Endeavour Silver Corp.
FRANKFURT : EJD
TSX : EDR
AMEX : EXK

Endeavour Silver Corp.

August 30, 2007 16:39 ET

Endeavour Reports Update on Cash Position and Short Term Investments

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2007) - Endeavour Silver Corp. (TSX:EDR)(AMEX:EXK)(DBFrankfurt:EJD) today reported an update on its cash position and short term investments. The Company currently has US $30 million in working capital, including US $25 million in cash, cash equivalents and marketable securities. A total of US $4.8 million of the US $25 million is held in three Canadian structured investment trust notes, also known as asset backed commercial paper ("ABCP").

These notes are rated R-1 (high) AAA by Dominion Bond Rating Service and mature in September but the current liquidity crisis for all ABCP has impacted the liquidity of these notes. The Company's broker-dealer advises that the current crisis is one of liquidity, not quality, that most of the debt collateral to the notes constitutes high quality bonds and only about 4% of the debt collateral is in the sub-prime mortgage market.

Endeavour holds ample cash and equivalents (treasury bills, GIC's, senior securities) so the ABCP liquidity crisis has no impact on the Company or its operations at this time or for the foreseeable future. Endeavour can therefore just wait for the ABCP crisis to be resolved and liquidity and value to return to the ABCP market.

Endeavour Silver Corp. is a silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Expansion programs are now underway at the high grade Guanacevi Mines Project in the state of Durango and the Bolanitos Mines Project in the state of Guanajuato. The Company's acquisition, exploration and expansion programs now underway should enable Endeavour Silver to join the ranks of the top primary silver producers worldwide.

ENDEAVOUR SILVER CORP.

Bradford J. Cooke, Chairman and CEO

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.



ENDEAVOUR SILVER CORP.
CONSOLIDATED BALANCE SHEET
(Unaudited - Prepared by Management)
(expressed in thousands of US dollars)

------------------------------------------------------------------------
------------------------------------------------------------------------
June 30, December 31,
Notes 2007 2006
------------------------------------------------------------------------
restated
ASSETS note 4 (d)

Current assets
Cash and cash equivalents $ 24,130 $ 31,870
Marketable securities 7 3,535 3,072
Accounts receivable and prepaids 8 7,732 3,104
Inventories 3,980 3,332
Due from related parties 34 34
------------------------------------------------------------------------
Total current assets 39,411 41,412

Long term deposits 844 -
Mineral property, plant and equipment 9 39,552 21,317
------------------------------------------------------------------------
Total assets $ 79,807 $ 62,729
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued liabilities $ 2,492 $ 3,046
Income taxes payable 786 4
------------------------------------------------------------------------
Total current liabilities 3,278 3,050

Asset retirement obligations 10 1,354 954
Future income tax liability 2,577 2,968

------------------------------------------------------------------------
Total liabilities 7,209 6,972
------------------------------------------------------------------------

Non-controlling interest - 1,198

Shareholders' equity
Common shares, unlimited shares
authorized, no par value, issued
and outstanding 47,171,152 shares
(2006 - 42,373,988 shares) 5 81,947 63,353
Contributed surplus 8,105 5,064
Accumulated comprehensive income 4 930 212
Deficit (18,384) (14,070)
------------------------------------------------------------------------
Total shareholders' equity 72,598 54,559
------------------------------------------------------------------------
$ 79,807 $ 62,729
------------------------------------------------------------------------
------------------------------------------------------------------------
Nature of Operations (note 1)
Commitments and contingencies (notes 5)

Approved on behalf of the Board

/s/ Bradford Cooke /s/ Godfrey Walton
--------------------- ---------------------
Director Director


ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited - Prepared by Management)
(expressed in thousands of US dollars, except for shares and per share
amounts)

--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended Six Months Ended
------------------------- -------------------------
June 30, June 30, June 30, June 30,
Notes 2007 2006 2007 2006
--------------------------------------------------------------------------

Sales $ 6,385 $ 4,550 $ 13,615 $ 6,831

Cost of sales 5,092 1,348 8,659 2,738
Depreciation
and depletion 609 818 1,568 1,245
Exploration 1,331 - 3,101 -
General and
administrative 1,522 216 3,054 938
Corporate
development 298 294 333 328
Stock-based
compensation 3,383 1,805 3,700 3,177
--------------------------------------------------------------------------
Operating
profit (loss) (5,850) 69 (6,800) (1,595)

Foreign
exchange gain
(loss) 1,459 (527) 1,651 (535)
Income (loss)
from property
option interest - 100 - 122
Realized gain
(loss) on
marketable
securities 280 - 280 -
Investment
and other
income 251 265 545 401
--------------------------------------------------------------------------

Income (loss)
before taxes
and other
items (3,860) (93) (4,324) (1,607)
--------------------------------------------------------------------------
Non-controlling
interest - (602) (1,483) (789)
Income tax
provision 1,784 - 1,493 (799)
--------------------------------------------------------------------------
Income (loss)
for the period (2,076) (695) (4,314) (3,195)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Other
comprehensive
income, net
of tax
Unrealized
gain (loss)
on marketable
securities 29 - 417 -
Reclassification
adjustment
for gain (loss)
included in
net income (211) - (211) -
--------------------------------------------------------------------------
Comprehensive
income (loss)
for the
period (182) - 206 -
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Basic and
diluted loss
per share $ (0.05) $ (0.02) $ (0.10) $ (0.09)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Weighted
average number
of shares
outstanding 45,512,687 37,569,744 44,315,055 35,148,490
--------------------------------------------------------------------------
--------------------------------------------------------------------------


ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENT OF CASH FLOW
(Unaudited - Prepared by Management)
(expressed in thousands of U.S. dollars)

------------------------------------------------------------------------
------------------------------------------------------------------------
Three Months Ended
March 31, March 31,
Notes 2007 2006
------------------------------------------------------------------------

Operating activities
Loss for the period $ (2,238) $ (1,701)
Items not affecting cash:
Stock-based compensation 317 1,372
Depreciation and depletion 959 427
Non-controlling interest 1,483 187
Future income tax expense (407) -
Unrealized foreign exchange loss (29) -
Net changes in non-cash working capital 11 901 (563)
------------------------------------------------------------------------
Cash from (used for) operations 986 (278)
------------------------------------------------------------------------

Investing activities
Property, plant and equipment expenditures (4,581) (2,091)
Acquisition of subsidiary, net of cash
acquired - (119)
Due from related party - -
Investment in marketable securities - -
Proceeds from sale of marketable securities - -
------------------------------------------------------------------------
Cash used in investing activities (4,581) (2,210)
------------------------------------------------------------------------

Financing activities
Common shares issued 2,892 1,230
------------------------------------------------------------------------
Cash from financing activites 2,892 1,230
------------------------------------------------------------------------

Increase in cash and cash equivalents (703) (1,258)
Cash and cash equivalents, beginning of
period 31,870 16,371
------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 31,167 $ 15,113
------------------------------------------------------------------------
------------------------------------------------------------------------


The TSX Exchange has neither approved nor disapproved the contents of this news release.

Contact Information