Endeavour Mining reports Q4 and full year 2011 gold production and 2012 guidance for production, development and exploration

For 2012, Endeavour expects production to be in the range of 170,000 to 190,000 ounces at a cash cost per ounce (excluding royalties) of $645 to $685, with additional near-term production growth of approximately 100,000 ounces per year anticipated from its Agbaou Gold Project.  Endeavour’s 2012 exploration budget of $30 million includes over 200,000 metres of drilling with objectives including resource delineation at its two mines, testing of multiple additional targets within the mine permit areas, resource expansion on two development projects, and early stage exploration of key properties in Burkina Faso, Côte d’Ivoire, Ghana, Liberia, and Mali.

At December 31, 2011, the Corporation had a cash balance of $115 million and had drawn $100 million of its $200 million revolving corporate credit facility.  With $215 million of cash and credit facilities and a forecast cash operating margin from mining operations of approximately $150 million during 2012 (based on production guidance ranges,$1,600 gold price, and including royalties) from two operations, Endeavour has significant financial strength for capital expenditures, exploration programs and acquisitions.

Neil Woodyer, CEO, stated “2011 was an exceptional year of growth for your company as we achieved our primary goals, most notably our operations delivered target gold production within cost guidance, Youga mine life has been extended to 7.3 years, and we were able to meaningfully increase the scale of our gold business with the successful completion of the Endeavour and Adamus merger.  We successfully completed 148,000m of exploration and resource/reserve development drilling during 2011 and are now expanding the programs with +200,000m of planned drilling in 2012.  Endeavour is now producing gold at an annual rate of 180,000 ounces from two steady-state operations that are focused on optimizations and cost controls. Endeavour expects to produce gold at a rate of 250,000+ ounces per year by the end of 2013 through the development of Agbaou.  The final Agbaou engineering studies are progressing well and the project remains on schedule for a construction decision in late Q1 2012. Anticipating a positive result and with the financial strength to fully fund the entire capital cost, your company anticipates a fast start to construction activities using the successful Nzema mine building team.”

The tables below present the 2011 production results by mining operation, on a 100% basis:

¹ Cash Cost per Ounce produced excluding royalties
² Production guidance provided by Adamus Resources Limited was on a June year-end basis and is not comparable to a December year-end basis
³ Nzema declared commercial production on April 1, 2011
⁴ For the nine month period from April 1, 2011 to December 31, 2011

The preliminary production, cash cost per ounce, and other financial information provided in this news release are approximate figures and may differ slightly from the final results included in the 2011 annual audited statements and MD&A.  In addition, as Endeavour completed its merger with Adamus Resources Limited effective December 5, 2011the consolidated financial statements will only include results from the Nzema Gold operations for the 26 day periodDecember 6 to December 31, 2011.

2012 production forecast of 170,000 to 190,000 ounces with additional 100,000 ounces per year of near-term production growth

For 2012, gold production is forecast at 170,000 to 190,000 ounces at a cash cost per ounce (excluding royalties) of$645 to $685.  The budgeted operating cost increase at Nzema is primarily due to labour, fuel, commodities (reagents), power and introduction of blasting as the mining extends deeper into bedrock.  For 2012, the budgeted capital spending at Nzema is $20 million, which includes $5 million previously planned for future years to optimize the mine plan and $10 million for items related to completion of village resettlements (Anwia to be implemented starting in Q2 2012 and residual amounts for the new Salman village to be completed in Q1 2012) and social responsibility programs.   The budgeted operating cost increase at Youga is primarily due to increased fuel and cyanide costs.  For 2012, the Youga budgeted sustaining capital spending is just under $3 million.

Endeavour expects further gold production growth with the near-term construction decision for its 85% owned Agbaou Gold Project in Côte d’Ivoire.  The final engineering studies are nearing completion and the expected gold production rate has increased from 72,400 ounces per year to approximately 100,000 ounces per year.  Currently, capital cost estimates do not indicate significant increases over the 2009 Feasibility Study.

2012 Exploration Program

Endeavour has approved an exploration budget of $30 million for 2012.  Approximately half of this amount is directed towards increasing resources and reserves to extend mine lives at the Nzema and Youga operations.  The balance is directed towards increasing resources at Agbaou in Côte d’Ivoire, exploring and delineating resources at Bitou-Ouaré in Burkina Faso, delineating resources and conducting further metallurgical testing of the Nzema Sulphides in Ghana, and advancing the exploration programs on key properties in Burkina Faso, Côte d’Ivoire, Ghana, Liberia, and Mali.

This budget includes over 200,000m of drilling along with associated airborne and ground geophysics, geochemical surveys, trenching, pitting, auger and RAB drilling, resource estimation, metallurgical testwork and engineering studies.

Details of the 2011 exploration results will be released during February 2012.

2011 Youga Reserves and Resources

At December 31, 2011, the Proven and Probable gold reserves at Youga were 7.308 million tonnes at 1.9 g/t Au containing 448,000 ounces and Measured and Indicated Resources, inclusive of reserves, were 18.373 million tonnes at 1.6 g/t Au containing 928,000 ounces, as shown in the table below.  At a planned mill throughput of 1 million tonnes per annum, the Youga mine life is currently 7.3 years.

¹ Technical Report and Update of Mineral Resources and Mineral Reserves for the Youga Gold Mine, Burkina Faso, West Africa, effective December 31, 2010 and dated March 15, 2011, prepared by A. de Freitas and K. Woodman, Qualified Persons not independent of Endeavour Mining Corporation, Depleted for 2011 mine production as ofDecember 31, 2011.
² The resource estimates for the Youga Satellite deposits were prepared by AMEC under the supervision of K. Woodman. The reserve estimates for Youga Satellite deposits were prepared under the supervision of A. de Freitas.

2011 Nzema Reserves and Resources

An update of the Nzema mineral resource and reserve estimates is expected to be provided in February 2012.

Qualified Persons

Adriaan “Attie” Roux, Pr. Sci.Nat, Endeavour’s Senior Vice President – Operations, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.

K. Kirk Woodman, P.Geo., Endeavour’s General Manager of Exploration, is the Qualified Person overseeing exploration projects in French West Africa and has reviewed and approved the technical information related to Mineral Resource Estimates at the Youga Mine contained in this news release.

Adrian de Freitas, MIMMM, C. Eng., Endeavour’s General Manager, Youga Mine is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations and Mineral Reserve Estimates at the Youga Mine contained in this news release.

About Endeavour Mining Corporation

Endeavour is a growth focused West African gold production and exploration company led by an accomplished management team.  Endeavour is currently producing gold at a rate of 180,000 ounces per year from two operating mines (Nzema in Ghana and Youga in Burkina Faso).  With a near-term mine construction decision (Agbaou, Côte d’Ivoire) and an extensive 2012 exploration program., Endeavour’s goal is to produce approximately 250,000 ounces of gold per year from the end of 2013 from existing properties.  Endeavour also has an acquisition growth strategy focused on West Africa and is targeting the acquisition of additional gold production before the end of 2013.

Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR).

On behalf of Endeavour Mining Corporation

“Neil Woodyer”

Neil Woodyer
Chief Executive Officer