierra Madresilver-gold belt

Produced over 1.2 billion ozsilver historically and 5million oz gold

Three main vein systemsspan 20 km x 20 km area

Classic epithermal ore-bodies inLower Tertiary andesites

Accessed by all-weather road hour NW of Guanajuato City

On state power grid, amplelabour and water available

Cebada and Bolanitos Minesnow in production, new

ore-bodies recentlydiscovered

Now drilling multiple veins inBolanitos area

G j t U d d M h i d


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Guanajuato: Underground, Mechanized,Track and Shaft Access Mines

The Bolanitos Mines were operated by

Penoles from the 1970s to the 1990s

Q3, 2010 Summary

Reserves/Resources:

P+P: 1.6 Million Oz Ag

M+I: 4.3 Million Oz Ag

Inf: 7.7 Million Oz Ag

Production: 212,000 Oz Ag

3,060 Oz Au

Throughput: 560 tpd

Grades: 177 gpt Silver

2.5 gpt Gold

Recoveries: 72% Ag

75% Au

Operations: Bolanitos/Lucero

Cebada

Development: Lucero South

G j t O l T Y Old


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Guanajuato: Only Ten Years Old,600 TPD Plant Capacity

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Currently operating at 550 tpd

on a 6 day per week basis

Capital Projects:

Rehabilitate conveyors

Install new cone crusher

Re-configure flotationcircuit

New concentrate load-out

Expand tailings pond

New assay lab

New security building

G j t R /R


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Guanajuato: Reserves/ResourcesLongitudinal Sections

Currently Producing

Santa Maria

3785

Veta Madre, Mina Cebada

Under Development

Currently Producing

Vetas La Luz

NEW SOUTHLUCERO RAMP(UNDERDEVELOPMENT)

NEW VENTILATIONSHAFT (COMPLETED)


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Take-Over Bid: Cream Minerals Ltd.

Endeavour Silver has launched a Cdn $0.14 per share take-over bid for Cream

Minerals Ltd. after protracted discussions with them failed to result in anagreement

Cream is a junior exploration company with a portfolio of early stage exploration

properties in Canada and Mexico

Their main asset is the Nuevo Milenio silver-gold exploration property in NayaritState, Mexico

Nuevo Milenio reports a current NI 43-101inferred resource totaling 41 million oz

silver and 271, 000 oz gold, or 58 million oz silver equivalents

The acquisition of Cream Minerals is accretive to Endeavour, increasing our

silver equivalent resource oz per share by 75%

Even though Endeavour has some concerns about the veracity of the resource

estimate, we view Nuevo Milenio as having good exploration potential


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Cream Minerals: Nuevo Milenio Property

Nuevo Milenio is located 27 km South of Tepic in Nayarit State, Mexico and has excellent road

access, proximity to power, water, labour, airport and railroad

Several old mine workings confirm historic high-grade, underground mining and smelting by the

Spaniards until the war of 1810 but only minor gambusino mining since 1930

No modern exploration work until Cream drilled 64 drill holes in recent years, 25 holes returned

values of 200 to 500+ gpt silver equivalent over 2 to 5+ m widths

NI 43-101 resource estimate is 41 million oz silver + 271, 000 oz gold = 58 million oz silver

equivalents contained in 5.1 million tonnes grading 251 gpt silver and 1.66 gpt gold although we

have some concerns about the resource

Four main veins are surrounded by sheeted or stock-work veinlet zones measuring >50 m wide so good

potential for open pit mining of near-surface mineralization also

Bottle roll cyanide leach recoveries exceed 80% before optimization so good potential for heap or vatleach processing

Excellent exploration potential to expand known resources along strike and make new discoveries in

other veins


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Nuevo Milenio: Location and Access

Nuevo Milenio Fr1

Title # Mining concession

225967 Area 2560.063 Ha

OPAL MINES

Opal mineralization is found in the uppermost parts

of the Nuevo Milenio vein system

Nuevo Milenio: Multiple Prospect Areas


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Nuevo Milenio: Multiple Prospect AreasReady to Drill

Nuevo Milenio: Significant Vein Resources


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Nuevo Milenio: Significant Vein ResourcesAlready Drilled

Drilled(Inferred Resources)

Undrilled

Drilled(Inferred Resources)

Undrilled

Undrilled

Drilled(8 Holes)

Drilled(3 Holes)

Inferred resources based on 13,000 meters of

drilling in 64 drill holes

Undrilled targets have both open pit and

underground potential

Nuevo Milenio: Dos Hornos Vein


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Nuevo Milenio: Dos Hornos VeinLong Sections

DOS HORNOS VEIN

Segment 1

DOS HORNOS VEIN

Segment 2

Nuevo Milenio: Inferred Resources &


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Nuevo Milenio: Inferred Resources &Drilling Highlights

Company Drill HoleFrom To Length Ag Au AgEq*

m m m g/t g/t g/t

Dos Hornos 1

Cream DDH 02 - 06 108.5 120.5 12.0 148 0.47 177

including 114.5 116.5 2.0 316 0.91 372

Roca Mines NM-10-01 108.0 120.0 12.0 240 0.94 298

including 108.0 113.0 5.0 434 1.59 532

Dos Hornos 2

Cream DDH-07-32 86.0 103.8 17.8 84 0.73 130

including 99.8 103.8 4.0 289 1.44 378

Roca Mines NM-10-02 87.0 97.8 10.8 103 0.46 131

including 95.0 97.8 2.8 263 1.50 356Veta Tomas

Cream DDH 20 - 06 1 48.8 156.8 8.0 161 1.66 264

including 152.8 156.8 4.0 261 2.52 418

Roca Mines NM-10-03 155.5 165.3 9.8 32 0.94 90

Cream DDH-07-23 78.6 84.6 6.0 526 1.71 631

including 80.6 82.6 2.0 1,388 4.35 1,658

Roca Mines NM-10-04 82.4 86.9 4.5 1,299 4.27 1,564

Including 82.4 85.5 3.1 1,886 6.18 2,269

Once Bocas

Cream DDH-06-03 18.0 30.0 12.0 110 1.17 182

including 26.0 28.0 2.0 472 5.48 811

Roca Mines NM-10-05 18.3 30.5 12.2 91 0.50 122

including 26.6 28.1 1.6 568 3.33 774

and 247.0 248.5 1.5 227 0.71 271

Cream DDH-03-02 54.0 57.0 3.0 193 0.83 244

* Using 62:1 Ag:Au

DepositsWidth

mTonnes

Agg/t

Aug/t

Agoz

Auoz

Dos HornosSegment 1

4.70 1,235,036 165 1.50 6,552,239 59,400

Dos HornosSegment 2

4.06 746,528 202 1.77 4,847,216 42,390

Veta Tomas 5.09 1,246,163 351 1.28 14,070,467 51,344

Once Bocas 2.42 1,921,163 253 1.92 15,602,013 118,348

Total 5,148,889 251 1.66 41,071,935 271,482

INFERRED RESOURCES

(as of December 24, 2008)

Silver equivalent resources @ 62:1silver:gold ratio = 57.9 Million Oz


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Cream Minerals: Conclusions

Cream Minerals is an attractive albeit fully priced acquisition for

Endeavour

The acquisition is accretive, increasing Endeavours resources by

75% to 100 million oz silver and134 million oz silver equivalents

Assuming successful closing of the bid, Endeavour plans to fast-

track exploration over the next year, including infill drilling to

confirm the existing resources and step-out drilling to expand the

resources and make new discoveries

Reserves/Resources: Thirteen Year Mine Life


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0

10

20

30

40

50

60

70

80

90

100100

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Reserves/Resources: Thirteen Year Mine-Lifeat 2010 Production Rate

Silver Equivalent Reserves and Resources (million ozs)

2004 2005 2006 2007 2008 2009 2010 (est) Target

Note: Silver equivalents based on 65:1 silver: gold ratio, base metals are not included

0

16

88

76

62

5346

GJTO

GCV

I

Silver Production: 640% Growth


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Silver Production: 640% Growthin First Five Years

Annual Silver Production (million ozs)

0

0.51

1.5

2

2.5

3

3.5

4

4.5

2004 2005 2006 2007 2008 2009 2010 (est)Target

GJTO

GC

VI

2.15

0.35

4.50

3.10

2.602.35

1.35

0.95

Mine Operating Cash Flow 380% Growth in


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Mine Operating Cash Flow - 380% Growth inPast 3 Years

Annual Mine Operating Cash Flow (million US$s)

2006 2007 2008 2009 2010 (est)

$3.5

$36.0

$21.3

$11.5

$8.0


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Increasing Margins: Decreasing Costs


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Relative Valuations: Silver Producers

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Adjusted Market Cap Per Oz Silver Reserves + Resources

Adjusted

Market Cap

Per

Oz

Silver

Production 0

50

100

150

200

250

300

350

400

0 1 2 3 4 5 6 7 8 9 10 11

GPREXK

SVM

HL

PAASCDE

SPM

HOCFR FVI

FRES

EXN


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Social Responsibility

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Endeavour Silver strives to improve the

quality of life for every employee and each

community in which it works by operatingin the most socially responsible manner.

Safety: Safety is a top priority. We

operate continuous trainingprograms, developed mine rescue

teams, hired new safety staff and

built a new safety buildings

Environment: We take care of the

environment. Every year we addgreen areas, plant trees, recycle

tailings water, and deposit mineral

waste in a responsible manner

Community: We care about our

people. Every year, we donate tolocal communities, promote

sustainable habits, support local

sport teams and town festivals


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Management Team: A Wealth of Experience

Bradford Cooke, M.Sc., P.Geo. - Chairman and CEO - Professional Geologist with30+ years experience in exploration management and financing including Shell,Chevron, Noranda and Canarc.

Godfrey Walton, M.Sc., P.Geo. - President and COO - Professional Geologist with30+ years mine exploration and development including Chevron, Hemlo Gold,Canarc, others

Dan Dickson, CA, CFO - Chartered Accountant with 7 years experience in audit andaccounting including 5 years with KPMG

David Howe, M.Sc., - VP, Operations - Professional Geologist with 20+ yearsexperience, primarily in Latin America, with Hecla, St. Ann Jamaica Bauxite

Barry Devlin, M.Sc., P.Geo. - VP, Exploration, Professional Geologist with 25+ yearsexperience in mine exploration and project management, including Hecla, USBorax, others

Hugh Clarke - VP, Corporate Communications, Communications specialist with 30+years experience in corporate finance, development, investor marketing andcommunications

Miguel Ordaz, Ing. - Projects Director and Legal Representative, Mexico, GeologicalEngineer with 30+years experience Mexican mineral exploration and minemanagement


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Board of Directors

Len Harris, P.Eng. - Director, Metallurgical Engineer - Former President of NewmontPeru responsible for development of the huge Yanacocha gold mine.

Geoff Handley, B.Sc. - Director, Geologist with over 30 years experience in globalexploration, acquisitions, planning, most recently Executive VP, StrategicDevelopment, Placer Dome

Rex McLennan, B.Sc., M.B.A.,-Director, Over 25 years industry experience includingCFO and Executive VP with Placer Dome Inc. until 2005

Mario Szotlender, B.IR. - Director, Businessman specializing in financing andmanaging new business ventures for numerous private and public companiesover the past 20 years

Ricardo Campoy B.Sc., Director, Over 34 years of experience in the mining andfinancial sectors, Managing Director of West LB mining team and co-founder ofMinerals Capital Advisory LLC

Bradford Cooke, M.Sc., P.Geo. - Chairman and CEO - Professional Geologist with30+ years experience in exploration management and financing including Shell,Chevron, Noranda and Canarc.

Godfrey Walton, M.Sc., P.Geo. - President and COO - Professional Geologist with30+ years mine exploration and development including Chevron, Hemlo Gold,Canarc, others


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Institutional Investors, Analysts Coverage

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Royce & Associates

Van Eck Associates

AGF Funds, Inc.

Fidelity Investments Canada

Pyramis Global Advisors

RBC Asset Management

Sprott Asset Management

BNS Asset Management

Ash Guglani & Tim Lee, Salman

Partners

Brian Quast, CIBC

Chris Thompson, Haywood

Thomas Tan, Euro Pacific Capital

Andrew Kaip, BMO

l


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Value Proposition

Our goal is to become one of the top mid-tier producers of silver(5-10 million oz per year)

Weve already grown silver production 7 fold in our first 5 years

(2.6 million oz in 2009)

Organic potential to significantly increase silver production over

next 2 years by expanding the mines and filling the plants

Acquisition potential to double silver production and attract

mid-tier silver market multiple

We have the core assets, management team, and share

structure to deliver out-performance

Endeavour offers excellent value compared to its peer group

i h


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EXK Price Chart - 2004 - 2010

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C U


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Contact Us

Endeavour Silver Corp.

Suite 301-700 West Pender Street

Vancouver, BC, V6C 1G8

[email protected]

www.edrsilver.com

Phone: 1-604-685-9775 Fax: 1-604-685-9744Canada and US Toll-Free: 1-877-685-9775

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