Endeavour Mining begins commercial production at Agbaou
Ticker Symbol: C:EDV

Endeavour Mining begins commercial production at Agbaou

Endeavour Mining Corp (C:EDV)
Shares Issued 413,043,293
Last Close 1/24/2014 $0.68
Monday January 27 2014 - News Release

Mr. Neil Woodyer reports


Endeavour Mining Corp.'s Agbaou gold mine has achieved commercial production following the successful commissioning of the processing plant. In addition, at the official mine opening ceremony held earlier today, a "Mining Convention" was signed with the State of CAte d'Ivoire that includes a strong stability clause outlining fiscal conditions, and including gold royalty rates and a corporate tax holiday.

The on-site inauguration ceremony held today was attended by the Prime Minister, the Minister of Industry and Mines, other members of the Cabinet, the Canadian and British Ambassadors, and local community leaders.

Commercial production at Agbaou has been declared as the process plant achieved approximately 125{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of design throughput and gold recovery exceeding 94{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} over the prior 30 days. Agbaou is forecast to produce between 85,000 and 95,000 ounces in its first 12 months of the current 8 year mine life. The value of the gold produced prior to commercial production will be deducted from capitalized construction costs, rather than recorded as revenue.

The Mining Convention governs important aspects of the relationship between the State and Agbaou Gold Operations SA, Endeavour's 85{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}-owned subsidiary. The negotiated terms are similar to those of other operating gold mines in CAte d'Ivoire and consistent with Endeavour's expectations when the decision to proceed with construction was taken in June 2012, including:

Royalties: A sliding scale from 3{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} to 5{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}, depending on gold price Corporate Tax Holiday: Agbaou mine is eligible for a corporate tax holiday for five years from commencement of commercial gold production Stability: A strong stability clause defining fiscal parameters for the duration of the mining permit

Neil Woodyer, CEO, statedDeclaring commercial production at Agbaou marks the successful completion of an 18 month construction period. Endeavour will now benefit from Agbaou's low-cost gold production. Agbaou was completed safely, ahead of schedule, and under our $160 million capital budget.We appreciate the strong support from our government partners and the local communities. And from today, our partners will have direct financial participation in the operation from royalties, 15{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} ownership, employment and skills training opportunities, and infrastructure development. Currently we have over 500 people working on site, and 85{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of our team is Ivorian.I want to thank the Agbaou Construction Team and our contractors for their outstanding efforts. Throughout the start-up, the Operational Management Team has demonstrated they can run the mine safely, economically, and with full regard to the local community and environment. Qualified PersonsAdriaan "Attie" Roux, Pr. Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.

We seek Safe Harbor.

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