Endeavour Silver increases production in 2008

2009-01-13 10:42 ET - News Release

Mr. Bradford Cooke reports

ENDEAVOUR SILVER ACHIEVES FOURTH CONSECUTIVE YEAR OF RECORD SILVER PRODUCTION IN 2008, TARGETS SUBSTANTIAL GROWTH IN 2009

Endeavour Silver Corp. achieved its fourth consecutive year of record silver production in 2008, totalling 2.34 million ounces silver, up 9 per cent over 2007.

Silver production in the fourth quarter of 2008 from the company's two operating silver mines in Mexico, Guanacevi and Guanajuato, was a record 691,347 ounces silver, up 10 per cent over the third quarter of 2008 and up 8 per cent over the fourth quarter of 2007. The new all-time-high silver production can largely be attributed to the successful rehabilitation and recommissioning of the Guanajuato mines project, which was acquired in May, 2007, but only recommenced commercial production in June, 2008, after completion of major mine rehabilitation and safety upgrade programs.

To view the Guanajuato mines project, see the company's website.

In addition, gold production rose sharply in 2008 to 8,187 ounces gold, up 27 per cent compared with 2007. The increased gold production can also be attributed to recommissioning of the Guanajuato mines project, as it has significantly higher gold grades compared with Guanacevi. Expressed as silver equivalents based on a silver-gold ratio of 75:1, Endeavour's combined silver and gold production amounted to 881,397 ounces silver equivalents in the fourth quarter of 2008 and 2.95 million ounces silver equivalents in 2008, up 19 per cent over 2007.

To view the Guanacevi mines project, see the company's website.

Endeavour plans to release an overview of its 2008 exploration activities by the end of January, 2009, and a more detailed review of its 2008 mining operations and 2009 production forecast in February, 2009. The 2008 year-end financial results and 2009 financial outlook will be released in late March, 2009.

Bradford Cooke, chairman and chief executive officer, commented: "We are pleased to announce that Endeavour beat its revised production forecast of 2.3 million ounces silver for 2008, notwithstanding our decision in September to slow production growth so long as the silver price remains depressed. Management is of the belief that the silver price will rebound in 2009 so we plan to use this time of lower silver prices to accelerate the development of new orebodies that will facilitate our next phase of production growth.

"Once the silver price bounces back, and our accelerated mine development projects are well under way, we plan to resume our aggressive production growth so as to achieve our fifth consecutive year of record silver production. Endeavour's two operating silver mines should be able to more than double their silver production over the next 2.5 years in order to fill the two process plants to their operating capacities. Management will also continue to seek opportunities for growth by acquisitions in 2009."

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