Endeavour Silver (EXK) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition marks entry into Peru, a major mining jurisdiction, and adds a third producing underground mine, supporting the goal to become a senior silver producer.

• Kolpa is a fully funded, producing polymetallic mine with significant resource expansion potential and a strong operational history.

• The acquisition leverages underground mining expertise and provides a platform for further growth and potential acquisitions in a prolific mining region.

• Kolpa's underexplored land package offers significant exploration upside, with only 10% of claims worked to date and multiple targets identified.

• Kolpa's location in a prolific mining district and its experienced team support seamless integration and future growth.

Financial terms and conditions

• Total consideration is $145 million: $80 million in cash, $65 million in shares, plus up to $10 million contingent on a NI 43-101 resource estimate.

• Kolpa's net debt of approximately $20 million remains outstanding and repayable by Kolpa.

• Funding includes a $35 million copper streaming deal, $40 million in bought deal equity financing, and cash on hand.

• The number of shares issued is based on a deemed price of $4.618 per share, calculated as the 10-day VWAP on the NYSE prior to signing.

• Transaction expected to close in Q2 2025 or within 60 days, subject to standard approvals and conditions.

Synergies and expected cost savings

• Operational synergies expected from combining underground mining expertise with Kolpa’s established team.

• Kolpa’s positive cash flow and low cost structure enhance financial performance from day one.

• The acquisition is expected to materially increase silver equivalent production and support the transition to a senior producer.