STRATEGIC RATIONALE FOR THE MERGER

Diversified high quality portfolio with potential for improved operating efficiencies

  • Geographic diversification with three flagship assets (Sukari, Houndé, Ity) across three different countries in Africa.
  • Operational diversification with increased optionality across the asset portfolio with high quality production, a pipeline of advanced stage projects and one of the largest exploration portfolios in Africa to deliver long-term sustainable production.
  • Ability to more efficiently manage the Sukari mine as Endeavour believes that the mine has recently suffered from being managed within a single-asset company focused too heavily on the short-term to the detriment of long-term value
  • Improved operating efficiencies with the ability to realize meaningful synergies, which are expected to include reduced corporate G&A, procurement, logistics and supply chain management.

Combined management team with proven track record and cornerstone investor

  • The Combined Entity is expected to benefit from Endeavour’s proven expertise in delivering operational excellence, developing new projects and achieving exploration success. Since the current Endeavour management team took over the business in late 2015, the Endeavour share price has increased by over 320%.
  • Highly supportive cornerstone investor in La Mancha (the wholly-owned mining investment vehicle of the Egyptian Sawiris family) who has strongly supported Endeavour’s growth by injecting over $230m into the business since September 2015, and which has a long track record of investing successfully in the region, notably in Egypt.

Enhanced capital market profile with growth and ability to fund dividends

  • Stable, diversified and sustained cash flow profile and strong access to liquidity sources, underpinning balance sheet strength
  • The Combined Entity offers attractive optionality to pursue future organic growth while focusing on returning capital to shareholders
  • The Combined Entity would benefit from an enhanced capital market profile with the ability to meet investment hurdles of larger funds.