Endeavour Silver Sets New Production Record

VANCOUVER, BC - Endeavour Silver Corp. reported its ninth consecutive year of production growth in 2013, reporting record production of 6,813,068 ounces (oz) silver and 75,578 oz gold. The Company also set a new record for quarterly silver and gold production in the Fourth Quarter, 2013 from the Company's three operating silver mines in Mexico: the Guanacevi Mine in Durango State and the Bolanitos and El Cubo Mines in Guanajuato State.

Silver production in the Fourth Quarter, 2013 was up 56% to 1,931,717 oz and gold production was up 37% to 17,686 oz compared to the Fourth Quarter, 2012. Revenue was up 2% to approximately US$67.9 million as a result of the increased precious metals production, offset by lower metal prices.

Silver production in 2013 was up 52% to 6,813,069 oz and gold production was up 95% to 75,578 oz compared to 2012. Revenue was up 33% to approximately US$276.8 million in 2013 as a result of the increased precious metals production, again offset by lower metal prices.

Bradford Cooke, CEO and Director, commented, "Endeavour's mining operations delivered another exceptional year in 2013, significantly outperforming our production guidance which we revised upwards in September. Each of the three mines contributed above their mine plans for the year, with higher plant throughputs, ore grades and metal recoveries across the board. The Bolanitos mine in particular deserves special mention for delivering more than one million oz silver above plan in 2013."

"Last year was a challenging one for the mining industry given the sharp sell-off in precious metals prices, and especially so for Endeavour as we launched a major mine and plant reconstruction program at El Cubo, which we completed on time and under budget. We needed to enhance our cash flow to cover our planned expenditures and we were successful notwithstanding the lower metals prices."

"Management continues to focus on improving cash-flows by reducing costs and increasing productivity where possible to offset the still declining precious metals prices, especially at El Cubo.

At Guanacevi, the plant operated well above plan in the Fourth Quarter, 2013, processing over 1,300 tones per day (tpd) at higher than planned grades and recoveries. As a result, Guanacevi achieved record silver production in the Fourth Quarter, 2013 and reported its highest ever annual production. Throughput, grades and recoveries are expected to pull back closer to plan over the long term.

At Bolanitos, mine output was reduced in November 2013 to the 1,600 tpd capacity of the plant and grades and recoveries continued to exceed plan. As a result, Bolanitos also set both quarterly and annual production records in the Fourth Quarter, 2013. No excess mine output is planned from Bolanitos near term to fill the El Cubo plant to capacity, as the focus is now on expanding the El Cubo mine output.

At El Cubo, the operational changes implemented over the past year have gained traction and now appear to be sustainable. Production grades continue to trend higher as the operation reduces dilution and eliminates production from uneconomic stops. Although no new material was fed into the El Cubo leach circuit during the Fourth Quarter, the plant continued to recover ounces from residual material in the circuit, resulting in approx. 10% higher recoveries than expected.