Endeavour Silver Reports Record Earnings, Cash Flow and Revenue in 2012, Conference Call at 10 am PDT (1 pm EDT) on March 13, 2013

Tue Mar 12, 2013 7:30am EDT

* Reuters is not responsible for the content in this press release.

  VANCOUVER, BRITISH COLUMBIA, Mar 12 (MARKET WIRE) --
Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK)(FRANKFURT:EJD) announced today
record earnings, cash flow and revenue for the year ended December 31,
2012, thanks to the Company's eighth consecutive year of growing silver
and gold production. Endeavour owns and operates three underground
silver-gold mines in Mexico: the Guanacevi mine in Durango state, and the
Bolanitos and El Cubo mines in Guanajuato state.


Highlights of Fiscal 2012 (Compared to Fiscal 2011)

Financial

--  Net earnings increased 124% to $42.1 million ($0.45 per share) compared
    to $18.8 million ($0.22 per share) 
--  Adjusted earnings(1) increased 24% to $40.2 million ($0.42 per share)
    compared to $32.4 million ($0.37 per share) 
--  EBITDA(1) increased 71% to $90.5 million 
--  Cash flow from operations before working capital changes increased 30%
    to $82.9 million 
--  Mine operating cash flow(1) increased 32% to $114.4 million 
--  Revenue increased 63% to $208.1 million 
--  Bullion held in inventory included 250,382 ounces (oz) silver and 2,712
    oz gold 
--  Concentrate held in process included 361,279 oz silver and 6,222 oz gold
--  Realized silver price decreased 13% to $30.99 per oz sold (on par with
    2012 average spot price) 
--  Realized gold price increased 7% to $1,674 per oz sold (consistent with
    2012 average spot price) 
--  Cash cost(1) increased 44% to $7.33 per oz silver payable (net of gold
    credits) 
--  Cash cost excluding El Cubo increased 4% to $5.28 per oz and El Cubo
    cash costs were $35.27 per oz 

Operations

--  Silver production up 20% to 4,485,476 oz 
--  Gold production up 77% to 38,687 oz 
--  Silver equivalent production up 33% to 6.4 million oz (at a 50:1
    silver:gold ratio) 
--  Completed the Bolanitos mine and plant expansion to 1,600 tonnes per day
    (tpd) capacity 
--  Completed the Guanacevi mine and plant expansion to 1,200 tpd capacity 
--  Acquired the El Cubo mine and plant operating at 1,100 tpd 
--  Launched a $67 million, 18 month capital investment program at El Cubo
    to explore and develop the mines and rebuild and expand the plant,
    tailings facility, water supply, electrical supply, surface buildings
    and related surface infrastructure 
--  Completed an initial $14.5 million on capital projects at El Cubo
    including 5.4 km of mine development, 2 ventilation shafts, and 10,000 m
    of underground drilling, plant reconstruction and expansion, the
    purchase of new and refurbishment of old mine equipment and other
    purchases 
--  Won several safety awards at Durango State mine rescue and first aid
    competitions, and Certificate of Health for Guanacevi from the Durango
    State Secretary of Health, and national CSR award for El Cubo 

Exploration

--  Silver proven and probable reserves up 37% to 23.1 million oz; 
--  Gold proven and probable reserves up 229% to 222,300 oz; 
--  Silver equivalent proven and probable reserves up 67% to 34.2 million
    oz; 
--  Silver measured and indicated resources up 62% to 58.5 million oz; 
--  Gold measured and indicated resources up 96% to 524,800 oz; 
--  Silver equivalent measured and indicated resources up 67% to 84.7
    million oz; 
--  Silver inferred resources up 74% to 61.1 million oz; 
--  Gold inferred resources up 182% to 520,400 oz; 
--  Silver equivalent inferred resources up 92% to 87.1 million oz; 
--  Delineated new high grade silver-gold discovery in Milache area at
    Guanacevi 
--  Drilled out new high grade silver-gold discovery in Lana vein at
    Bolanitos 
--  Discovered new high grade silver-gold discovery in Terronera vein at San
    Sebastian 

Highlights of Fourth Quarter 2012 (Compared to Fourth Quarter 2011)

--  Net earnings increased to $14.8 million ($0.15 per share) compared to
    $16,000 ($0.00 per share) 
--  Adjusted earnings(1) increased 759% to $12.9 million ($0.13 per share)
    compared to $1.7 million ($0.02 per share) 
--  EBITDA(1) increased 877% to $28.2 million 
--  Cash flow from operations before working capital changes increased 5% to
    $20.4 million 
--  Mine operating cash flow(1) increased 17% to $31.4 million 
--  Revenue increased 29% to $66.7 million on 1,345,832 silver oz sold and
    13,037 gold oz sold 
--  Realized silver price increased 14% to $32.87 per oz sold 
--  Realized gold price increased 5% to $1,725 per oz sold 
--  Cash cost(1) increased 44% to $7.33 per oz silver payable (net of gold
    credits) 
--  Cash cost excluding El Cubo increased 79% to $7.23 per oz and El Cubo
    cash costs were $38.52 per oz 
--  Silver production up 9% to 1,235,026 oz 
--  Gold production up 10% to 12,917 oz 
--  Silver equivalent production up 9% to 1.9 million oz (at a 50:1
    silver:gold ratio) 

(1) Adjusted earnings, mine operating cash flow, EBITDA and cash costs are
    non-IFRS measures. Please refer to the definitions in the Company's
    Management Discussion and Analysis. 


    To view a video of Chairman Bradford Cooke commenting on today's results,
please visit our website or click here:
http://edrsilver.com/_resources/video-march-12-13.htm

    Financial Results (Consolidated Statement of Operations appended below)

    For the year ended December 31, 2012, the Company generated revenue
totaling $208.1 million (2011 - $128.0 million). During the year, the
Company sold 4,815,073 oz silver and 35,167 oz gold at realized prices of
$30.99 and $1,674 per oz respectively as compared to sales of 2,838,784
oz silver and 17,044 oz gold at realized prices of $35.61 and $1,570 per
oz respectively in 2011.

    After cost of sales of $130.1 million (2011 - $59.2 million), mine
operating earnings amounted to $78.0 million (2011 - $68.8 million) from
mining and milling operations in Mexico.

    Excluding depreciation and depletion of $29.7 million (2011 - $17.1
million), stock-based compensation of $0.5 million (2011- $0.5 million),
and a write-down of inventory of $6.2 million (2011- $nil), mine
operating cash flow before taxes was $114.4 million (2011 - $86.3
million) in 2012. Operating earnings were $47.5 million (2010 - $15.6
million) and the Company incurred net earnings for the year ended
December 31, 2012 of $53.6 million (2011-$47.5 million).

    Net earnings include a mark-to-market derivative liability loss related
to share purchase warrants issued in 2009 denominated in Canadian
dollars, while the Company's functional currency is the US dollar. Under
IFRS, these warrants are classified and accounted for as financial
liability at fair market value with adjustments recognized through net
earnings. The appreciation of these warrants resulted in a derivative
liability gain of $1.9 million (2011 - loss of $13.7 million). Therefore,
adjusted earnings were $40.2 million ($0.42 per share) compared to $32.4
million ($0.37 per share).

    Cash cost, net of gold by-product credits, increased 44% to $7.33 per oz
silver produced (2011 - $5.08). The increased cash cost per ounce was
largely due to the acquisition of the El Cubo mine, a low-grade,
high-cost mining operation. Similar to Guanacevi and Bolanitos, Endeavour
sees strong potential to turn El Cubo into a high-grade, low-cost, long
life underground mine because the new reserve grades for silver and gold
at El Cubo are 78% and 51% higher respectively compared to the current
production grades, and because of Endeavour's experience at discovering
new high-grade ore-bodies, developing new mines into production and
expanding both production tonnes and ore grades at Guanacevi and
Bolanitos.

    In addition to the acquisition of El Cubo, the Company invested a total
of $66.2 million in capital expenditures on property, plant and equipment
during 2012. Approximately $19.3 million was invested at Guanacevi,
including $12.6 million for 7.3 kilometres (km) of mine development, $1.3
million on processing facilities, $4.8 million on mine equipment and $0.6
million on office equipment, building upgrades and vehicles. The mine
equipment capital was primarily for underground equipment, pumps,
ventilation, and electrical systems.

    A total of $31.3 million was invested at Bolanitos including $18.5
million for significant reserve delineation and 8.5 km of mine
development in the Lucero mine area to support 1,600 tpd of mine output.
Another $6.6 million was spent on the plant expansion providing capacity
of 1,600 tpd, while ensuring the optionality of further plant expansions.
Additionally $4.6 million was spent on mine equipment and $1.6 million on
office equipment, building upgrades and light vehicles. The mine
equipment expenditure was to expand the mobile equipment fleet for
increased production, to purchase communications and rescue equipment and
rehabilitate the Asuncion shaft. The expenditures on office equipment
include software upgrades and the building expenditures include
refurbishing the Asuncion head frame.

    An initial $14.5 million was invested at El Cubo with $9.7 million spent
on 5.4 km of mine development, $4.1 million on the El Tajo plant
rehabilitation and expansion, $0.4 million on mine equipment and $0.3
million on office equipment, building upgrades and light vehicles.

    Exploration Results

    In January 2012, Endeavour commenced an aggressive $15.0 million surface
exploration drill program to test multiple exploration targets within
three of the mining districts where Endeavour is currently active in
Mexico. Subsequent to the acquisition of El Cubo, the Company added an
additional 11,000 metres and $2.6 million to explore El Cubo targets and
follow up on the San Sebastian property's year to date results. By the
end of 2012, 191 diamond drill holes totaling 74,000 metres of core were
completed.

    Endeavour enjoyed another strong year of reserve and resource growth
thanks to the success of its acquisition, exploration and development
programs. Endeavour's exploration team continued to discover new,
high-grade silver-gold deposits within historic silver mining districts
such as Guanacevi, Guanajuato and San Sebastian in 2012. The recently
acquired El Cubo mine and Guadalupe y Calvo property were also accretive
to reserves and resources.

    In particular, the Company's discoveries in the Milache area at
Guanacevi, the Lana vein at Bolanitos and the Terronera vein at San
Sebastian all contributed significantly to the 2012 resource growth.
Endeavour more than replaced the proven and probable reserves it depleted
in 2012 and increased its resources in all categories as a result of its
successful acquisition, exploration and development programs. Gold
reserves and resources rose more than silver reserves and resources
because both the newly discovered mineralized zones at Bolanitos and San
Sebastian and the recently acquired El Cubo and Guadalupe y Calvo
properties have more gold compared to Guanacevi.

    2013 Outlook

    Endeavour plans another year of organic growth in 2013. Silver production
is forecast to increase 12-18% to 5.0-5.3 million oz and gold production
is anticipated to increase 19-27% to 46,000-49,000 oz as shown in the
table below. Silver equivalent production is expected to climb 14-22% to
7.3-7.8 million oz (at a silver:gold ratio of 50:1).


                    Silver Production    Gold Production     Tonnes per Day
Mine                            (M oz)             (K oz)              (tpd)
---------------------------------------------------------------------------
Guanacevi                     2.4-2.5            6.5-7.0        1,250-1,350
Bolanitos                     1.7-1.8          25.0-26.0        1,500-1,650
El Cubo                       0.9-1.0          14.5-16.0        1,050-1,200
---------------------------------------------------------------------------
Total                         5.0-5.3          46.0-49.0        3,800-4,200
---------------------------------------------------------------------------


    The Company recognizes there are additional opportunities to grow
production at all three mines. While these growth opportunities are still
conceptual, once the El Cubo capital programs are completed, management
will prioritize these opportunities and commence planning for future
expansions.

    At Guanacevi, production is expected to continue at a steady state until
reserves and resources grow sufficiently to justify another mine and
plant expansion. The Milache discovery is open to the northwest so
exploration in 2013 will focus on extending that mineralized zone.
Underground development of the new Milache discovery is awaiting
permitting for development in 2013-2014 with production anticipated to
commence in 2014-2015. Exploration will continue to test new targets in
the district.

    At Bolanitos, the Cebada, Bolanitos, Lucero, Karina, Fernanda, Daniela
and Lana veins are capable of providing up to 2,000 tpd of mine output at
the present time so management is currently considering smelter contracts
to sell Bolanitos concentrates in order to facilitate such a mine
expansion in Q2, 2013. With new exploration targets in the La Luz,
Plateros, La Joya and Puertocito veins, management is encouraged that
Bolanitos continues to offer excellent potential for new discoveries in
2013.

    At El Cubo, the reconstruction of the wholly owned plant is currently on
time and budget for completion in Q2, 2013 and will operate initially at
1,200 tpd with a capacity of 1,600 tpd. The main bottleneck to higher
production at El Cubo is a lack of larger reserve blocks; however, given
Endeavour's exploration programs have just begun to test several old and
new targets, management views El Cubo as having excellent potential for
the discovery of new and larger ore-bodies.

    The consolidated cash cost of production (net of by-product gold credits)
is expected to increase to the $9-10 per oz range in 2013, largely due to
rising production from the higher cost El Cubo mine and the lower grades
being mined at Guanacevi. However, the El Cubo cash cost is expected to
decline in 2013 due to rising operating efficiencies and the completion
of capital projects.

    Assuming US$30 per ounce of silver and US$1,650 per ounce of gold,
Endeavour anticipates its mine operating (gross) profit margin will be
around US$20-21 per oz in 2013. For every $100 increase in the price of
gold, Endeavour's cash cost of production should drop by approximately
$0.90-1.00 per oz of silver produced and the mine operating profit margin
should climb by a similar amount.

    In 2013, Endeavour will continue to focus on unfolding the full
exploration potential of its project portfolio, especially at El Cubo
where there are several attractive drill targets. Endeavour plans to
spend $17.3 million on exploration at the three operating mines and five
district scale exploration properties. A total of 78,500 metres of
drilling in approximately 180-200 holes are budgeted to test
approximately 24 exploration targets, in addition to all of the
underground mine exploration drilling.

    Every year, management aims to acquire new properties, explore them, make
new discoveries and fast-track them to production. This year, the Company
will continue to aggressively explore its property portfolio, focusing on
the emerging new high-grade silver-gold discovery in the Terronera vein
on the San Sebastian property in Jalisco State.

    In addition, the Company will be drilling a bulk tonnage silver-gold
target in Chile on the El Inca property optioned in 2012, high-grade vein
and bulk tonnage targets on the Panuco property in Mexico, and multiple
targets around the three operating mines in the Guanajuato and Guanacevi
districts. Endeavour also plans to be opportunistic with regard to
possible new exploration property acquisitions during this time of market
distress for junior exploration companies.

    Conference Call

    A telephone conference call to discuss the results will be held at 10:00
am PDT (1:00 pm EDT) on Wednesday, March 13, 2013. To participate in the
conference call, please dial the following:


- 1-800-319-4610       Canada and USA (Toll-free)                           
- 604-638-5340         Vancouver Dial In                                    
- 1-604-638-5340       Outside of Canada & USA                              
- No pass-code is necessary to participate in the conference call           


    A replay of the conference call will be available by dialing
1-800-319-6413 in Canada & USA (Toll-free) or 1-604-638-9010 outside of
Canada & USA. The required pass-code is 4890 followed by the # sign.

    All shareholders can receive a hard copy of the Company's complete
audited financial statements free of charge upon request. To receive this
material in hard copy, please contact Meghan Brown, Director Investor
Relations at 604-685-9775 or toll free 877-685-9775.

    ENDEAVOUR SILVER CORP.

    Bradford Cooke, CEO and Director

    About Endeavour - Endeavour is a mid-cap silver mining company focused on
the growth of its silver production, reserves and resources in Mexico.
Since start-up in 2004, Endeavour has posted eight consecutive years of
growing silver production, reserves and resources. The organic expansion
programs now underway at Endeavour's three operating silver mines in
Mexico combined with its strategic acquisition and exploration programs
should facilitate Endeavour's goal to become the next premier senior
silver mining company.

    Cautionary Note Regarding Forward-Looking Statements

    This news release contains "forward-looking statements" within the
meaning of the United States private securities litigation reform act of
1995 and "forward-looking information" within the meaning of applicable
Canadian securities legislation. Such forward-looking statements and
information herein include but are not limited to statements regarding
Endeavour's anticipated performance in 2012 and the timing and results of
exploration drill programs. The Company does not intend to, and does not
assume any obligation to update such forward-looking statements or
information, other than as required by applicable law.

    Forward-looking statements or information involve known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Endeavour and its
operations to be materially different from those expressed or implied by
such statements. Such factors include, among others, changes in national
and local governments, legislation, taxation, controls, regulations and
political or economic developments in Canada and Mexico; operating or
technical difficulties in mineral exploration, development and mining
activities; risks and hazards of mineral exploration, development and
mining; the speculative nature of mineral exploration and development,
risks in obtaining necessary licenses and permits, and challenges to the
Company's title to properties; as well as those factors described in the
section "risk factors" contained in the Company's most recent form
40F/Annual Information Form filed with the S.E.C. and Canadian securities
regulatory authorities.

    Forward-looking statements are based on assumptions management believes
to be reasonable, including but not limited to: the continued operation
of the Company's mining operations, no material adverse change in the
market price of commodities, mining operations will operate and the
mining products will be completed in accordance with management's
expectations and achieve their stated production outcomes, and such other
assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking statements
or information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any forward-looking
statements or information will prove to be accurate as actual results and
future events could differ materially from those anticipated in such
statements or information. Accordingly, readers should not place undue
reliance on forward-looking statements or information.


ENDEAVOUR SILVER CORP.
COMPARATIVE TABLE OF CONSOLIDATED MINE OPERATIONS

---------------------------------------------------------------------------
                                                                         Di-
                                 Ore                       Reco- Cash  rect
                     Plant    Grades Recovered Ounces    veries  Cost  Cost
                     T'put   Ag   Au        Ag     Au   Ag   Au $ per $ per
Period              Tonnes (gpt)(gpt)      (oz)   (oz)  (%)  (%)   oz tonne
---------------------------------------------------------------------------
Production 2012                                                            
Q1, 2012           193,759  229 1.33 1,072,491  6,321 75.2 76.2  6.26 92.44
Q2, 2012           202,987  208 1.47 1,040,026  7,695 76.5 80.3  5.46 86.32
Q3, 2012           306,164  161 1.49 1,137,933 11,754 71.8 80.1  4.70 97.04
Q4, 2012           362,779  151 1.55 1,235,026 12,917 70.1 71.7 12.25 92.86
---------------------------------------------------------------------------
Total            1,065,689  179 1.48 4,485,476 38,687 73.2 76.5  7.33 92.74
---------------------------------------------------------------------------
Production 2011                                                            
Q1, 2011           141,942  263 1.36   900,133  5,008 75.0 81.0  4.62 79.30
Q2, 2011           136,958  266 1.36   850,476  4,831 72.7 80.6  6.98 96.69
Q3, 2011           138,592  263 1.47   858,738  4,926 73.4 75.2  5.03 91.47
Q4, 2011           184,381  252 1.45 1,120,781  7,045 75.0 82.0  4.05 84.14
---------------------------------------------------------------------------
Total              601,873  260 1.41 3,730,128 21,810 74.1 79.8  5.08 87.55
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Q4, 2012 : Q4,                                                             
 2011                  97% -40%   7%       10%    83%  -7% -13%  202%   10%
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Q4, 2012 : Q3,                                                             
 2012                  18%  -6%   4%        9%    10%  -2% -11%  161%   -4%
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
YTD 2012 : YTD                                                             
 2011                  77% -31%   4%       20%    77%  -1%  -4%   44%    6%
---------------------------------------------------------------------------


ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(expressed in thousands of US dollars, except for shares and per share
 amounts)

---------------------------------------------------------------------------
                                                            Years Ended
                                                       December    December 
                                                       31, 2012    31, 2011
---------------------------------------------------------------------------
                                                                           
Revenue                                              $  208,079  $  127,997
                                                                           
Cost of sales:                                                             
  Direct production costs                                91,800      39,409
  Royalties                                               1,866       2,228
  Share-based compensation                                  545         466
  Depreciation and depletion                             29,694      17,094
  Write down of inventory to net realizable value         6,221           -
  -------------------------------------------------------------------------
                                                        130,126      59,197
                                                                           
Mine operating earnings                                  77,953      68,800
                                                                           
Expenses:                                                                  
  Exploration                                            11,185      10,207
  General and administrative                             13,136      11,050
  -------------------------------------------------------------------------
                                                         24,321      21,257
                                                                           
Operating earnings                                       53,632      47,543
                                                                           
Mark-to-market loss/(gain) on derivative                                   
 liabilities                                             (1,928)     13,658
Mark-to-market loss/(gain) on contingent liability          589           -
Finance costs                                               484          34
                                                                           
Other income (expense):                                                    
  Foreign exchange                                        3,447      (4,750)
  Investment and other income                             2,152       6,477
  -------------------------------------------------------------------------
                                                          5,599       1,727
                                                                           
Earnings before income taxes                             60,086      35,578
                                                                           
Income tax expense:                                                        
  Current income tax expense                             15,834       8,778
  Deferred income tax expense                             2,135       8,045
  -------------------------------------------------------------------------
                                                         17,969      16,823
                                                                           
---------------------------------------------------------------------------
Net earnings for the period                              42,117      18,755
---------------------------------------------------------------------------
                                                                           
Other comprehensive income (loss), net of tax                              
  Net change in fair value of available for sale                           
   investments                                           (3,631)     (3,144)
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Comprehensive income (loss) for the period           $   38,486  $   15,611
---------------------------------------------------------------------------
                                                                           
Basic earnings (loss) per share based on net                               
 earnings                                            $     0.45  $     0.22
---------------------------------------------------------------------------
Diluted earnings (loss) per share based on net                             
 earnings                                            $     0.42  $     0.22
---------------------------------------------------------------------------
                                                                           
Basic weighted average number of shares outstanding  93,266,038  84,326,682
---------------------------------------------------------------------------
Diluted weighted average number of shares                                  
 outstanding                                         95,728,031  86,364,543
---------------------------------------------------------------------------

This statement should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2012 and the related
notes contained therein.


ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in thousands of U.S. dollars)

---------------------------------------------------------------------------
                                                            Years Ended
                                                       December    December 
                                                       31, 2012    31, 2011
---------------------------------------------------------------------------
                                                                           
Operating activities                                                       
Net earnings for the period                          $   42,117  $   18,755
Items not affecting cash:                                                  
  Share based compensation                                4,724       4,857
  Depreciation and depletion                             29,952      17,272
  Deferred income tax provision                           2,135       8,045
  Unrealized foreign exchange loss (gain)                (1,208)      1,600
  Mark to market loss (gain) on derivative                                 
   liability                                             (1,928)     13,658
  Mark to market loss on contingent liability               589           -
  Finance costs                                             484          34
  Allowance for related party receivable                      -         181
  Write down of inventory to net realizable value         6,221           -
  Loss (Gain) on marketable securities                     (158)       (542)
Net changes in non-cash working capital                  (6,907)    (15,028)
---------------------------------------------------------------------------
Cash from operating activities                           76,021      48,832
---------------------------------------------------------------------------
                                                                           
Investing activities                                                       
  Property, plant and equipment expenditures            (66,236)    (46,942)
  Acquisition of Mexgold Resources Inc.                (100,000)          -
  Investment in short term investments                  (28,267)    (35,569)
  Proceeds from sale of short term investments           50,373      22,509
  Investment in long term deposits                         (190)        178
---------------------------------------------------------------------------
Cash used in investing activities                      (144,320)    (59,824)
---------------------------------------------------------------------------
                                                                           
Financing activities                                                       
  Proceeds from revolving credit facility                 9,000           -
  Debt issuance costs                                      (732)          -
  Interest paid                                            (381)          -
  Common shares issued on exercise of options and                          
   warrants                                               2,591      19,974
  Share issuance costs                                     (204)       (119)
---------------------------------------------------------------------------
Cash from financing activities                           10,274      19,855
---------------------------------------------------------------------------
                                                                           
Effect of exchange rate change on cash and cash                            
 equivalents                                              1,208      (1,466)
Increase (decrease) in cash and cash equivalents        (58,025)      8,863
Cash and cash equivalents, beginning of year             75,434      68,037
---------------------------------------------------------------------------
Cash and cash equivalents, end of year               $   18,617  $   75,434
---------------------------------------------------------------------------

This statement should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2012 and the related
notes contained therein.


ENDEAVOUR SILVER CORP.
CONSOLIDATED BALANCE SHEETS
(expressed in thousands of US dollars)

---------------------------------------------------------------------------
                                                       December    December 
                                                       31, 2012    31, 2011
---------------------------------------------------------------------------
                                                                           
ASSETS                                                                     
                                                                           
Current assets                                                             
  Cash and cash equivalents                          $   18,617  $   75,434
  Investments                                             8,520      34,099
  Accounts receivable                                    20,526       7,392
  Inventories                                            40,797      34,195
  Prepaid expenses                                        9,940       3,773
---------------------------------------------------------------------------
Total current assets                                     98,400     154,893
                                                                           
Non-current deposits                                      1,451         600
Mineral property, plant and equipment                   338,431      93,528
Goodwill                                                 39,245           -
---------------------------------------------------------------------------
Total assets                                         $  477,527  $  249,021
---------------------------------------------------------------------------
                                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                                       
                                                                           
Current liabilities                                                        
  Accounts payable and accrued liabilities           $   34,631  $    9,084
  Income taxes payable                                    3,854       3,482
  Revolving credit facility                               9,000           -
---------------------------------------------------------------------------
Total current liabilities                                47,485      12,566
                                                                           
Provision for reclamation and rehabilitation              6,496       2,729
Contingent liability                                      8,497           -
Derivative liabilities                                    5,336      13,130
Deferred income tax liability                            69,517      20,806
---------------------------------------------------------------------------
Total liabilities                                       137,331      49,231
---------------------------------------------------------------------------
                                                                           
Shareholders' equity                                                       
Common shares, unlimited shares authorized, no par                         
 value, issued and outstanding 99,541,522 shares                           
 (Dec 31, 2011 - 87,378,748 shares)                     357,296     259,396
Contributed surplus                                      12,828       8,819
Accumulated comprehensive income (loss)                  (5,331)     (1,700)
Deficit                                                 (24,597)    (66,725)
---------------------------------------------------------------------------
Total shareholders' equity                              340,196     199,790
---------------------------------------------------------------------------
Total liabilities and shareholders' equity           $  477,527  $  249,021
---------------------------------------------------------------------------

This statement should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2012 and the related
notes contained therein.


Contacts:
Endeavour Silver Corp.
Meghan Brown
Director Investor Relations
604-685-9775 or Toll Free: 1-877-685-9775
mbrown@edrsilver.com

Endeavour Silver Corp.
Lana McCray
Corporate Communications Co-Ordinator
604-685-9775 or Toll Free: 1-877-685-9775
604-685-9744 (FAX)
lmccray@edrsilver.com
www.edrsilver.com

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