Name and Location
Houndé gold project, Burkina Faso.

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

Project Description
Houndé has a proven and probable reserve of 25-million tonnes, with an average grade of 1.95 g/t of gold.

A National Instrument 43-101 compliant feasibility study (FS) completed on the Houndé project has proved positive for an openpit gold mine.

The project FS focuses on the Vindaloo group of deposits that are located about 250 km south-west of Ouagadougou, the capital city of Burkina Faso.

The FS envisages production of 178 000 oz/y of gold over an 8.1-year life-of-mine (LoM), with a total LoM production of 1.44-million ounces.

Average gold recovery of 93.3% is forecast using a semiautogenous/ball mill grinding circuit, followed by processing through a gravity/carbon-in-leach plant capable of treating three-million tonnes a year of ore.

Net Present Value/Internal Rate of Return
The project has a base case net present value at a discount rate of 5% of $230-million, at a gold price of $1 300/oz and an internal rate of return of 22.4%.

Value
Initial start-up capital is estimated at $315-million.

Duration
Engineering, procurement and construction are estimated at 21 months from board approval to first gold production.

Latest Developments
Endeavour has received the final signed mining permit to develop and operate the Houndé gold project.

The mining permit was previously approved by the Council of Ministers, and has been signed as a mining decree by the newly appointed interim President Michel Kafando and other governmental authorities.

The decree grants Houndé Gold Operation an industrial mining permit to develop and operate the project.

The mining permit is valid from February 5, 2015, for 20 years and can be renewed for a further five years. The project is expected to benefit from the fiscal and other provisions of the current 2003 Mining Code.

Meanwhile, Endeavour has been reviewing the results of the project's 2014 exploration programme and is undertaking an update on its economics and expects to update the market on those results shortly.

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.