Mexico Mines Reserve and Resource Estimates Update

VANCOUVER - Endeavour Silver Corp. reported an updated NI 43-101 silver and gold reserve and resource estimates for its three producing silver mines in Mexico (the Guanacev Mine in Durango State and the Bolaûitos and El Cubo Mines in Guanajuato State) as well as one exploration project (San Sebastiçn Project in Jalisco State).

Proven and probable reserves were down year-on-year due mainly to the lower metal prices used for the estimates. In response to the lower metal prices last year, the mine plan was revised to enhance cash-flow by accelerating production and deferring some lower priority underground mine development primarily at Bolaûitos and Guanacev, which also reduced the conversion of resources into reserves.

Measured and indicated resources were up in 2013 thanks to the Company's brownfields exploration programs which discovered new resources primarily at El Cubo and upgraded some inferred resources but, again in response to the lower metal prices, the exploration budget was reduced last year which likely reduced the expansion of resources.

Inferred resources were down last year as a result of the lower metal prices and reduced exploration budget.

Endeavour normally uses the industry best practice of three year trailing averages of silver and gold prices for estimating reserves and resources. To the end of 2013, these trailing price averages were approximately $1550 per ounce (oz) gold and $30 per oz silver. Management took the view that these trailing price averages were too aggressive in the short term for the estimation of reserves so elected to use US$1320 per oz gold and US$22 per oz silver prices to more accurately reflect its near term outlook.

The prices used for the resource estimates were 10% higher at US$1452 per oz gold and $24.20 per oz silver to reflect management's belief that the metal prices will likely be higher in the medium and longer terms. However, they are still significantly lower than the US$31 per oz silver and US$1550 per oz gold prices used in the previous reserve and resource estimates as of December 31, 2012.

Bradford Cooke, CEO, commented, "Reserve and resource growth took a back seat to our operational and financial performance last year due to the sharply lower precious metal prices. We responded promptly to the lower metal prices by reducing all costs including our exploration and development budgets which clearly impacted our ability to replace reserves and expand resources."

"However, with the El Cubo capital reconstruction program completed on time and under budget last year and all three mining operations now running smoothly, reserve and resource growth is back on the front burner for 2014. This year, we will continue to hone our mining operations, boost profit margins and return our focus to discovering and delineating ore at all of the three mining operations as well as at the emerging new high grade discovery at San Sebastiçn."

"Despite the sharp decline in precious metal prices year-on-year and the resulting reduction in reserves and resources at lower metal prices, we are confident that our talented exploration team led by Luis Castro, VP of Exploration, will continue to expand resources and our operations team led by Dave Howe, VP of Operations, will continue to convert those resources into reserves and enhance the mine lives of each of our mining operations."