Endeavour Mining Corporation
TSX : EDV

June 13, 2016 16:39 ET

Endeavour Mining Announces C$125 Million Bought Deal Financing

GEORGE TOWN, GRAND CAYMAN--(Marketwired - June 13, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Endeavour Mining ("Endeavour") (TSX:EDV) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 6,250,000 ordinary shares (the "Common Shares"), at a price of $20.00 per Common Share for gross proceeds of $125,000,000 (the "Offering"). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The offering is expected to close on or about July 11, 2016 and is subject to Endeavour receiving all necessary regulatory approvals.

The net proceeds of the offering are intended to be used to accelerate Endeavour's organic growth potential by significantly expanding the current exploration programs in a long-term strategic exploration initiative leveraging Endeavour's high-quality West-African exploration portfolio, for the potential development of the Ity CIL project and for general corporate purposes. The proceeds will also assist in maintaining a healthy balance sheet over the medium term with a sound liquidity position while implementing this organic growth strategy.

As part of the Offering, La Mancha Holding S.àr.l. will be purchasing a minimum of $15 million of Common Shares on the same terms and conditions.

The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada, excluding Quebec and may also be offered by way of private placement in the United States and distributed internationally, as permitted.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Endeavour Mining Corporation

Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record.

Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou, Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2016, it expects to produce between 535koz and 560koz at an AISC of US$870 to US$920/oz, excluding Karma which is expected to enter commercial production in June. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to commence production in Q4-2017 and become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over a 10-year mine life based on reserves. The development of the Houndé project is expected to lift Endeavour's group production +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years.

This news release contains "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, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", and "anticipates". Forward-looking statements, while based on management's best estimates and assumptions, 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. 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.

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