Endeavour Silver Corp. Mining Forum Americas 2026

Yeah. Endeavour's now been around for over 20 years. I've been with the company close to 20 years. I started in March of 2007. I think a lot of people that are familiar with the Endeavour story over the years would have understood that we built the company through fully built, fully permanent mines that were underexplored and brought a lot of geological knowledge, access to capital markets, and really invested in two mines, Guanacevi and Bolañitos. A cone on the knocks from an investment standpoint on our company for a lot of years was ultimately short mine lives, higher costs, and a lot of people like to get into the story for that exponential growth on margins when silver price was going to take off, and it worked well. We got great liquidity, and relatively a good success story.

From a running a business standpoint, not having a long mine life, like a 10-year reserve life, was always relatively difficult. Again, through our exploration geologists, we made the discovery of Terronera in 2013. Made the decision of going through PEA, PFS, and then ultimately a feasibility study, construction decision. Then in October of 2025, we put Terronera, which you see up there on the screen, into commercial production. So now we have what we feel with Terronera, one of the lowest cost producing assets in the space, where the gold pays for the silver production at Terronera. Then we branched out over the years and picked up an asset in Peru, also an underground operation, silver, lead, zinc. First time we bat at base metals. It's gone extremely well. Again, focusing on life of mine, so a mine that we think we're going to be there 10, 15, 20 years, similar to Terronera.

In 2022, we picked up an asset called Pitarrilla. Those that are familiar with Pitarrilla, it's one of the world's largest undeveloped silver assets. Close to 600 million ounces of silver has been defined there. We're pushing that through for a feasibility study. Again, a lot of people are familiar with the open pit 2012 Silver Standard feasibility study. We're looking at it from an underground operation. Lines up with a 2009 PFS that they actually did at $11 silver. We should have that out imminently, and always happy to talk about it.

Yeah. No. In our sense, it was lucky. At the time, we were right in the middle of building the Terronera mine, and we were nervous about acquiring an asset. Obviously, the first questions from the investment community is what's wrong with Terronera? It really came down to what we liked at Kolpa. It's an asset that, again, we sent our exploration team down and geologists down and say, "Have a look at this." Ultimately, for the price point that we saw and the potential that was there, we ended up buying it for $145 million. Obviously, compared to some of the other deals at the time in that space, we felt like we were getting a steal. The integration, it was a company that was owned private equity 60%, 40% into a real estate family, out of Lima.

They had a lot of their structure in place and an office in Lima with close to 60 individuals. Internal audit, commercial team, obviously accounting group, finance group, et cetera. We saw it as a bolt-on and an ability to really bring it into Endeavour fairly quickly, where we thought we could bring a lot of expertise. This is something that they have been looking at for an expansion of going from wet stack to dry stack tailings, so conventional tailings to dry stack, which we've done at Guanacevi for the last 13 years, and then the exploration opportunity. The main source of the ore has come off the Benaventurada vein. It's 4 kilometers long. They keep nibbling to the edges, and ultimately their mining goes down 200, 250 meters. Mineralization doesn't end. That's where the water table is.

Ultimately, they've been hand-to-mouth for about 8 years of just continuing to build their mine. We saw an opportunity, A, for real expansion of resources, and we're pushing through that this year. We have a resource that's going to come out near the end of the year, maybe into next year, that's ultimately due. There's a historical resource that had 120 million ounce silver equivalents. We expect that to be there, and we owe the vendors another CAD 10 million if we hit that point. We fully expect to hit that point. As far as the expansion, it's gone as well as an expansion can go, really. They'd started that work themselves. Again, they were going from wet stack to dry stack tailings. Again, our expertise was there, but ultimately they'd have almost had all the pieces in place.

We just helped them execute it for the last 8 months. That went into 2,500 tons in March, and it's gone extremely well since then. So well that we've even pushed beyond a little bit 2,500, and we're trying to rail them back. We don't want too much pressure on the resource and ultimately expansion than we have to do at the tailings dam. It's been very well integrated into our company. There's always little bumps and stuff like that, but very minor compared to other stories that you can hear.

A similar story this year for us. We told the market for Terronera that ultimately the first 6 months we were putting low-grade material through. When I say low grade, it's all relative. Over the life of the mine, it's 375 grams silver equivalent. We peak around 450, 475 in the first couple of years. We made the decision in 2025, where we were in the mine plan, what we were seeing in the plant. In any feasibility study, you're going to have the highest grade material go through first, ultimately get your best return metrics that you can get. In practicality, it doesn't work that way. We want to put some lower grade material through the plant to ensure that we weren't putting ounces into our tailings facility. Ultimately, we've been running 2,000 tons per day very consistently since last year.

Really, it is working through the optimization and refining of our plant. The most important aspect of Terronera and its recoveries is its grind size, and we worked through some issues and what you call optimization, troubleshooting through our sag mill, and ultimately our cyclones that we are working through to get our grind size to get the recoveries that we had. Our feasibility recoveries for silver is 89%, 76% for gold. Ultimately, over the year, we have been pushing up and approaching that 89%, and we are seeing that here in Q3. Similarly, as the grades have come up, that has helped recoveries in itself. We are seeing the grades come up, we are seeing recoveries come up. Additionally with that, at the beginning of the year, we said we had some capital programs left to be completed. We moved from our diesel gen sets into our LNG plant to create power.