# EDGAR Filing Document

**Accession Number:** 0001277866
**File Stem:** 0001062993-23-005459
**Filing Date:** 2023-3
**Character Count:** 397434
**Document Hash:** 345d7de4c530ebfc6110b98b7d1e10d3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-23-005459.hdr.sgml**: 20241204

**ACCESSION NUMBER**: 0001062993-23-005459

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 129

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ENDEAVOUR SILVER CORP
- **CENTRAL INDEX KEY:** 0001277866
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33153
- **FILM NUMBER:** 23696535

**BUSINESS ADDRESS:**
- **STREET 1:** #1130-609 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V7Y 1G5
- **BUSINESS PHONE:** 604-685-9775

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 10328
- **STREET 2:** #1130-609 GRANVILLE STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V7Y 1G5

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ENDEAVOUR GOLD CORP
- **DATE OF NAME CHANGE:** 20040128

?xml version="1.0" encoding="UTF-8"? Endeavour Silver Corp.: Form 6-K - Filed by newsfilecorp.com

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934**

For the month of **March 2023**

Commission File Number: **001-33153**

**<u>ENDEAVOUR SILVER CORP.</u>**

(Translation of registrant's name into English)

**#1130-609 Granville Street <u>Vancouver, British Columbia, Canada V7Y 1G5</u>**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[ ] Form 20-F [ x ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

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**<u>SUBMITTED HEREWITH</u>**

Exhibits

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| [99.1](exhibit99-1.htm) | [Consolidated Financial Statements for the year ended December 31, 2022](exhibit99-1.htm) |
| [99.2](exhibit99-2.htm) | [Management Discussion and Analysis for the year ended December 31, 2022](exhibit99-2.htm) |
| [99.3](exhibit99-3.htm) | [Form 52-109F1 - Certification of Annual Filings - Full Certificate - CEO](exhibit99-3.htm) |
| [99.4](exhibit99-4.htm) | [Form 52-109F1 - Certification of Annual Filings - Full Certificate - CFO](exhibit99-4.htm) |
| 101.INS | Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
| [101.SCH](exk-20221231.xsd) | [Inline XBRL Taxonomy Extension Schema Document](exk-20221231.xsd) |
| [101.CAL](exk-20221231_cal.xml) | [Inline XBRL Taxonomy Extension Calculation Linkbase Document](exk-20221231_cal.xml) |
| [101.DEF](exk-20221231_def.xml) | [Inline XBRL Taxonomy Extension Definition Linkbase Document](exk-20221231_def.xml) |
| [101.LAB](exk-20221231_lab.xml) | [Inline XBRL Taxonomy Extension Label Linkbase Document](exk-20221231_lab.xml) |
| [101.PRE](exk-20221231_pre.xml) | [Inline XBRL Taxonomy Extension Presentation Linkbase Document](exk-20221231_pre.xml) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

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**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Endeavour Silver Corp.** | **Endeavour Silver Corp.** |
|  | (Registrant) | (Registrant) |
| Date: March 2, 2023 | By: | */s/ Daniel Dickson* |
|  |  | Daniel Dickson |
|  | Title: | CEO |

---

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## Exhibit 99.1

?xml version="1.0" encoding="UTF-8"? Endeavour Silver Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

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![exhibit99-2xm001.jpg](exhibit99-1xz002.jpg)

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**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying consolidated financial statements of Endeavour Silver Corp. ("the Company") have been prepared by management in accordance with International Financial Reporting Standards (IFRS), and within the framework of the significant accounting policies disclosed in the notes to these consolidated financial statements.

Management, under the supervision and participation of the Chief Executive Officer and the Chief Financial Officer, have a process in place to evaluate disclosure controls and procedures and internal control over financial reporting as required by Canadian and United States securities regulations. We, as CEO and CFO, will certify our annual filings with Canadian Securities Administrators and the US Securities and Exchange Commission, as required in Canada by Multilateral Instrument 52-109 and in the United States as required by the Securities Exchange Act of 1934, respectively.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements. The Board carries out its responsibility principally through its Audit Committee, which is independent from management.

The Audit Committee of the Board of Directors meets with management to review the consolidated financial statements and related financial reporting matters prior to submitting the consolidated financial statements to the Board of Directors for approval. The Audit Committee reviews the consolidated financial statements and management discussion and analysis; considers the report of the external auditor; assesses the adequacy of internal controls, including management's assessment; examines the fees and expenses for audit services; and recommends to the Board the independent auditors for appointment by the shareholders. The independent auditors have full and free access to the Audit Committee and meet with it to discuss the audit work, financial reporting matters and our internal control over financial reporting. The Audit Committee is appointed by the Board of Directors and all of its members are independent directors.

February 28, 2023

---

| | |
|:---|:---|
| */s/ Daniel Dickson* | */s/ Christine West* |
| Chief Executive Officer | Chief Financial Officer |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 2

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---

| | | |
|:---|:---|:---|
| ![](exhibit99-1xz003.jpg) | **KPMG LLP**<br>**Chartered Professional Accountants**<br>PO Box 10426 777 Dunsmuir Street<br>Vancouver BC V7Y 1K3<br>Canada | Telephone (604) 691-3000<br>Fax (604) 691-3031<br>Internet www.kpmg.ca |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of Endeavour Silver Corp.

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated statements of financial position of Endeavour Silver Corp. (the Company) as of December 31, 2022 and December 31, 2021, the related consolidated statements of comprehensive earnings (loss), cash flows, and changes in shareholders' equity for each of the years in the two-year period ended December 31, 2022, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2022, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 28, 2023 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 3

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---

| | |
|:---|:---|
| ![exhibit99-2xm002.jpg](exhibit99-1xz003.jpg) |  |
|  | **Endeavour Silver Corp.** |

---

*Critical Audit Matters*

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

**Recoverable amount of the Bolanitos cash-generating unit**

As discussed in Note 3(h) to the consolidated financial statements, when an indicator of impairment exists, the Company is required to determine the recoverable amount of the Cash Generating Unit ("CGU") to determine whether an impairment should be recognized. If an indicator of impairment or reversal exists, the asset's recoverable amount is estimated. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. As discussed in Note 9 to the consolidated financial statements, the Company determined there were indicators of impairment associated with the Bolanitos CGU as of December 31, 2022. To determine the recoverable amount of the CGU, the Company used a discounted cash flow model. Based on its assessment, the Company determined that no impairment loss or reversal of impairment for the Bolanitos CGU was required.

We identified the assessment of the recoverable amount of the Bolanitos CGU to be a critical audit matter. A high degree of auditor judgment was required to evaluate the inputs used to estimate the recoverable amount. Significant assumptions used in the determination of the recoverable amount included future metal prices, future production volumes including the amount of recoverable reserves and resources, future operating costs and capital expenditures, and the salvage value of the plant and equipment. Changes in any of these assumptions could have had a significant effect on the determination of the estimated recoverable amount.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 4

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---

| | |
|:---|:---|
| ![exhibit99-2xm002.jpg](exhibit99-1xz003.jpg) |  |
|  | **Endeavour Silver Corp.** |

---

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of an internal control over the Company's process to determine the recoverable amount of the CGU. This control addresses the review of the Company's development of the significant assumptions used to estimate the recoverable amount of the Bolanitos CGU. We evaluated the competence, experience, and objectivity of the qualified persons responsible for the recoverable reserves and resource estimate. We compared the amount of reserves and resources in the valuation model to the mine plan and to the latest mineral reserve and resource estimate. We compared estimated operating and capital costs in the valuation model to the mine plan and to historical expenditures. We involved valuation professionals with specialized skills and knowledge, who assisted in assessing the future metal prices by comparing to third party data. We compared the estimated salvage value of plant and equipment to comparable sales transactions in a similar geographical region to which the Bolanitos mine operates.

**//s// KPMG LLP**

Chartered Professional Accountants

We have served as the Company's auditor since 1994.

Vancouver, Canada

February 28, 2023

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 5

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---

| | |
|:---|:---|
| ![exhibit99-1x007.jpg](exhibit99-1xz003.jpg) | ![exhibit99-1x007.jpg](exhibit99-1xz003.jpg) |
| **KPMG LLP**<br>**Chartered Professional Accountants**<br>PO Box 10426 777 Dunsmuir Street<br>Vancouver BC V7Y 1K3<br>Canada | Telephone (604) 691-3000<br>Fax (604) 691-3031<br>Internet www.kpmg.ca |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of Endeavour Silver Corp.

*Opinion on Internal Control over Financial Reporting* 

We have audited Endeavour Silver Corp.'s (the Company) internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control* – *Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2022 and December 31, 2021, the related consolidated statements of comprehensive earnings (loss), cash flows, and changes in shareholders' equity for each of the years in the two-year period ended December 31, 2022, and the related notes (collectively, the consolidated financial statements), and our report dated February 28, 2023 expressed an unqualified opinion on those consolidated financial statements.

*Basis for Opinion* 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in "Management's Discussion and Analysis - Internal Controls over Financial Reporting". Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 6

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---

| | |
|:---|:---|
| ![](exhibit99-1xz003.jpg) |  |
|  | **Endeavour Silver Corp.** |

---

*Definition and Limitations of Internal Control over Financial Reporting* 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**//s// KPMG LLP**

Chartered Professional Accountants

Vancouver, Canada

February 28, 2023

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 7

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**ENDEAVOUR SILVER CORP.**<br> CONSOLIDATED STATEMENTS OF FINANCIAL POSITION<br>(expressed in thousands of US dollars)<br>

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| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** | December 31, |
|  | Notes | **2022** | 2021 |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $**83391** | $103303 |
| &nbsp;&nbsp;&nbsp;Other investments | 4 | **8647** | 11200 |
| &nbsp;&nbsp;&nbsp;Accounts and other receivables | 5 | **13136** | 14462 |
| &nbsp;&nbsp;&nbsp;Income tax receivable |  | **4024** | 177 |
| &nbsp;&nbsp;&nbsp;Inventories | 6 | **19184** | 27485 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses |  | **16951** | 5135 |
| &nbsp;&nbsp;&nbsp;Loans receivable | 8 | **1000** |  |
| Total current assets |  | **146333** | 161762 |
| Non-current deposits |  | **565** | 599 |
| Non-current income tax receivable | 21 | **3570** | 3570 |
| Non-current other investments | 4 | **1388** |  |
| Non-current IVA receivable | 5 | **10154** | 4256 |
| Non-current loans receivable | 8 | **2729** |  |
| Deferred income tax asset | 21 | **-** | 936 |
| Intangible assets |  | **-** | 40 |
| Right-of-use leased assets |  | **806** | 664 |
| Mineral properties, plant and equipment | 8, 9 | **233892** | 122197 |
| **Total assets** |  | $**399437** | $294024 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | $**39831** | $31991 |
| &nbsp;&nbsp;&nbsp;Income taxes payable |  | **6616** | 4228 |
| &nbsp;&nbsp;&nbsp;Loans payable | 10 | **6041** | 4128 |
| &nbsp;&nbsp;&nbsp;Lease liabilities | 11 | **261** | 207 |
| Total current liabilities |  | **52749** | 40554 |
| Loans payable | 10 | **8469** | 6366 |
| Lease liabilities | 11 | **812** | 794 |
| Provision for reclamation and rehabilitation | 12 | **7601** | 7397 |
| Deferred income tax liability | 21 | **12944** | 1506 |
| Other non-current liabilities |  | **968** |  |
| **Total liabilities** |  | **83543** | 56617 |
| Shareholders' equity |  |  |  |
| Common shares, unlimited shares authorized, no par value, issued, issuable and outstanding 189,995,563 shares (Dec 31, 2021 - 170,537,307 shares) | 13 | **657866** | 585406 |
| Contributed surplus | 13 | **6115** | 6331 |
| Retained earnings (deficit) |  | **(348087)** | (354330) |
| **Total shareholders' equity** |  | **315894** | 237407 |
| **Total liabilities and shareholders' equity** |  | $**399437** | $294024 |

---

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Board:

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| | |
|:---|:---|
| */s/ Margaret Beck* | */s/ Daniel Dickson* |
| Director | Director |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 8

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**ENDEAVOUR SILVER CORP.**<br> CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)<br>(expressed in thousands of US dollars, except for shares and per share amounts)<br>

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| | | | |
|:---|:---|:---|:---|
|  | | **Years ended** | **Years ended** |
|  | | **December 31,** | December 31, |
| | <br>Notes | **2022** | 2021 |
| Revenue | 14 | $**210160** | $165320 |
| Cost of sales: |  |  |  |
| &nbsp;&nbsp;&nbsp;Direct production costs |  | **113880** | 89603 |
| &nbsp;&nbsp;&nbsp;Royalties | 8 (a)(b) | **17811** | 13783 |
| &nbsp;&nbsp;&nbsp;Share-based payments | 13 (c)(d) | **442** | 421 |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization |  | **25179** | 23977 |
| &nbsp;&nbsp;&nbsp;Write down of inventory to net realizable value | 6 | **1323** | 1168 |
|  |  | **158635** | 128952 |
| Mine operating earnings |  | **51525** | 36368 |
| Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Exploration and evaluation | 15 | **16186** | 17925 |
| &nbsp;&nbsp;&nbsp;General and administrative | 16 | **10613** | 10063 |
| &nbsp;&nbsp;&nbsp;Care and maintenance costs | 17 | **580** | 1356 |
| &nbsp;&nbsp;&nbsp;Impairment (reversal of impairment) of non-current assets, net | 8 (e), 9 | **-** | (16791) |
| &nbsp;&nbsp;&nbsp;Severance costs |  | **-** | 870 |
| &nbsp;&nbsp;&nbsp;Write off of mineral properties | 8 (j) | **682** | 715 |
|  |  | **28061** | 14138 |
| Operating earnings |  | **23464** | 22230 |
| Finance costs | 18 | **1300** | 985 |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange gain (loss) |  | **1853** | (1131) |
| &nbsp;&nbsp;&nbsp;Gain on asset disposal |  | **2503** | 5841 |
| &nbsp;&nbsp;&nbsp;Investment and other |  | **(1571)** | 3733 |
|  |  | **2785** | 8443 |
| Earnings before income taxes |  | **24949** | 29688 |
| Income tax expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Current income tax expense | 21 | **6376** | 3481 |
| &nbsp;&nbsp;&nbsp;Deferred income tax expense | 21 | **12372** | 12252 |
|  |  | **18748** | 15733 |
| Net earnings and comprehensive earnings for the year |  | $**6201** | $13955 |
| Basic earnings per share based on net earnings |  | $**0.03** | $0.08 |
| Diluted earnings per share based on net earnings | 13 (g) | $**0.03** | $0.08 |
| Basic weighted average number of shares outstanding |  | **183009339** | 167289732 |
| Diluted weighted average number of shares outstanding | 13 (g) | **185349634** | 170663883 |

---

The accompanying notes are an integral part of these consolidated financial statements.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 9

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**ENDEAVOUR SILVER CORP.**<br> CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY<br>(expressed in thousands of US dollars, except share amounts)<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Notes | Number of<br>shares | Share<br>Capital | Contributed<br>Surplus | Retained<br>Earnings (Deficit) | Total<br>Shareholders'<br>Equity |
| Balance at December 31, 2020 |  | 157924708 | $517711 | $9662 | $(368302) | $159071 |
| Public equity offerings, net of issuance costs | 13 (b) | 10060398 | 58389 |  |  | 58389 |
| Exercise of options | 13 (c) | 2172861 | 8745 | (4026) |  | 4719 |
| Share-based compensation | 13 (c) (d) |  |  | 3636 |  | 3636 |
| Expiry and forfeiture of options | 13 (c) |  |  | (17) | 17 |  |
| Settlement of performance share units | 13 (d) | 379340 | 561 | (2924) |  | (2363) |
| Earnings for the year |  |  |  |  | 13955 | 13955 |
| Balance at December 31, 2021 |  | 170537307 | $585406 | $6331 | $(354330) | $237407 |
| Public equity offerings, net of issuance costs | 13 (b) | 9293150 | 43116 |  |  | 43116 |
| Issued on acquisition of mineral properties | 8 (l) | 8577380 | 25589 |  |  | 25589 |
| Exercise of options | 13 (c) | 569200 | 2377 | (770) |  | 1607 |
| Issued and issuable for performance share units | 13 (d) | 1014999 | 1361 | (3259) |  | (1898) |
| Issued for deferred share units | 13 (c) | 3527 | 17 | (17) |  |  |
| Share-based compensation | 13 (c)(d) |  |  | 3878 |  | 3878 |
| Canceled options | 13 (c) |  |  | (42) | 42 |  |
| Settlement of deferred share units | 13 (e) |  |  | (6) |  | (6) |
| Earnings for the year |  |  |  |  | 6201 | 6201 |
| Balance at December 31, 2022 |  | 189995563 | $657866 | $6115 | $(348087) | $315894 |

---

The accompanying notes are an integral part of these consolidated financial statements.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 10

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**ENDEAVOUR SILVER CORP.**<br> CONSOLIDATED STATEMENTS OF CASH FLOWS<br>(expressed in thousands of US dollars)<br>

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| | | | |
|:---|:---|:---|:---|
|  |  | **Years ended** | **Years ended** |
|  |  | **December 31,** | December 31, |
|  | Notes | **2022** | 2021 |
| **Operating activities** |  |  |  |
| Net earnings (loss) for the year |  | $**6201** | $13955 |
| Items not affecting cash: |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 13 (c)(d) | **3878** | 3636 |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | 8 | **26088** | 24527 |
| &nbsp;&nbsp;&nbsp;Impairment (reversal of impairment) of non-current assets, net | 9 | **-** | (16791) |
| &nbsp;&nbsp;&nbsp;Deferred income tax expense (recovery) | 21 | **12372** | 12252 |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss (gain) |  | **344** | (176) |
| &nbsp;&nbsp;&nbsp;Finance costs | 18 | **1300** | 985 |
| &nbsp;&nbsp;&nbsp;Accretion of loans receivable | 8 (d) | **(97)** |  |
| &nbsp;&nbsp;&nbsp;Long term employee benefits |  | **968** |  |
| &nbsp;&nbsp;&nbsp;Write off of mineral properties | 8 (j) | **682** | 715 |
| &nbsp;&nbsp;&nbsp;Write down of warehouse inventory | 6 | **1323** | 894 |
| &nbsp;&nbsp;&nbsp;Write down of inventory to net realizable value | 6 | **-** | 272 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on asset disposal |  | **(2503)** | (5914) |
| &nbsp;&nbsp;&nbsp;Loss (gain) on other investments | 4 | **3470** | (2117) |
| Net changes in non-cash working capital | 19 | **967** | (8776) |
| Cash from operating activities |  | **54993** | 23462 |
| **Investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds on disposal of property, plant and equipment |  | **350** | 10113 |
| &nbsp;&nbsp;&nbsp;Mineral properties, plant and equipment |  | **(109715)** | (54092) |
| &nbsp;&nbsp;&nbsp;Purchase of other investments |  | **(2119)** | (3307) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of other investments | 4 | **-** | 9288 |
| &nbsp;&nbsp;&nbsp;Redemption of (investment in) non-current deposits |  | **34** | (8) |
| Cash used in investing activities |  | **(111450)** | (38006) |
| **Financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of loans payable | 10 | **(5054)** | (3563) |
| &nbsp;&nbsp;&nbsp;Repayment of lease liabilities | 11 | **(219)** | (179) |
| &nbsp;&nbsp;&nbsp;Interest paid | 10, 11 | **(790)** | (668) |
| &nbsp;&nbsp;&nbsp;Public equity offerings | 13 (b) | **46001** | 59998 |
| &nbsp;&nbsp;&nbsp;Exercise of options | 13 (c) | **1607** | 4719 |
| &nbsp;&nbsp;&nbsp;Share issuance costs | 13 (c)(d) | **(2885)** | (1293) |
| &nbsp;&nbsp;&nbsp;Performance and deferred share unit settlement | 13 (d)(e) | **(1904)** | (2363) |
| Cash from financing activities |  | **36756** | 56651 |
| Effect of exchange rate change on cash and cash equivalents |  | **(211)** | 113 |
| Increase in cash and cash equivalents |  | **(19701)** | 42107 |
| Cash and cash equivalents, beginning of the year |  | **103303** | 61083 |
| **Cash and cash equivalents, end of the year** |  | $**83391** | $103303 |

---

Supplemental cash flow information (Note 19)

The accompanying notes are an integral part of these consolidated financial statements.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 11

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**1. CORPORATE INFORMATION**

Endeavour Silver Corp. (the "Company" or "Endeavour Silver") is a corporation governed by the Business Corporations Act (British Columbia, Canada). The Company is engaged in silver mining in Mexico and related activities including acquisition, exploration, development, extraction, processing, refining and reclamation. The Company is also engaged in exploration activities in Chile and United States. The address of the registered office is #1130 - 609 Granville Street, Vancouver, B.C., V7Y 1G5.

**2. BASIS OF PRESENTATION**

These consolidated financial statements have been prepared in accordance with and using accounting policies in full compliance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"), effective for the Company's year ended December 31, 2022.

The Board of Directors approved the consolidated financial statements for issue on February 28, 2023.

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates (Note 3b).

These consolidated financial statements are presented in the Company's functional currency of US dollars and include the accounts of the Company and its wholly owned subsidiaries: Endeavour Management Corp., Endeavour Gold Corporation S.A. de C.V., EDR Silver de Mexico S.A. de C.V. SOFOM , Minera Santa Cruz Y Garibaldi S.A de C.V., Metalurgica Guanaceví S.A. de C.V., Minera Plata Adelante S.A. de C.V., Refinadora Plata Guanaceví S.A. de C. V., Minas Bolañitos S. A. de C.V., Guanaceví Mining Services S.A. de C.V., Recursos Humanos Guanaceví S.A. de C.V., Recursos Villalpando S.A. de C.V., Servicios Administrativos Varal S.A. de C.V., Minera Plata Carina SPA, MXRT Holding Ltd., Compania Minera del Cubo S.A. de C.V., Minas Lupycal S.A. de C.V., Metales Interamericanos S.A. de C.V., Oro Silver Resources Ltd., Minera Oro Silver de Mexico S.A. de C.V. disposed of on September 9, 2022 (Note 8 (d)), Terronera Precious Metals S.A. de C.V, Minera Pitarrilla S.A. de C. V. (formerly SSR Durango S.A de C.V.), Endeavour USA Holdings and Endeavour USA Corp. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

**3. SIGNIFICANT ACCOUNTING POLICIES**

The accounting policies below have been applied consistently to all years presented and by all subsidiaries in the group and no material accounting standards were adopted during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Currency Translation**

The functional and reporting currency of the Company and its subsidiaries is the US dollar. Transactions in currencies other than an entity's functional currency are recorded at the rates of exchange prevailing on the transaction dates. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined. Non-monetary items that are measured in terms of historical costs in a foreign currency are not retranslated. Foreign currency translation differences are recognized in comprehensive earnings (loss).

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 12

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Use of estimates and judgments**

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

These estimates and judgments are based on management's knowledge of the relevant facts and circumstances at the time, having regard to prior experience, and are continually evaluated. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Actual results could differ materially from those estimates.

Significant areas requiring the use of management judgment relate to the determination of mineralized reserves and resources, plant and equipment useful lives, existence of indication of impairment or impairment reversal of non-current assets, and recognition of deferred tax assets.

Significant areas requiring the use of management estimates relate to the valuation of inventory, mineral properties, plant and equipment, impairment of non-current assets, provision for reclamation and rehabilitation, and income taxes.

Critical judgments and estimates in applying policies that have the most significant effect on the amounts recognized in the consolidated financial statements include the following:

Determination of ore reserves and resources

Judgments about the amount of product that can be economically and legally extracted from the Company's properties are made by management using a range of geological, technical and economic factors, history of conversion of mineral deposits to proven and probable reserves as well as data regarding quantities, grades, production techniques, recovery rates, production costs, commodity prices and exchange rates. This process may require complex and difficult geological judgments to interpret the data. The Company uses qualified persons (as defined by the Canadian Securities Administrator's National Instrument 43-101) to compile this data.

Changes in the judgments surrounding reserves and resources may impact the carrying value of mineral properties, plant and equipment (Note 8), reclamation and rehabilitation provisions (Note 12), recognition of deferred income tax amounts (Note 21), and depreciation, depletion and amortization (Note 8).

Estimating the quantity and/or grade of reserves and resources requires the size, shape and depth of ore bodies or fields to be determined by analyzing geological data such as drilling samples. Following this, the quantity of ore that can be extracted in an economical manner is calculated using data regarding the life of mine plans and forecast sales prices (based on current and long-term historical average price trends). Changes in estimates can be the result of estimated future production differing from previous forecasts of future production, expansion of mineable ore through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineable ore.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 13

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Review of asset carrying values and assessment of impairment (accounting policy Note 3 (h) and Note 3 (f))

Management applies significant judgment in assessing each cash-generating unit or assets for the existence of indicators of impairment or impairment reversal at the reporting date. Internal and external factors are considered in assessing whether indicators are present that would necessitate impairment testing. Significant assumptions regarding commodity prices, operating costs, capital expenditures and discount rates are used in determining whether there are any indicators of impairment. These assumptions are reviewed regularly by senior management and compared, when applicable, to relevant market consensus views.

If an indicator of impairment or reversal exists, the asset's recoverable amount is estimated. The recoverable amount is the greater of fair value less costs of disposal and value in use. The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about future metal prices, production based on current estimates of capacity, ore grade, recovery rate and recoverable reserves and resources, future operating costs, capital expenditures and assets salvage value The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in earnings (loss).

Estimation of the amount and timing of reclamation and rehabilitation costs (accounting policy Note 3 (j))

Accounting for restoration requires management to make estimates of the future costs the Company will incur to complete the reclamation and rehabilitation work required to comply with existing laws, regulations and agreements in place at each mining operation and any environmental and social principles the Company is in compliance with. The calculation of the present value of these costs also includes assumptions regarding the timing of reclamation and rehabilitation work, applicable risk-free interest rate for discounting those future cash flows, inflation and foreign exchange rates and assumptions relating to probabilities of alternative estimates of future cash flows. Actual costs incurred may differ from those amounts estimated. Future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation work required to be performed by the Company. Increase in future costs could materially impact the amounts charged to operations for reclamation and rehabilitation.

Taxes (Note 3 (m))

Judgment is required in determining the recognition and measurement of deferred income tax assets and liabilities on the balance sheet. In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. These authorities may have different interpretations of tax legislation or tax agreements than those applied by the Company in computing current and deferred income taxes. These different interpretations may alter the timing or amounts of taxable income or deductions.

Final taxes payable and receivable are dependent on many factors, including outcomes of tax litigation and resolution of disputes. The resolution of these uncertainties may result in adjustments to the Company's tax assets and liabilities and value added tax receivable balances.

Management assesses the likelihood and timing of taxable earnings in future periods in recognizing deferred income tax assets. Estimates of future taxable income are based on forecasted cash flows using life of mine projections and the application of existing tax laws in each jurisdiction.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 14

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred income tax assets recorded at the balance sheet date could be impacted. In addition, future changes to tax laws could limit the ability of the Company to obtain tax deductions in future periods from deferred income tax assets. Deferred income tax assets are disclosed in Note 21.

Inventory (Note 3(e))

In valuing inventories at the lower of cost and net realizable value, the Company makes estimates in determining the net realizable price and in quantifying the contained metal in finished goods and work in process.

&nbsp;&nbsp;&nbsp;&nbsp;(c) **Cash and cash equivalents**

Cash and cash equivalents consist of deposits in banks and highly liquid investments with an original maturity at the date of the purchase of no more than three months, or that are readily convertible into cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Marketable securities**

Marketable securities include investments in shares of companies and other investments capable of reasonably prompt liquidation. Share investments are measured at fair value through profit and loss and carried at fair value. Unrealized gains and losses are recognized in earnings (loss).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Inventories**

Work in process inventories, including ore stockpiles, are valued at the lower of production cost and net realizable value, after an allowance for further processing costs. Finished goods inventory, characterized as doré bars or concentrate, is valued at the lower of production cost and net realizable value. Materials and supplies are valued at the lower of cost and replacement cost. Similar inventories within the consolidated group are measured using the same method, and the reversal of previous write-downs to net realizable value is required when there is a subsequent increase in the value of inventories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Intangible assets**

Intangible assets are initially recognized at cost if acquired externally, or at fair value if acquired as part of a business combination and have a useful life of greater than one year. Intangible assets which have finite useful lives are measured at cost less accumulated amortization and accumulated impairment. Intangible assets that are assessed as having a finite useful life are amortized over their useful life on a straight-line basis from the date they become available for use and are tested for impairment if indications exist that they may be impaired. The useful life is determined using the period of the underlying contract or the period over which the intangible asset can be expected to be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Mineral properties, plant and equipment**

Mineral properties, plant and equipment are stated at cost less accumulated depreciation, depletion and accumulated impairment losses. The cost of mineral properties, plant and equipment items consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Mineral properties include direct costs of acquiring properties (including option payments) and costs incurred directly in the development of properties once the technical feasibility and commercial viability has been established.

Development costs relating to specific properties are capitalized prospectively upon management's determination that a property will be developed. A development decision is made based upon consideration of project economics, including future metal prices, reserves and resources, and estimated operating and capital costs. Capitalization of costs incurred ceases when the property is capable of operating in the manner intended by management.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 15

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Exploration and evaluation costs are those costs required to acquire a mineral property and determine commercial feasibility. These costs include costs to establish an initial mineral resource and determine whether inferred mineral resources can be upgraded to measured and indicated mineral resources and whether measured and indicated mineral resources can be converted to proven and probable reserves. The Company recognizes acquisition costs for exploration and evaluation properties as assets when acquired as part of a business combination or asset purchase. All other exploration and evaluation costs are expensed as incurred until the technical feasibility and commercial viability of the property has been established and a development decision has been made.

Capitalized exploration and evaluation costs for a project are classified as such until the project demonstrates technical feasibility and commercial viability. Upon demonstrating technical feasibility and commercial viability, and subject to an impairment analysis, capitalized exploration and evaluation costs are transferred to mineral property costs within mineral properties, plant and equipment. Ongoing exploration costs as well as evaluation costs that do not meet requirement for capitalizing are expensed in earnings (loss) for the period. Where an item of plant and equipment comprises major components with different useful lives, the components are accounted for as separate items of plant and equipment and amortized separately over their useful lives.

Plant and equipment are recorded at cost and amortized using either the straight-line method at rates varying from 5% to 30% annually or amortized on a units of production method, based on proven and probable reserves. The accumulated costs of mineral properties are amortized using the units of production method, based on proven and probable reserves (as defined by National Instrument 43-101).

The Company conducts an annual assessment of the residual balances, useful lives and depreciation methods being used for mineral properties, plant and equipment and any changes arising from the assessment are applied by the Company prospectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Impairment of non-current assets**

The Company's tangible assets are reviewed for indications of impairment or reversal of a previous impairment at each financial statement date. If an indicator of impairment or reversal exists, the asset's recoverable amount is estimated. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash flows that are largely independent of the cash flows from other assets or groups of assets. Impairment losses are recognized in earnings (loss) for the period.

The recoverable amount is the greater of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is reversed if there is an indication that there has been a change in the estimates used to determine the recoverable amount and the recoverable amount exceeds the carrying amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Management periodically reviews the carrying values of its exploration and evaluation assets with internal and external mining related professionals. A decision to abandon, reduce or expand a specific project is based upon many factors including general and specific assessments of reserves, forecast future metal prices, forecast future costs of exploring, developing and operating a producing mine, expiration term and ongoing expense of maintaining leased mineral properties and the general likelihood that the Company will continue exploration. The Company does not set a pre-determined holding period for properties with unproven reserves. However, properties which have not demonstrated suitable mineral concentrations at the conclusion of each phase of an exploration program are re-evaluated to determine if future exploration is warranted and their carrying values are recoverable.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 16

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

If any area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are recognized in earnings (loss) in the period of abandonment or determination that the carrying value exceeds its fair value. The amounts recorded as mineral properties represent costs incurred to date and do not necessarily reflect present or future values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Leases**

At inception of a contract, the Company assesses whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which is composed of:

* The amount of the initial measurement of the lease liability

* Any lease payments made at or before the commencement date

* Any indirect costs incurred

* An estimate of costs to dismantle and remove the underlying asset or to restore the site on which the asset is located

* Less any incentives received from the lessor

The right-of-use asset is depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments included in the measurement of the lease liability are composed of:

* Fixed payments, including in-substance fixed payments

* Variable lease payments that depend on an index or rate, initially measured using the index or rate as at the commencement date

* Amounts expected to be payable under a residual value guarantee; and

* The exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease payments exclude variable payments which are dependent on external factors other than an index or a rate. These variable payments are recognized directly in earnings (loss). The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimated amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in earnings (loss) if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are expensed on a straight-line basis over the lease term.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 17

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;(j) **Provision for reclamation and rehabilitation**

The Company recognizes provisions for statutory, contractual, constructive or legal obligations associated with the decommissioning and reclamation of mineral properties, plant and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. A liability is recognized at the time environmental disturbance occurs and the resulting costs are capitalized to the corresponding asset. The provision for reclamation and rehabilitation obligations is estimated using expected cash flows based on engineering and environmental reports prepared by third-party industry specialists and is discounted at a pre-tax rate specific to the liability. The capitalized amount is amortized on the same basis as the related asset.

In subsequent periods, the liability is adjusted for any changes in the amount or timing of the estimated future cash costs, changes in the discount or inflation rates and for the accretion of discounted underlying future cash flows. The unwinding of the effect of discounting the provision is recorded as a finance cost in earnings (loss) for the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Revenue recognition**

Revenue is generated from the sale of refined silver and gold or from the sale of these metals contained in doré or concentrate. Revenue for doré is recorded in the consolidated statement of comprehensive earnings (loss) gross of treatment and refining costs paid to counterparties under the terms of the sales agreements. Revenue for concentrate is recorded in the consolidated statement of comprehensive earnings (loss) net of treatment and refining costs paid to counterparties under the terms of the sales agreements. Revenue is recognized when control of the metal is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for the metals. In determining whether the Company has satisfied its performance obligation, it considers the indicators of the transfer of control, which include but are not limited to, whether: the Company has a present right to payment; the customer has a legal title to the asset; the Company has transferred physical possession of the asset to the customer; and the customer controls the risks and rewards of ownership of the asset.

Revenue from metals in doré

The refiners who receive doré from the Company refine the materials on the Company's behalf. The refiners transfer the refined product to our customers according to the Company's instructions. Refined metals are sold at spot prices with sales proceeds collected upon or within several days of the completion of the sales transaction. Revenue from sale of doré is recognized at the time a metal sale is executed and the Company has irrevocably directed the refiner to deliver the refined metal to the customer.

Revenue from metals in concentrate

Metals in concentrate are sold under pricing arrangements where final prices are determined by market prices subsequent to the date of sale. Revenue from the sale of concentrates is provisionally priced at the date control transfers. On transfer, the Company recognizes revenue on a provisional basis based on current prices and at each period end, re-estimated prices based on period end closing prices for the estimated month of settlement. The final selling price is subject to movements in metal prices up to the final settlement date. Revenue is initially recognized based on the estimated mineral content then adjusted to final settlement adjustments. Final settlement periods range from two to six months after delivery of the product.

Variations between the sales price recorded at the initial recognition date and the actual final sales price at the settlement date, caused by changes in market metal prices, results in an embedded derivative in the related trade accounts receivable. For each reporting period until final settlement, period end closing prices are used to record revenue. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as an adjustment to revenue.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 18

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Share-based payments**

The Company has a share option plan and a share unit plan which are described in Note 13 (c) and Note 13 (d) respectively. Equity-settled share-based payment awards to employees are measured by reference to the fair value of the equity instruments granted and are charged over the vesting period using the graded vesting method. The amount recognized as an expense is adjusted to reflect the actual number of share options for which the related service and vesting conditions are met. Equity-settled share-based payment awards to non-employees are measured at the fair value of the goods or services received as the goods or services are received, unless that fair value cannot be measured reliably, in which case they are measured by reference to the fair value of the equity instrument. The offset is credited to contributed surplus. Consideration received on the exercise of stock options is recorded as share capital and the related contributed surplus is transferred to share capital. For those options that expire or are forfeited after vesting, the amount previously recorded in contributed surplus is transferred to deficit.

Share-based compensation expense relating to cash-settled awards, including deferred share units and share appreciation rights which are described in Note 13 (e) and Note 13 (f), is recognized over the vesting period of the units based on the fair market value of the units. As these awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Income taxes**

Income tax expense (recovery) comprises current and deferred tax. It is recognized in earnings (loss) except to the extent that it relates to a business combination, or items recognized directly in equity or other comprehensive income.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustments to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

The Company follows the asset and liability method of accounting for deferred income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and tax losses carried forward. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings (loss) in the period that includes the substantive enactment date. Deferred tax assets are recognized to the extent their recovery is considered probable based on their term to expiry and estimates of future taxable income. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable earnings improve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Earnings per share**

Basic earnings per share is computed by dividing the net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the period. For all periods presented, net earnings available to common shareholders equals the reported net earnings. The Company uses the treasury stock method for calculating diluted earnings per share. Under the treasury stock method, the weighted average number of common shares outstanding used for the calculation of diluted earnings per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Business combinations**

On a business combination, the acquisition method of accounting is used, whereby the purchase consideration is allocated to the identifiable assets, liabilities and contingent liabilities (identifiable net assets) based on fair value at the date of acquisition. When the cost of acquisition exceeds the fair values attributable to the Company's share of identifiable net assets, the difference is treated as purchased goodwill. If the fair value attributable to the Company's share of the identifiable net assets exceeds the cost of acquisition, the difference is immediately recognized in earnings (loss). Incremental costs related to acquisitions are expensed as incurred.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 19

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Determination of the fair value of assets acquired and liabilities assumed and resulting goodwill, if any, requires that management make estimates based on the information provided by the acquiree. Changes to the provisional values of assets acquired and liabilities assumed, deferred income taxes and resulting goodwill, if any, will be adjusted when the final measurements are determined (within one year of the acquisition date).

When purchase consideration is contingent on future events, the initial cost of the acquisition recorded includes an estimate of the fair value of the contingent amounts expected to be payable in the future. Changes to the estimated fair value of contingent consideration subsequent to the acquisition date are recorded in earnings (loss).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Financial instruments**

The Company recognizes financial assets and financial liabilities on the date the Company becomes party to the contractual provisions of the instruments. On initial recognition, all financial assets and financial liabilities are recorded at fair value, net of attributable transaction costs, except for financial assets and liabilities classified as fair value through profit or loss ("FVTPL"). Transaction costs of financial assets and liabilities classified as FVTPL are expensed in the period in which they are incurred. A financial asset is derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial assets or when cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired.

On initial recognition, the Company classifies and measures financial assets as either FVTPL, fair value through other comprehensive income ("FVTOCI") or amortized cost. Subsequent measurement of financial assets depends on the classifications of such assets. The basis of classification depends on an entity's business model and the contractual cash flows of the financial asset.

Amortized cost

Financial assets that meet the following conditions are measured subsequently at amortized cost:

* The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and

* The contractual terms of the financial asset provide cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding

The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effective interest method.

Fair value through other comprehensive income

Financial assets that meet the following conditions are measured subsequently at amortized cost:

* The financial asset is held within a business model whose objective is achieved by both collecting the contractual cash flows and selling financial assets, and

* The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

Investments in equity instruments at FVTOCI are initially recognized at fair value. Subsequently, they are measured at fair value, with gains and losses arising from changes from initial recognition recognized in comprehensive earnings (loss). Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 20

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Fair value through profit and loss

By default, all other financial assets are measured at FVTPL.

The Company, at initial recognition, may also irrevocably designate a financial asset as measured at FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on a different basis. Financial assets measured at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent that they are not part of a designated hedging relationship. Determination of fair value is further described in Note 22.

Financial liabilities and equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all its liabilities. Equity instruments issued by the Company are measured at the proceeds received, net of direct issue costs.

Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading or designated as FVTPL, are measured at amortized cost using the effective interest method.

The Company's financial instruments are recognized as:

---

| | |
|:---|:---|
| Assets |  |
| Cash and cash equivalents | Amortized cost |
| Trade and other receivables (other than derivatives) | Amortized cost |
| Trade receivables (derivative component) | FVTPL |
| Loans receivable | Amortized cost |
| Other investments | FVTPL |
| Liabilities |  |
| Accounts payable and accrued liabilities | Amortized cost |
| Loans payable | Amortized cost |
| Share appreciation rights and deferred share units | FVTPL |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Accounting standards adopted during the year**

On May 14, 2020, the International Accounting Standard Board (IASB) published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related costs in earnings (loss). The Company has adopted the narrow scope amendments to IAS 16 in its financial statements for the annual period beginning on January 1, 2022. The adoption did not result in a change in carrying value of property, plant and equipment at December 31, 2022 or December 31, 2021 nor in change in sales proceeds or related cost of sales for the years ended December 31, 2022 or December 31, 2021.

As a result of the adoption of narrow scope amendment to IAS 16, the Company's previous accounting policy for the achievement of the commercial production is no longer relevant, and any amounts received prior to the mine reaching the operating levels will be accounted for as sales proceeds in line with accounting policy Note 3 (k).

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 21

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**4. OTHER INVESTMENTS**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** | December 31, |
|  | Note | **2022** | 2021 |
| Balance at beginning of the year |  | $**11200** | $4767 |
| Investment in marketable securities, at cost |  | **2305** | 3753 |
| FMV of investments received on asset disposal | 10 | **-** | 9851 |
| Disposals |  | **-** | (9288) |
| Gain (loss) on marketable securities |  | **(3470)** | 2117 |
| Balance at end of the year |  | **10035** | 11200 |
| Less: Current portion |  | **8647** | 11200 |
| Non-current marketable securities |  | $**1388** | $- |

---

The Company holds $9,774 in marketable securities that are classified as Level 1 and $261 in marketable securities that are classified as Level 3 in the fair value hierarchy (Note 22) and are classified as financial assets measured at FVTPL. The fair values of Level 1 marketable securities are determined based on a market approach reflecting the closing price of each particular security at the reporting date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, being the market with the greatest volume and level of activity for the assets. Marketable securities classified as Level 3 in the fair value hierarchy are share purchase warrants and the fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model.

During the year ended December 31, 2022, the Company acquired 6,600,000 units of Max Resource Corp ("Max") through a private placement with each unit consisting of one common share and ½ share purchase warrant. At the same time, the Company entered into a collaboration agreement with Max under which acquired shares and warrants of Max have certain transfer restrictions and cannot be liquidated before March 28, 2024. Accordingly, those shares and warrants have been classified as non-current.

**5. ACCOUNTS AND OTHER RECEIVABLES**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** | December 31, |
|  | Note | **2022** | 2021 |
| Trade receivables <sup>(1)</sup> |  | $**4385** | $4751 |
| IVA receivable <sup>(2)</sup> |  | **8062** | 8863 |
| Other receivables |  | **689** | 847 |
| Due from related parties | 7 | **-** | 1 |
|  |  | $**13136** | $14462 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) At December 31, 2022 the trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate period end closing prices on the measurement date from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy (Note 22).

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 22

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company's Mexican subsidiaries pay value added tax, Impuesto al Valor Agregado ("IVA"), on the purchase and sale of goods and services. The net amount paid is recoverable but is subject to review and assessment by the tax authorities. The Company regularly files the required IVA returns and all supporting documentation with the tax authorities, however, the Company has been advised that certain IVA amounts receivable from the tax authorities are being withheld pending completion of the authorities' audit of certain of the Company's third-party suppliers. Under Mexican law the Company has legal rights to those IVA refunds and the results of the third-party audits should have no impact on refunds. A smaller portion of IVA refund requests are from time to time improperly denied based on the alleged lack of compliance of certain formal requirements and information returns by the Company's third-party suppliers. The Company takes necessary legal action on the delayed refunds as well as any improperly denied refunds.

These delays and denials have occurred in Refinadora Plata Guanaceví S.A. de C.V. ("Guanaceví,"). At December 31, 2022, Guanaceví holds $6,402 in IVA receivables which the Company and its advisors have determined to be recoverable from tax authorities (December 31, 2021 $8,067 respectively). The Company is in regular contact with the tax authorities in respect of its IVA filings and believes the full amount of its IVA receivables will ultimately be received; however, the timing of recovery of these amounts and the nature and extent of any adjustments to the Company's IVA receivables remains uncertain.

As at December 31, 2022, the total IVA receivable of $18,216 (December 31, 2021 - $13,119) has been allocated between the current portion of $8,062, which is included in accounts receivable, and a non-current portion of $10,154 (December 31, 2021 - $8,863 and $4,256 respectively). The non-current portion is composed of Guanacevi of $1,505, which is currently under appeal and are unlikely to be received in 2023. The remaining $8,649 is IVA receivable for Terronera, which may not become recoverable until Terronera recognizes revenue for tax purposes.

**6. INVENTORIES**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Warehouse inventory<sup>(1)</sup> | $**9682** | $8698 |
| Stockpile inventory | **2389** | 2335 |
| Finished goods inventory | **6138** | 15550 |
| Work in process inventory | **975** | 902 |
|  | $**19184** | $27485 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The warehouse inventory balance at December 31, 2022 is net of a write down to net realizable value of $1,179 (December 31, 2021 - $539) at the Guanacevi mine and $1,038 (December 31, 2021 - $357) at the Bolañitos mine.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 23

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**7. RELATED PARTY TRANSACTIONS**

The Company previously shared common administrative services and office space with a company related by virtue of a former common director and from time to time incurred third party costs on behalf of related parties on a full cost recovery basis. The agreement for sharing office space and administrative services ended in May 2022. The charges for these costs totaled $9 for the year ended December 31, 2022 (December 31, 2021 - $5). The Company has a $nil net receivable related to these costs as of December 31, 2022 (December 31, 2021 - $1).

The Company was charged $428 for legal services for the year ended December 31, 2022 by a legal firm in which the Company's corporate secretary is a partner (December 31, 2021 - $276). The Company has $10 payable to the legal firm as at December 31, 2022 (December 31, 2021 - $5).

Key management personnel

The key management of the Company comprises executive and non-executive directors, members of executive management and the Company's corporate secretary. Compensation of key management personnel was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Salaries and short-term employee benefits | $**2957** | $3867 |
| Non-executive directors' fees | **312** | 311 |
| Non-executive directors' deferred share units | **(362)** | (707) |
| Share-based payments | **2974** | 3408 |
|  | $**5881** | $6879 |

---

The existing non-executive directors' deferred share units are comprised of both equity and cash settled deferred share units. The recognized expense or recovery includes the fair value of new issuances of deferred share units during the period and the change in fair value of all outstanding cash-settled deferred share units during the reporting period. During the year ended December 31, 2022, the Company granted 109,634 deferred share units (December 31, 2021 - 82,566) with a fair value of $523 (December 31, 2021 - $449) at the date of grant. At December 31, 2022, there were 1,044,204 cash settled deferred share units and 104,596 equity-settled deferred share units outstanding with a fair value of $3,873 (December 31, 2021 - 1,348,765 outstanding with a fair value of $5,682).

The amount disclosed for share-based payments is the expense for the year calculated in accordance with IFRS 2, Share-based payments for share options, performance share units and deferred share units (Notes 13 (c), (d) and (e)). The fair values of these share-based payments are recognized as an expense over the vesting period of the award. Therefore, the compensation expense in the current year comprises a portion of current year awards and those of preceding years that vested within the current year.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 24

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**8. MINERAL PROPERTIES, PLANT AND EQUIPMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Mineral properties, plant and equipment comprise:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Mineral |  | Machinery & |  | Transport & |  |
|  | properties | Plant | equipment | Building | office equipment | Total |
| **Cost** |  |  |  |  |  |  |
| **Balance at December 31, 2020** | $**552878** | $**106445** | $**81003** | $**13314** | $**12777** | $**766417** |
| Additions | 40261 | 2838 | 15435 | 1623 | 2113 | 62270 |
| Disposals | (81740) | (11098) | (9298) | (1492) | (2845) | (106473) |
| **Balance at December 31, 2021** | $**511399** | $**98185** | $**87140** | $**13445** | $**12045** | $**722214** |
| Additions | 103635 | 5217 | 19877 | 7573 | 1978 | 138280 |
| Disposals | (14966) | (6542) | (757) | (662) | (746) | (23673) |
| **Balance at December 31, 2022** | $**600068** | $**96860** | $**106260** | $**20356** | $**13277** | $**836821** |
| **Accumulated amortization and impairment** |  |  |  |  |  |  |
| **Balance at December 31, 2020** | $**510335** | $**94815** | $**53122** | $**10166** | $**10024** | $**678462** |
| Amortization | 15614 | 3393 | 4947 | 352 | 1202 | 25508 |
| Disposals | (81180) | (10000) | (8624) | (1324) | (2825) | (103953) |
| **Balance at December 31, 2021** | $**444769** | $**88208** | $**49445** | $**9194** | $**8401** | $**600017** |
| Amortization | 14786 | 2268 | 5301 | 346 | 1205 | 23906 |
| Disposals | (13574) | (6442) | (326) | (159) | (493) | (20994) |
| **Balance at December 31, 2022** | $**445981** | $**84034** | $**54420** | $**9381** | $**9113** | $**602929** |
| **Net book value** |  |  |  |  |  |  |
| **At December 31, 2021** | $**66630** | $**9977** | $**37695** | $**4251** | $**3644** | $**122197** |
| **At December 31, 2022** | $**154087** | $**12826** | $**51840** | $**10975** | $**4164** | $**233892** |

---

Included in Mineral properties is $80,155 in acquisition costs for exploration properties and $26,669 for acquisition and development costs for development properties (December 31, 2021 - $19,063 and $10,311 respectively).

As of December 31, 2022, the Company has $26,576 committed for capital equipment purchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Guanaceví, Mexico**

In 2005, the Company acquired mining properties and related assets to the Guanaceví silver-gold mines located in the state of Durango, Mexico. Certain concessions in the district retained a 3% net proceeds royalty on future production.

These properties and subsequently acquired property concessions in the Guanaceví district are maintained with nominal property tax payments to the Mexican government.

On July 5, 2019, the Company acquired a 10 year right to explore and exploit the El Porvenir and El Curso properties from Ocampo Mining S.A. de C.V. ("Ocampo"). The Company has agreed to meet certain minimum production targets from the properties, subject to various terms and conditions, and pay Ocampo a $12 dollar fixed per tonne production payment plus a floating net smelter return ("NSR") royalty based on the spot silver price as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 4% NSR when the silver price obtained is less than or equal to $15 dollars per oz

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 9% NSR when the silver price obtained is greater than $15 dollars and up to $20 dollars per oz

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 13% NSR when the silver price obtained is greater than $20 dollars and up to $25 dollars per oz

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16% NSR when the silver obtained is greater than $25 dollars per oz

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 25

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Both properties cover extensions of the Guanaceví ore bodies with the El Porvenir concession adjacent to the Company's operating Porvenir Norte mine and the El Curso concession adjacent to the Company's Porvenir Cuatro mine. On December 12, 2021, the Company executed an amendment to the agreement whereby two additional properties, adjacent to the existing and historic mine workings were included in the existing agreement. In 2022, the Company expensed $16,873 in per tonne production charges and royalties on these properties (2021 - $12,532).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Bolañitos, Mexico**

In 2007, the Company acquired the exploitation contracts, mining properties and related assets to the Bolañitos silver-gold mines located in the northern parts of the Guanajuato and La Luz silver districts in the state of Guanajuato, Mexico.

The Company holds various property concessions in the Guanajuato District that it maintains with nominal property tax payments to the Mexican government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) El Compas, Mexico** 

In August 2021, the Company suspended mining and milling operations at El Compas, and mining equipment and key talent were transferred within the Company to Bolañitos and Terronera. In 2022, the associated suspension costs were $580 (2021 - $1,367, including $870 in severance).

On September 9, 2022, the Company entered into an agreement to sell its 100% interest in Minera Oro Silver de Mexico, S.A. de C.V. ("MOS") to Grupo ROSGO, S.A. de C.V., ("Grupo ROSGO"). Minera Oro Silver holds the El Compas property and the lease on the La Plata processing plant in Zacatecas, Mexico.

Pursuant to the agreement, Grupo ROSGO assumed the Minera Oro Silver loan payable to the Company, in the amount of $5,000 payable in cash payments over a five year period with an initial payment of $250. Instalment payments of $500 will be made every six months other than the third payment, which will be $750. The payments are secured by a pledge of the shares of MOS. At the date of the sale, using the effective interest rate method, management has estimated the fair value of the $5,000 loan receivable to be $3,882. As of December 31, 2022, the carrying value of the loan receivable is $3,729, consisting of the current portion of $1,000 and non-current portion of $2,729.

The carrying value of the net Minera Oro Silver's net assets at the date of the sale was $1,149 resulting in the Company recording a $2,733 gain on sale which is presented in 'investments and other income' in the consolidated statements of comprehensive earnings (loss).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) El Cubo, Mexico**

On March 17, 2021, the Company signed a definitive agreement to sell its El Cubo mine and related assets to Guanajuato Silver Company Ltd. ("GSilver") (formerly known as VanGold Mining Corp. ("VanGold")) for $15.0 million in consideration composed of cash and share payments plus additional contingency payments. On April 9, 2021, GSilver purchased the El Cubo assets for the following consideration:

Per the terms of the agreement, GSilver agreed to pay $15.0 million for the El Cubo assets. The Company has received total gross consideration of $19.7 million as follows:

* $0.5 million cash down-payment

* $7.0 million cash on closing

* $9.8 million paid in shares with 21,331,058 shares of GSilver with fair value of CAN$0.58 per share on April 9, 2021. Total fair value of the shares at the time of agreement was $5.0 million priced at CAN$0.30 

* $2.4 million paid by unsecured promissory note with face value $2.5 million due and payable April 9, 2022

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 26

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

GSilver has also agreed to pay the Company up to an additional $3.0 million in contingent payments, for which the Company has not recorded any consideration, based on the following events:

* $1.0 million upon GSilver producing 3.0 million silver equivalent ounces from the El Cubo mill

* $1.0 million if the price of gold closes at or above $2,000 dollars per ounce for 20 consecutive days within two years after closing

* $1.0 million if the price of gold closes at or above $2,200 dollars per ounce for 20 consecutive days prior to April 9, 2023

During the period ended March 31, 2021, the El Cubo mine project, consisting of the land rights, plant, buildings and the related reclamation liability were re-classified to current assets and liabilities as "assets held for sale" and "liabilities held for sale". Immediately prior to the classification to assets and liabilities held for sale, the carrying amounts of the land rights, plant and building were remeasured and the historical gross impairments of $216.9 million net of depletion and depreciation of $200.1 million, were reversed resulting in a $16.8 million impairment reversal. The reclamation provision for the El Cubo mine of $4.6 million was transferred to GSilver upon acquisition of the related mining concessions. The Company has recognized a $5.8 million gain on the disposal of the El Cubo mine and related assets in the year ended December 31, 2021.

On November 16, 2021 the Company arranged for early payment of the $2.5 million promissory note. In consideration for the early payment, the Company has agreed to reduce the principal amount of the note by $25 and settle the Mexican value added tax payable on the purchase price for El Cubo represented by the note for 901,224 common shares of GSilver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Terronera, Mexico**

In February 2013, the Company acquired an option to purchase a 100% interest in theTerronera properties located in Jalisco, Mexico, by paying a total of $2,750 over three years. The Company is required to pay a 2% NSR royalty on any production from the Terronera properties.

On September 23, 2020, the Company entered into an option agreement to acquire a 100% interest in the La Sanguijuela property, located adjacent to the existing Terronera properties. The agreement requires payments totaling $550 over a four-year period with the Company required to pay a 2% NSR on any production from the property.

These properties and subsequently acquired property concessions in the Terronera district are maintained with nominal property tax payments to the Mexican government.

During 2021, the Company completed a Feasibility Study on the Terronera Project and based on an assessment of the economic viability of extracting mineral resources at Terronera, it was reclassified from an exploration and evaluation asset to a development asset (See Note 20). During 2022 the Company proceeded with road construction, procurement of long lead items including major equipment, camp construction, site clearing and initial earthworks for plant construction, and construction of initial project infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Parral Properties**

On September 13, 2016, the Company entered into a definitive agreement with SSR Mining Inc. ("SSR") formerly known as Silver Standard Resources Inc., to acquire a 100% interest in SSR's Parral properties, located in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico. On October 31, 2016, Endeavour paid $5,300 through the issuance of 1,198,083 common shares.

In addition, the Company committed to spending $2,000 (completed in 2018) in exploration on two of the properties (the San Patricio and La Palmilla properties) over the two-year period following the closing of the transaction. SSR also retained a 1% net smelter returns royalty on production from the San Patricio and La Palmilla properties. On November 18, 2021 the Company and SSR entered into an agreement whereby the Company purchased the royalties from SSR for $530.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 27

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) Guadalupe Y Calvo, Mexico**

In 2012, the Company acquired the Guadalupe Y Calvo exploration project in Chihuahua, Mexico.

In 2014, the Company acquired the La Bufa exploration property, which is adjacent to the Guadalupe y Calvo exploration property in Chihuahua, Mexico. The property is subject to a 2% net smelter return royalty on mineral production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Calicanto Properties**

On July 21, 2016, the Company entered into a definitive agreement with Compania Minera Estrella de Plata S.A. de C.V. ("Compania Minera Estrella") to acquire a 100% interest, subject to a 3% NSR, in Compania Minera Estrella's Calicanto properties, located in the Zacatecas state, Mexico. On February 1, 2017, Endeavour completed the purchase with a payment of $400 and in 2018 exercised an option to purchase the 3% NSR for $45.

On September 8, 2017, the Company entered into a concession division agreement with Capstone Mining Corp. ("Capstone") whereby the Company has the right to explore and mine for precious metals above 2,000 metres above sea level on Capstone's Toro del Cobre concessions, which is adjacent to Calicanto. In return, the Company has granted Capstone the right to explore and mine for base metals below the elevation of 2,000 metres above sea level. Capstone has granted the Company a 1% NSR on all Capstone base metal production on the Endeavour property and the Company has granted Capstone a 1% NSR on all Endeavour precious metal production on Capstone property. During 2022, the Company earned $722 in royalties from Capstone (2021 - $542).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) Exploration Projects, Chile**

Cerro Marquez - Las Palcas

In October 2016, the Company entered into an option agreement with Minera Cerro Marquez to acquire 100% interest in the Las Palcas project in Santiago, Chile for a total of $2.5 million to be paid over a four year period with the final payment of $2.3 million due in October 2020. In October 2021, the Company elected to not proceed with the final payment and the carrying value of $470 has been written off during the year ended December 31, 2021.

Aida Properties

In July 2018, the Company entered into an option agreement to acquire 100% interest in the Aida properties: Patricia II, Patricia III and SLM Ignacia located in Chile for a total of $3.2 million to be paid over a five-year period. The properties are subject to a 2% NSR with the right to buy the NSR for each of the properties for $2.0 million. Payments totaling $0.4 million for 2018 and 2019 have been made but the 2020 and 2021 payments totaling $0.8 million have been postponed until the Company receives certain environmental permits.

Paloma Properties

In December 2018, the Company signed an option agreement to acquire up to a 70% interest in the Paloma project in Antofagasta Province, Chile. The Company can acquire its initial 51% interest by paying $0.75 million and spending $5.0 million over five years with the final payment due in 2023, followed by a second option to acquire 70% by completing a Preliminary Economic Assessment and a Preliminary Feasibility Study. The property is subject to a 2% NSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k) Acquisition of Bruner Gold Project**

On July 14, 2021, the Company entered into a definitive agreement with Canamex Gold Corp. ("Canamex") to acquire a 100% interest in Canamex's Bruner Gold Project, a gold exploration property, located in Nye County, Nevada, approximately 180 kilometers southeast of Reno. The property is subject to pre-existing royalties, some of which can be repurchased. The Company completed the acquisition on August 31, 2021. Under the terms of the agreement, the Company paid $10 million in cash for a 100% interest in the Bruner Gold project which includes mineral claims, mining rights, property assets, water rights and government authorization and permits. Management determined that the acquisition of Bruner Gold Project did not meet the definition of a business in accordance with IFRS 3 Business Combinations, as it did not have the inputs, processes and outputs required to meet the definition of a business. Accordingly, the acquisition has been accounted for as an asset acquisition resulting in the recognition of a mineral property asset with the fair market value of $10.1 million, including $0.1 million of acquisition costs.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 28

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l) Acquisition of the Pitarrilla Project**

On January 17, 2022, the Company entered into a definitive agreement to purchase the Pitarrilla project in Durango State, Mexico, by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. from SSR Mining Inc. ("SSR") for total consideration of $70 million (consisting of $35 million in Company's shares and a further $35 million in cash or in the Company's shares at the election of SSR and as agreed to by the Company) and a 1.25% net smelter returns royalty. SSR retains a 1.25% NSR Royalty in Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR proposes to sell it.

The acquisition was completed on July 6, 2022. Total consideration included 8,577,380 shares of the Company issued on July 6, 2022 and a $35.1 million cash payment. Fair value of the 8,577,380 common shares issued on July 6, 2022 was $25,590 at CAN$3.89 per share. The deemed value of the common shares issued, at the time of agreement, was $34.9 million. The shares are subject to a hold period of four months and one day following the date of closing.

The 4,950-hectares Pitarrilla exploration project is located in northern Mexico, consists of five concessions, has ignificant infrastructure in place and has access to utilities.

The acquisition is outside the scope of IFRS 3 Business Combinations, as the Pitarrilla project does not meet the definition of a business, and as such, the transaction was accounted for as an asset acquisition. The purchase price is allocated to the underlying assets acquired and liabilities assumed, based upon their estimated fair values at the date of acquisition.

---

| | |
|:---|:---|
| **Pitarilla Project purchase consideration:** |  |
| Common shares issued | $25590 |
| Consideration paid in cash | 35067 |
| Acquisition costs | 880 |
| Total consideration | $61537 |

---

**Fair value summary of assets acquired and liabilities assumed:**

---

| | |
|:---|:---|
| Assets: |  |
| Current assets | $288.0 |
| Buildings and equipment | 652.0 |
| Mineral properties | 60811.0 |
| Total assets | $61751.0 |
| Liabilities: |  |
| Accounts payable and accrued liabilities | 170.0 |
| Reclamation liability | 44.0 |
| Total liabilities | $214.0 |
| Net identifiable assets acquired | $61537.0 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 29

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**9. IMPAIRMENT OF NON-CURRENT ASSETS**

The recoverable amounts of the Company's CGUs, which include mining properties, plant and equipment are determined at the end of each reporting period, if impairment indicators are identified.

Management applies significant judgement in assessing whether indicators of impairment or reversal of impairment exist for an asset or a group of assets which could result in a testing for impairment. Internal and external factors such as significant changes in the use of the asset, commodity prices, life of mines, tax laws and regulations and interest rates are some of the indicators used by management in determining whether there are any indicators of impairment or reversal of previous impairments. As of December 31, 2022, the Company determined that indicators of impairment existed at the Bolañitos mine due to a change in the reserves and resources, including a narrowing of the veins in the ore bodies which may result in lower future conversion of inferred resources to economically mineable ore.

The recoverable amount is based on CGU's future cash flows expected to be derived from the Company's mining properties and represent each CGU's fair value less cost of disposal. Expected cash flows were determined based on the life-of-mine after-tax cash flow forecast which incorporates management's best estimates of future metal prices, production based on current estimates of capacity, ore grade, recovery rate and recoverable reserves and resources, future operating costs, capital expenditures and assets salvage value. Expected cash flows are discounted at risk adjusted rate based on the CGU's weighted average cost of capital. The average forecasted price of $21.66 per oz of silver and $1,738 per oz of gold were used in the model. Forecasted prices were estimated using analyst consensus forecasts, over the forecasted life of mine as of December 31, 2022. As a result, management estimated the recoverable amount of the Bolañitos mine as at December 31, 2022, determined on a fair value less cost of disposal basis, and concluded no impairment charge was required. Reasonably possible movements in the assumptions disclosed above could have changed the calculated recoverable amount. A 5% decrease to the average forecasted prices of silver and gold, with all other inputs remaining constant, would reduce the recoverable amount by $4.7 million. A 5% increase to the average forecasted prices of silver and gold, with all other inputs remaining constant, would increase the recoverable amount by $3.9 million.

**10. LOANS PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Balance at the beginning of the year | $**10494** | $9672 |
| Net proceeds from software and equipment financing | **9070** | 4399 |
| Finance cost | **726** | 650 |
| Repayments of principal | **(5054)** | (3563) |
| Repayments of finance costs | **(726)** | (611) |
| Effects of movements in exchange rates | **-** | (53) |
| Balance at the end of the year | $**14510** | $10494 |
| Statements of Financial Position presentation |  |  |
| Current loans payable | $**6041** | $4128 |
| Non-current loans payable | **8469** | 6366 |
| Total | $**14510** | $10494 |

---

The Company currently has financing arrangements for equipment totaling $26,612, with terms ranging from one to four years. The agreements require either monthly or quarterly payments of principal and interest with a weighted-average interest rate of 6.6%.

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants and as at December 31, 2022 the Company was in compliance with these covenants. As at December 31, 2022, the net book value of equipment includes $24,379 (December 31, 2021 - $16,100) of equipment pledged as security for the equipment financing.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 30

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**11. LEASE LIABILITIES**

The Company leases office space, and prior to the sale of the El Compas mine, the Company had been leasing the El Compas plant. These leases are for periods of five to ten years. Certain leases include an option to renew the lease after the end of the contract term and/ or provide for payments that are indexed to local inflation rates.

The following table presents the lease obligations of the Company:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Balance at the beginning of the year | $**1001** | $1094 |
| Additions | **344** | 89 |
| Interest | **64** | 73 |
| Payments | **(282)** | (251) |
| Effects of movement in exchange rates | **(54)** | (4) |
| Balance at the end of the year | **1073** | 1001 |
| Less: Current portion | **261** | 207 |
| Non-current lease liabilities | $**812** | $794 |

---

The following table presents lease liability maturity - contractual undiscounted cash flows for the Company:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Less than one year | $**337** | $263 |
| One to five years | **831** | 637 |
| More than five years | **97** | 262 |
| Total at the end of the year | $**1265** | $1162 |

---

The following amounts have been recognized in earnings (loss):

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | December 31,<br>2021 |
| Interest on lease liabilities | $**64** | $73 |
| Expenses related to short-term leases | $**567** | $649 |

---

As at December 31, 2022, the lease liabilities have a weighted-average interest rate of 8.37%. For the year ended December 31, 2022, the Company recognized $64 in interest expense on the lease liabilities (December 31, 2021 - $73) and $567 related to short term rentals, primarily for rented mining equipment and employee housing (December 31, 2021 - $649).

**12. PROVISION FOR RECLAMATION AND REHABILITATION**

The Company's environmental permit requires that it reclaim certain land it disturbs during mining operations. Significant reclamation and closure activities include land rehabilitation, decommissioning of buildings and mine facilities, ongoing care and maintenance and other costs. Although the ultimate amount of the reclamation and rehabilitation costs to be incurred cannot be predicted with certainty, the total undiscounted amount of probability weighted estimated cash flows required to settle the Company's estimated obligations is $6,156 for the Guanaceví mine, $4,499 for the Bolañitos mine, $814 for the Terronera development project and $44 for the Pitarrilla exploration project.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 31

------

**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

The timing of cash flows has been estimated based on the estimated mine lives using current reserves and the present value of the probability weighted future cash flows. The model assumes a risk-free rate specific to the liability of 7.37% for Guanaceví, 7.45% for Bolañitos and 7.88% for Terronera, and with an estimated inflation rate of 5.1%, 5.38% and 4.47% respectively.

Changes to the reclamation and rehabilitation provision balance during the year are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Terronera** | **Guanaceví** | **Bolañitos** | **El Cubo** | **El Compas** | **Pitarrilla** | **Total** |
| Balance at December 31, 2020 | $- | $2221 | $1977 | $4545 | $133 | $- | $8876 |
| Accretion |  | 100 | 83 | 70 | 9 |  | 262 |
| Disposals |  |  |  | (4615) |  |  | (4615) |
| Change in estimates during the year |  | 1676 | 1177 |  | 21 |  | 2874 |
| **Balance at December 31, 2021** | $**-** | $**3997** | $**3237** | $**-** | $**163** | $**-** | $**7397** |
| Acquisitions |  |  |  |  |  | 44 | 44 |
| Accretion |  | 268 | 211 |  |  |  | 479 |
| Disposals |  |  |  |  | (163) |  | (163) |
| Effects of movements in exchange rates |  | 95 | 93 |  |  |  | 188 |
| Change in estimates during the year | 251 | (257) | (338) |  |  |  | (344) |
| **Balance at December 31, 2022** | $**251** | $**4103** | $**3203** | $**-** | $**-** | $**44** | $**7601** |

---

**13. SHARE CAPITAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Management of Capital**

The Company considers the items included in the consolidated statement of changes in equity as capital. The Company's objective when managing capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue new shares through private placements, convertible debentures, asset acquisitions or return capital to shareholders. As at December 31, 2022, the Company is not subject to externally imposed capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Public Offerings**

In April 2020, the Company filed a short form base shelf prospectus that qualified for the distribution of up to CAN$150 million of common shares, debt securities, warrants or units of the Company comprising any combination of common shares and warrants (the "Securities") over a 25 month period. The Company filed a corresponding registration statement in the United States registering the Securities under United States federal securities laws. The distribution of Securities could be effected from time to time in one or more transactions at a fixed price or prices, which could be changed, at market prices prevailing at the time of sale, or at prices related to such prevailing market prices to be negotiated with purchasers and as set forth in an accompanying prospectus supplement, including transactions that are "At-The-Market" ("ATM") distributions.

On October 1, 2020, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co. LLC, TD Securities Inc., Roth Capital Partners, LLC, B. Riley Securities Inc. and A.G.P./Alliance Global Partners (together, the "Agents"). Under the terms of this ATM facility, the Company could, from time to time, sell common stock having an aggregate offering value of up to $60,000 on the New York Stock Exchange. The Company determined, at its sole discretion, the timing and number of shares sold under the ATM facility.

In the period from January 1, 2021 to July 20, 2021, when this ATM facility was completed, the Company issued 10,060,398 common shares under the ATM facility at an average price of $5.96 per share for gross proceeds of $59,998, less commission of $1,230 and recognized $379 of other transaction costs related to the ATM financing as share issuance costs, which have been presented net within share capital.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 32

------

**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

On March 22, 2022, the Company completed a prospectus equity financing with the offering co-led by BMO Capital Markets and PI Financial Corp., together with a syndicate of underwriters consisting of CIBC World Markets Inc., B. Riley Securities Inc., and H.C. Wainwright & Co., LLC. The Company issued a total of 9,293,150 common shares at a price of $4.95 per share for aggregate gross proceeds of $46,001, less commission of $2,524 and recognized $361 of other transaction costs related to the financing as share issuance costs, which have been presented net within share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Stock Options**

Options to purchase common shares have been granted to directors, officers, employees and consultants pursuant to the Company's current stock option plan, approved by the Company's shareholders in fiscal 2009 and amended and re-ratified in 2021, at exercise prices determined by reference to the market value on the date of grant. The stock option plan allows for, with approval by the Board, granting of options to its directors, officers, employees and consultants to acquire up to 5.0% of the issued and outstanding shares at any time. Prior to the 2021 amendment, the plan allowed for the granting of up to 7.0% of the issued and outstanding shares at any time.

The following table summarizes the status of the Company's stock option plan and changes during the years 2022 and 2021.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in Canadian dollars** | **Years ended** | **Years ended** | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | **December 31,** <br>**2022** | December 31,<br>2021 | December 31,<br>2021 |
|  | **Number of<br>options** | **Weighted<br>average<br>exercise price** | Number of<br>options | Weighted<br>average<br>exercise price |
|  | **Number of<br>options** | **Weighted<br>average<br>exercise price** | Number of<br>options | Weighted<br>average<br>exercise price |
| Outstanding, beginning of the year | **3848200** | **$3.68** | 5978300 | $3.29 |
| &nbsp;&nbsp;&nbsp;Granted | **736986** | **$6.24** | 818500 | $6.90 |
| &nbsp;&nbsp;&nbsp;Exercised | **(569200)** | **$3.57** | (2801600) | $3.76 |
| &nbsp;&nbsp;&nbsp;Expired and forfeited | **(116356)** | **$6.63** | (147000) | $4.29 |
| Outstanding, end of the year | **3899630** | **$4.09** | 3848200 | $3.68 |
| Options exercisable at the end of the year | **3374459** | **$3.74** | 2973100 | $3.40 |

---

During the year ended December 31, 2022, the weighted-average share price at the date of exercise was CAN$6.77 (December 31, 2021 - CAN$7.51)

The following table summarizes the information about stock options outstanding at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Expressed in Canadian dollars** | **Expressed in Canadian dollars** | **Expressed in Canadian dollars** |  |  |  |
|  | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  | **Options Exercisable** | **Options Exercisable** |
|  | Number | Weighted Average | Weighted<br>Average | Number<br>Exercisable | Weighted<br>Average |
|  | Outstanding | Remaining | Weighted<br>Average | Number<br>Exercisable | Weighted<br>Average |
| Price | as at | Contractual Life | Exercise | as at | Exercise |
| Intervals | December 31, 2022 | (Number of Years) | Price | December 31, 2022 | Price |
| &nbsp;&nbsp;&nbsp; $2.00 - $2.99 | 1366600 | 2.2 | $2.14 | 1366600 | $2.14 |
| &nbsp;&nbsp;&nbsp; $3.00 - $3.99 | 1131900 | 0.9 | $3.45 | 1131900 | $3.45 |
| &nbsp;&nbsp;&nbsp; $5.00 - $5.99 | 60000 | 2.7 | $5.60 | 60000 | $5.60 |
| &nbsp;&nbsp;&nbsp; $6.00 - $6.99 | 1341130 | 3.7 | $6.56 | 815959 | $6.67 |
|  | 3899630 | 2.3 | $4.09 | 3374459 | $3.74 |

---

During the year ended December 31, 2022, the Company recognized share-based compensation expense of $1,642 (December 31, 2021 - $1,973) based on the fair value of the vested portion of options granted in the current and prior years.

The weighted-average fair values of stock options granted and the assumptions used to calculate the related compensation expense have been estimated using the Black-Scholes Option Pricing Model with the following assumptions:

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 33

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022**  | December 31,<br>2021 |
| Weighted-average fair value of options in CAN$ | **$3.17** | $3.37 |
| Risk-free interest rate | **2.19%** | 0.66% |
| Expected dividend yield | **0%** | 0% |
| Expected stock price volatility | **67%** | 66% |
| Expected options life in years | **3.80** | 3.85 |

---

Option pricing models require the input of highly subjective assumptions. The expected life of the options considered such factors as the average length of time similar option grants in the past have remained outstanding prior to exercise, expiry or cancellation and the vesting period of options granted. Volatility was estimated based on average daily volatility based on historical share price observations over the expected term of the option grant. Changes in the subjective input assumptions can materially affect the estimated fair value of the options. The Company amortizes the fair value of stock options on a graded basis over the respective vesting period of each tranche of stock options awarded. As at December 31, 2022, the unvested stock option expense not yet recognized was $442 (December 31, 2021 - $472) which is expected to be recognized over the next 15 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Share Units Plan**

On March 23, 2021 the Company adopted an equity-based Share Unit Plan ("SUP"), which was approved by the Company's shareholders on May 12, 2021. The SUP allows for, with approval by the Board, granting of Performance Share Units ("PSU"s) and Deferred Share Units ("DSU"s), to its directors, officers, employees to acquire up to 1.5% of the issued and outstanding shares. The SUP incorporates all existing PSUs under the former PSU plan and any new DSUs granted and are to be subject to cash, share settlement or a combination of cash and share procedures at the discretion of the Board of Directors.

**Performance Share Units**

The PSUs granted are subject to a performance payout multiplier between 0% and 200% based on the Company's total shareholder return at the end of a three-year period, relative to the total shareholder return of the Company's peer group.

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | December 31,<br>2021 |
|  | **Number of units** | Number of units |
| Outstanding, beginning of year | **1639000** | 1805000 |
| &nbsp;&nbsp;&nbsp;Granted | **316000** | 322000 |
| &nbsp;&nbsp;&nbsp;Cancelled | **-** | (100000) |
| &nbsp;&nbsp;&nbsp;Settled for shares | **(797000)** | (388000) |
| Outstanding, end of year | **1158000** | 1639000 |

---

There were 316,000 PSUs granted during the year ended December 31, 2022 (December 31, 2021 - 322,000). The PSUs vest at the end of a three-year period if certain pre-determined performance and vesting criteria are achieved. Performance criteria are based on the Company's share price performance relative to a representative group of other mining companies. 611,000 PSUs vest on March 1, 2023, 231,000 PSUs vest on March 4, 2024, 256,000 PSUs vest on March 24, 2025 and 60,000 PSUs vest on or before June 30, 2024.

On March 3, 2022, PSUs granted in 2019 vested with a payout multiplier of 200% based on the Company's shareholder return, relative to the total shareholder return of the Company's peer group over the three-year period and 535,000 PSUs were settled, on a net of tax basis, through the issuance of 664,170 common shares.

On August 16, 2022, vesting was accelerated on a pro-rata basis for 195,000 PSUs granted in 2020 and 67,000 PSUs granted in 2021. As at December 31, 2022, there are 350,829 issuable shares from the settlement of these PSUs.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 34

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

During the year ended December 31, 2022, the Company recognized share-based compensation expense of $1,713 related to the PSUs (December 31, 2021 - $1,663).

**Deferred Share Units**

The DSUs granted are vested immediately and are redeemable for shares at the time of a director's retirement.

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | December 31,<br>2021 |
|  | **Number of units** | Number of units |
| Outstanding, beginning of year | **-** |  |
| &nbsp;&nbsp;&nbsp;Granted | **109634** |  |
| &nbsp;&nbsp;&nbsp;Settled for shares | **(5038)** |  |
| Outstanding, end of year | **104596** | - |

---

There were 109,634 DSUs granted during the year ended December 31, 2022 (December 31, 2021 - Nil) under the SUP. During the year ended December 31, 2022, 5,038 DSUs were settled, on a net of tax basis, through the issuance of 3,527 common shares. During the year ended December 31, 2022, the Company recognized share-based compensation expense of $523 related to the DSUs (December 31, 2021 - $Nil).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Deferred Share Units - Cash Settled**

The Company previously had a Deferred Share Unit ("DSU") plan whereby deferred share units were granted to independent directors of the Company in lieu of compensation in cash or share purchase options. These DSUs vested immediately and are redeemable for cash, based on the market value of the units at the time of a director's retirement. Upon adoption of the SUP plan in March 2021, no new DSUs will be granted under this cash settled plan.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in Canadian dollars** | **Years ended** | **Years ended** | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | **December 31,** <br>**2022** | December 31,<br>2021 | December 31,<br>2021 |
|  | **Number<br>of Units** | **Weighted Average<br>Grant Price** | Number<br>of Units | Weighted Average<br>Grant Price |
| Outstanding, beginning of year | **1348765** | **$3.24** | 1266199 | $3.00 |
| &nbsp;&nbsp;&nbsp;Granted | **-** | **-** | 82566 | $6.90 |
| &nbsp;&nbsp;&nbsp;Redeemed | **(304561)** | **$3.41** |  |  |
| Outstanding, end of year | **1044204** | **$3.19** | 1348765 | $3.24 |
| Fair value at year end | **1044204** | **$4.38** | 1348765 | $5.35 |

---

During the year ended December 31, 2022, the Company recognized a recovery on director's compensation related to these DSUs, which is included in general and administrative salaries, wages and benefits, of $885 (December 31, 2021 - a recovery of $707) based on the fair value of new grants and the change in the fair value of the DSUs granted in the current and prior years. As of December 31, 2022, there are 1,044,204 deferred share units outstanding (December 31, 2021 - 1,348,765) with a fair market value of $3,375 (December 31, 2021 - $5,682) recognized in accounts payable and accrued liabilities. During the year ended December 31, 2022, 304,561 DSUs were redeemed with a fair value of $1,421

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Share Appreciation Rights** 

As part of the Company's bonus program, the Company may grant share appreciation rights ("SARs") to its employees in Mexico and Chile. The SARs are subject to vesting conditions and, when exercised, constitute a cash bonus based on the value of the appreciation of the Company's common shares between the SARs grant date and the exercise date.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 35

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years ended** | **Years ended** | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | **December 31,** <br>**2022** | December 31,<br>2021 | December 31,<br>2021 |
|  | **Number<br>of Units** | **Weighted Average<br>Grant Price** | Number<br>of Units | Weighted Average<br>Grant Price |
|  | **Number<br>of Units** | **Weighted Average<br>Grant Price** | Number<br>of Units | Weighted Average<br>Grant Price |
| Outstanding, beginning of year | **113670** | **$5.40** |  |  |
| &nbsp;&nbsp;&nbsp;Granted | **148030** | **$4.62** | 115930 | $5.40 |
| &nbsp;&nbsp;&nbsp;Exercised | **(5726)** | **$3.17** | (2260) | $5.34 |
| &nbsp;&nbsp;&nbsp;Cancelled | **(74235)** | $**4.72** |  |  |
| Outstanding, end of period | **181739** | **$5.12** | 113670 | $5.40 |
| Exercisable at the end of the period | **101066** | **$5.18** | 40912 | $5.39 |

---

During the year ended December 31, 2022, the Company recognized an expense related to SARs, which is included in operation and exploration salaries, wages and benefits, of $1 (December 31, 2021 - an expense of $113) based on the change in the fair value of the SARs granted in prior years. As of December 31, 2022, there are 181,739 SARs outstanding (December 31, 2021 - 113,670) with a fair market value of $111 (December 31, 2021 - $113) recognized in accounts payable and accrued liabilities.

The SARs were valued using an option pricing model, which requires the input of highly subjective assumptions. The expected life of the SARs considered such factors as the average length of time similar grants in the past have remained outstanding prior to exercise, expiry or cancellation and the vesting period of SARs granted. Volatility was estimated based on average daily volatility based on historical share price observations over the expected term of the SAR grant. Changes in the subjective input assumptions can materially affect the estimated fair value of the SARs. The Company amortized the fair value of SARs on a graded basis over the respective vesting period of each tranche of SARs awarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Diluted Earnings per Share**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | December 31,<br>2021 |
| Net earnings | $**6201** | $13955 |
| Basic weighted average number of shares outstanding | **183009339** | 167289732 |
| Effect of dilutive securities: |  |  |
| Stock options | **1077699** | 1735151 |
| Equity settled deferred share units | **104596** |  |
| Performance share units | **1158000** | 1639000 |
| Diluted weighted average number of share outstanding | **185349634** | 170663883 |
| Diluted earnings per share | $**0.03** | $**0.08** |

---

As of December 31, 2022, there are 2,821,931 anti-dilutive stock options (December 31, 2021 - 2,113,049).

**14. REVENUE**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Silver sales <sup>(1)</sup> | $**142688** | $97257 |
| Gold sales <sup>(1)</sup> | **70501** | 70022 |
| Less: smelting and refining costs | **(3029)** | (1959) |
| Revenue | $**210160** | $165320 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Changes in fair value from provisional pricing in the period are included in silver and gold sales.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 36

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Revenue by product |  |  |
| &nbsp;&nbsp;&nbsp; Concentrate sales | $**54042** | $57011 |
| &nbsp;&nbsp;&nbsp; Provisional pricing adjustments | **(47)** | (183) |
| Total revenue from concentrate sales | **53995** | 56828 |
| Refined metal sales | **156165** | 108492 |
| Total revenue | $**210160** | $165320 |

---

Provisional pricing adjustments on sales of concentrate consist of provisional and final pricing adjustments made prior to the finalization of the sales contract. The Company's sales contracts are provisionally priced with provisional pricing periods lasting typically one to three months with provisional pricing adjustments recorded to revenue as market prices vary. As at December 31, 2022, a 10% change to the underlying metals prices would result in a change in revenue and accounts receivable of $663 (December 31, 2021 - $470) based on the total quantities of metals in sales contracts for which the provisional pricing periods were not yet closed.

**15. EXPLORATION AND EVALUATION**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** <br>**2022** | December 31,<br>2021 |
| Depreciation and depletion | $**624** | $330 |
| Share-based compensation | **427** | 293 |
| Exploration salaries, wages and benefits | **1829** | 1975 |
| Direct exploration expenditures | **6167** | 7335 |
| Evaluation salaries, wages and benefits | **2299** | 1677 |
| Direct evaluation expenditures | **4840** | 6315 |
|  | $**16186** | $17925 |

---

**16. GENERAL AND ADMINISTRATIVE**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Depreciation and depletion | $**214** | $165 |
| Share-based compensation | **3009** | 2923 |
| Salaries, wages and benefits | **3923** | 3923 |
| Directors' DSU expense (recovery) | **(885)** | (707) |
| Direct general and administrative | **4352** | 3759 |
|  | $**10613** | $10063 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 37

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**17. CARE AND MAINTENANCE**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Depreciation and depletion | $**70** | $55 |
| Salaries, wages and benefits | **22** | 497 |
| Direct general and administrative | **488** | 804 |
|  | $**580** | $1356 |

---

In November 2019, the Company suspended mining operations at the El Cubo mine and subsequently sold the mine on April 9, 2021. In August 2021, the Company suspended mining operations at the El Compas mine and the mine remained on care and maintenace until it was sold in September 2022. For the year ended December 31, 2022, the Company recognized a care and maintenance expense of $580 inclusive of $nil in severance costs (December 31, 2021 - $1,356 inclusive of $870 in severance costs).

**18. FINANCE COSTS**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Years ended** | **Years ended** |
|  |  | **December 31,** | December 31, |
|  | Notes | **2022** | 2021 |
| Accretion on provision for reclamation and rehabilitation | 12 | $**479** | $262 |
| Interest on loans | 10 | **726** | 650 |
| Interest on lease liabilities | 11 | **64** | 73 |
| Other financing costs |  | **31** |  |
|  |  | $**1300** | $985 |

---

**19. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Net changes in non-cash working capital: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts and other receivables | $**(4385)** | $3919 |
| &nbsp;&nbsp;&nbsp;Income tax receivable | **(3847)** | (3695) |
| &nbsp;&nbsp;&nbsp;Inventories | **5226** | (11103) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | **(862)** | (2873) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | **2447** | 3786 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | **2388** | 1190 |
|  | $**967** | $(8776) |
| Non-cash financing and investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Reclamation included in mineral properties, plant and equipment | $**(463)** | $(1741) |
| &nbsp;&nbsp;&nbsp;Fair value of exercised options allocated to share capital | $**770** | $4026 |
| &nbsp;&nbsp;&nbsp;Fair value of performance share units allocated to share capital | $**(1361)** | $- |
| &nbsp;&nbsp;&nbsp;Fair value of capital assets acquired under finance leases | $**346** | $90 |
| Other cash disbursements: |  |  |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $**6337** | $992 |
| &nbsp;&nbsp;&nbsp;Special mining duty paid | $**2272** | $1331 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 38

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**20. SEGMENT DISCLOSURES**

The Company's operating segments are based on internal management reports that are reviewed by the Company's executives (the chief operating decision makers) in assessing performance. The Company has two operating mining segments which are located in Mexico, Guanaceví and Bolañitos, and the El Compas mine which was on care and maintenance until the sale of the mine on September 9, 2022. The Company has one development project in Mexico, Terronera, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico, Chile and the USA. Exploration projects that are in the local district surrounding a mine are included in the mine's segments. Comparative period figures related to Terronera, previously reported as part of the exploration segment have been reclassified to conform with current period's presentation. Comparative period figures related to the El Cubo mine, which was on care and maintenance from November 2019 until the sale of the mine and related assets in April 2021, previously reported as its own segment have been reclassified to the Corporate segment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Corporate** | **Exploration** | **Guanaceví** | **Bolanitos** | **Terronera** | **Total** |
| Cash and cash equivalents | $38466 | $1935 | $32997 | $7371 | $2622 | $83391 |
| Other investments | 10035 |  |  |  |  | 10035 |
| Accounts and other receivables | 383 | 669 | 5824 | 6246 | 14 | 13136 |
| Loans receivable | 3729 |  |  |  |  | 3729 |
| Income tax receivable | 17 |  | 3934 | 73 |  | 4024 |
| Inventories | 120 |  | 14094 | 4942 | 28 | 19184 |
| Prepaid expenses | 1685 | 144 | 1155 | 536 | 13431 | 16951 |
| Non-current deposits | 150 | 2 | 321 | 92 |  | 565 |
| Non-current IVA receivable |  |  | 1505 |  | 8649 | 10154 |
| Non-current income tax receivable | 3570 |  |  |  |  | 3570 |
| Right-of-use leased assets | 512 |  |  | 294 |  | 806 |
| Mineral properties, plant and equipment | 616 | 81660 | 67261 | 28106 | 56249 | 233892 |
| Total assets | $59283 | $84410 | $127091 | $47660 | $80993 | $399437 |
| Accounts payable and accrued liabilities | $6837 | $743 | 19875 | $5327 | $7049 | $39831 |
| Income taxes payable | 65 | 282 | 5539 | 730 |  | 6616 |
| Loans payable |  |  | 1025 | 2092 | 11393 | 14510 |
| Lease obligations | 780 |  | 293 |  |  | 1073 |
| Provision for reclamation and rehabilitation |  | 44 | 4103 | 3203 | 251 | 7601 |
| Deferred income tax liability |  |  | 12647 | 297 |  | 12944 |
| Other non-current liabilities |  | 69 | 443 | 437 | 19 | 968 |
| Total liabilities | $7682 | $1138 | $43925 | $12086 | $18712 | $83543 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 39

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Corporate** | **Exploration** | **Guanaceví** | **Bolanitos** | **El Compas** | **Terronera** | **Total** |
| Cash and cash equivalents | $68149 | $144 | $27060 | $4234 | $3349 | $367 | $103303 |
| Other investments | 11200 |  |  |  |  |  | 11200 |
| Accounts and other receivables | 812 |  | 6706 | 6633 | 308 | 3 | 14462 |
| Income tax receivable | 169 | 1 | 3 | 2 | 2 |  | 177 |
| Inventories | 351 |  | 19852 | 7057 | 195 | 30 | 27485 |
| Prepaid expenses | 1327 | 118 | 844 | 349 | 20 | 2477 | 5135 |
| Non-current deposits | 150 |  | 321 | 128 |  |  | 599 |
| Non-current IVA receivable | 164 |  | 1434 |  |  | 2658 | 4256 |
| Deferred income tax asset |  |  |  | 936 |  |  | 936 |
| Non-current income tax receivable | 3570 |  |  |  |  |  | 3570 |
| Intangible assets | 2 | 1 | 15 | 17 | 2 | 3 | 40 |
| Right-of-use leased assets | 564 |  | 100 |  |  |  | 664 |
| Mineral properties, plant and equipment | 373 | 18963 | 54234 | 27371 | 2005 | 19251 | 122197 |
| Total assets | $86831 | $19227 | $110569 | $46727 | $5881 | $24789 | $294024 |
| Accounts payable and accrued liabilities | $10121 | $238 | 15247 | $4667 | $141 | $1577 | $31991 |
| Income taxes payable | 29 |  | 3563 | 636 |  |  | 4228 |
| Loans payable | 43 |  | 2005 | 4048 |  | 4398 | 10494 |
| Lease obligations | 896 |  |  | 105 |  |  | 1001 |
| Provision for reclamation and rehabilitation |  |  | 3997 | 3237 | 163 |  | 7397 |
| Deferred income tax liability |  |  | 1271 | 235 |  |  | 1506 |
| Total liabilities | $11089 | $238 | $26083 | $12928 | $304 | $5975 | $56617 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 40

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
|  | **Corporate** | **Exploration** | **Guanaceví** | **Bolanitos** | **El Compas** | **Terronera** | **Total** |
| Silver revenue | $- | $- | $128597 | $14091 | $- | $- | $142688 |
| Gold revenue |  |  | 27569 | 42932 |  |  | 70501 |
| Less: smelting and refining costs |  |  |  | (3029) |  |  | (3029) |
| Total revenue | $- | $- | $156166 | $53994 | $- | $- | $210160 |
| Salaries, wages and benefits: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; mining | $- | $- | $7578 | $7778 | $- | $- | $15499 |
| &nbsp;&nbsp;&nbsp; processing |  |  | 3444 | 2281 |  |  | 5813 |
| &nbsp;&nbsp;&nbsp; administrative |  |  | 5959 | 4028 |  |  | 10096 |
| &nbsp;&nbsp;&nbsp; share-based compensation |  |  | 221 | 221 |  |  | 442 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | 1941 | 825 |  |  | 2426 |
| Total salaries, wages and benefits |  |  | 19143 | 15133 |  |  | 34276 |
| Direct costs: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; mining |  |  | 29636 | 12494 |  |  | 41881 |
| &nbsp;&nbsp;&nbsp; processing |  |  | 15594 | 6028 |  |  | 21622 |
| &nbsp;&nbsp;&nbsp; administrative |  |  | 7096 | 4432 |  |  | 11495 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | 3175 | 1591 |  |  | 5048 |
| Total direct production costs |  |  | 55501 | 24545 |  |  | 80046 |
| Depreciation and depletion: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; depreciation and depletion |  |  | 12838 | 10589 |  |  | 23427 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | 1291 | 461 |  |  | 1752 |
| Total depreciation and depletion |  |  | 14129 | 11050 |  |  | 25179 |
| Royalties |  |  | 17554 | 257 |  |  | 17811 |
| Write down of inventory to NRV |  |  | 642 | 681 |  |  | 1323 |
| Total cost of sales | $- | $- | $106969 | $51666 | $- | $- | $158635 |
| Care and maintenance costs |  |  |  |  | 580 |  | 580 |
| Write-off of exploration properties |  |  |  |  |  | 682 | 682 |
| Earnings (loss) before taxes | $(9128) | $(9047) | $49197 | $2328 | $(580) | $(7821) | $24949 |
| &nbsp;&nbsp;&nbsp; Current income tax expense (recovery) | 63 | 282 | 5671 | 360 |  |  | 6376 |
| &nbsp;&nbsp;&nbsp; Deferred income tax expense (recovery) |  |  | 11375 | 997 |  |  | 12372 |
| Total income tax expense (recovery) | 63 | 282 | 17046 | 1357 |  |  | 18748 |
| Net earnings (loss) | $(9191) | $(9329) | $32151 | $971 | $(580) | $(7821) | $6201 |

---

The Exploration segment included $1,899 of costs incurred in Chile for the year ended December 31, 2022 (December 31, 2021 - $2,178).

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 41

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|  | **Corporate** | **Exploration** | **Guanaceví** | **Bolanitos** | **El Compas** | **Terronera** | **Total** |
| Silver revenue | $- | $- | $85854 | $10149 | $1254 | $- | $97257 |
| Gold revenue |  |  | 22638 | 38645 | 8739 |  | 70022 |
| Less: smelting and refining costs |  |  |  | (1715) | (244) |  | (1959) |
| Total revenue | $- | $- | $108492 | $47079 | $9749 | $- | $165320 |
| Salaries, wages and benefits: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; mining | $- | $- | $8352 | $5574 | $1314 | $- | $15240 |
| &nbsp;&nbsp;&nbsp; processing |  |  | 3303 | 1799 | 614 |  | 5716 |
| &nbsp;&nbsp;&nbsp; administrative |  |  | 5406 | 3331 | 823 |  | 9560 |
| &nbsp;&nbsp;&nbsp; share-based compensation |  |  | 180 | 180 | 61 |  | 421 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | (2946) | (764) | 342 |  | (3368) |
| Total salaries, wages and benefits |  |  | 14295 | 10120 | 3154 |  | 27569 |
| Direct costs: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; mining |  |  | 25253 | 11076 | 2746 |  | 39075 |
| &nbsp;&nbsp;&nbsp; processing |  |  | 12220 | 5373 | 1205 |  | 18798 |
| &nbsp;&nbsp;&nbsp; administrative |  |  | 5981 | 3813 | 1380 |  | 11174 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | (5808) | (1306) | 522 |  | (6592) |
| Total direct production costs |  |  | 37646 | 18956 | 5853 |  | 62455 |
| Depreciation and depletion: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; depreciation and depletion |  |  | 11842 | 13696 | 1436 |  | 26974 |
| &nbsp;&nbsp;&nbsp; change in inventory |  |  | (3899) | (205) | 1107 |  | (2997) |
| Total depreciation and depletion |  |  | 7943 | 13491 | 2543 |  | 23977 |
| Royalties | 3 |  | 13165 | 265 | 350 |  | 13783 |
| Write down of inventory to NRV |  |  | 539 | 357 | 272 |  | 1168 |
| Total cost of sales | $3 | $- | $73588 | $43189 | $12172 | $- | $128952 |
| Care and maintenance costs | 859 |  |  |  | 497 |  | 1356 |
| Write-off of exploration properties |  |  |  |  | 870 |  | 870 |
| Impairment (impairment reversal) | (16791) |  |  |  |  |  | (16791) |
| Earnings (loss) before taxes | $13324 | $(10648) | $34904 | $3890 | $(3790) | $(7992) | $29688 |
| &nbsp;&nbsp;&nbsp; Current income tax expense (recovery) |  |  | 3206 | 275 |  |  | 3481 |
| &nbsp;&nbsp;&nbsp; Deferred income tax expense (recovery) |  |  | 9924 | 2328 |  |  | 12252 |
| Total income tax expense (recovery) |  |  | 13130 | 2603 |  |  | 15733 |
| Net earnings (loss) | $13324 | $(10648) | $21774 | $1287 | $(3790) | $(7992) | $13955 |

---

The Exploration segment included $2,178 of costs incurred in Chile for the year ended December 31, 2021 (December 31, 2020 - $1,799).

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 42

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**21. INCOME TAXES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Tax Assessments**

Minera Santa Cruz y Garibaldi S.A. de C.V. ("MSCG"), a subsidiary of the Company, received a MXN 238 million assessment on October 12, 2010 by Mexican fiscal authorities for failure to provide the appropriate support for certain expense deductions taken in MSCG's 2006 tax return, failure to provide appropriate support for loans made to MSCG from affiliated companies, and deemed an unrecorded distribution of dividends to shareholders, among other individually immaterial items. MSCG immediately initiated a Nullity action and filed an administrative attachment to dispute the assessment.

In June 2015, the Superior Court ruled in favour of MSCG on a number of the matters under appeal; however, the Superior Court ruled against MSCG for failure to provide appropriate support for certain deductions taken in MSCG's 2006 tax return. In June 2016, the Company received an MXN 122.9 million ($6,300) tax assessment based on the June 2015 ruling. The 2016 tax assessment comprised of MXN 41.8 million owed ($2,100) in taxes, MXN 17.7 million ($900) in inflationary charges, MXN 40.4 million ($2,100) in interest and MXN 23.0 million ($1,200) in penalties. The 2016 tax assessment was issued for failure to provide the appropriate support for certain expense deductions taken in MSCG's 2006 tax return and failure to provide appropriate support for loans made to MSCG from affiliated companies. The MXN 122.9 million assessment includes interest and penalties. If MSCG agrees to pay the tax assessment, or a lesser settled amount, it is eligible to apply for forgiveness of 100% of the penalties and 50% of the interest.

The Company filed an appeal against the June 2016 tax assessment on the basis certain items rejected by the courts were included in the new tax assessment, and a number of deficiencies exist within the assessment. Since issuance of the assessment interest charges of MXN 16.9 million ($867) and inflationary charges of MXN 25.3 million ($1,298) have accumulated.

Included in the Company's consolidated financial statements are net assets of $964 held by MSCG. Following the Tax Court's rulings, MSCG is in discussions with the tax authorities with regards to the shortfall of assets within MSCG to settle its estimated tax liability. An alternative settlement option would be to transfer the shares and assets of MSCG to the tax authorities. As of December 31, 2022, the Company's income tax payable includes an allowance for transferring the shares and assets of MSCG amounting to $964. The Company is currently assessing MSCG's settlement options based on ongoing court proceedings and discussion with the tax authorities. The Company has been advised that the appeal filed with the Federal Tax Court, against the June 2016 tax assessment has been rejected. The Company continues to assess MSCG's settlement options.

Compania Minera Del Cubo S.A. de C.V. ("Cubo"), a subsidiary of the Company, received a MXN 58.5 million ($2,900) assessment in 2019 by Mexican fiscal authorities for alleged failure to provide the appropriate support for depreciation deductions taken in the Cubo 2016 tax return and denied eligibility of deductions of certain suppliers. The tax assessment consisted of MXN 24.1 million ($1,200) for taxes, MXN 21.0 million ($1,100) for penalties, MXN 10.4 million ($500) for interest and MXN 3.0 million ($100) for inflation. At the time of the tax assessment the Cubo entity had and continues to have sufficient loss carry forwards which would be applied against the assessed difference of taxable income. The Mexican tax authorities did not consider these losses in the assessment.

Due to the denial of certain suppliers for income tax purposes in the Cubo assessment, the invoices from these suppliers have been assessed as ineligible for refunds of IVA paid on the invoices. The assessment includes MXN 14.7 million ($600) for re-payment of IVA (value added taxes) refunded on these supplier payments. In the Company's judgement the suppliers and invoices meet the necessary requirements to be deductible for income tax purposes and the recovery of IVA.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 43

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

The Company has filed an administrative appeal related to the 2016 Cubo Tax assessment. The Company had previously provided a lien on certain El Cubo mining concessions during the appeal process. To facilitate the sale of the El Cubo mine and related assets, the Company elected to pay the assessed amount of $3,500 during Q1, 2021. During the appeal process the amount paid has been classified as a non-current income tax receivable. Since issuance of the assessment interest charges of MXN 9.9 million ($500) and inflationary charges of MXN 1.6 million ($100) had accumulated. The Company continues to assess that it is probable that its appeal will prevail, and no provision is recognized in respect of the Cubo tax assessment.

The Company's Mexican operations are subject to an Environmental Royalty Tax of 0.5% of gross sales and in 2022 the Company recognized $938 in royalty expense for the Environmental Royalty Tax (2021 - $950), included in cost of sales.

**Deferred Income Tax Assets and Liabilities**

---

| | | |
|:---|:---|:---|
| Mexico operations | **December 31,** | December 31, |
| Deferred tax derived from income tax | **2022** | 2021 |
| Deferred income tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Tax loss carryforwards | $**3032** | $8893 |
| &nbsp;&nbsp;&nbsp;Working capital | **3155** | 11287 |
| Deferred income tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Inventories | **(2814)** | (7146) |
| &nbsp;&nbsp;&nbsp;Mineral properties, plant and equipment | **(13772)** | (12177) |
| Deferred income tax assets (liabilities), net | $**(10399)** | $857 |
| Mexico operations | **December 31,** | December 31, |
| Deferred tax derived from special mining duty | **2022** | 2021 |
| Deferred income tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Working capital | $**(227)** | $510 |
| &nbsp;&nbsp;&nbsp;Mineral properties, plant and equipment | **(2318)** | (1937) |
| Deferred income tax assets (liabilities), net | $**(2545)** | $(1427) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Income Tax Expense**

---

| | | |
|:---|:---|:---|
|  | **Years ended** | **Years ended** |
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Current income tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;Current income tax expense in respect of current year | $**3180** | $754 |
| &nbsp;&nbsp;&nbsp;Special mining duty | **3196** | 2726 |
| Deferred income tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred tax expense recognized in the current year | **14762** | 19641 |
| &nbsp;&nbsp;&nbsp;Special mining duty | **1115** | 574 |
| &nbsp;&nbsp;&nbsp;Adjustments recognized in the current year in relation to prior years | **(3505)** | (7962) |
| Total income tax expense | $**18748** | $15733 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 44

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

The reconciliation of the income tax provision computed at statutory tax rates to the reported income tax provision is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | December 31, |
|  | **2022** | 2021 |
| Canadian statutory tax rates | **27.00%** | 27.00% |
| Income tax expense computed at Canadian statutory rates | $**5892** | $8015 |
| Foreign tax rates different from statutory rate | **1858** | 986 |
| Withholding taxes, net of tax credits | **-** |  |
| Share-based compensation | **667** | 545 |
| Foreign exchange | **764** | 2279 |
| Inflationary adjustment | **3898** | 4836 |
| Other non-deductible items | **2652** | 1375 |
| Adjustments recognized in the current year in relation to prior years | **1298** | (468) |
| Current year losses not recognized | **2364** | 2456 |
| Special mining duty Mexican tax | **4158** | 3203 |
| Recognition of previously unrecognized losses | **(4803)** | (7494) |
| Income tax expense | $**18748** | $15733 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Unrecognized Deferred Tax Assets**

Management believes that sufficient uncertainty exists regarding the realization of certain deferred tax assets such that they have not been fully recognized. The tax benefits not recognized reflect management's assessment regarding the future realization of Canadian, Chilean and certain Mexican tax assets and estimates of future earnings and taxable income in these jurisdictions as of December 31, 2022. When circumstances cause a change in management's judgement about the recoverability of deferred tax assets, the impact of the change will be reflected in current income.

---

| | | | |
|:---|:---|:---|:---|
|  | Loss Carry Forward | **December 31,** | December 31, |
|  | Expiry | **2022** | 2021 |
| Unrecognized Mexico tax loss carry forward | 2023-2032 | $**75540** | $118810 |
| Unrecognized Canada tax loss carry forward | 2025-2032 | **11005** | 7525 |
| Unrecognized Chile tax loss carry forward | 2023-2032 | **18146** | 16403 |
| Capital losses |  | **21174** | 9650 |
| Reclamation provision |  | **7556** | 7396 |
| Exploration pools |  | **7194** | 13569 |
| Other Canada temporary differences |  | **10905** | 13069 |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 45

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

**22. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Financial assets and liabilities**

As at December 31, 2022, the carrying and fair values of the Company's financial instruments by category are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value<br>through profit or<br>loss | Amortized<br>cost | Carrying value | Fair<br>value |
|  | $| $| $| $|
| Financial assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | 83391 | 83391 | 83391 |
| &nbsp;&nbsp;&nbsp; Other investments | 10035 |  | 10035 | 10035 |
| &nbsp;&nbsp;&nbsp; Trade and other receivables | 4385 | 689 | 5074 | 5074 |
| &nbsp;&nbsp;&nbsp; Loans receivable |  | 3729 | 3729 | 3729 |
| Total financial assets | 14420 | 87809 | 102229 | 102229 |
| Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilites | 3486 | 36345 | 39831 | 39831 |
| &nbsp;&nbsp;&nbsp; Loans payable |  | 14510 | 14510 | 14510 |
| Total financial liabilities | 3486 | 50855 | 54341 | 54341 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Fair value hierarchy**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

**Level 1:** 

Other investments are comprised of marketable securities. When there is an active market are determined based on a market approach reflecting the closing price of each particular security at the reporting date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security. As a result, $9,774 of these financial assets have been included in Level 1 of the fair value hierarchy.

Cash settled deferred share units are determined based on a market approach reflecting the Company's closing share price or share price at redemption date for any pending settlements.

**Level 2:** 

The Company determines the fair value of the embedded derivatives related to its accounts and other receivables based on the quoted closing price obtained from the silver and gold metal exchanges and the fair value of the SARs liability is determined by using an option pricing model.

**Level 3:** 

Included in other investments are share purchase warrants. Fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model. As a result, $261 of these financial assets have been included in Level 3 of the fair value hierarchy.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 46

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Assets and liabilities as at December 31, 2022 measured at fair value on a recurring basis include:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Total | Level 1 | Level 2 | Level 3 |
|  | $| $| $| $|
| Financial assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Accounts and other receivables | 5074 | 689 | 4385 |  |
| &nbsp;&nbsp;&nbsp; Other investments | 10035 | 9774 |  | 261 |
| Total financial assets | 15109 | 10463 | 4385 | 261 |
| Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Deferred share units | 3375 | 3375 |  |  |
| &nbsp;&nbsp;&nbsp; Share appreciation rights | 111 |  | 111 |  |
| Total financial liabilities | 3486 | 3375 | 111 | - |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(c) Financial instrument risk exposure and risk management**

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management process. The types of risk exposure and the manner in which such exposures are managed is outlined as follows:

Credit Risk

The Company is exposed to credit risk on its bank accounts, accounts and other receivables and loans receivable. Credit risk exposure on bank accounts is limited through maintaining the Company's balances with high-credit quality financial institutions, maintaining investment policies, assessing institutional exposure and continual discussion with external advisors. Accounts and other receivables are generated on the sale of concentrate inventory to reputable metal traders as well as various other receivables arising from operations. There has been no indication of a change in creditworthiness of the counterparty to the loan receivable since the initial recognition.

The carrying amount of financial assets represents the Company's maximum credit exposure.

Below is an aged analysis of the Company's financial instruments included in accounts and other receivables:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Carrying | Gross | Carrying | Gross |
|  | amount | impairment | amount | impairment |
|  | **December 31,** <br>**2022** | **December 31,** <br>**2022** | December 31,<br>2021 | December 31,<br>2021 |
| Less than 1 month | $**3794** | $**-** | $4159 | $- |
| 1 to 3 months | **852** | **-** | 754 |  |
| 4 to 6 months | **251** | **-** |  |  |
| Over 6 months | **-** | **-** | 10 |  |
| Total | $**4897** | $**-** | $4923 | $- |

---

At December 31, 2022, 99.7% of the receivables that are outstanding greater than one month are trade receivables and pending concentrate sales (December 31, 2021 - 79.0%) and 0.3% of the receivables outstanding greater than one month are comprised of other receivables (December 31, 2021 - 21.0%). Company historical default rate and frequency of losses are low, and the lifetime expected credit loss allowance for receivables is nominal as at December 31, 2022.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 47

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. We manage our liquidity risk by continually monitoring forecasted and actual cash flows. We have in place a planning and budgeting process to help determine the funds required to support our normal operating requirement and development plans. We aim to maintain sufficient liquidity to meet our short term business requirements, taking into account our anticipated cash flows from operations, our holdings of cash and cash equivalents, and our committed and anticipated liabilities.

The following table summarizes the remaining contractual maturities of the Company's financial liabilities and operating and capital commitments at December 31, 2022:

---

| | | |
|:---|:---|:---|
|  | Less than |  |
|  | 1 year | Total |
|  | $| $|
| Accounts payable and accrued liabilities | 39831 | 39831 |
| Loans payable | 6643 | 15773 |
| Lease liabilities | 337 | 1265 |
| Provision for reclamation and rehabilitation |  | 11470 |
| Capital expenditure commitments | 26576 | 26576 |
| Operating leases | 147 | 619 |
| Total contractual obligations | 73534 | 95534 |

---

Market Risk

Significant market related risks to which the Company is exposed consist of foreign currency risk, commodity price risk and equity price risk.

*Foreign Currency Risk* - The Company's operations in Mexico and Canada make it subject to foreign currency fluctuations. Certain of the Company's operating expenses are incurred in Mexican pesos and Canadian dollars, therefore the fluctuation of the US dollar in relation to these currencies will consequently have an impact on the profitability of the Company and may also affect the value of the Company's assets and the amount of shareholders' equity. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks.

The US dollar equivalents of financial assets and liabilities denominated in currencies other than the US dollar as at December 31, 2022<sup>,</sup> are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** <br>**2022** | **December 31,** <br>**2022** | December 31,<br>2021 | December 31,<br>2021 |
|  | **Canadian Dollar** | **Mexican Peso** | Canadian Dollar | Mexican Peso |
| Financial assets | $**10442** | $**9995** | $13338 | $9590 |
| Financial liabilities | **(5758)** | **(17445)** | (8846) | (13910) |
| Net financial assets (liabilities) | $**4684** | $**(7450)** | $4492 | $(4320) |

---

Of the financial assets listed above, $404 (2021 - $2,315) represents cash and cash equivalents held in Canadian dollars and $5,612 (2021 - $5,208) represents cash held in Mexican Pesos. The remaining cash balance is held in US dollars.

As at December 31, 2022, with other variables unchanged, a 5% strengthening of the US dollar against the Canadian dollar would reduce net earnings by $220 due to these financial assets and liabilities.

As at December 31, 2022, with other variables unchanged, a 5% strengthening of the US dollar against the Mexican peso would increase net earnings by $340 due to these financial assets and liabilities.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 48

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

*Commodity Price Risk* - Gold and silver prices have historically fluctuated significantly and are affected by numerous factors outside of the Company's control, including, but not limited to, industrial and retail demand, central bank lending, forward sales by producers and speculators, levels of worldwide production, short-term changes in supply and demand due to speculative hedging activities and certain other factors. The Company has not engaged in any hedging activities, other than short-term metal derivative transactions less than 90 days, to reduce its exposure to commodity price risk. Revenue from the sale of concentrates is based on prevailing market prices which is subject to adjustment upon final settlement. For each reporting period until final settlement, estimates of metal prices are used to record sales. At December 31, 2022 there are 75,237 ounces of silver and 2,666 ounces of gold which do not have a final settlement price and the estimated revenues have been recognized at current market prices. As at December 31, 2022, with other variables unchanged, a 10% decrease in the market value of silver and gold would result in a reduction of revenue of $663.

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 49

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**ENDEAVOUR SILVER CORP.**<br>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br>Years ended December 31, 2022 and 2021<br>(expressed in thousands of US dollars, unless otherwise stated)

---

| | |
|:---|:---|
| **HEAD OFFICE** | Suite #1130, 609 Granville Street<br>Vancouver, BC, Canada V7Y 1G5<br>Telephone: (604) 685-9775<br>1-877-685-9775<br>Facsimile: (604) 685-9744<br>Website: www.edrsilver.com |
| **DIRECTORS** | Margaret Beck<br>Ricardo Campoy<br>Daniel Dickson<br>Amy Jacobsen<br>Rex McLennan<br>Kenneth Pickering<br>Mario Szotlender |
| **OFFICERS** | Daniel Dickson - Chief Executive Officer<br>Donald Gray - Chief Operating Officer<br>Christine West - Chief Financial Officer<br>Nicholas Shakesby - Vice President, Operations<br>Luis Castro - Vice-President, Exploration<br>Dale Mah - Vice-President, Corporate Development<br>Galina Meleger - Vice-President, Investor Relations<br>Bernard Poznanski - Corporate Secretary |
| **REGISTRAR AND<br>TRANSFER AGENT** | Computershare Trust Company of Canada<br>3<sup>rd</sup> Floor - 510 Burrard Street<br>Vancouver, BC, V6C 3B9 |
| **AUDITORS** | KPMG LLP<br>777 Dunsmuir Street<br>Vancouver, BC, V7Y 1K3 |
| **SOLICITORS** | Koffman Kalef LLP<br>19<sup>th</sup> Floor - 885 West Georgia Street<br>Vancouver, BC, V6C 3H4 |
| **SHARES LISTED** | Toronto Stock Exchange<br>Trading Symbol - EDR<br>New York Stock Exchange<br>Trading Symbol - EXK |

---

ENDEAVOUR SILVER CORP. \| CONSOLIDATED FINANCIAL STATEMENTS PAGE 50

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## Exhibit 99.2

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![](exhibit99-2xu003.jpg)

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**MANAGEMENT'S DISCUSSION AND ANALYSIS**

FOR THE YEAR ENDED DECEMBER 31, 2022

------

This Management Discussion and Analysis ("MD&A") should be read in conjunction with the consolidated financial statements of Endeavour Silver Corp. ("Endeavour" or "the Company") for the year ended December 31, 2022 and the related notes contained therein, which were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Company uses certain non-IFRS financial measures in this MD&A as described under "Non-IFRS Measures". Additional information relating to the Company, including the most recent Annual Information Form (the "Annual Information Form"), is available on SEDAR at www.sedar.com, and the Company's most recent annual report on Form 40-F has been filed with the U.S. Securities and Exchange Commission (the "SEC") on EDGAR at www.sec.gov. This MD&A contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained herein. All dollar ($) amounts are expressed in United States ("$.") dollars and tabular amounts are expressed in thousands of U.S. dollars unless Canadian dollars (CAN$) or Mexican Pesos (MXN) are otherwise indicated. This MD&A is dated as of February 28, 2023 and all information contained is current as of February 28, 2023 unless otherwise stated.

***Cautionary Note to U.S. Investors Regarding Mineral Reserves and Resources***

This MD&A has been prepared in accordance with the requirements of Canadian provincial securities laws, which differ from the requirements of U.S. securities laws. As a result, the Company reports the mineral reserves and resources of the projects it has an interest in according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI-43 101"). NI-43 101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the SEC that are applicable to domestic United States reporting companies under subpart 1300 of Regulation S-K ("S-K 1300") under the Exchange Act. As an issuer that prepares and files its reports with the SEC pursuant to the MJDS, the Company is not subject to the requirements of S-K 1300. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such under or differ from those prepared in accordance with S-K 1300. Accordingly, information included or incorporated by reference in this MD&A concerning descriptions of mineralization and estimates of mineral reserves and resources under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of S-K 130.

------

**Forward-Looking Statements**

*This MD&A contains "forward-looking statements" within the meaning of the U.S. Securities Litigation Reform Act of 1995, as amended and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information include, but are not limited to, statements regarding the development and financing of the Terronera project, including anticipated decisions on construction and financing estimation of mineral resources at Pitarrilla, prospects for Terronera, Pitarrilla and Parral, Endeavour's anticipated performance in 2023, including silver and gold production, financial results, timing and expenditures to develop new silver mines and mineralized zones, silver and gold grades and recoveries, cash costs per ounce (oz), capital expenditures and sustaining capital and the timing and results of various activities.. Forward-looking statements are frequently characterized by words such as "plan", "expect", "forecast", "project", "intend", "believe", "anticipate", "outlook" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward- looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.*

*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 and are based on assumptions that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors and assumptions include, among others: availability of debt financing for the Terronera project,fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and U.S. dollar); 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 (including, but not limited to environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, diminishing quantities or grades of mineral reserves as properties are mined; the ability to successfully integrate acquisitions; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties; as well as those factors described under "Risk Factors" in the Company's Annual Information Form. 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.*

***Qualified Person***

The scientific and technical information contained in this MD&A relating to the Company's mines and mineral projects has been reviewed and approved by Dale Mah, B.Sc., P.Geo., Vice President Corporate Development of Endeavour, a Qualified Person within the meaning of NI 43-101.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 2

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![](exhibit99-2xu002.jpg)

**Table of Contents**

---

| | |
|:---|:---|
| [OPERATING HIGHLIGHTS](#page_5) | [4](#page_5) |
| [HISTORY AND STRATEGY](#page_6) | [5](#page_6) |
| [REVIEW OF OPERATING RESULTS](#page_7) | [6](#page_7) |
| [GUANACEVÍ OPERATIONS](#page_10) | [9](#page_10) |
| [BOLAÑITOS OPERATIONS](#page_12) | [11](#page_12) |
| [EL COMPAS OPERATIONS](#page_13) | [12](#page_13) |
| [DEVELOPMENT ACTIVITIES](#page_14) | [13](#page_14) |
| [EXPLORATION RESULTS](#page_15) | [14](#page_15) |
| [RESERVES AND RESOURCES](#page_16) | [15](#page_16) |
| [CONSOLIDATED FINANCIAL RESULTS](#page_17) | [16](#page_17) |
| [SELECTED ANNUAL INFORMATION](#page_20) | [19](#page_20) |
| [NON-IFRS MEASURES](#page_20) | [19](#page_20) |
| [QUARTERLY RESULTS AND TRENDS](#page_27) | [26](#page_27) |
| [ANNUAL OUTLOOK](#page_31) | [30](#page_31) |
| [LIQUIDITY AND CAPITAL RESOURCES](#page_34) | [33](#page_34) |
| [TRANSACTIONS WITH RELATED PARTIES](#page_37) | [36](#page_37) |
| [FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS](#page_38) | [37](#page_38) |
| [OUTSTANDING SHARE DATA](#page_40) | [39](#page_40) |
| [CHANGES IN ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES](#page_41) | [40](#page_41) |
| [RISKS AND UNCERTAINTIES](#page_44) | [43](#page_44) |
| [CONTROLS AND PROCEDURES](#page_46) | [45](#page_46) |

---

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 3

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**OPERATING HIGHLIGHTS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Three Months Ended December 31** | **Three Months Ended December 31** | **Three Months Ended December 31** | **2022 Highlights** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| **2022** | **2021** | **% Change** | **2022 Highlights** | **2022** | **2021** | **% Change** |
|  |  |  | **Production** |  |  |  |
| 1830835 | 1443564 | 27% | Silver ounces produced | 5963445 | 4870787 | 22% |
| 10370 | 9446 | 10% | Gold ounces produced | 37548 | 42262 | (11%) |
| 1816813 | 1432578 | 27% | Payable silver ounces produced | 5912509 | 4826681 | 22% |
| 10196 | 9261 | 10% | Payable gold ounces produced | 36901 | 41438 | (11%) |
| 2660435 | 2199244 | 21% | Silver equivalent ounces produced<sup>(1)</sup> | 8967285 | 8251747 | 9% |
| 11.65 | 8.65 | 35% | Cash costs per silver ounce<sup>(2)(3)</sup> | 10.65 | 9.31 | 14% |
| 15.03 | 11.99 | 25% | Total production costs per ounce<sup>(2)(4)</sup> | 14.70 | 14.70 | 0% |
| 19.38 | 19.48 | (1%) | All-in sustaining costs per ounce <sup>(2)(5)</sup> | 19.97 | 20.34 | (2%) |
| 224289 | 213492 | 5% | Processed tonnes | 834542 | 887424 | (6%) |
| 135.71 | 112.91 | 20% | Direct operating costs per tonne<sup>(2)(6)</sup> | 130.80 | 115.36 | 13% |
| 177.35 | 136.62 | 30% | Direct costs per tonne<sup>(2)(6)</sup> | 155.63 | 133.97 | 16% |
| 14.86 | 13.41 | 11% | Silver co-product cash costs<sup>(7)</sup> | 14.35 | 15.11 | (5%) |
| 1212 | 1038 | 17% | Gold co-product cash costs<sup>(7)</sup> | 1180 | 1072 | 10% |
|  |  |  | **Financial** |  |  |  |
| 82.0 | 48.5 | 69% | Revenue ($ millions) | 210.2 | 165.3 | 27% |
| 2816882 | 1413699 | 99% | Silver ounces sold | 6464869 | 3856883 | 68% |
| 11843 | 8715 | 36% | Gold ounces sold | 38868 | 39113 | (1%) |
| 21.86 | 23.41 | (7%) | Realized silver price per ounce | 22.07 | 25.22 | (12%) |
| 1783 | 1811 | (2%) | Realized gold price per ounce | 1814 | 1790 | 1% |
| 8.0 | (0.5) | 1790% | Net earnings (loss) ($ millions) | 6.2 | 14.0 | (56%) |
| 8.1 | 4.6 | 74% | Adjusted net earnings (loss) <sup>(11)</sup> ($ millions) | 6.9 | (6.5) | 206% |
| 21.7 | 12.2 | 77% | Mine operating earnings ($ millions) | 51.5 | 36.4 | 42% |
| 30.7 | 18.2 | 68% | Mine operating cash flow before taxes ($ millions)<sup>(8)</sup> | 78.5 | 61.9 | 27% |
| 22.5 | 10.7 | 110% | Operating cash flow before working capital changes<sup>(9)</sup> | 54.0 | 32.2 | 68% |
| 22.7 | 10.7 | 111% | EBITDA<sup>(10)</sup> ($ millions) | 51.9 | 54.9 | (6%) |
| 93.6 | 121.2 | (23%) | Working capital <sup>(12)</sup> ($ millions) | 93.6 | 121.2 | (23%) |
|  |  |  | **Shareholders** |  |  |  |
| 0.04 | 0.00 | 400% | Earnings (loss) per share – basic ($) | 0.03 | 0.08 | (63%) |
| 0.04 | 0.03 | 56% | Adjusted earnings (loss) per share – basic ($)<sup>(11)</sup> | 0.04 | (0.04) | 197% |
| 0.12 | 0.06 | 89% | Operating cash flow before working capital changes per share<sup>(9)</sup> | 0.30 | 0.19 | 53% |
| 189993085 | 170518894 | 11% | Weighted average shares outstanding | 183009339 | 167289732 | 9% |

---

(1) Silver equivalents are calculated using an 80:1 (Ag/Au) ratio.

(2) The Company reports non-IFRS measures and ratios which include cash costs net of by-product revenue on a payable silver basis, total production costs per oz, all-in sustaining costs ("AISC") per oz, direct operating cost per tonne, direct cost per tonne, silver co-product cash costs and gold co-product cash costs in order to manage and evaluate operating performance at each of the Company's mines. These measures, some established by the Silver Institute (Production Cost Standards, June 2011), are widely used in the silver mining industry as a benchmark for performance, but do not have a standardized meaning. These measures are reported on a production basis. See Reconciliations to IFRS beginning on page 19.

(3) Cash costs net of by-product revenue per payable silver oz include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 and 23.

(4) Total production costs per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites net of by-product revenues. See Reconciliation to IFRS on pages 22 and 23.

(5) AlSC per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration expenses, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on pages 23 to 25.

(6) Direct operating costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. Direct cost per tonne include all direct operating costs, royalties and special mining duty. See Reconciliation to IFRS on pages 22 and 23.

(7) Silver co-product cash cost and gold co-product cash cost include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead allocated on pro-rated basis of realized metal value. See Reconciliation to IFRS on pages 25 and 26.

(8) Mine operating cash flow is calculated by adding back amortization, depletion, inventory write-downs and share-based compensation to mine operating earnings. Mine operating earnings and mine operating cash flow are before taxes. See Reconciliation to IFRS on page 20.

(9) See Reconciliation to IFRS on page 20 for the reconciliation of operating cash flow before working capital changes and for the operating cash flow before working capital changes per share.

(10) See Reconciliation of Earnings before interest, taxes, depreciation and amortization on page 21.

(11) Adjusted net earnings include adjustments to net earnings for certain non-cash and unusual items, that in the Company's judgement are subject to volatility as a result of factors that are unrelated to the Company's operation in the period and had a significant effect on reported net earnings. See Reconciliation to IFRS on page 20.

(12) Working capital is calculated by deducting current liabilities from current assets. See Reconciliation to IFRS on page 19.

**The above highlights are key measures used by management, however they should not be the sole measures used in determining the performance of the Company's operations.**

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 4

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**HISTORY AND STRATEGY**

The Company is engaged in silver mining in Mexico and related activities including property acquisition, exploration, development, mineral extraction, processing, refining and reclamation. The Company is also engaged in exploration activities in Chile and Nevada, USA. Since 2002, the Company's business strategy has been to focus on acquiring advanced-stage silver mining properties in Mexico. Mexico, despite its long and prolific history of metal production, appears to be relatively under-explored using modern exploration techniques and offers promising geological potential for precious metals exploration and production.

The Company's Guanaceví and Bolañitos mines acquired in 2004 and 2007, respectively, demonstrate its initial business model of acquiring fully built and permitted silver mines that were about to close for lack of ore. Investing resources expertise needed to discover new silver ore-bodies, the Company successfully re-opened and expanded these mines to realize their full potential. The benefit of acquiring fully built and permitted mining and milling infrastructure is that, if new exploration efforts are successful, the mine development cycle from discovery to production only takes a matter of months instead of the several years normally required in the traditional mining business model.

In 2016, the Company acquired the El Compas silver-gold mine located in Zacatecas, Mexico, which was operated until August 2021. On September 9, 2022, the Company completed the sale of the El Compas mine to Grupo ROSGO, S.A. de C.V., ("Grupo ROSGO") for $5.0 million in cash payments over five years.

In 2012, the Company acquired the El Cubo silver-gold mine located in Guanajuato, Mexico, which was operated until November 2019. On March 17, 2021, the Company signed a definitive agreement to sell the El Cubo mine and related assets to Guanajuato Silver Company Ltd. ("GSilver") (formerly known as VanGold Mining Corp.) for a combination of cash and share payments plus additional contingency payments with completion of the sale on April, 9, 2021.

The Company is advancing the Terronera development project and on September 9, 2021 released a positive feasibility study for the project. The Company continues to advance the project with detailed engineering, assembly of initial project infrastructure earthworks pertaining to site clearing, road upgrades and underground mine access development and intends to make a formal construction decision, subject to completion of a financing package and receipt of amended permits in the coming months.

On August 31, 2021 the Company acquired the Bruner Property, a gold exploration project, located in Nye County, Nevada. The Company paid $10 million in cash for 100% of the Bruner Gold Project which includes mineral claims, mining rights, property assets, water rights, and government authorizations and permits.

On January 17, 2022, the Company entered into a definitive agreement to purchase the Pitarrilla project, a large undeveloped silver, lead, and zinc project, located in Durango State, Mexico, by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. from SSR Mining Inc. for a total consideration of US$70 million (consisting of $35 million in Company's shares and a further $35 million in cash or in the Company's shares at the election of SSR Mining and as agreed to by the Company) and a 1.25% net smelter returns royalty. SSR Mining retains a 1.25% NSR Royalty in Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR Mining proposes to sell it. The acquisition was completed on July 6, 2022.

Total consideration paid included 8,577,380 shares of the Company issued on July 6, 2022 and a $35.1 million cash payment. Fair value of the 8,577,380 common shares issued on July 6, 2022 was $25.6 million at CAN$3.89 per share. The deemed value of the common shares issued, at the time of agreement was $34.9 million. The shares are subject to a hold period of four months and one day following the date of closing.

The Company is advancing several other exploration projects in order to achieve its goal to become a premier senior producer in the silver mining sector.

The Company has historically funded its acquisition, exploration and development activities through equity financings, debt facilities and convertible debentures. In recent years, the Company has financed most of its acquisition, exploration, development and operating activities from production cash flows, treasury and equity financings. The Company may choose to undertake equity, debt, convertible debt or other financings, on an as-needed basis, in order to facilitate its growth.

As of December 31, 2022, the Company held $83.4 million in cash and $93.6 million in working capital. Management believes there is sufficient working capital to meet the Company's current obligations.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 5

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**REVIEW OF OPERATING RESULTS**

The Company operates the Guanaceví and Bolañitos mines. The Company suspended mining operations at the El Compas mine in August 2021 due to exhaustion of reserves and it remained on care and maintenance until the mine was sold on September 9, 2022.

**Consolidated Production Results for the Three Months and Years Ended December 31, 2022 and 2021**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended December 31** | **Three Months Ended December 31** | **Three Months Ended December 31** | **CONSOLIDATED** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| **2022** | **2021** | **% Change** |  | **2022** | **2021** | **% Change** |
| 224289 | 213492 | 5% | Ore tonnes processed | 834542 | 887424 | (6%) |
| 296 | 235 | 26% | Average silver grade (gpt) | 256 | 195 | 31% |
| 85.8 | 89.4 | (4%) | Silver recovery (%) | 86.8 | 87.6 | (1%) |
| 1830835 | 1443564 | 27% | Total silver ounces produced | 5963445 | 4870787 | 22% |
| 1816813 | 1432578 | 27% | Payable silver ounces produced | 5912509 | 4826681 | 22% |
| 1.57 | 1.52 | 3% | Average gold grade (gpt) | 1.55 | 1.65 | (6%) |
| 91.5 | 90.8 | 1% | Gold recovery (%) | 90.1 | 89.8 | 0% |
| 10370 | 9446 | 10% | Total gold ounces produced | 37548 | 42262 | (11%) |
| 10196 | 9261 | 10% | Payable gold ounces produced | 36901 | 41438 | (11%) |
| 2660435 | 2199244 | 21% | Silver equivalent ounces produced<sup>(1)</sup> | 8967285 | 8251747 | 9% |
| 11.65 | 8.65 | 35% | Cash costs per silver ounce<sup>(2)(3)</sup> | 10.65 | 9.31 | 14% |
| 15.03 | 11.99 | 25% | Total production costs per ounce<sup>(2)(4)</sup> | 14.70 | 14.70 | 0% |
| 19.38 | 19.48 | (1%) | All in sustaining costs per ounce <sup>(2)(5)</sup> | 19.97 | 20.34 | (2%) |
| 135.71 | 112.91 | 20% | Direct operating costs per tonne<sup>(2)(6)</sup> | 130.80 | 115.36 | 13% |
| 177.35 | 136.62 | 30% | Direct costs per tonne<sup>(2)(6)</sup> | 155.63 | 133.97 | 16% |
| 14.86 | 13.41 | 11% | Silver co-product cash costs<sup>(7)</sup> | 14.35 | 15.11 | (5%) |
| 1212 | 1038 | 17% | Gold co-product cash costs<sup>(7)</sup> | 1180 | 1072 | 10% |

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(1) Silver equivalents are calculated using an 80:1 (Ag/Au) ratio.

(2) The Company reports non-IFRS measures which include cash costs net of by-product revenue on a payable silver basis, total production costs per oz, AISC per oz, direct operating cost per tonne, direct cost per tonne, silver co-product cash costs and gold co-product cash costs in order to manage and evaluate operating performance at each of the Company's mines. These measures, some established by the Silver Institute (Production Cost Standards, June 2011), are widely used in the silver mining industry as a benchmark for performance, but do not have a standardized meaning. These measures are reported on a production basis. See Reconciliations to IFRS on page 19.

(3) Cash costs net of by-product revenue per payable silver oz include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 and 23.

(4) Total production costs per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites net of by product revenues. See Reconciliation to IFRS on pages 22 and 23.

(5) AISC per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration expenses, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on pages 23 to 25.

(6) Direct operating cost per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. Direct cost per tonne include all direct operating costs, royalties and special mining duty. See Reconciliation to IFRS on pages 22 and 23.

(7) Silver co-product cash cost and gold co-product cash cost include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead allocated on pro-rated basis of realized metal value. See Reconciliation to IFRS on pages 25 and 26.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 6

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![](exhibit99-2x012.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Silver equivalents are calculated using an 80:1 (Ag/Au) ratio.

***Consolidated Production***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Consolidated silver production during Q4, 2022 was 1,830,835 oz, an increase of 27% compared to 1,443,564 oz in Q4, 2021, and gold production was 10,370 oz, an increase of 10% compared to 9,446 oz in Q4, 2021. Plant throughput was 224,289 tonnes at average grades of 296 grams per tonne (gpt) silver and 1.57 gpt gold, compared to 213,492 tonnes grading 235 gpt silver and 1.52 gpt gold in Q4, 2021. The 27% increase in consolidated silver production, compared to Q4, 2021, is driven by a 29% increase in silver production at the Guanaceví mine and a 5% increase in silver production at the Bolañitos mine. Consolidated gold production increased by 10% compared to Q4, 2021, due to the 27% increase in gold production at the Guanaceví mine and a 1% decrease in gold production at the Bolañitos mine. The increase in silver and gold production at the Guanaceví mine was due to a 10% increase in throughput, a 23% increase in ore silver grade and a 19% increase in ore gold grade, offset by a 5% decrease in silver recoveries and a 3% decrease in gold recoveries. At the Bolañitos mine the increase in silver production was attributable to a 4% increase in ore silver grade, with similar throughput and a slight increase in recoveries. The 1% decrease in gold production at the Bolañitos mine was attributable to a 6% decrease in ore gold grade offset by a 5% increase in recoveries with similar throughput.

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Consolidated silver production during the year ended December 31, 2022 was 5,963,445 oz, an increase of 22% compared to 4,870,787 oz in 2021, and gold production was 37,548 oz, a decrease of 11% compared to 42,262 oz in t2021. The Company's 2022 production exceeded the upper range of its guidance of between 7.6 million oz and 8.0 million oz AgEq (revised upwards in August 2022) due to continuing strong performance at Guanaceví driven by higher grades. Annual silver and gold production exceeded the upper range of guidance by 17% and 4% respectively. Plant throughput was 834,542 tonnes at average grades of 256 grams per tonne (gpt) silver and 1.55 gpt gold, compared to 887,424 tonnes grading 195 gpt silver and 1.65 gpt gold in 2021. The 22% increase in consolidated silver production, compared to 2021, is driven by a 23% increase in silver production at the Guanaceví mine and a 27% increase in silver production at the Bolañitos mine. Consolidated gold production decreased by 11% compared to 2021, primarily due to the 12% decrease at the Bolañitos mine, partially offset by a 18% increase in gold production at the Guanaceví mine. The increase in silver and gold production at the Guanaceví mine was driven by a 26% increase in silver grade and a 22% increase in gold grade, with slightly lower throughput and recoveries. At the Bolañitos mine the increase in silver production was attributable to a 24% increase in ore silver grade offset with similar throughput and recoveries. The decrease in gold production was attributable to an 12% decrease in ore gold grade.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 7

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***Consolidated Operating Costs***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Direct operating costs per tonne in Q4, 2022 increased 20% to $135.71 compared with Q4, 2021 primarily due to higher operating costs at both Guanaceví and Bolañitos, from increased inflationary pressure during 2022. Guanaceví and Bolañitos have seen increased labour, power and consumable costs. At Guanaceví, increased third party ore purchased has increased compared to the prior year and at Bolañitos there has been an increase in smelting and refining costs. Including royalties and special mining duty, direct costs per tonne increased 30% to $177.35. Compared to Q4, 2021, royalties have increased 98% from $4.3 million to $8.5 million with the majority of the increase in Guanaceví. At Guanaceví the increase in royalty expense recognized during Q4, 2022 is due to the significant increase in ounces sold offset by the reduction in the realized prices. Consolidated cash costs per oz, net of by-product credits increased 35% to $11.65 driven by increased direct costs and a reduction the average realized gold price, offset by increased silver production. Consolidated cash costs were also impacted by the recognition of the royalty costs associated with the large finished goods held at Q3, 2022 being sold in Q4. All-In-Sustaining Costs ("AISC") decreased by 1% on a per oz basis compared to Q4, 2021 due to a reduction in sustaining capital and similar allocated corporate costs allocated over higher ounces produced, offset by increased costs.

On a co-product cash costs basis, silver cost per oz increased by 11% and gold cost per oz increased 17% compared to the Q4, 2021. Increased silver production due to improved silver ore grade was offset by the higher operating costs and gold co-product cash costs increased due to the higher operating cost partially offset by a decrease in proportional costs resulting from decrease in proportional gold production.

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Direct operating costs per tonne during the year ended December 31, 2022 increased 13% to $130.80 compared to 2021 due to the higher operating costs at both Guanaceví and Bolañitos and a 6% reduction in processed tonnes. Guanaceví and Bolañitos have seen increased labour, power and consumable costs primarily driven by inflationary pressure. At Guanaceví, third party ore purchased has increased compared to the prior year and at Bolañitos smelting and processing costs have also increased. There was a 6% reduction in tonnes processed resulting in a higher cost per tonne for fixed costs and overhead. Including royalties and special mining duty, direct costs per tonne increased 16% to $155.63. Compared to the year ended December 31, 2021, royalties have increased 29% to $17.8 million with the change primarily due to the higher production at Guanaceví where an increase in the proportion of ore processed coming from properties with underlying royalty agreements. Special mining duty was $2.9 million for the year ended December 31, 2022 compared to $2.8 million in the same period in 2021.

Consolidated cash costs per oz, net of by-product credits increased 14% to $10.65 and exceeded cash cost guidance of between a $9.00 and $10.00 range, due to higher direct costs per tonne partially offset by increased silver production due to increased silver grades. All-In-Sustaining Costs ("AISC") decreased by 2% to $19.97 on a per oz basis compared to the year ended December 31, 2021 as a result of a 22% increase in ounces produced driven by a 31% increase in silver grade, and a decrease in mine site exploration offset by higher cash costs and increased sustaining capital expenditures. AISC was slightly below guidance of $20.00 to $21.00 per ounce primarily due to the increase in ounces produced.

On a co-product cash costs basis, silver cost per oz decreased 5% and gold cost per oz increased 10% compared to 2021. Increased silver production due to improved silver ore grade was offset by higher operating costs and gold co-product cash costs increased due to higher operating costs and a reduction in gold production.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 8

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**GUANACEVÍ OPERATIONS**

The Guanaceví operation is currently producing from three underground silver-gold mines along a five kilometre ("km") length of the prolific Santa Cruz vein. Guanaceví provides steady employment to over 530 people and engages over 280 contractors.

In July 2019, the Company acquired a 10 year right to explore and exploit the El Porvenir and El Curso concessions from Ocampo Mining SA de CV ("Ocampo"), a subsidiary of Grupo Frisco. The Company agreed to meet certain minimum production targets from the properties, subject to various terms and conditions and pay Ocampo a $12 fixed per tonne production payment plus a floating net smelter return royalty based on the silver spot price. The Company pays a 4% royalty on sales below $15.00 per silver oz, 9% above $15.00 per silver oz, 13% above $20.00 per silver oz, and a maximum of 16% above $25 per silver oz, based on the current realized prices. On December 12, 2021, the Company executed an amendment to the agreement whereby two additional concessions, adjacent to the existing and historic mine workings, were included in the existing agreement.

**Production Results for the Three Months and Years Ended December 31, 2022 and 2021**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended December 31** | **Three Months Ended December 31** | **Three Months Ended December 31** | **GUANACEVÍ** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| **2022** | **2021** | **% Change** |  | **2022** | **2021** | **% Change** |
| 119305 | 108334 | 10% | Ore tonnes processed | 412303 | 414355 | (0%) |
| 512 | 417 | 23% | Average silver grade (g/t) | 465 | 370 | 26% |
| 85.6 | 89.6 | (5%) | Silver recovery (%) | 86.6 | 87.9 | (1%) |
| 1680363 | 1301941 | 29% | Total silver ounces produced | 5340553 | 4333567 | 23% |
| 1675322 | 1298036 | 29% | Payable silver ounces produced | 5324531 | 4320567 | 23% |
| 1.44 | 1.21 | 19% | Average gold grade (g/t) | 1.33 | 1.09 | 22% |
| 89.4 | 92.2 | (3%) | Gold recovery (%) | 89.2 | 91.7 | (3%) |
| 4936 | 3885 | 27% | Total gold ounces produced | 15735 | 13317 | 18% |
| 4922 | 3873 | 27% | Payable gold ounces produced | 15688 | 13277 | 18% |
| 2075243 | 1612741 | 29% | Silver equivalent ounces produced<sup>(1)</sup> | 6599353 | 5398927 | 22% |
| 12.40 | 10.74 | 15% | Cash costs per silver ounce<sup>(2)(3)</sup> | 11.46 | 12.12 | (5%) |
| 14.36 | 12.49 | 15% | Total production costs per ounce<sup>(2)(4)</sup> | 13.95 | 14.40 | (3%) |
| 18.05 | 18.74 | (4%) | All in sustaining costs per ounce <sup>(2)(5)</sup> | 18.43 | 19.46 | (5%) |
| 171.48 | 146.51 | 17% | Direct operating costs per tonne<sup>(2)(6)</sup> | 168.04 | 145.64 | 15% |
| 249.23 | 193.87 | 29% | Direct costs per tonne<sup>(2)(6)</sup> | 216.95 | 183.86 | 18% |
| 14.27 | 13.11 | 9% | Silver co-product cash costs<sup>(7)</sup> | 13.48 | 14.43 | (7%) |
| 1165 | 1014 | 15% | Gold co-product cash costs<sup>(7)</sup> | 1108 | 1024 | 8% |

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(1) Silver equivalents are calculated using an 80:1 (silver/gold) ratio.

(2) The Company reports non-IFRS measures which include cash costs net of by-product revenue on a payable silver basis, total production costs per oz, AISC per oz, direct operating cost per tonne, direct cost per tonne, silver co-product cash costs and gold co-product cash costs in order to manage and evaluate operating performance at each of the Company's mines. These measures, some established by the Silver Institute (Production Cost Standards, June 2011), are widely used in the silver mining industry as a benchmark for performance, but do not have a standardized meaning. These measures are reported on a production basis. See Reconciliations to IFRS on page 19.

(3) Cash costs net of by-product revenue per payable silver oz include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 and 23.

(4) Total production costs per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites net of by product revenues. See Reconciliation to IFRS on pages 22 and 23.

(5) AISC per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration expenses, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on pages 23 to 25.

(6) Direct operating costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. Direct cost per tonne include all direct operating costs, royalties and special mining duty. See Reconciliation to IFRS on pages 22 and 23.

(7) Silver co-product cash cost and gold co-product cash cost include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead allocated on pro-rated basis of realized metal value. See Reconciliation to IFRS on pages 25 and 26.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 9

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***Guanaceví Production Results***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Silver production at the Guanaceví mine during Q4, 2022 was 1,680,363 oz, an increase of 29% compared to 1,301,941 oz in Q4, 2021, and gold production was 4,936 oz, an increase of 27% compared to 3,885 oz in Q4, 2021. Plant throughput was 10% higher in Q4, 2022 with 119,305 tonnes at average grades of 512 gpt silver and 1.44 gpt gold, compared to 108,334 tonnes grading 417 gpt silver and 1.21 gpt gold in Q4, 2021. The 29% increase in silver production is due to a 23% increase in silver grades and 10% increase in throughput, offset by a 5% reduction in recoveries. The 27% increase in gold production is due to a 19% increase in gold grades and the increased throughput, offset by a 3% decrease in recoveries.

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Silver production at the Guanaceví mine for the year ended December 31, 2022 was 5,340,553 oz, an increase of 23% compared to 4,333,567 oz in 2021, and gold production was 15,735 oz, an increase of 18% compared to 13,317 oz for the year ended December 31, 2021. Plant throughput was 412,303 tonnes at average grades of 465 gpt silver and 1.33 gpt gold compared to 414,355 tonnes at average grades of 370 gpt silver and 1.09 gpt gold for 2021. The slight decrease in throughput was a result of reducing throughput during Q2, 2022 for the installation of a new cone crusher and maintenance of leach tanks and a reduction due to heavy rainfall in a short, concentrated period in September. The 23% increase in silver production and 18% increase in gold production compared to 2021 is primarily due to the substantially higher grades with similar throughput offset by slightly lower recoveries.

***Guanaceví Operating Costs***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Direct operating costs per tonne for the three months ended December 31, 2022 increased 17% to $171.48 compared with the same period in 2021, resulting from, increased labour, power and consumables costs, and an increase in operating development. The local third-party ore contributed $28.85 per tonne during Q4, 2022 compared to $29.04 per tonne in Q4, 2021 due to lower precious metals prices offset by increased tonnes and grades. Including royalty and special mining duty costs, direct cost per tonne increased 29% to $249.23 compared with $196.87 in the same period in 2021. There was an increase in royalty expense recognized during Q4, 2022 due to an increase in ounces sold offset by a reduction in the realized silver price. Royalty expense increased from $4.2 million to $8.4 million, which are included in cost per tonne and oz metrics.

Cash costs per oz, net of by-product credits, increased 15% to $12.40 compared to $10.74 for the same period in 2021, primarily driven by the higher direct costs per tonne partially offset by increased silver production. AISC per oz decreased 4% to $18.05 per oz for the three months ended December 31, 2022, due to increased silver production and slightly lower sustaining capital expenditures being allocated to increased silver ounces produced offset by increased direct costs.

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Direct operating costs per tonne for the year ended December 31, 2022 increased 15% to $168.04 compared with $145.64 for 2021, as a result of increased labour, power and consumables costs, an increase in operating development and increased purchase of local third-party ores. The local third-party ore contributed $26.57 per tonne during 2022 compared to $23.46 per tonne in 2021 due to increased tonnes and higher grade ore purchased. Including royalty and special mining duty costs, direct cost per tonne increased 18% to $216.95 compared to 2021. Royalty expense increased to $17.6 million in 2022 from $13.2 million in 2021 as a result of a significant increase in ounces sold offset by decreased realized silver prices. The increased ore grades offset by higher operating costs resulted in the special mining duty payable to the Mexican government being similar to the prior year.

Cash costs per oz, net of by-product credits, decreased 5% to $11.46 compared to $12.12 for the same period in 2021, with the decrease due to increased silver production resulting from increased silver grades and an increase in the gold credit, offset by higher direct costs per tonne. Similarly, AISC per oz decreased 5% to $18.43 per oz for 2022, due to increased silver production and reduced mine site exploration offset by increased allocated general and administrative expenses and an increase in sustaining capital expenditures.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 10

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**BOLAÑITOS OPERATIONS**

The Bolañitos operation encompasses three underground silver-gold mines and a flotation plant. Bolañitos provides steady employment for over 500 people and engages over 135 contractors.

**Production Results for the Three Months and Years Ended December 31, 2022 and 2021**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended December 31** | **Three Months Ended December 31** | **Three Months Ended December 31** | **BOLAÑITOS** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
| **2022** | **2021** | **% Change** |  | **2022** | **2021** | **% Change** |
| 104984 | 105158 | (0%) | Ore tonnes processed | 422239 | 418514 | 1% |
| 50 | 48 | 4% | Average silver grade (g/t) | 52 | 42 | 24% |
| 89.2 | 87.0 | 2% | Silver recovery (%) | 88.2 | 87.0 | 1% |
| 150472 | 141258 | 7% | Total silver ounces produced | 622892 | 491412 | 27% |
| 141491 | 134178 | 5% | Payable silver ounces produced | 587978 | 462700 | 27% |
| 1.72 | 1.83 | (6%) | Average gold grade (g/t) | 1.77 | 2.02 | (12%) |
| 93.6 | 88.9 | 5% | Gold recovery (%) | 90.8 | 90.7 | 0% |
| 5434 | 5502 | (1%) | Total gold ounces produced | 21813 | 24652 | (12%) |
| 5274 | 5330 | (1%) | Payable gold ounces produced | 21213 | 23971 | (12%) |
| 585192 | 581418 | 1% | Silver equivalent ounces produced<sup>(1)</sup> | 2367932 | 2463572 | (4%) |
| 2.85 | (10.69) | 127% | Cash costs per silver ounce<sup>(2)(3)</sup> | 3.28 | (19.77) | 117% |
| 22.98 | 6.71 | (243%) | Total production costs per ounce<sup>(2)(4)</sup> | 21.51 | 10.93 | (97%) |
| 35.06 | 27.46 | 28% | All in sustaining costs per ounce <sup>(2)(5)</sup> | 34.00 | 25.14 | 35% |
| 95.05 | 78.38 | 21% | Direct operating costs per tonne<sup>(2)(6)</sup> | 94.43 | 79.37 | 19% |
| 95.67 | 77.68 | 23% | Direct costs per tonne<sup>(2)(6)</sup> | 95.76 | 80.13 | 20% |
| 16.91 | 14.41 | 17% | Silver co-product cash costs<sup>(7)</sup> | 16.74 | 14.96 | 12% |
| 1380 | 1115 | 24% | Gold co-product cash costs<sup>(7)</sup> | 1376 | 1062 | 30% |

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(1) Silver equivalents are calculated using an 80:1 (silver/gold) ratio.

(2) The Company reports non-IFRS measures which include cash costs net of by-product revenue on a payable silver basis, total production costs per oz, AISC per oz, direct operating cost per tonne, direct cost per tonne, silver co-product cash costs and gold co-product cash costs in order to manage and evaluate operating performance at each of the Company's mines. These measures, some established by the Silver Institute (Production Cost Standards, June 2011), are widely used in the silver mining industry as a benchmark for performance, but do not have a standardized meaning. These measures are reported on a production basis. See Reconciliations to IFRS on page 19.

(3) Cash costs net of by-product revenue per payable silver oz include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 and 23.

(4) Total production costs per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites net of by product revenues. See Reconciliation to IFRS on pages 22 and 23.

(5) AISC per oz include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration expenses, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on pages 23 to 25.

(6) Direct operating costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. Direct cost per tonne include all direct operating costs, royalties and special mining duty. See Reconciliation to IFRS on pages 22 and 23.

(7) Silver co-product cash cost and gold co-product cash cost include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead allocated on pro-rated basis of realized metal value. See Reconciliation to IFRS on pages 25 and 26.

***Bolañitos Production Results***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Silver production at the Bolañitos mine was 150,472 oz in Q4, 2022, an increase of 7% compared to 141,258 oz in Q4, 2021, and gold production was 5,434 oz in Q4, 2022, a decrease of 1% compared to 5,502 oz in Q4, 2021. Plant throughput in Q4, 2022 was 104,984 tonnes at average grades of 50 gpt silver and 1.72 gpt gold, compared to 105,158 tonnes at average grades of 48 gpt silver and 1.83 gpt gold in Q4, 2021. The 7% increase in silver production and 1% decrease in gold production compared to Q4, 2021 is primarily due to the fluctuations of ore grades from accessing different areas of the mine.

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**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Silver production at the Bolañitos mine was 622,892 oz for the year ended December 31, 2022, an increase of 27% compared to 491,412 oz in 2021, and gold production was 21,813 oz for the year ended December 31, 2022, a decrease of 12% compared to 24,652 oz in 2021. Plant throughput for the year ended December 31, 2022 was 422,239 tonnes at average grades of 52 gpt silver and 1.77 gpt gold, compared to 418,514 tonnes at average grades of 42 gpt silver and 2.02 gpt gold. The 27% increase in silver production and 12% decrease in gold production compared to 2021 is primarily due to the fluctuations in ore grades from accessing different areas of the mine. There was a 24% increase in silver grades and a 12% decrease in gold grades with similar throughput and recoveries.

***Bolañitos Operating Costs***

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

Direct costs per tonne in Q4, 2022 increased 23% to $95.67 per tonne, primarily due to increased labour, power and consumables, increased operating development costs compared to the same period in 2021. Cash costs, net of by-product credits, were $2.85 per oz of payable silver in Q4, 2022 compared to negative $10.69 per oz in Q4, 2021 due to the increased costs compared to the same period in the prior year. AISC increased 28% in Q4, 2022 to $35.06 per oz primarily due to an increase in cash costs net of by-product and an increase in allocated general and administrative expenses, partially offset by a decrease in sustaining capital expenditures and mine site expensed exploration.

On a co-product cash costs basis, silver cost per oz increased 17% compared to Q4, 2021 and gold co-product costs increased 24% to $16.91 per silver oz and $1,380 per gold oz, respectively. The increases in the silver cost on a co-product basis were primarily driven by the higher direct costs per tonne offset by higher silver grades and the increase in the gold co-product cost was driven by the higher operating costs and the 6% decrease in gold grade.

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

Direct costs per tonne for the year ended December 31, 2022 increased 20% to $95.76 per tonne, primarily due to increased labour, power and consumables, smelting and refining and operating development costs offset with a slight increase in throughput tonnes compared to the same period in 2021. Cash costs, net of by-product credits, were $3.28 per oz of payable silver compared to negative $19.77 per oz in the same period in 2021 due to the increased costs, a 12% reduction in the gold grade and lower gold prices. AISC increased 35% to $34.00 per oz primarily due to the increase in cash costs net of by-product credit partially offset by a decrease in sustaining capital expenditures. AISC includes an allocation of corporate general and administration and share based compensation, which adds $4.67 to total AISC at Bolañitos for the year ended December 31, 2022.

On a co-product cash costs basis, silver cost per oz increased 12% compared to 2021 and gold co-product costs increased 30% to $16.74 per silver oz and $1,376 per gold oz, respectively. The increase in the silver cost on a co-product basis were primarily driven by the higher direct costs per tonne offset by 24% higher silver grades and the increase in the gold co-product cost was driven by the higher operating costs and the 12% decrease in gold grade.

**EL COMPAS OPERATIONS**

The El Compas operation is a small but high grade, permitted gold-silver mine with a small leased flotation plant in the historic silver mining district of Zacatecas. The leased floatation plant has a nominal plant capacity of 250 tpd.

El Compas employed close to 200 people and engaged over 55 contractors until the suspension of operations in mid-August 2021 as the mineral reserves were exhausted. The mine, plant and tailings facilities remained on short term care and maintenance until September 9, 2022 when the sale of the mine was completed. The Company continues to hold the regional Calicanto and Veta Grande exploration properties.

Pursuant to the sale agreement, Grupo ROSGO will pay the Company $5 million over five years.

Temporary closure costs were $0.6 million for the year ended December 31, 2022.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 12

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**DEVELOPMENT ACTIVITIES**

***Terronera Project***

The Terronera project, located 40 km northeast of Puerto Vallarta in the state of Jalisco, Mexico, features a high-grade silver-gold mineral resource in the Terronera vein, which is now over 1,400 metres long, 400 metres deep, 3 to 16 metres thick, and remains open along strike to the southeast and down dip.

<u>**Feasibility Study**</u>

Wood PLC completed an independent Feasibility Study ("FS") which has an effective date of September 9, 2021 and the full report was filed on SEDAR and EDGAR and posted to the Company's website on October 25, 2021.

The FS base case assumed a silver price of $20 per oz and a gold price of $1,575 per oz with an implied 79:1 silver to gold ratio, and a Mexico peso to U.S. dollar exchange rate of 20:1. At base case prices, the improved economics estimated an after-tax net present value of $174.1 million at a 5% discount rate, internal rate of return of 21.3%, and payback period of 3.6 years. Initial capital expenditures were estimated to be $175 million with capital expenditures during production estimated to be $108.5 million. The 12-year life of mine was estimated to produce an average of 3.3 million silver oz and 32,874 gold oz per year generating $476 million pre-tax, $311 million after-tax, free cash flow.

<u>**Preconstruction Activities**</u>

The Company has commenced initial earthworks and the procurement of long lead items and intends to make a formal construction decision, subject to completion of a financing package and receipt of additional amended permits, in the coming months. While the Company continues to advance financial due diligence, the Board has approved certain early expenditures to de-risk various aspects of the project in a deliberate and disciplined manner to minimize risk prior to the final construction decision.

The Company re-classified the Terronera Project from an exploration and evaluation project to a development project in September 2021 and has subsequently spent $41.7 million on land acquisition, initial capital development and capital assets to advance development and $7.2 million on development activities ineligible to be capitalized including supervision, evaluation activities, administrative costs, environmental studies and community relations.

An expenditure budget of $41.0 million was approved for 2022 to continue advancing the site clearing, to begin initial earthworks, a temporary and permanent camp, road construction and procuring long lead items. An additional $25.7 million development expenditure budget has been approved for the first quarter of 2023 to continue with pre-construction activities. The approval is based on utilizing existing cash on hand and cash flow from operations, ahead of formalized project financing as the Company continues to advance the project.

During 2022, the company spent $40.9 million at the Terronera Project, including $35.2 on land acquisition, initial capital development and capital assets to advance development and $5.6 million on development activities ineligible to be capitalized including supervision, evaluation activities, administrative costs, environmental studies and community relations.

The Company's progress on predevelopment activities are as follows:

* **On-Site Delivery of Mobile Mining Equipment -** Since Q3 2021, the Company has received 30 Sandvik and Getman mobile mine units including three development jumbos, three bolters, three scoops, three dump trucks, four scissor lifts, three explosive chargers and other support equipment such as pallet handlers and cranes. With these orders complete, equipment required for mine development has been delivered.

* **Major Equipment Purchases -** Major mill equipment has been ordered through 12 equipment procurement contracts. The Company expects delivery in H1 2023 of the SAG mill, primary crusher, pebble crusher, concentrate bagging and weighing system, primary and regrind hydrocyclones, apron feeder, wet vibrating screens, and concentrate and tailings thickeners. The ball mill is already on site.

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* **Access Road Construction -** Significant road upgrade work, totalling over seven kilometres, primarily involving slope stabilization and drainage, have been completed for access to the mill site and mine portals. Road improvement work required for the construction phase will be complete in H1 2023.

* **Permanent Camp Construction** - Installation is underway for the permanent camp facility that will accommodate 550 personnel. It is expected the permanent camp will be operational in the first half of 2023. Overall permanent camp progress is 50% with the training room, clinic, dining room, kitchen, gym and laundry facilities in place.

* **Process Plant Construction** - At the mill site, work in ongoing with site clearing and initial earthworks including tree and vegetation removal, excavation and leveling the area prior to beginning plant foundations in H1 2023. As of December 31, 2022, over 126,000 cubic metres had been excavated.

* **Underground Development** - Site preparation for Portal #2 commenced and by year end and the portal brow had been created to advance underground mine access development. Mine support facilities have been mobilized at site as the project prepares to move forward with development.

* **Initial Project Infrastructure -** The temporary mine maintenance shop is operational and field offices have been installed at the mill site along with improved communications.

The Company continues to further evaluate cost benefit initiatives and technologies to further enhance the operating flexibility of the project and economics during the construction preparation phase.

**EXPLORATION RESULTS**

At Guanaceví, the Company drilled 10,424 metres in 38 holes at a total expense of $1.4 million to delineate extensions of the El Curso ore bodies. Drilling confirmed expectations and intersected significant mineralization with similar ore grades and vein widths to historical results.

At Bolañitos, the Company drilled 8,635 metres in 42 holes at total expense of $0.6 million to target the Tepetateras, La Cuesta, Gina and Maru veins and drilled 3,348 metres in 10 holes at a total expense of $0.3 million to target the Virginia, Karina, Fernanda and Daniela veins, all located in Bolañitos South. The Company intersected significant mineralization with ore grades over mineable widths.

At Terronera, the drill program targeted the regional area acquired in 2020. A total of 8,228 metres were drilled in 29 holes at a total expense of $1.5 million. Surface drilling was conducted on the Coral vein which is located south of the Los Cuates vein, which is approximately 10 km to the northwest of the Terronera Project, and on the Pena Gorda, Los Negros, Tablones and El Tajo veins located in the Real Alto area at the southern end of the project area. Assays returned various amounts of mineralization requiring interpretation and follow up.

At Parral, the Company drilled 49 holes totalling 12,355 metres, with a cost of $2.1 million targeting various areas of the Veta Colorada and San Patricio veins. Drilling confirmed expectations in a number of areas, intersecting significant mineralization with meaningful vein widths. Management will continue the exploration program in 2023 with the intention to expand the resource estimate published in December 2019 and initiate an economic study in 2023.

In Chile, the Company completed initial exploration activities on early stage exploration properties and preparatory work to drill Aida in Q4, 2022. The drilling program for Aida was delayed and is anticipated to resume in 2023.

At Bruner, the Company conducted sampling and geological mapping activities, however did not execute the exploration plan personnel focused on the recently acquired Pitarrilla project.

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**RESERVES AND RESOURCES**

<u>**GUANACEVÍ**</u>

On January 23, 2023, the Company filed an updated "NI 43-101" Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico with a report date of December 14, 2022 and an effective date of November 5, 2022. The Reserves and Resources in this report are as of May 31, 2022 and management has internally updated the Reserves and Resources effective December 31, 2022.

Proven and probable silver mineral reserves were consistent with the prior year and proven and probable gold mineral reserves increased 5%. Mineral reserves are estimated to be 14.3 million oz silver and 38,814 oz gold. On a silver equivalent basis, mineral reserves increased 2% to 17.4 million oz using a silver to gold ratio of 80:1.

Measured and indicated silver and gold mineral resources increased year on year by 5% and 17% respectively. Measured and indicated resources are estimated to be 7.7 million oz silver and 18,585 oz gold. On a silver equivalent basis, measured and indicated resources increased 8% to 9.2 million oz using a silver to gold ratio of 80:1.

Inferred resources for silver decreased 3% to 10.5 million oz and inferred resources for gold decreased by 10% to 21,665 oz for silver equivalent inferred resources of 12.2 million oz using a silver to gold ratio of 80:1.

<u>**BOLAÑITOS**</u>

On January 23, 2023, the Company filed an updated "NI 43-101" Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico with a report date of December 14, 2022 and an effective date of November 5, 2022. The Reserves and Resources in this report are as of May 31, 2022 and management has internally updated the Reserves and Resources effective December 31, 2022.

Proven and probable silver and gold mineral reserves increased year on year by 14% and 8% respectively. Mineral reserves are estimated to be 1.1 million oz silver and 39,643 oz gold. On a silver equivalent basis, mineral reserves increased 9% to 4.2 million oz using a silver to gold ratio of 80:1.

Measured and indicated silver and gold mineral resources decreased year on year by 59% and 33% respectively. Measured and indicated resources are estimated to be 1.4 million oz silver and 36,413 oz gold. On a silver equivalent basis, measured and indicated resources decreased 45% to 4.3 million oz using a silver to gold ratio of 80:1.

Estimated inferred resources for silver increased 50% to 5.6 million oz and inferred resources for gold increased by 6% to 83,414 oz for silver equivalent inferred resources of 12.3 million oz using a silver to gold ratio of 80:1.

<u>**PITARRILLA**</u>

On December 8, 2022, the Company published the "NI 43-101" Technical Report: Mineral Resource Estimate for the Pitarrilla AG-PB-ZN Project, Durango State, Mexico. The report, which is dated November 21, 2022, provides and independent estimate of the Mineral Resources identified at Pitarrilla as of October 6, 2022.

The total Indicated Mineral Resources (open pit and underground) at Pitarrilla totals 158.6 million tonnes containing 491.6 million ounces (oz) silver (Ag) grading 96.4 grams per tonne (gpt), 1.1 billion pounds (lbs) of lead (Pb) grading 0.31%, 2.6 billion pounds of Zinc (Zn) grading 0.74% for a total of 693.9 million ounces of silver equivalent (AgEq) grading 136 gpt.

The Inferred Mineral Resource (open pit and underground) totals 35.4 million tonnes containing 99.4 million oz Ag grading of 87.2 gpt, 281 million lbs Pb grading 0.36%, 661 million lbs Zn grading 0.85% for a total of 151.2 million ounces AgEq grading 132.7 gpt.

Silver equivalent grades are calculated using this formula: Ag (gpt) + [Pb (%) X 2204.6 X Pb Price / Ag Price X 31.1] + [Zn (%) X 2204.6 X Zn Price / Ag Price X 31.1] with price assumptions of Pb $1.00, Zn $1.30 and Ag $22.00.

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<u>**TERRONERA**</u>

There have been no changes to the estimated reserves or resources for the Terronera Project during 2022.

<u>**PARRAL**</u>

There have been no changes to the estimated reserves for resources for the Parral Project during 2022.

**CONSOLIDATED FINANCIAL RESULTS**

**Three months ended December 31, 2022 (compared to the three months ended December 31, 2021)**

In Q4, 2022, the Company's mine operating earnings were $21.7 million (Q4, 2021 - $12.2 million) on net revenue of $82.0 million (Q4, 2021 - $48.5 million) with cost of sales of $60.3 million (Q4, 2021 - $36.2 million).

In Q4, 2022, the Company had operating earnings of $13.5 million (Q4, 2021 -$4.1 million) after exploration and evaluations costs of $5.2 million (Q4, 2021 - $4.1 million), general and administrative expense of $2.8 million (Q4, 2021 -$2.8 million), care and maintenance expense of $Nil (Q4, 2021 - $0.4 million) and a write off of exploration properties of $0.2 million (Q4, 2021 - $0.7 million). In the three months ended December 31, 2021 operating earnings also included $0.2 million in severance costs related to the suspension of the operations at the El Compas mine.

The earnings before taxes for Q4, 2022 was $13.2 million (Q4, 2021 -$5.5 million) after finance costs of $0.4 million (Q4, 2021 - $0.3 million), a foreign exchange gain of $0.6 million (Q4, 2021 - $0.1 million), gain on assets disposal of $0.3 million (Q4, 2021 -$Nil) and investment and other expense of $0.2 million (Q4, 2021 -investment and other income of $1.6 million). The Company realized net earnings for the period of $7.9 million (Q4, 2021 - net loss of $0.5 million) after an income tax expense of $5.3 million (Q4, 2021 - $6.0 million).

Net revenue of $82.0 million in Q4, 2022, net of $0.7 million of smelting and refining costs, increased by 69% compared to $48.5 million, net of $0.4 million of smelting and refining costs, in Q4, 2021. Gross sales of $82.7 million in Q4, 2022 represented a 69% increase over the $48.9 million for the same period in 2021. Silver oz sold increased 99% due to both a 27% increase in silver production and the sales of higher than usual finished goods inventory during Q4, 2022, which was held as of September 30, 2022, compared to Q4, 2021. The 99% increase in ounces sold during the period, combined with a 7% decrease in the realized silver price resulted in an 86% increase to silver sales. Similarly, gold oz sold increased 36% with a 2% decrease in realized gold prices resulting in a 34% increase in gold sales. During the period, the Company sold 2,816,882 oz silver and 11,843 oz gold, for realized prices of $21.86 and $1,783 per oz, respectively, compared to sales of 1,413,699 oz silver and 8,715 oz gold, for realized prices of $23.41 and $1,811 per oz, respectively, in the same period of 2021. For the three months ended December 31, 2022, the realized prices of silver and gold were within 4% of the London spot prices. Silver and gold London spot prices averaged $19.23 and $1,729, respectively, during the three months ended December 31, 2022.

The Company decreased its finished goods silver and finished goods gold inventory to 530,250 oz silver and 1,707 oz gold, at December 31, 2022 compared to 1,530,319 oz silver and 3,353 oz gold at September 30, 2022. The cost allocated to these finished goods was $6.1 million at December 31, 2022, compared to $22.1 million at September 30, 2022 and $15.6 million at December 31, 2021. At December 31, 2022, the finished goods inventory fair market value was $15.8 million, compared to $34.7 million at September 30, 2022.

Cost of sales for Q4, 2022 was $60.3 million, an increase of 67% over the cost of sales of $36.2 million for Q4, 2021. The cost of sales in Q4, 2022 was impacted by increased input costs and by the recognition of the costs associated with the additional quantity of silver ounces in finished goods at the end of Q3, 2022 sold during the fourth quarter. Overall costs for Q4, 2022 were impacted by higher labour, power and consumables costs as the Company, as well as the industry, is experiencing significant inflationary pressures. There was also an increase in the royalty costs recognized during Q4, 2022 upon sale of the aforementioned finished goods. During Q4, 2021, the Company also recorded an allowance on the valuation of warehouse inventory of $0.9 million.

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Exploration and evaluation expenses were $5.2 million, increase of 27% compared to $4.1 million incurred in the same period of 2021 primarily due to the timing of exploration activities. General and administrative expenses of $2.8 million in Q4 2022 are on par with $2.8 million for the same period of 2021.

The Company incurred a foreign exchange gain of $0.6 million in Q4, 2022 compared to a foreign exchange gain of $0.1 million in Q4, 2021 due to timing of the settlements of the working capital balances and a slight strengthening of the Mexican peso at the end of the quarter compared to a weakening of the Mexican peso at the end of Q4, 2021. The Company incurred $0.4 million in finance charges primarily related to mobile equipment purchased compared to $0.3 million in the same period in 2021 due to an increase in financed mine equipment. The Company recognized $0.2 million in investment and other expenses compared to $1.6 million in investment and other income in Q4, 2021 primarily resulting from recognizing an unrealized loss on marketable securities and warrants of $0.1 million (Q4, 2021 - gain of $1.1 million), $0.5 million in interest income (Q4, 2021 - $0.2 million), $0.2 million in royalty income (Q4, 2021 - $0.2 million) and $0.8 million in other expense (Q4, 2021 - $0.1 million).

**Year ended December 31, 2022 (compared to the year ended December 31, 2021)**

For the year ended December 31, 2022, the Company's mine operating earnings was $51.6 million (2022 - $36.4 million) on net revenue of $210.2 million (2021 - $165.3 million) with cost of sales of $158.6 million (2021 - $128.9 million).

The Company had operating earnings of $23.5 million (2021 – $22.3 million) after exploration and evaluation costs of $16.2 million (2021 – $17.9 million), general and administrative costs of $10.6 million (2021 – $10.1 million), a write off of exploration properties of $0.7 million (2021 – $0.7) and care and maintenance expense for the El Compas mine of $0.6 million (2021 – $1.3 million for the Compas and El Cubo mines). For the year ended December 31, 2021 operating earnings included an impairment reversal of $16.8 million based on a valuation assessment done for the El Cubo mine and related assets and liabilities upon being classified as held for sale and $0.9 million in severance costs related to the suspension of the operations at the El Compas mine.

The earnings before taxes were $25.0 million (2021 - $29.7 million) after finance costs of $1.3 million (2021 - $1.0 million), a foreign exchange gain of $1.9 million (2021 - foreign exchange loss of $1.1 million) and investment and other expense of $1.6 million (2021 - investment and other income $3.7 million). In 2022, the Company also recognized a gain on asset disposal of $2.5 million of which $2.7 million was a gain on the sale of the El Compas mine and $0.2 million loss on the disposal of various other assets. For the year ended December 31, 2021 earnings before taxes included a gain on disposal of the El Cubo assets of $5.8 million. The Company realized net earnings for the period of $6.2 million (2021 -$14.0 million) after an income tax expense of $18.8 million (2021 - $15.7 million).

Net revenue of $210.2 million for 2022, net of $3.0 million in smelting and refining costs, increased by 27% compared to $165.3 million, net of $2.0 million of smelting and refining costs in 2021. Gross sales of $213.2 million in 2022 represented an 27% increase over the $167.3 million for 2021. There was a 68% increase in silver ounces sold and a 12% decrease in the realized silver price resulting in a 47% increase to silver sales. There was a 1% decrease in gold ounces sold with a realized gold prices on par with prior period, resulting in a 1% decrease in gold sales. During the period, the Company sold 6,464,869 oz silver and 38,868 oz gold, for realized prices of $22.07 and $1,814 per oz respectively, compared to sales of 3,856,883 oz silver and 39,113 oz gold, for realized prices of $25.22 and $1,790 per oz, respectively, in 2021. For the year ended December 31, 2022, the realized prices of silver and gold were within approximately 2% to London spot prices. During the same period, silver and gold spot prices averaged $21.73 and $1,800, respectively.

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The Company decreased its finished goods silver inventory and reduced its finished goods gold inventory to 530,250 oz silver and 1,707 oz, respectively at December 31, 2022 compared to 1,082,610 oz silver and 3,674 oz gold at December 31, 2021. The cost allocated to these finished goods was $6.1 million at December 31, 2022, compared to $15.6 million at December 31, 2021. At December 31, 2022, the finished goods inventory fair market value was $15.8 million, compared to $31.7 million at December 31, 2021.

Cost of sales for 2022 was $158.6 million, an increase of 23% over the cost of sales of $128.9 million for 2021. Overall costs for 2022 were impacted by higher labour, power and consumables costs as the Company is experiencing significant inflationary pressures. There were also increases in smelting and refining costs at Bolañitos and royalties and costs for third-party ore at Guanaceví. Royalties increased by 29% due to the increased sales and increased production tonnes at Guanaceví partially offset by the reduction in the realized silver price. The cost of sales was also impacte4d by the increase in ounces sold during 2022, as the Company held less inventory at the end of 2022 compared to the end of 2021. During 2022, the Company also recorded an allowance on the valuation of warehouse inventory of $1.3 million (2021 – $0.9 million).

Exploration and evaluation expenses decreased in 2022 to $16.2 million from $17.9 million for the same period of 2021 primarily based on timing of exploration programs and prior period additional expenditures to advance the Terronera Feasibility Study. General and administrative expenses increased to $10.6 million in 2022 compared to $10.1 million for the same period of 2021, due to overall increases in direct general and administrative costs of $0.6 million, $0.1 million decrease in share-based compensation.

The Company incurred a foreign exchange gain of $1.9 million in 2022 compared to a foreign exchange loss of $1.1 million in 2021 due to timing of the settlements of the working capital balances and a slight strengthening of the Mexican peso at December 31, 2022 compared to December 31, 2021, which resulted in higher valuations of peso denominated tax receivables and cash balances. The Company incurred $1.3 million in finance charges primarily related to loans for mobile equipment purchases compared to $1.0 million in the same period in 2021, due to changes in the outstanding loan balances. The Company recognized $1.6 million in investment and other expenses compared to $3.7 million in investment and other income in 2021 primarily resulting from a loss on marketable securities and warrants of $3.5 million (2021 - gain of $2.9 million), $1.3 million in interest income (2021 - $0.8 million), $0.7 million in royalty income (2021 - $0.5 million) and $0.1 million in other expenses (2021 -$0.5 million). In 2022, the Company also recognized a gain on asset disposal of $2.5 million of which $2.7 million was a gain on the sale of the El Compas mine and a $0.2 million loss on the disposal of various other assets. In 2021, the Company recognized a gain on the sale of the El Cubo mine of $5.8 million.

The recoverable amounts were based on each CGUs future cash flows expected to be derived from the Company's mining properties and represent each CGUs value in use. Expected cash flows were determined based on the life-of-mine after-tax cash flow forecast which incorporates management's best estimates of future metal prices, production based on current estimates of capacity, ore grade, recovery rate and recoverable reserves and resources, future operating costs, assets terminal value and non-expansionary capital expenditures. Expected cash flows are discounted at risk adjusted rates based on the CGUs weighted average cost of capital. As a result, management estimated the recoverable amount of the Bolañitos mine as at December 31, 2022, determined on a fair value less cost of disposal basis, and concluded no impairment charge was required. However, adverse changes in any of these assumptions in future periods may result in an impairment.

In previous years, prolonged commodity price declines led the Company to determine there were impairment indicators and assessed the recoverable amounts of its CGUs. The recoverable amounts were based on each CGUs future cash flows expected to be derived from the Company's mining properties and represent each CGU's value in use. The cash flows were determined based on the life-of-mine after-tax cash flow forecast which incorporates management's best estimates of future metal prices, production based on current estimates of recoverable reserves and resources, exploration potential, future operating costs and non-expansionary capital expenditures discounted at risk adjusted rates based on the CGUs weighted average cost of capital.

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During Q1, 2021, the El Cubo mine project, consisting of the land rights, plant, buildings and the related reclamation liability were classified as held for sale and immediately prior to the classification to assets and liabilities held for sale, the carrying amounts of the land rights, plant and building were remeasured and the historical gross impairments of $216.9 million net of depletion and depreciation of $200.1 million, were reversed resulting in a $16.8 million impairment reversal. During Q2, 2021 the sale of the El Cubo assets was completed with a gain on disposal of $5.8 million. The reclamation provision for the El Cubo mine of $4.6 million transferred to VanGold upon acquisition of the related mining concessions.

**SELECTED ANNUAL INFORMATION**

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|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
| **except per share amounts** | **2022** | **2021** | **2020** |
| Net revenue | $210160 | $165320 | $138461 |
| Net earnings (loss) | $6201 | $13955 | $1159 |
| Basic earnings (loss) per share | $0.03 | $0.08 | $0.01 |
| Diluted earnings (loss) per share | $0.03 | $0.08 | $0.01 |
| Dividends per share |  |  |  |
| Total assets | $399437 | $294024 | $210592 |
| Total long-term liabilities | $30794 | $17013 | $16968 |

---

**NON-IFRS MEASURES**

**Non-IFRS and Other Financial Measures and Ratios**

We have included certain non-IFRS financial measures and ratios in this MD&A, as discussed below. We believe that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Non-IFRS financial measures are defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112") as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation.

A non-IFRS ration is defined by 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.

Working capital is a non-IFRS measure that is a common measure of liquidity but does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is current assets and current liabilities. Working capital is calculated by deducting current liabilities from current assets. Working capital should not be considered in isolation or as a substitute from measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating our liquidity.

---

| | | |
|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**As at December 31, 2022** | &nbsp;&nbsp;**As at December 31, 2021** |
| Current assets | &nbsp;&nbsp;$146333 | &nbsp;&nbsp;$161762 |
| Current liabilities | &nbsp;&nbsp;52749 | &nbsp;&nbsp;40554 |
| Working capital | &nbsp;&nbsp;$93584 | &nbsp;&nbsp;$121208 |

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ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 19

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Adjusted earnings and adjusted earnings per share ("EPS") are non-IFRS measures that supplement information to the Company's consolidated financial statements. The Company believes that, in addition to the conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's underlying core operating performance. The presentation of adjusted earnings and adjusted earnings per share is not meant to be a substitute of net income and net income per share presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures.

The Company defines the adjusted earnings as net income adjusted to include certain non-cash and unusual item, and items that in the Company's judgement are subject to volatility as a result of factors which are unrelated to the Company's operation in the period. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and, conversely, items no longer applicable may be removed from the calculation. During the current period, the Company has included changes in the fair value of its investments in marketable securities and made retroactive adjustments to prior periods for the same. The following table provides a detailed reconciliation of net income as reported in the Company's financial statement to adjusted earnings and adjusted earnings per share.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
| **(except for share numbers and per share amounts)** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Net earnings (loss) for the period per financial statements | &nbsp;&nbsp;$7961 | &nbsp;&nbsp;($471) | &nbsp;&nbsp;$6201 | &nbsp;&nbsp;$13955 |
| Impairment (reversal) of non-current assets, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(16791) |
| Gain on disposal of El Cubo mine and equipment, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5807) |
| Gain on disposal of El Compas mine and equipment, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2733) | &nbsp;&nbsp;- |
| Change in fair value of investments | &nbsp;&nbsp;104 | &nbsp;&nbsp;5103 | &nbsp;&nbsp;3470 | &nbsp;&nbsp;2117 |
| Adjusted net earnings (loss) | &nbsp;&nbsp;$8065 | &nbsp;&nbsp;$4632 | &nbsp;&nbsp;$6938 | &nbsp;&nbsp;($6526) |
| Basic weighted average share outstanding | &nbsp;&nbsp;189993085 | &nbsp;&nbsp;170518894 | &nbsp;&nbsp;183009339 | &nbsp;&nbsp;167289732 |
| Adjusted net earnings (loss) per share | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;$0.03 | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;($0.04) |

---

Mine operating cash flow before taxes is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Mine operating cash flow is calculated as revenue minus direct production costs and royalties. Mine operating cash flow is used by management to assess the performance of the mine operations, excluding corporate and exploration activities and is provided to investors as a measure of the Company's operating performance.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Mine operating earnings per financial statements | &nbsp;&nbsp;$21655 | &nbsp;&nbsp;$12222 | &nbsp;&nbsp;$51525 | &nbsp;&nbsp;$36368 |
| Share-based compensation | &nbsp;&nbsp;89 | &nbsp;&nbsp;87 | &nbsp;&nbsp;442 | &nbsp;&nbsp;421 |
| Amortization and depletion | &nbsp;&nbsp;8945 | &nbsp;&nbsp;5014 | &nbsp;&nbsp;25179 | &nbsp;&nbsp;23977 |
| Write down of inventory to net realizable value | &nbsp;&nbsp;- | &nbsp;&nbsp;896 | &nbsp;&nbsp;1323 | &nbsp;&nbsp;1168 |
| Mine operating cash flow before taxes | &nbsp;&nbsp;$30689 | &nbsp;&nbsp;$18219 | &nbsp;&nbsp;$78469 | &nbsp;&nbsp;$61934 |

---

Operating cash flow before working capital changes per share is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Operating cash flow per share is calculated by dividing cash from operating activities by the weighted average shares outstanding. Operating cash flow per share is used by management to assess operating performance on a per share basis, irrespective of working capital changes and is provided to investors as a measure of the Company's operating performance.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
| **(except for per share amounts)** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Cash from (used in) operating activities per financial statements | &nbsp;&nbsp;$44391 | &nbsp;&nbsp;$18071 | &nbsp;&nbsp;$54993 | &nbsp;&nbsp;$23462 |
| Net changes in non-cash working capital per financial statements | &nbsp;&nbsp;21924 | &nbsp;&nbsp;7392 | &nbsp;&nbsp;967 | &nbsp;&nbsp;(8776) |
| Operating cash flow before working capital changes | &nbsp;&nbsp;$22467 | &nbsp;&nbsp;$10679 | &nbsp;&nbsp;$54026 | &nbsp;&nbsp;$32238 |
| Basic weighted average shares outstanding | &nbsp;&nbsp;189993085 | &nbsp;&nbsp;170518894 | &nbsp;&nbsp;183009339 | &nbsp;&nbsp;167289732 |
| Operating cash flow before working capital changes per share | &nbsp;&nbsp;$0.12 | &nbsp;&nbsp;$0.06 | &nbsp;&nbsp;$0.30 | &nbsp;&nbsp;$0.19 |

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ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 20

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EBITDA is a non-IFRS financial measure, which excludes the following from net earnings:

* Income tax expense;

* Finance costs;

* Amortization and depletion.

Adjusted EBITDA excludes the following additional items from EBITDA:

* Share based compensation;

* Non-recurring impairments (reversals);

* Significant non-routine items.

Adjusted EBITDA per share is calculated by dividing Adjusted EBITDA by the basic weighted average number of shares outstanding for the period.

Management believes EBITDA is a valuable indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Management uses EBITDA for this purpose. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a Company.

EBITDA is intended to provide additional information to investors and analysts. It does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined by IFRS. Other companies may calculate EBITDA and Adjusted EBITDA differently.

Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and, conversely, items no longer applicable may be removed from the calculation. During the current period, the Company has included changes in the fair value of its investments in marketable securities and made retroactive adjustments to prior periods for the same

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Net earnings (loss) for the period per financial statements | &nbsp;&nbsp;$7961 | &nbsp;&nbsp;($471) | &nbsp;&nbsp;$6201 | &nbsp;&nbsp;$13955 |
| Depreciation and depletion - cost of sales | &nbsp;&nbsp;8945 | &nbsp;&nbsp;5014 | &nbsp;&nbsp;25179 | &nbsp;&nbsp;23977 |
| Depreciation and depletion - exploration | &nbsp;&nbsp;276 | &nbsp;&nbsp;92 | &nbsp;&nbsp;624 | &nbsp;&nbsp;330 |
| Depreciation and depletion - general & administration | &nbsp;&nbsp;58 | &nbsp;&nbsp;63 | &nbsp;&nbsp;214 | &nbsp;&nbsp;165 |
| Depreciation and depletion - care & maintenance | &nbsp;&nbsp;- | &nbsp;&nbsp;30 | &nbsp;&nbsp;71 | &nbsp;&nbsp;55 |
| Depreciation and depletion - inventory write down | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6 |
| Finance costs | &nbsp;&nbsp;233 | &nbsp;&nbsp;22 | &nbsp;&nbsp;816 | &nbsp;&nbsp;724 |
| Current income tax expense | &nbsp;&nbsp;2850 | &nbsp;&nbsp;1005 | &nbsp;&nbsp;6376 | &nbsp;&nbsp;3481 |
| Deferred income tax expense | &nbsp;&nbsp;2345 | &nbsp;&nbsp;4992 | &nbsp;&nbsp;12372 | &nbsp;&nbsp;12252 |
| EBITDA | &nbsp;&nbsp;$22668 | &nbsp;&nbsp;$10747 | &nbsp;&nbsp;$51853 | &nbsp;&nbsp;$54945 |
| Share based compensation | &nbsp;&nbsp;619 | &nbsp;&nbsp;718 | &nbsp;&nbsp;3878 | &nbsp;&nbsp;3636 |
| Impairment (reversal) of non-current assets, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(16791) |
| Gain on disposal of El Cubo mine and equipment, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(5807) |
| Gain on disposal of El Compas mine and equipment, net of tax | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2733) | &nbsp;&nbsp;- |
| Change in fair value of investments | &nbsp;&nbsp;104 | &nbsp;&nbsp;5103 | &nbsp;&nbsp;3470 | &nbsp;&nbsp;2117 |
| Adjusted EBITDA | &nbsp;&nbsp;$23391 | &nbsp;&nbsp;$16568 | &nbsp;&nbsp;$56468 | &nbsp;&nbsp;$38100 |

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ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 21

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Cash costs per silver oz, total production costs per oz, direct operating costs per tonne and direct costs per tonne are measures developed by precious metals companies in an effort to provide a comparable standard; however, there can be no assurance that the Company's reporting of these non-IFRS measures and ratios are similar to those reported by other mining companies. Cash costs per oz, total production costs per oz and direct costs per tonne are measures used by the Company to manage and evaluate operating performance at each of the Company's operating mining units. They are widely reported in the silver mining industry as a benchmark for performance, but do not have a standardized meaning and are disclosed in addition to IFRS measures. Direct operating costs include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. Direct costs include all direct operating costs plus royalties and special mining duty. Cash costs include all direct costs less by-product gold sales and changes in finished gold inventories. Total production costs include all cash costs plus amortization and depletion, changes in amortization and depletion in finished goods inventory and site share-based compensation. Cash costs per silver ounce and total production costs per ounce are calculated by dividing cash costs and total production costs by the payable silver ounces produced. Direct operating cost per tonne and direct costs per tonne are calculated by dividing direct operating costs and direct costs by the number of processed tonnes. The following tables provide a detailed reconciliation of these measures to the Company's direct production costs, as reported in its consolidated financial statements.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Direct production costs per financial statements | &nbsp;&nbsp;33586 | &nbsp;&nbsp;9235 | &nbsp;&nbsp;42821 | &nbsp;&nbsp;18689 | &nbsp;&nbsp;7329 | &nbsp;&nbsp;(5) | &nbsp;&nbsp;26013 |
| Smelting and refining costs included in net revenue | &nbsp;&nbsp;- | &nbsp;&nbsp;694 | &nbsp;&nbsp;694 | &nbsp;&nbsp;- | &nbsp;&nbsp;362 | &nbsp;&nbsp;(4) | &nbsp;&nbsp;358 |
| Opening finished goods | &nbsp;&nbsp;(18080) | &nbsp;&nbsp;(195) | &nbsp;&nbsp;(18275) | &nbsp;&nbsp;(12910) | &nbsp;&nbsp;(2306) | &nbsp;&nbsp;- | &nbsp;&nbsp;(15216) |
| Closing finished goods | &nbsp;&nbsp;4953 | &nbsp;&nbsp;245 | &nbsp;&nbsp;5198 | &nbsp;&nbsp;10093 | &nbsp;&nbsp;2857 | &nbsp;&nbsp;- | &nbsp;&nbsp;12950 |
| Direct operating costs | &nbsp;&nbsp;20459 | &nbsp;&nbsp;9979 | &nbsp;&nbsp;30438 | &nbsp;&nbsp;15872 | &nbsp;&nbsp;8242 | &nbsp;&nbsp;(9) | &nbsp;&nbsp;24105 |
| Royalties | &nbsp;&nbsp;8430 | &nbsp;&nbsp;49 | &nbsp;&nbsp;8479 | &nbsp;&nbsp;4199 | &nbsp;&nbsp;79 | &nbsp;&nbsp;4 | &nbsp;&nbsp;4282 |
| Special mining duty <sup>(1)</sup> | &nbsp;&nbsp;845 | &nbsp;&nbsp;16 | &nbsp;&nbsp;861 | &nbsp;&nbsp;932 | &nbsp;&nbsp;(152) | &nbsp;&nbsp;- | &nbsp;&nbsp;780 |
| Direct costs | &nbsp;&nbsp;29734 | &nbsp;&nbsp;10044 | &nbsp;&nbsp;39778 | &nbsp;&nbsp;21003 | &nbsp;&nbsp;8169 | &nbsp;&nbsp;(5) | &nbsp;&nbsp;29167 |
| By-product gold sales | &nbsp;&nbsp;(11591) | &nbsp;&nbsp;(9527) | &nbsp;&nbsp;(21118) | &nbsp;&nbsp;(7293) | &nbsp;&nbsp;(8380) | &nbsp;&nbsp;(112) | &nbsp;&nbsp;(15785) |
| Opening gold inventory fair market value | &nbsp;&nbsp;5368 | &nbsp;&nbsp;240 | &nbsp;&nbsp;5608 | &nbsp;&nbsp;2127 | &nbsp;&nbsp;3560 | &nbsp;&nbsp;- | &nbsp;&nbsp;5687 |
| Closing gold inventory fair market value | &nbsp;&nbsp;(2740) | &nbsp;&nbsp;(354) | &nbsp;&nbsp;(3094) | &nbsp;&nbsp;(1900) | &nbsp;&nbsp;(4784) | &nbsp;&nbsp;- | &nbsp;&nbsp;(6684) |
| Cash costs net of by-product | &nbsp;&nbsp;20771 | &nbsp;&nbsp;403 | &nbsp;&nbsp;21174 | &nbsp;&nbsp;13937 | &nbsp;&nbsp;(1435) | &nbsp;&nbsp;(117) | &nbsp;&nbsp;12385 |
| Amortization and depletion | &nbsp;&nbsp;6160 | &nbsp;&nbsp;2785 | &nbsp;&nbsp;8945 | &nbsp;&nbsp;2181 | &nbsp;&nbsp;2827 | &nbsp;&nbsp;177 | &nbsp;&nbsp;5185 |
| Share-based compensation | &nbsp;&nbsp;45 | &nbsp;&nbsp;44 | &nbsp;&nbsp;89 | &nbsp;&nbsp;43 | &nbsp;&nbsp;44 | &nbsp;&nbsp;- | &nbsp;&nbsp;87 |
| Opening finished goods depreciation and depletion | &nbsp;&nbsp;(3776) | &nbsp;&nbsp;(60) | &nbsp;&nbsp;(3836) | &nbsp;&nbsp;(1920) | &nbsp;&nbsp;(1171) | &nbsp;&nbsp;- | &nbsp;&nbsp;(3091) |
| Closing finished goods depreciation and depletion | &nbsp;&nbsp;862 | &nbsp;&nbsp;79 | &nbsp;&nbsp;941 | &nbsp;&nbsp;1965 | &nbsp;&nbsp;635 | &nbsp;&nbsp;- | &nbsp;&nbsp;2600 |
| Total production costs | &nbsp;&nbsp;$24062 | &nbsp;&nbsp;$3251 | &nbsp;&nbsp;$27313 | &nbsp;&nbsp;$16206 | &nbsp;&nbsp;$900 | &nbsp;&nbsp;$66 | &nbsp;&nbsp;$17172 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Throughput tonnes | &nbsp;&nbsp;119305 | &nbsp;&nbsp;104984 | &nbsp;&nbsp;224289 | &nbsp;&nbsp;108334 | &nbsp;&nbsp;105158 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;213492 |
| Payable silver ounces | &nbsp;&nbsp;1675322 | &nbsp;&nbsp;141491 | &nbsp;&nbsp;1816813 | &nbsp;&nbsp;1298036 | &nbsp;&nbsp;134178 | &nbsp;&nbsp;364 | &nbsp;&nbsp;1432578 |
| Cash costs per silver ounce | &nbsp;&nbsp;$12.40 | &nbsp;&nbsp;$2.85 | &nbsp;&nbsp;$11.65 | &nbsp;&nbsp;$10.74 | &nbsp;&nbsp;($10.69) | &nbsp;&nbsp;N/A | &nbsp;&nbsp;$8.65 |
| Total production costs per ounce | &nbsp;&nbsp;$14.36 | &nbsp;&nbsp;$22.98 | &nbsp;&nbsp;$15.03 | &nbsp;&nbsp;$12.49 | &nbsp;&nbsp;$6.71 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;$11.99 |
| Direct operating costs per tonne | &nbsp;&nbsp;$171.48 | &nbsp;&nbsp;$95.05 | &nbsp;&nbsp;$135.71 | &nbsp;&nbsp;$146.51 | &nbsp;&nbsp;$78.38 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;$112.91 |
| Direct costs per tonne | &nbsp;&nbsp;$249.23 | &nbsp;&nbsp;$95.67 | &nbsp;&nbsp;$177.35 | &nbsp;&nbsp;$193.87 | &nbsp;&nbsp;$77.68 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;$136.62 |

---

Note: Production at El Compas was suspended in August 2021.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 22

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Direct production costs per financial statements | &nbsp;&nbsp;$74423 | &nbsp;&nbsp;$39457 | &nbsp;&nbsp;$113880 | &nbsp;&nbsp;$51761 | &nbsp;&nbsp;$28896 | &nbsp;&nbsp;$8946 | &nbsp;&nbsp;$89603 |
| Smelting and refining costs included in net revenue | &nbsp;&nbsp;- | &nbsp;&nbsp;3029 | &nbsp;&nbsp;3029 | &nbsp;&nbsp;- | &nbsp;&nbsp;1715 | &nbsp;&nbsp;244 | &nbsp;&nbsp;1959 |
| Opening finished goods | &nbsp;&nbsp;(10093) | &nbsp;&nbsp;(2857) | &nbsp;&nbsp;(12950) | &nbsp;&nbsp;(1509) | &nbsp;&nbsp;(250) | &nbsp;&nbsp;(642) | &nbsp;&nbsp;(2401) |
| Finished goods NRV adjustment | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;266 | &nbsp;&nbsp;266 |
| Closing finished goods | &nbsp;&nbsp;4953 | &nbsp;&nbsp;245 | &nbsp;&nbsp;5198 | &nbsp;&nbsp;10093 | &nbsp;&nbsp;2857 | &nbsp;&nbsp;- | &nbsp;&nbsp;12950 |
| Direct operating costs | &nbsp;&nbsp;69283 | &nbsp;&nbsp;39874 | &nbsp;&nbsp;109157 | &nbsp;&nbsp;60345 | &nbsp;&nbsp;33218 | &nbsp;&nbsp;8814 | &nbsp;&nbsp;102377 |
| Royalties | &nbsp;&nbsp;17554 | &nbsp;&nbsp;257 | &nbsp;&nbsp;17811 | &nbsp;&nbsp;13165 | &nbsp;&nbsp;265 | &nbsp;&nbsp;350 | &nbsp;&nbsp;13780 |
| Special mining duty <sup>(1)</sup> | &nbsp;&nbsp;2612 | &nbsp;&nbsp;302 | &nbsp;&nbsp;2914 | &nbsp;&nbsp;2674 | &nbsp;&nbsp;53 | &nbsp;&nbsp;- | &nbsp;&nbsp;2727 |
| Direct costs | &nbsp;&nbsp;89449 | &nbsp;&nbsp;40433 | &nbsp;&nbsp;129882 | &nbsp;&nbsp;76184 | &nbsp;&nbsp;33536 | &nbsp;&nbsp;9164 | &nbsp;&nbsp;118884 |
| By-product gold sales | &nbsp;&nbsp;(27569) | &nbsp;&nbsp;(42932) | &nbsp;&nbsp;(70501) | &nbsp;&nbsp;(22639) | &nbsp;&nbsp;(38645) | &nbsp;&nbsp;(8738) | &nbsp;&nbsp;(70022) |
| Opening gold inventory fair market value | &nbsp;&nbsp;1900 | &nbsp;&nbsp;4784 | &nbsp;&nbsp;6684 | &nbsp;&nbsp;735 | &nbsp;&nbsp;746 | &nbsp;&nbsp;1283 | &nbsp;&nbsp;2764 |
| Closing gold inventory fair market value | &nbsp;&nbsp;(2740) | &nbsp;&nbsp;(354) | &nbsp;&nbsp;(3094) | &nbsp;&nbsp;(1900) | &nbsp;&nbsp;(4784) | &nbsp;&nbsp;- | &nbsp;&nbsp;(6684) |
| Cash costs net of by-product | &nbsp;&nbsp;61040 | &nbsp;&nbsp;1931 | &nbsp;&nbsp;62971 | &nbsp;&nbsp;52380 | &nbsp;&nbsp;(9147) | &nbsp;&nbsp;1709 | &nbsp;&nbsp;44942 |
| Amortization and depletion | &nbsp;&nbsp;14129 | &nbsp;&nbsp;11050 | &nbsp;&nbsp;25179 | &nbsp;&nbsp;7944 | &nbsp;&nbsp;13491 | &nbsp;&nbsp;2713 | &nbsp;&nbsp;24148 |
| Share-based compensation | &nbsp;&nbsp;221 | &nbsp;&nbsp;221 | &nbsp;&nbsp;442 | &nbsp;&nbsp;180 | &nbsp;&nbsp;180 | &nbsp;&nbsp;61 | &nbsp;&nbsp;421 |
| Opening finished goods depreciation and depletion | &nbsp;&nbsp;(1965) | &nbsp;&nbsp;(635) | &nbsp;&nbsp;(2600) | &nbsp;&nbsp;(271) | &nbsp;&nbsp;(104) | &nbsp;&nbsp;(804) | &nbsp;&nbsp;(1179) |
| NRV depreciation and depletion cost adjustment | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;6 | &nbsp;&nbsp;6 |
| Closing finished goods depreciation and depletion | &nbsp;&nbsp;862 | &nbsp;&nbsp;79 | &nbsp;&nbsp;941 | &nbsp;&nbsp;1965 | &nbsp;&nbsp;635 | &nbsp;&nbsp;- | &nbsp;&nbsp;2600 |
| Total production costs | &nbsp;&nbsp;$74287 | &nbsp;&nbsp;$12646 | &nbsp;&nbsp;$86933 | &nbsp;&nbsp;$62198 | &nbsp;&nbsp;$5055 | &nbsp;&nbsp;$3685 | &nbsp;&nbsp;$70938 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Throughput tonnes | &nbsp;&nbsp;412303 | &nbsp;&nbsp;422239 | &nbsp;&nbsp;834542 | &nbsp;&nbsp;414355 | &nbsp;&nbsp;418514 | &nbsp;&nbsp;54555 | &nbsp;&nbsp;887424 |
| Payable silver ounces | &nbsp;&nbsp;5324531 | &nbsp;&nbsp;587978 | &nbsp;&nbsp;5912509 | &nbsp;&nbsp;4320567 | &nbsp;&nbsp;462700 | &nbsp;&nbsp;43414 | &nbsp;&nbsp;4826681 |
| Cash costs per silver ounce | &nbsp;&nbsp;$11.46 | &nbsp;&nbsp;$3.28 | &nbsp;&nbsp;$10.65 | &nbsp;&nbsp;$12.12 | &nbsp;&nbsp;($19.77) | &nbsp;&nbsp;$39.37 | &nbsp;&nbsp;$9.31 |
| Total production costs per ounce | &nbsp;&nbsp;$13.95 | &nbsp;&nbsp;$21.51 | &nbsp;&nbsp;$14.70 | &nbsp;&nbsp;$14.40 | &nbsp;&nbsp;$10.93 | &nbsp;&nbsp;$84.88 | &nbsp;&nbsp;$14.70 |
| Direct operating costs per tonne | &nbsp;&nbsp;$168.04 | &nbsp;&nbsp;$94.43 | &nbsp;&nbsp;$130.80 | &nbsp;&nbsp;$145.64 | &nbsp;&nbsp;$79.37 | &nbsp;&nbsp;$161.56 | &nbsp;&nbsp;$115.36 |
| Direct costs per tonne | &nbsp;&nbsp;$216.95 | &nbsp;&nbsp;$95.76 | &nbsp;&nbsp;$155.63 | &nbsp;&nbsp;$183.86 | &nbsp;&nbsp;$80.13 | &nbsp;&nbsp;$167.98 | &nbsp;&nbsp;$133.97 |

---

(1) Special mining duty is an EBITDA royalty tax presented as a current income tax in accordance with IFRS.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2022** | &nbsp;&nbsp;**December 31, 2022** |  | &nbsp;&nbsp;**December 31, 2021** | &nbsp;&nbsp;**December 31, 2021** |  |
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Closing finished goods | &nbsp;&nbsp;4953 | &nbsp;&nbsp;245 | &nbsp;&nbsp;5198 | &nbsp;&nbsp;10093 | &nbsp;&nbsp;2857 | &nbsp;&nbsp;- | &nbsp;&nbsp;12950 |
| Closing finished goods depletion | &nbsp;&nbsp;862 | &nbsp;&nbsp;79 | &nbsp;&nbsp;941 | &nbsp;&nbsp;1965 | &nbsp;&nbsp;635 | &nbsp;&nbsp;- | &nbsp;&nbsp;2600 |
| Finished goods inventory | &nbsp;&nbsp;$5815 | &nbsp;&nbsp;$324 | &nbsp;&nbsp;$6139 | &nbsp;&nbsp;$12058 | &nbsp;&nbsp;$3492 | &nbsp;&nbsp;$0 | &nbsp;&nbsp;$15550 |

---

AISC per oz and all-in costs per oz are measures developed by the World Gold Council (and used as a standard of the Silver Institute) in an effort to provide a comparable standard within the precious metal industry; however, there can be no assurance that the Company's reporting of these non-IFRS measures are similar to those reported by other mining companies. These measures are used by the Company to manage and evaluate operating performance at each of the Company's operating mining units and consolidated group, and are widely reported in the silver mining industry as a benchmark for performance, but do not have a standardized meaning and are disclosed in addition to IFRS measures. The following tables provide a detailed reconciliation of these measures to the Company's cost of sales, as reported in the Company's consolidated financial statements.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 23

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Cash costs net of by-product | &nbsp;&nbsp;$20771 | &nbsp;&nbsp;$403 | &nbsp;&nbsp;$21174 | &nbsp;&nbsp;$13937 | &nbsp;&nbsp;($1435) | &nbsp;&nbsp;($117) | &nbsp;&nbsp;$12385 |
| Operations share-based compensation | &nbsp;&nbsp;45 | &nbsp;&nbsp;44 | &nbsp;&nbsp;89 | &nbsp;&nbsp;43 | &nbsp;&nbsp;44 | &nbsp;&nbsp;- | &nbsp;&nbsp;87 |
| Corporate general and administrative | &nbsp;&nbsp;1771 | &nbsp;&nbsp;506 | &nbsp;&nbsp;2277 | &nbsp;&nbsp;1538 | &nbsp;&nbsp;578 | &nbsp;&nbsp;22 | &nbsp;&nbsp;2138 |
| Corporate share-based compensation | &nbsp;&nbsp;365 | &nbsp;&nbsp;67 | &nbsp;&nbsp;432 | &nbsp;&nbsp;439 | &nbsp;&nbsp;141 | &nbsp;&nbsp;(11) | &nbsp;&nbsp;569 |
| Reclamation - amortization/accretion | &nbsp;&nbsp;70 | &nbsp;&nbsp;53 | &nbsp;&nbsp;123 | &nbsp;&nbsp;62 | &nbsp;&nbsp;50 | &nbsp;&nbsp;2 | &nbsp;&nbsp;114 |
| Mine site expensed exploration | &nbsp;&nbsp;323 | &nbsp;&nbsp;295 | &nbsp;&nbsp;618 | &nbsp;&nbsp;251 | &nbsp;&nbsp;448 | &nbsp;&nbsp;- | &nbsp;&nbsp;699 |
| Intangible payments | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;72 | &nbsp;&nbsp;26 | &nbsp;&nbsp;- | &nbsp;&nbsp;98 |
| Equipment loan payments | &nbsp;&nbsp;245 | &nbsp;&nbsp;489 | &nbsp;&nbsp;734 | &nbsp;&nbsp;246 | &nbsp;&nbsp;489 | &nbsp;&nbsp;- | &nbsp;&nbsp;735 |
| Capital expenditures sustaining | &nbsp;&nbsp;6653 | &nbsp;&nbsp;3103 | &nbsp;&nbsp;9756 | &nbsp;&nbsp;7742 | &nbsp;&nbsp;3344 | &nbsp;&nbsp;- | &nbsp;&nbsp;11086 |
| All-In-Sustaining Costs | &nbsp;&nbsp;$30243 | &nbsp;&nbsp;$4960 | &nbsp;&nbsp;$35203 | &nbsp;&nbsp;$24330 | &nbsp;&nbsp;$3685 | &nbsp;&nbsp;($104) | &nbsp;&nbsp;$27911 |
| Growth exploration and evaluation |  |  | &nbsp;&nbsp;4170 |  |  |  | &nbsp;&nbsp;3254 |
| Growth capital expenditures |  |  | &nbsp;&nbsp;18672 |  |  |  | &nbsp;&nbsp;4135 |
| All-In-Costs |  |  | &nbsp;&nbsp;$58045 |  |  |  | &nbsp;&nbsp;$35300 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Throughput tonnes | &nbsp;&nbsp;119305 | &nbsp;&nbsp;104984 | &nbsp;&nbsp;224289 | &nbsp;&nbsp;108334 | &nbsp;&nbsp;105158 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;213492 |
| Payable silver ounces | &nbsp;&nbsp;1675322 | &nbsp;&nbsp;141491 | &nbsp;&nbsp;1816813 | &nbsp;&nbsp;1298036 | &nbsp;&nbsp;134178 | &nbsp;&nbsp;364 | &nbsp;&nbsp;1432578 |
| Silver equivalent production (ounces) | &nbsp;&nbsp;2075243 | &nbsp;&nbsp;585192 | &nbsp;&nbsp;2660435 | &nbsp;&nbsp;1612741 | &nbsp;&nbsp;581418 | &nbsp;&nbsp;5085 | &nbsp;&nbsp;2199244 |
| Sustaining cost per ounce | &nbsp;&nbsp;$18.05 | &nbsp;&nbsp;$35.06 | &nbsp;&nbsp;$19.38 | &nbsp;&nbsp;$18.74 | &nbsp;&nbsp;$27.46 | &nbsp;&nbsp;($285.98) | &nbsp;&nbsp;$19.48 |
| All-In-costs per ounce |  |  | &nbsp;&nbsp;$31.95 |  |  |  | &nbsp;&nbsp;$24.64 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Cash costs net of by-product | &nbsp;&nbsp;$61040 | &nbsp;&nbsp;$1931 | &nbsp;&nbsp;$62971 | &nbsp;&nbsp;$52380 | &nbsp;&nbsp;($9147) | &nbsp;&nbsp;$1709 | &nbsp;&nbsp;$44942 |
| Operations share-based compensation | &nbsp;&nbsp;221 | &nbsp;&nbsp;221 | &nbsp;&nbsp;442 | &nbsp;&nbsp;180 | &nbsp;&nbsp;180 | &nbsp;&nbsp;61 | &nbsp;&nbsp;421 |
| Corporate general and administrative | &nbsp;&nbsp;5439 | &nbsp;&nbsp;1951 | &nbsp;&nbsp;7390 | &nbsp;&nbsp;4564 | &nbsp;&nbsp;2082 | &nbsp;&nbsp;329 | &nbsp;&nbsp;6975 |
| Corporate share-based compensation | &nbsp;&nbsp;2214 | &nbsp;&nbsp;795 | &nbsp;&nbsp;3009 | &nbsp;&nbsp;1912 | &nbsp;&nbsp;873 | &nbsp;&nbsp;138 | &nbsp;&nbsp;2923 |
| Reclamation - amortization/accretion | &nbsp;&nbsp;268 | &nbsp;&nbsp;211 | &nbsp;&nbsp;479 | &nbsp;&nbsp;100 | &nbsp;&nbsp;83 | &nbsp;&nbsp;9 | &nbsp;&nbsp;192 |
| Mine site expensed exploration | &nbsp;&nbsp;1351 | &nbsp;&nbsp;1158 | &nbsp;&nbsp;2509 | &nbsp;&nbsp;1611 | &nbsp;&nbsp;1216 | &nbsp;&nbsp;198 | &nbsp;&nbsp;3025 |
| Intangible payments | &nbsp;&nbsp;30 | &nbsp;&nbsp;11 | &nbsp;&nbsp;41 | &nbsp;&nbsp;250 | &nbsp;&nbsp;114 | &nbsp;&nbsp;18 | &nbsp;&nbsp;382 |
| Equipment loan payments | &nbsp;&nbsp;981 | &nbsp;&nbsp;1955 | &nbsp;&nbsp;2936 | &nbsp;&nbsp;1099 | &nbsp;&nbsp;2082 | &nbsp;&nbsp;- | &nbsp;&nbsp;3181 |
| Capital expenditures sustaining | &nbsp;&nbsp;26561 | &nbsp;&nbsp;11756 | &nbsp;&nbsp;38317 | &nbsp;&nbsp;21964 | &nbsp;&nbsp;14150 | &nbsp;&nbsp;- | &nbsp;&nbsp;36114 |
| All-In-Sustaining Costs | &nbsp;&nbsp;$98105 | &nbsp;&nbsp;$19989 | &nbsp;&nbsp;$118094 | &nbsp;&nbsp;$84060 | &nbsp;&nbsp;$11633 | &nbsp;&nbsp;$2462 | &nbsp;&nbsp;$98155 |
| Growth exploration and evaluation |  |  | &nbsp;&nbsp;12626 |  |  |  | &nbsp;&nbsp;14277 |
| Growth capital expenditures |  |  | &nbsp;&nbsp;35450 |  |  |  | &nbsp;&nbsp;7872 |
| All-In-Costs |  |  | &nbsp;&nbsp;$166170 |  |  |  | &nbsp;&nbsp;$120304 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Throughput tonnes | &nbsp;&nbsp;412303 | &nbsp;&nbsp;422239 | &nbsp;&nbsp;834542 | &nbsp;&nbsp;414355 | &nbsp;&nbsp;418514 | &nbsp;&nbsp;54555 | &nbsp;&nbsp;887424 |
| Payable silver ounces | &nbsp;&nbsp;5324531 | &nbsp;&nbsp;587978 | &nbsp;&nbsp;5912509 | &nbsp;&nbsp;4320567 | &nbsp;&nbsp;462700 | &nbsp;&nbsp;43414 | &nbsp;&nbsp;4826681 |
| Silver equivalent production (ounces) | &nbsp;&nbsp;6599353 | &nbsp;&nbsp;2367932 | &nbsp;&nbsp;8967285 | &nbsp;&nbsp;5398927 | &nbsp;&nbsp;2463572 | &nbsp;&nbsp;389248 | &nbsp;&nbsp;8251747 |
| Sustaining cost per ounce | &nbsp;&nbsp;$18.43 | &nbsp;&nbsp;$34.00 | &nbsp;&nbsp;$19.97 | &nbsp;&nbsp;$19.46 | &nbsp;&nbsp;$25.14 | &nbsp;&nbsp;$56.71 | &nbsp;&nbsp;$20.34 |
| All-In-costs per ounce |  |  | &nbsp;&nbsp;$28.10 |  |  |  | &nbsp;&nbsp;$24.92 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Capital expenditures sustaining | &nbsp;&nbsp;$9756 | &nbsp;&nbsp;$11086 | &nbsp;&nbsp;$38317 | &nbsp;&nbsp;$36114 |
| Growth capital expenditures | &nbsp;&nbsp;18672 | &nbsp;&nbsp;4135 | &nbsp;&nbsp;35450 | &nbsp;&nbsp;7872 |
| Acquisition capital expenditures | &nbsp;&nbsp;(50) | &nbsp;&nbsp;10106 | &nbsp;&nbsp;35948 | &nbsp;&nbsp;10106 |
| Property, plant and equipment expenditures per Consolidated Statement of Cash Flows | &nbsp;&nbsp;$28378 | &nbsp;&nbsp;$25327 | &nbsp;&nbsp;$109715 | &nbsp;&nbsp;$54092 |

---

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 24

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Three Months Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** | &nbsp;&nbsp;**Years Ended December 31** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| Mine site expensed exploration | $618 | $699 | $2509 | $3025 |
| Growth exploration and evaluation | 4170 | 3254 | 12626 | 14277 |
| Total exploration and evaluation | 4788 | 3953 | 15135 | 17302 |
| Exploration depreciation and depletion | 275 | 92 | 623 | 330 |
| Exploration share-based compensation | 99 | 64 | 427 | 293 |
| Exploration and evaluation expense | $5162 | $4109 | $16185 | $17925 |

---

Silver co-product cash costs and gold co-product cash costs are measures used by the Company to manage and evaluate operating performance at each of the Company's operating mining units and consolidated group, but do not have a standardized meaning and are disclosed in addition to IFRS measures. The following tables provide a detailed reconciliation of these measures to the Company's cost of sales, as reported in its consolidated financial statements.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Direct production costs per financial statements | &nbsp;&nbsp;$33586 | &nbsp;&nbsp;$9235 | &nbsp;&nbsp;$42821 | &nbsp;&nbsp;$18689 | &nbsp;&nbsp;$7329 | &nbsp;&nbsp;($5) | &nbsp;&nbsp;$26013 |
| Smelting and refining costs included in net revenue | &nbsp;&nbsp;- | &nbsp;&nbsp;694 | &nbsp;&nbsp;694 | &nbsp;&nbsp;- | &nbsp;&nbsp;362 | &nbsp;&nbsp;(4) | &nbsp;&nbsp;358 |
| Royalties | &nbsp;&nbsp;8430 | &nbsp;&nbsp;49 | &nbsp;&nbsp;8479 | &nbsp;&nbsp;4199 | &nbsp;&nbsp;79 | &nbsp;&nbsp;4 | &nbsp;&nbsp;4282 |
| Special mining duty <sup>(1)</sup> | &nbsp;&nbsp;845 | &nbsp;&nbsp;16 | &nbsp;&nbsp;861 | &nbsp;&nbsp;932 | &nbsp;&nbsp;(152) | &nbsp;&nbsp;- | &nbsp;&nbsp;780 |
| Opening finished goods | &nbsp;&nbsp;(18080) | &nbsp;&nbsp;(195) | &nbsp;&nbsp;(18275) | &nbsp;&nbsp;(12910) | &nbsp;&nbsp;(2306) | &nbsp;&nbsp;- | &nbsp;&nbsp;(15216) |
| Closing finished goods | &nbsp;&nbsp;4953 | &nbsp;&nbsp;245 | &nbsp;&nbsp;5198 | &nbsp;&nbsp;10093 | &nbsp;&nbsp;2857 | &nbsp;&nbsp;- | &nbsp;&nbsp;12950 |
| Direct costs | &nbsp;&nbsp;$29734 | &nbsp;&nbsp;$10044 | &nbsp;&nbsp;$39778 | &nbsp;&nbsp;$21003 | &nbsp;&nbsp;$8169 | &nbsp;&nbsp;($5) | &nbsp;&nbsp;$29167 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2022** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** | &nbsp;&nbsp;**Three Months Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Silver production (ounces) | &nbsp;&nbsp;1680363 | &nbsp;&nbsp;150472 | &nbsp;&nbsp;1830835 | &nbsp;&nbsp;1301941 | &nbsp;&nbsp;141258 | &nbsp;&nbsp;365 | &nbsp;&nbsp;1443564 |
| Average realized silver price ($) | &nbsp;&nbsp;21.86 | &nbsp;&nbsp;21.86 | &nbsp;&nbsp;21.86 | &nbsp;&nbsp;23.41 | &nbsp;&nbsp;23.41 | &nbsp;&nbsp;23.41 | &nbsp;&nbsp;23.41 |
| Silver value ($) | &nbsp;&nbsp;36725566 | &nbsp;&nbsp;3288676 | &nbsp;&nbsp;40014242 | &nbsp;&nbsp;30478439 | &nbsp;&nbsp;3306850 | &nbsp;&nbsp;8545 | &nbsp;&nbsp;33793833 |
| Gold production (ounces) | &nbsp;&nbsp;4936 | &nbsp;&nbsp;5434 | &nbsp;&nbsp;10370 | &nbsp;&nbsp;3885 | &nbsp;&nbsp;5502 | &nbsp;&nbsp;59 | &nbsp;&nbsp;9446 |
| Average realized gold price ($) | &nbsp;&nbsp;1783 | &nbsp;&nbsp;1783 | &nbsp;&nbsp;1783 | &nbsp;&nbsp;1811 | &nbsp;&nbsp;1811 | &nbsp;&nbsp;1811 | &nbsp;&nbsp;1811 |
| Gold value ($) | &nbsp;&nbsp;8801693 | &nbsp;&nbsp;9689708 | &nbsp;&nbsp;18491401 | &nbsp;&nbsp;7035735 | &nbsp;&nbsp;9964122 | &nbsp;&nbsp;106849 | &nbsp;&nbsp;17106706 |
| Total metal value ($) | &nbsp;&nbsp;45527258 | &nbsp;&nbsp;12978384 | &nbsp;&nbsp;58505642 | &nbsp;&nbsp;37514174 | &nbsp;&nbsp;13270972 | &nbsp;&nbsp;115394 | &nbsp;&nbsp;50900539 |
| Pro-rated silver costs (%) | &nbsp;&nbsp;81% | &nbsp;&nbsp;25% | &nbsp;&nbsp;68% | &nbsp;&nbsp;81% | &nbsp;&nbsp;25% | &nbsp;&nbsp;7% | &nbsp;&nbsp;66% |
| Pro-rated gold costs (%) | &nbsp;&nbsp;19% | &nbsp;&nbsp;75% | &nbsp;&nbsp;32% | &nbsp;&nbsp;19% | &nbsp;&nbsp;75% | &nbsp;&nbsp;93% | &nbsp;&nbsp;34% |
| Pro-rated silver costs ($) | &nbsp;&nbsp;23986 | &nbsp;&nbsp;2545 | &nbsp;&nbsp;27206 | &nbsp;&nbsp;17064 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;- | &nbsp;&nbsp;19365 |
| Pro-rated gold costs ($) | &nbsp;&nbsp;5748 | &nbsp;&nbsp;7499 | &nbsp;&nbsp;12572 | &nbsp;&nbsp;3939 | &nbsp;&nbsp;6133 | &nbsp;&nbsp;(5) | &nbsp;&nbsp;9802 |
| Silver co-product cash costs ($) | &nbsp;&nbsp;14.27 | &nbsp;&nbsp;16.91 | &nbsp;&nbsp;14.86 | &nbsp;&nbsp;13.11 | &nbsp;&nbsp;14.41 | &nbsp;&nbsp;(1.01) | &nbsp;&nbsp;13.41 |
| Gold co-product cash costs ($) | &nbsp;&nbsp;1165 | &nbsp;&nbsp;1380 | &nbsp;&nbsp;1212 | &nbsp;&nbsp;1014 | &nbsp;&nbsp;1115 | &nbsp;&nbsp;(78) | &nbsp;&nbsp;1038 |

---

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 25

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Direct production costs per financial statements | &nbsp;&nbsp;$74423 | &nbsp;&nbsp;$39457 | &nbsp;&nbsp;$113880 | &nbsp;&nbsp;$51761 | &nbsp;&nbsp;$28896 | &nbsp;&nbsp;$8946 | &nbsp;&nbsp;$89603 |
| Smelting and refining costs included in net revenue | &nbsp;&nbsp;- | &nbsp;&nbsp;$3029 | &nbsp;&nbsp;$3029 | &nbsp;&nbsp;- | &nbsp;&nbsp;1715 | &nbsp;&nbsp;244 | &nbsp;&nbsp;1959 |
| Royalties | &nbsp;&nbsp;17554 | &nbsp;&nbsp;257 | &nbsp;&nbsp;17811 | &nbsp;&nbsp;13165 | &nbsp;&nbsp;265 | &nbsp;&nbsp;350 | &nbsp;&nbsp;13780 |
| Special mining duty <sup>(1)</sup> | &nbsp;&nbsp;2612 | &nbsp;&nbsp;302 | &nbsp;&nbsp;2914 | &nbsp;&nbsp;2674 | &nbsp;&nbsp;53 | &nbsp;&nbsp;- | &nbsp;&nbsp;2727 |
| Opening finished goods | &nbsp;&nbsp;(10093) | &nbsp;&nbsp;(2857) | &nbsp;&nbsp;(12950) | &nbsp;&nbsp;(1509) | &nbsp;&nbsp;(250) | &nbsp;&nbsp;(642) | &nbsp;&nbsp;(2401) |
| Finished goods NRV adjustment | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;266 | &nbsp;&nbsp;266 |
| Closing finished goods | &nbsp;&nbsp;4953 | &nbsp;&nbsp;245 | &nbsp;&nbsp;5198 | &nbsp;&nbsp;10093 | &nbsp;&nbsp;2857 | &nbsp;&nbsp;- | &nbsp;&nbsp;12950 |
| Direct costs | &nbsp;&nbsp;89449 | &nbsp;&nbsp;40433 | &nbsp;&nbsp;129882 | &nbsp;&nbsp;76184 | &nbsp;&nbsp;33536 | &nbsp;&nbsp;9164 | &nbsp;&nbsp;118884 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2022** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** | &nbsp;&nbsp;**Year Ended December 31, 2021** |
|  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp;**Bolañitos** | &nbsp;&nbsp;**El Compas** | &nbsp;&nbsp;**Total** |
| Silver production (ounces) | &nbsp;&nbsp;5340553 | &nbsp;&nbsp;622892 | &nbsp;&nbsp;5963445 | &nbsp;&nbsp;4333567 | &nbsp;&nbsp;491412 | &nbsp;&nbsp;45808 | &nbsp;&nbsp;4870787 |
| Average realized silver price ($) | &nbsp;&nbsp;22.07 | &nbsp;&nbsp;22.07 | &nbsp;&nbsp;22.07 | &nbsp;&nbsp;25.22 | &nbsp;&nbsp;25.22 | &nbsp;&nbsp;25.22 | &nbsp;&nbsp;25.22 |
| Silver value ($) | &nbsp;&nbsp;117872913 | &nbsp;&nbsp;13748032 | &nbsp;&nbsp;131620946 | &nbsp;&nbsp;109292560 | &nbsp;&nbsp;12393411 | &nbsp;&nbsp;1155278 | &nbsp;&nbsp;122841248 |
| Gold production (ounces) | &nbsp;&nbsp;15735 | &nbsp;&nbsp;21813 | &nbsp;&nbsp;37548 | &nbsp;&nbsp;13317 | &nbsp;&nbsp;24652 | &nbsp;&nbsp;4293 | &nbsp;&nbsp;42262 |
| Average realized gold price ($) | &nbsp;&nbsp;1814 | &nbsp;&nbsp;1814 | &nbsp;&nbsp;1814 | &nbsp;&nbsp;1790 | &nbsp;&nbsp;1790 | &nbsp;&nbsp;1790 | &nbsp;&nbsp;1790 |
| Gold value ($) | &nbsp;&nbsp;28541042 | &nbsp;&nbsp;39565666 | &nbsp;&nbsp;68106709 | &nbsp;&nbsp;23837430 | &nbsp;&nbsp;44127080 | &nbsp;&nbsp;7684470 | &nbsp;&nbsp;75648980 |
| Total metal value ($) | &nbsp;&nbsp;146413956 | &nbsp;&nbsp;53313698 | &nbsp;&nbsp;199727654 | &nbsp;&nbsp;133129990 | &nbsp;&nbsp;56520491 | &nbsp;&nbsp;8839748 | &nbsp;&nbsp;198490228 |
| Pro-rated silver costs (%) | &nbsp;&nbsp;81% | &nbsp;&nbsp;26% | &nbsp;&nbsp;66% | &nbsp;&nbsp;82% | &nbsp;&nbsp;22% | &nbsp;&nbsp;13% | &nbsp;&nbsp;62% |
| Pro-rated gold costs (%) | &nbsp;&nbsp;19% | &nbsp;&nbsp;74% | &nbsp;&nbsp;34% | &nbsp;&nbsp;18% | &nbsp;&nbsp;78% | &nbsp;&nbsp;87% | &nbsp;&nbsp;38% |
| Pro-rated silver costs ($) | &nbsp;&nbsp;72012 | &nbsp;&nbsp;10426 | &nbsp;&nbsp;85593 | &nbsp;&nbsp;62543 | &nbsp;&nbsp;7354 | &nbsp;&nbsp;1198 | &nbsp;&nbsp;73575 |
| Pro-rated gold costs ($) | &nbsp;&nbsp;17437 | &nbsp;&nbsp;30007 | &nbsp;&nbsp;44289 | &nbsp;&nbsp;13641 | &nbsp;&nbsp;26182 | &nbsp;&nbsp;7966 | &nbsp;&nbsp;45309 |
| Silver co-product cash costs ($) | &nbsp;&nbsp;13.48 | &nbsp;&nbsp;16.74 | &nbsp;&nbsp;14.35 | &nbsp;&nbsp;14.43 | &nbsp;&nbsp;14.96 | &nbsp;&nbsp;26.15 | &nbsp;&nbsp;15.11 |
| Gold co-product cash costs ($) | &nbsp;&nbsp;1108 | &nbsp;&nbsp;1376 | &nbsp;&nbsp;1180 | &nbsp;&nbsp;1024 | &nbsp;&nbsp;1062 | &nbsp;&nbsp;1856 | &nbsp;&nbsp;1072 |

---

(1) Special mining duty is an EBITDA royalty tax presented as a current income tax in accordance with IFRS.

**QUARTERLY RESULTS AND TRENDS**

The following table presents selected financial information for each of the most recent eight quarters:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Table in thousands of U.S. dollars except for share numbers and per share amounts** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** |
| **Table in thousands of U.S. dollars except for share numbers and per share amounts** | &nbsp;&nbsp;**Q4** | &nbsp;&nbsp;**Q3** | &nbsp;&nbsp;**Q2** | &nbsp;&nbsp;**Q1** | &nbsp;&nbsp;**Q4** | &nbsp;&nbsp;**Q3** | &nbsp;&nbsp;**Q2** | &nbsp;&nbsp;**Q1** |
| Gross Sales | &nbsp;&nbsp;$82683 | &nbsp;&nbsp;$40393 | &nbsp;&nbsp;$31719 | &nbsp;&nbsp;$58394 | &nbsp;&nbsp;$48875 | &nbsp;&nbsp;$34954 | &nbsp;&nbsp;$48357 | &nbsp;&nbsp;$35093 |
| Smelting and refining costs included in net revenue | &nbsp;&nbsp;694 | &nbsp;&nbsp;744 | &nbsp;&nbsp;937 | &nbsp;&nbsp;654 | &nbsp;&nbsp;358 | &nbsp;&nbsp;392 | &nbsp;&nbsp;582 | &nbsp;&nbsp;627 |
| Total Revenue | &nbsp;&nbsp;81989 | &nbsp;&nbsp;39649 | &nbsp;&nbsp;30782 | &nbsp;&nbsp;57740 | &nbsp;&nbsp;48517 | &nbsp;&nbsp;34562 | &nbsp;&nbsp;47775 | &nbsp;&nbsp;34466 |
| Direct production costs | &nbsp;&nbsp;42821 | &nbsp;&nbsp;24510 | &nbsp;&nbsp;19828 | &nbsp;&nbsp;26721 | &nbsp;&nbsp;26013 | &nbsp;&nbsp;18639 | &nbsp;&nbsp;26223 | &nbsp;&nbsp;18728 |
| Royalties | &nbsp;&nbsp;8479 | &nbsp;&nbsp;2821 | &nbsp;&nbsp;2194 | &nbsp;&nbsp;4317 | &nbsp;&nbsp;4285 | &nbsp;&nbsp;2698 | &nbsp;&nbsp;4340 | &nbsp;&nbsp;2460 |
| Mine operating cash flow before taxes | &nbsp;&nbsp;30689 | &nbsp;&nbsp;12318 | &nbsp;&nbsp;8760 | &nbsp;&nbsp;26702 | &nbsp;&nbsp;18219 | &nbsp;&nbsp;13225 | &nbsp;&nbsp;17212 | &nbsp;&nbsp;13278 |
| Share-based compensation | &nbsp;&nbsp;89 | &nbsp;&nbsp;113 | &nbsp;&nbsp;113 | &nbsp;&nbsp;127 | &nbsp;&nbsp;87 | &nbsp;&nbsp;105 | &nbsp;&nbsp;111 | &nbsp;&nbsp;118 |
| Amortization and depletion | &nbsp;&nbsp;8945 | &nbsp;&nbsp;5753 | &nbsp;&nbsp;4175 | &nbsp;&nbsp;6306 | &nbsp;&nbsp;5014 | &nbsp;&nbsp;4843 | &nbsp;&nbsp;6624 | &nbsp;&nbsp;7496 |
| Write down on inventory | &nbsp;&nbsp;- | &nbsp;&nbsp;1323 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;896 | &nbsp;&nbsp;- | &nbsp;&nbsp;272 | &nbsp;&nbsp;- |
| Mine operating earnings (loss) | &nbsp;&nbsp;$21655 | &nbsp;&nbsp;$5129 | &nbsp;&nbsp;$4472 | &nbsp;&nbsp;$20269 | &nbsp;&nbsp;$12222 | &nbsp;&nbsp;$8277 | &nbsp;&nbsp;$10205 | &nbsp;&nbsp;$5664 |
| Basic earnings (loss) per share | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;($0.01) | &nbsp;&nbsp;($0.07) | &nbsp;&nbsp;$0.07 | &nbsp;&nbsp;$0.00 | &nbsp;&nbsp;($0.03) | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;$0.08 |
| Diluted earnings (loss) per share | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;($0.01) | &nbsp;&nbsp;($0.07) | &nbsp;&nbsp;$0.07 | &nbsp;&nbsp;$0.00 | &nbsp;&nbsp;($0.03) | &nbsp;&nbsp;$0.04 | &nbsp;&nbsp;$0.07 |
| Weighted shares outstanding | &nbsp;&nbsp;189993085 | &nbsp;&nbsp;189241367 | &nbsp;&nbsp;180974609 | &nbsp;&nbsp;171557220 | &nbsp;&nbsp;170518894 | &nbsp;&nbsp;170432326 | &nbsp;&nbsp;168383755 | &nbsp;&nbsp;159670842 |
| Net earnings (loss) | &nbsp;&nbsp;$7961 | &nbsp;&nbsp;($1499) | &nbsp;&nbsp;($11923) | &nbsp;&nbsp;$11662 | &nbsp;&nbsp;($471) | &nbsp;&nbsp;($4479) | &nbsp;&nbsp;$6656 | &nbsp;&nbsp;$12249 |
| Amortization and depletion | &nbsp;&nbsp;9279 | &nbsp;&nbsp;5963 | &nbsp;&nbsp;4354 | &nbsp;&nbsp;6491 | &nbsp;&nbsp;5194 | &nbsp;&nbsp;4986 | &nbsp;&nbsp;6723 | &nbsp;&nbsp;7624 |
| Finance costs | &nbsp;&nbsp;233 | &nbsp;&nbsp;194 | &nbsp;&nbsp;212 | &nbsp;&nbsp;177 | &nbsp;&nbsp;22 | &nbsp;&nbsp;195 | &nbsp;&nbsp;216 | &nbsp;&nbsp;291 |
| Current income tax | &nbsp;&nbsp;2850 | &nbsp;&nbsp;1186 | &nbsp;&nbsp;1325 | &nbsp;&nbsp;1015 | &nbsp;&nbsp;1005 | &nbsp;&nbsp;659 | &nbsp;&nbsp;1146 | &nbsp;&nbsp;671 |
| Deferred income tax | &nbsp;&nbsp;2345 | &nbsp;&nbsp;2053 | &nbsp;&nbsp;1752 | &nbsp;&nbsp;6222 | &nbsp;&nbsp;4992 | &nbsp;&nbsp;3017 | &nbsp;&nbsp;1116 | &nbsp;&nbsp;3127 |
| NRV cost adjustment | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- |  | &nbsp;&nbsp;6 | &nbsp;&nbsp;- |
| EBITDA | &nbsp;&nbsp;$22668 | &nbsp;&nbsp;$7897 | &nbsp;&nbsp;($4280) | &nbsp;&nbsp;$25567 | &nbsp;&nbsp;$10742 | &nbsp;&nbsp;$4378 | &nbsp;&nbsp;$15863 | &nbsp;&nbsp;$23962 |

---

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 26

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The following table presents selected production information for each of the most recent eight quarters:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Highlights** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** | &nbsp;&nbsp;**2021** |
|  | &nbsp;&nbsp;**Q4** | &nbsp;&nbsp;**Q3** | &nbsp;&nbsp;**Q2** | &nbsp;&nbsp;**Q1** | &nbsp;&nbsp;**Q4** | &nbsp;&nbsp;**Q3** | &nbsp;&nbsp;**Q2** | &nbsp;&nbsp;**Q1** |
| **Processed tonnes** | &nbsp;&nbsp;224289 | &nbsp;&nbsp;202745 | &nbsp;&nbsp;201361 | &nbsp;&nbsp;206147 | &nbsp;&nbsp;213492 | &nbsp;&nbsp;222461 | &nbsp;&nbsp;242018 | &nbsp;&nbsp;209453 |
| Guanaceví | &nbsp;&nbsp;119305 | &nbsp;&nbsp;97728 | &nbsp;&nbsp;94017 | &nbsp;&nbsp;101253 | &nbsp;&nbsp;108334 | &nbsp;&nbsp;105496 | &nbsp;&nbsp;111893 | &nbsp;&nbsp;88632 |
| Bolañitos | &nbsp;&nbsp;104984 | &nbsp;&nbsp;105017 | &nbsp;&nbsp;107344 | &nbsp;&nbsp;104894 | &nbsp;&nbsp;105158 | &nbsp;&nbsp;107752 | &nbsp;&nbsp;107912 | &nbsp;&nbsp;97692 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;9213 | &nbsp;&nbsp;22213 | &nbsp;&nbsp;23129 |
| **Silver ounces** | &nbsp;&nbsp;1830835 | &nbsp;&nbsp;1458448 | &nbsp;&nbsp;1359207 | &nbsp;&nbsp;1314955 | &nbsp;&nbsp;1443199 | &nbsp;&nbsp;1305399 | &nbsp;&nbsp;1073724 | &nbsp;&nbsp;1048100 |
| Guanaceví | &nbsp;&nbsp;1680363 | &nbsp;&nbsp;1332190 | &nbsp;&nbsp;1194150 | &nbsp;&nbsp;1133850 | &nbsp;&nbsp;1301941 | &nbsp;&nbsp;1174168 | &nbsp;&nbsp;939241 | &nbsp;&nbsp;918217 |
| Bolañitos | &nbsp;&nbsp;150472 | &nbsp;&nbsp;126258 | &nbsp;&nbsp;165057 | &nbsp;&nbsp;181105 | &nbsp;&nbsp;141258 | &nbsp;&nbsp;123883 | &nbsp;&nbsp;120044 | &nbsp;&nbsp;106227 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;365 | &nbsp;&nbsp;7348 | &nbsp;&nbsp;14439 | &nbsp;&nbsp;23656 |
| **Silver grade** | &nbsp;&nbsp;296 | &nbsp;&nbsp;248 | &nbsp;&nbsp;246 | &nbsp;&nbsp;231 | &nbsp;&nbsp;235 | &nbsp;&nbsp;204 | &nbsp;&nbsp;163 | &nbsp;&nbsp;179 |
| Guanaceví | &nbsp;&nbsp;512 | &nbsp;&nbsp;468 | &nbsp;&nbsp;465 | &nbsp;&nbsp;407 | &nbsp;&nbsp;417 | &nbsp;&nbsp;387 | &nbsp;&nbsp;308 | &nbsp;&nbsp;369 |
| Bolañitos | &nbsp;&nbsp;50 | &nbsp;&nbsp;43 | &nbsp;&nbsp;54 | &nbsp;&nbsp;61 | &nbsp;&nbsp;48 | &nbsp;&nbsp;41 | &nbsp;&nbsp;39 | &nbsp;&nbsp;38 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;24 | &nbsp;&nbsp;30 | &nbsp;&nbsp;47 |
| **Silver recovery** | &nbsp;&nbsp;85.8 | &nbsp;&nbsp;90.3 | &nbsp;&nbsp;85.4 | &nbsp;&nbsp;85.9 | &nbsp;&nbsp;89.4 | &nbsp;&nbsp;89.3 | &nbsp;&nbsp;84.9 | &nbsp;&nbsp;86.9 |
| Guanaceví | &nbsp;&nbsp;85.6 | &nbsp;&nbsp;90.6 | &nbsp;&nbsp;85.0 | &nbsp;&nbsp;85.6 | &nbsp;&nbsp;89.6 | &nbsp;&nbsp;89.5 | &nbsp;&nbsp;84.8 | &nbsp;&nbsp;87.3 |
| Bolañitos | &nbsp;&nbsp;89.2 | &nbsp;&nbsp;87.0 | &nbsp;&nbsp;88.6 | &nbsp;&nbsp;88.0 | &nbsp;&nbsp;87.0 | &nbsp;&nbsp;87.2 | &nbsp;&nbsp;88.7 | &nbsp;&nbsp;89.0 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;103.4 | &nbsp;&nbsp;67.4 | &nbsp;&nbsp;67.7 |
| **Gold ounces** | &nbsp;&nbsp;10370 | &nbsp;&nbsp;9194 | &nbsp;&nbsp;9289 | &nbsp;&nbsp;8695 | &nbsp;&nbsp;9446 | &nbsp;&nbsp;10541 | &nbsp;&nbsp;11166 | &nbsp;&nbsp;11109 |
| Guanaceví | &nbsp;&nbsp;4936 | &nbsp;&nbsp;3642 | &nbsp;&nbsp;3680 | &nbsp;&nbsp;3477 | &nbsp;&nbsp;3885 | &nbsp;&nbsp;3605 | &nbsp;&nbsp;3084 | &nbsp;&nbsp;2743 |
| Bolañitos | &nbsp;&nbsp;5434 | &nbsp;&nbsp;5552 | &nbsp;&nbsp;5609 | &nbsp;&nbsp;5218 | &nbsp;&nbsp;5502 | &nbsp;&nbsp;6215 | &nbsp;&nbsp;6753 | &nbsp;&nbsp;6182 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;N/A | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;59 | &nbsp;&nbsp;721 | &nbsp;&nbsp;1329 | &nbsp;&nbsp;2184 |
| **Gold grade** | &nbsp;&nbsp;1.57 | &nbsp;&nbsp;1.60 | &nbsp;&nbsp;1.58 | &nbsp;&nbsp;1.46 | &nbsp;&nbsp;1.52 | &nbsp;&nbsp;1.57 | &nbsp;&nbsp;1.63 | &nbsp;&nbsp;1.90 |
| Guanaceví | &nbsp;&nbsp;1.44 | &nbsp;&nbsp;1.29 | &nbsp;&nbsp;1.37 | &nbsp;&nbsp;1.19 | &nbsp;&nbsp;1.21 | &nbsp;&nbsp;1.13 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;1.05 |
| Bolañitos | &nbsp;&nbsp;1.72 | &nbsp;&nbsp;1.88 | &nbsp;&nbsp;1.77 | &nbsp;&nbsp;1.73 | &nbsp;&nbsp;1.83 | &nbsp;&nbsp;1.98 | &nbsp;&nbsp;2.14 | &nbsp;&nbsp;2.15 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1.81 | &nbsp;&nbsp;2.45 | &nbsp;&nbsp;4.12 |
| **Gold recovery** | &nbsp;&nbsp;91.5 | &nbsp;&nbsp;88.4 | &nbsp;&nbsp;90.6 | &nbsp;&nbsp;89.6 | &nbsp;&nbsp;90.8 | &nbsp;&nbsp;93.9 | &nbsp;&nbsp;87.9 | &nbsp;&nbsp;86.7 |
| Guanaceví | &nbsp;&nbsp;89.4 | &nbsp;&nbsp;89.9 | &nbsp;&nbsp;88.9 | &nbsp;&nbsp;89.8 | &nbsp;&nbsp;92.2 | &nbsp;&nbsp;94.1 | &nbsp;&nbsp;87.5 | &nbsp;&nbsp;91.7 |
| Bolañitos | &nbsp;&nbsp;93.6 | &nbsp;&nbsp;87.5 | &nbsp;&nbsp;91.8 | &nbsp;&nbsp;89.4 | &nbsp;&nbsp;88.9 | &nbsp;&nbsp;90.6 | &nbsp;&nbsp;91.0 | &nbsp;&nbsp;91.5 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;134.5 | &nbsp;&nbsp;76.0 | &nbsp;&nbsp;71.3 |
| **Cash costs per oz <sup>(1)</sup>** | &nbsp;&nbsp;$11.65 | &nbsp;&nbsp;$10.32 | &nbsp;&nbsp;$10.08 | &nbsp;&nbsp;$10.21 | &nbsp;&nbsp;$8.65 | &nbsp;&nbsp;$8.16 | &nbsp;&nbsp;$13.03 | &nbsp;&nbsp;$7.86 |
| Guanaceví | &nbsp;&nbsp;$12.40 | &nbsp;&nbsp;$10.64 | &nbsp;&nbsp;$10.35 | &nbsp;&nbsp;$12.22 | &nbsp;&nbsp;$10.74 | &nbsp;&nbsp;$10.40 | &nbsp;&nbsp;$17.06 | &nbsp;&nbsp;$11.25 |
| Bolañitos | &nbsp;&nbsp;$2.85 | &nbsp;&nbsp;$6.73 | &nbsp;&nbsp;$8.01 | &nbsp;&nbsp;($2.95) | &nbsp;&nbsp;($10.69) | &nbsp;&nbsp;($16.82) | &nbsp;&nbsp;($30.39) | &nbsp;&nbsp;($23.49) |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;$49.17 | &nbsp;&nbsp;$96.21 | &nbsp;&nbsp;$7.77 |
| **AISC per oz <sup>(1)</sup>** | &nbsp;&nbsp;$19.38 | &nbsp;&nbsp;$20.27 | &nbsp;&nbsp;$19.56 | &nbsp;&nbsp;$20.90 | &nbsp;&nbsp;$19.48 | &nbsp;&nbsp;$17.46 | &nbsp;&nbsp;$25.39 | &nbsp;&nbsp;$19.94 |
| Guanaceví | &nbsp;&nbsp;$18.05 | &nbsp;&nbsp;$17.79 | &nbsp;&nbsp;$17.66 | &nbsp;&nbsp;$20.52 | &nbsp;&nbsp;$18.74 | &nbsp;&nbsp;$16.12 | &nbsp;&nbsp;$24.68 | &nbsp;&nbsp;$19.07 |
| Bolañitos | &nbsp;&nbsp;$35.06 | &nbsp;&nbsp;$48.21 | &nbsp;&nbsp;$34.10 | &nbsp;&nbsp;$23.39 | &nbsp;&nbsp;$27.46 | &nbsp;&nbsp;$28.88 | &nbsp;&nbsp;$19.56 | &nbsp;&nbsp;$24.31 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;$48.16 | &nbsp;&nbsp;$123.73 | &nbsp;&nbsp;$36.19 |
| **Direct costs per tonne <sup>(1)</sup>** | &nbsp;&nbsp;$177.35 | &nbsp;&nbsp;$146.30 | &nbsp;&nbsp;$148.11 | &nbsp;&nbsp;$148.53 | &nbsp;&nbsp;$136.62 | &nbsp;&nbsp;$130.38 | &nbsp;&nbsp;$141.61 | &nbsp;&nbsp;$126.23 |
| Guanaceví | &nbsp;&nbsp;$249.23 | &nbsp;&nbsp;$205.42 | &nbsp;&nbsp;$201.84 | &nbsp;&nbsp;$204.08 | &nbsp;&nbsp;$193.87 | &nbsp;&nbsp;$176.50 | &nbsp;&nbsp;$193.09 | &nbsp;&nbsp;$168.74 |
| Bolañitos | &nbsp;&nbsp;$95.67 | &nbsp;&nbsp;$91.28 | &nbsp;&nbsp;$101.05 | &nbsp;&nbsp;$94.91 | &nbsp;&nbsp;$77.68 | &nbsp;&nbsp;$81.53 | &nbsp;&nbsp;$81.69 | &nbsp;&nbsp;$79.50 |
| El Compas | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;$173.67 | &nbsp;&nbsp;$173.37 | &nbsp;&nbsp;$160.71 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Cash cost per oz, AISC per oz and direct costs per tonne are not-IFRS measures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) El Compas operations were suspended in August 2021.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 27

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***Key Economic Trends***

**Precious Metal Price Trends**

![](exhibit99-2x033.jpg)

The prices of silver and gold are the largest single factor in determining profitability and cash flow from operations. The financial performance of the Company has been, and is expected to continue to be, closely linked to the prices of silver and gold.

During the year ended December 31, 2022, the average price of silver was $21.73 per ounce, with silver trading between $17.77 and $26.18 per oz based on the London Fix silver price. This compares to an average of $25.14 per oz for the year ended December 31, 2021, with a low of $21.53 and a high of $29.59 per oz. During 2022, the Company realized an average price of $22.07 per silver oz compared with $25.22 in 2021.

During the year ended December 31, 2022, the average price of gold was $1,800 per oz, with gold trading between $1,629 and $2,039 per oz based on the London Fix PM gold price. This compares to an average of $1,799 per oz during the year ended December 31, 2021, with a low of $1,684 and a high of $1,943 per oz. During 2022, the Company realized an average price of $1,814 per oz compared with $1,800 in 2021.

The silver and gold markets have been impacted by changes in investment demand and the silver market is impacted due to the monetary aspects of silver, rising demand as a "green" metal and rising geopolitical tension. Central banks' increase of interest rates utilized as a tool in an attempt to offset inflation concerns, has impacted the price of silver and gold in the second half of 2021 and throughout 2022.

**Currency Fluctuations**

The Company's operations are located in Mexico and therefore a significant portion of operating costs and capital expenditures are denominated in Mexican pesos. The Company's corporate activities are based in Vancouver, Canada with the significant portion of these expenditures being denominated in Canadian dollars.

During the year ended December 31, 2022, the Mexican peso was relatively flat and has maintained its strength in comparison with the U.S. dollar. The average foreign exchange rate was $20.15 Mexican pesos per U.S. dollar, with the peso trading within a range of $19.22 to $21.35. This compares to an average of $20.27, with a range of $19.61 to $21.90 Mexican pesos per U.S. dollar in 2021.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 28

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During the year ended December 31, 2021, the Mexican peso was relatively flat. The average foreign exchange rate was $20.27 Mexican pesos per U.S. dollar, with the peso trading within a range of $19.61 to $21.90. This compares to an average of $21.48, with a range of $18.53 to $25.00 Mexican pesos per U.S. dollar in 2020.

![](exhibit99-2x035.jpg)

During the year ended December 31, 2022, the Canadian dollar was relatively flat but weakened in Q3 and Q4 of 2022. The average foreign exchange rate was $1.296 Canadian dollars per U.S. dollar, with the Canadian dollar trading within a range of $1.25 to $1.388. This compares to an average of $1.253, with a range of $1.204 to $1.292 Canadian dollars per U.S. dollar in the 2021.

During the year ended December 31, 2021, the Canadian dollar was relatively flat although it initially appreciated compared to the U.S. dollar with the strengthening of oil prices and then weakened again towards the end of the year. During 2021, the average foreign exchange rate was $1.253 Canadian dollars per U.S. dollar, with the Canadian dollar trading within a range of $1.204 to $1.292. This compares to an average of $1.3409, with a range of $1.272 to $1.453 Canadian dollars per U.S. dollar during 2020.

![](exhibit99-2x036.jpg)

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 29

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**Cost Trends**

![](exhibit99-2x037.jpg)

The Company's profitability is subject to industry wide cost pressures on development and operating costs with respect to labour, energy, consumables and capital expenditures. Underground mining is labour intensive and approximately 33% of the Company's production costs are directly tied to labour. In order to mitigate the impact of higher labour and consumable costs, the Company focuses on continuous improvement by promoting more efficient use of materials and supplies and by pursuing more advantageous pricing while increasing performance and without compromising operational integrity. During 2022, mining, processing and indirect costs all increased due to inflationary and industry cost pressures. During Q4, 2022 the cost per tonne was impacted by royalty costs recognized upon sale of higher than usual finished goods inventory that had been held during Q2 and Q3 of 2022.

**ANNUAL OUTLOOK**

***2023 Production and Cost Guidance***

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Guanaceví** | &nbsp;&nbsp; **Bolañitos** | &nbsp;&nbsp;**Consolidated** |
| Tonnes per day | &nbsp;&nbsp;TPD | &nbsp;&nbsp;1150 - 1250 | &nbsp;&nbsp;1150 - 1250 | &nbsp;&nbsp;2300 - 2500 |
| Silver Production | &nbsp;&nbsp;M oz | &nbsp;&nbsp;5.2 - 5.7 | &nbsp;&nbsp;0.5 - 0.6 | &nbsp;&nbsp;5.7 - 6.3 |
| Gold Production | &nbsp;&nbsp;K oz | &nbsp;&nbsp;15.0 - 17.0 | &nbsp;&nbsp;21.0 - 23.0 | &nbsp;&nbsp;36.0 - 40.0 |
| Silver Eq Production<sup>(1)</sup> | &nbsp;&nbsp;US$/oz | &nbsp;&nbsp;6.4 - 7.0 | &nbsp;&nbsp;2.2 - 2.4 | &nbsp;&nbsp;8.6 - 9.5 |
| Cash Costs, net of gold by-product credits<sup>(2)</sup> | &nbsp;&nbsp;US$/oz |  |  | &nbsp;&nbsp;$10.00 - $11.00 |
| AISC, net of gold by-product credits<sup>(2)</sup> | &nbsp;&nbsp;US$/oz |  |  | &nbsp;&nbsp;$19.00 - $20.00 |
| Sustaining Capital Budget | &nbsp;&nbsp;US$M |  |  | &nbsp;&nbsp;$34.7 |
| Development Budget <sup>(3)</sup> | &nbsp;&nbsp;US$M |  |  | &nbsp;&nbsp;$25.7 |
| Exploration Budget | &nbsp;&nbsp;US$M |  |  | &nbsp;&nbsp;$9.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) 2023 silver equivalent production is calculated using a 80:1 silver:gold ratio

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Non-GAAP measures - See Non-IFRS measures beginning on page 19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The development budget for Terronera for Q1, 2023 only with additional budget pending Board approval

***Operating mines***

In 2023, silver production is expected to range from 5.7 to 6.3 million oz and gold production is expected to range from 36,000 to 40,000 oz. Silver equivalent production is forecasted to range from 8.6 to 9.5 million oz using an 80:1 silver:gold ratio.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Mine** | &nbsp;&nbsp;**Ag (M oz)** | &nbsp;&nbsp;**Au (K oz)** | &nbsp;&nbsp;**Ag Eq (M oz)** | &nbsp;&nbsp;**Tonnes/ Day (tpd)** |
| Guanaceví | &nbsp;&nbsp;5.2 - 5.7 | &nbsp;&nbsp;15.0 - 17.0 | &nbsp;&nbsp;6.4 - 7.0 | &nbsp;&nbsp;1150 - 1250 |
| Bolañitos | &nbsp;&nbsp;0.5 - 0.6 | &nbsp;&nbsp;21.0 - 23.0 | &nbsp;&nbsp;2.2 - 2.4 | &nbsp;&nbsp;1150 - 1250 |
| Total | &nbsp;&nbsp;5.7 - 6.3 | &nbsp;&nbsp;36.0 - 40.0 | &nbsp;&nbsp;8.6 - 9.5 | &nbsp;&nbsp;2300 - 2500 |

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ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 30

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At Guanaceví, production will range between 1,150 tpd to 1,250 tpd and average 1,200 tpd from the Milache, SCS and El Curso orebodies. A significant portion of production will be mined from the Porvenir Cuatro extension on the El Curso concessions. The El Curso concessions are leased from a third party with no up-front costs but with significant royalty payments on production. Compared to 2022, mine grades are expected to remain elevated and recoveries are anticipated to be similar in 2023. Cash costs per ounce and direct costs on a per tonne basis are expected to be similar to 2022, with an increase in costs offset by both increased processed tonnes and increased production.

In 2023, plant throughput at Bolañitos is expected to range from 1,150 tpd to 1,250 tpd and average 1,200 tpd from the Plateros-La Luz, Lucero-Karina and Bolañitos-San Miguel vein systems. Mine grades and recoveries are expected to be similar to 2022. Direct costs on a per tonne basis are expected to decrease slightly due to both a reduction in indirect costs and an increase in processed tonnes. Cash costs per ounce are expected to be slightly lower than 2022 due to an increase in gold ounces produced.

***Consolidated Operating Costs***

In 2023, cash costs, net of gold by-product credits, are expected to be $10.00-$11.00 per oz of silver produced. Consolidated cash costs on a co-product basis are anticipated to be $13.00-$14.00 per oz silver and $1,100-$1,200 per oz gold.

AISC, net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $19.00-$20.00 per oz of silver produced. When non-cash items such as stock-based compensation and accretion are excluded, AISC is forecasted to be in the $18.00-$19.00 range.

Direct operating costs per tonne were estimated to be $115-$120 with inflationary pressures expected to continue in 2023. Direct costs, which include royalties and special mining duties are estimated to be in the range of $140-$145 per tonne.

Management made the following assumptions in calculating its 2023 cost forecasts: $21 per oz silver price, $1,680 per oz gold price and 20:1 Mexican peso to U.S. dollar exchange rate.

***2023 Capital Budget***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Sustaingin Mine**<br>**Development** | &nbsp;&nbsp;**Sustaining Other**<br>**Capital** | &nbsp;&nbsp;**Total Sustaining**<br>**Capital** | &nbsp;&nbsp;**Growth Capital** | &nbsp;&nbsp;**Total Capital** |
| Guanaceví | &nbsp;&nbsp;$14.0 million | &nbsp;&nbsp;$8.9 million | &nbsp;&nbsp;$22.9 million | &nbsp;&nbsp;- | &nbsp;&nbsp;$22.9 million |
| Bolañitos | &nbsp;&nbsp;$8.2 million | &nbsp;&nbsp;$3.6 million | &nbsp;&nbsp;$11.8 million | &nbsp;&nbsp;- | &nbsp;&nbsp;$11.8 million |
| Terronera | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;$25.7 million | &nbsp;&nbsp;$25.7 million |
| Corporate | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;$2.1 million | &nbsp;&nbsp;$2.1 million |
| Total | &nbsp;&nbsp;$22.2 million | &nbsp;&nbsp;$12.5 million | &nbsp;&nbsp;$34.7 million | &nbsp;&nbsp;$27.8 million | &nbsp;&nbsp;$62.5 million |

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***Sustaining Capital Investments***

In 2023, Endeavour plans to invest $34.7 million in sustaining capital at its two operating mines. At current metal prices, the sustaining capital investments are expected to be paid out of operating cash flow.

At Guanaceví, $22.9 million will be invested in capital projects, the largest of which is 4.5 kilometres of mine development at Milache, SCS and El Curso for an estimated $14.0 million. The additional $8.9 million will be used for improving plant infrastructure, upgrading the mine fleet, and supporting surface site infrastructure.

At Bolañitos, $11.8 million will be invested in capital projects, including $8.2 million for 3.8 kilometres of mine development to access resources in the Plateros-La Luz, Lucero-Karina, and Bolañitos -San Miguel areas. The additional $3.6 million will go to upgrade the mining fleet, plant improvements which include an elevation rise to the tailings dam, and to support site infrastructure.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 31

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At Terronera, a $25.7 million development budget has been allocated for the first quarter of 2023 to continue with pre-construction activities. The approval is based on utilizing existing cash on hand and cash flow from operations, ahead of finalizing project financing as the Company continues to advance the project. With the procurement phase well underway, the funds will be used for detailed engineering, assembly of initial project infrastructure, further earthworks pertaining to site clearing, road upgrades and underground mine access development. The Company intends to make a formal construction decision, subject to completion of a financing package and receipt of amended permits, in the coming months, at which time the project budget will be determined for the remainder of 2023.

The Company also plans to spend $2.1 million to maintain exploration concessions, acquire mobile equipment for exploration and cover corporate infrastructure.

***Exploration Budget***

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| | | | |
|:---|:---|:---|:---|
| **Project** | &nbsp;&nbsp;**2023 Activity** | &nbsp;&nbsp;**Drill Metres** | &nbsp;&nbsp;**Expenditures** |
| Guanaceví | &nbsp;&nbsp;Drilling | &nbsp;&nbsp;6000 | &nbsp;&nbsp;$1.1 million |
| Bolañitos | &nbsp;&nbsp;Drilling | &nbsp;&nbsp;7000 | &nbsp;&nbsp;$0.9 million |
| Terronera | &nbsp;&nbsp;Drilling | &nbsp;&nbsp;4000 | &nbsp;&nbsp;$0.7 million |
| Parral | &nbsp;&nbsp;Drilling/Economic Study | &nbsp;&nbsp;6000 | &nbsp;&nbsp;$1.5 million |
| Pitarrilla | &nbsp;&nbsp;Drilling/Scope Studies | &nbsp;&nbsp;5000 | &nbsp;&nbsp;$3.1 million |
| Chile - Aida | &nbsp;&nbsp;Drilling | &nbsp;&nbsp;2000 | &nbsp;&nbsp;$0.8 million |
| Chile - Other | &nbsp;&nbsp;Evaluation | &nbsp;&nbsp;- | &nbsp;&nbsp;$1.0 million |
| Bruner | &nbsp;&nbsp;Evaluation | &nbsp;&nbsp;- | &nbsp;&nbsp;$0.2 million |
| Total |  | &nbsp;&nbsp;30000 | &nbsp;&nbsp;$9.3 million |

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In 2023, the Company plans to spend $9.3 million drilling 30,000 metres across its properties.

At the Guanaceví and Bolañitos mines, 13,000 metres of drilling are planned at a cost of $2.0 million to replace reserves and expand resources.

At the Terronera development project, 4,000 metres of drilling are planned to test multiple regional targets identified in 2022 to expand resources within the district.

At the Pitarrilla project, management plans to invest $3.1 million on maintenance of the office and camp, underground drilling and evaluation programs, and 500 metres of underground development. The largest portion of the expenditures at Pitarrilla in 2023 relates to development costs to continue advancing the a 1 kilometre long decline and excavate lateral drifts that will be used to drill 5,000 metres to test the resource ("underground manto") at various angles.

At the Parral in Chihuahua state, 6,000 metres of drilling are planned at a cost of $1.5 million to delineate existing resources, expand resources and test new targets. In the second half of 2023, the Company expects to initiate a preliminary economic analysis.

In Chile, management intends to invest $0.8 million to drill 2,000 metres to test a manto target with significant silver-manganese-lead-zinc anomalies at surface. Additionally, the Company plans to conduct mapping, sampling and surface exploration on several other exploration projects, estimated to cost $0.7 million including administration costs in the country.

At the Bruner project in Nevada, USA management plans to invest $0.2 million to map and sample new targets.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 32

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**LIQUIDITY AND CAPITAL RESOURCES** 

Cash and cash equivalents decreased from $103.3 million at December 31, 2021 to $83.4 million at December 31, 2022. The Company had working capital of $93.6 million at December 31, 2022 (December 31, 2021 - $121.2 million). The $27.6 million decrease in working capital is primarily due to the $73.7 million invested in property , plant and equipment, $36.0 million paid for the acquisition of Pitarrilla, $6.1 million in loan and lease payments, $1.9 million for the withholding taxes on the settlement of performance share units and a decrease in non-cash working capital of $7.7 million offset by $55.0 cash generated from operating activities, the net proceeds of an equity offering of $43.1 million and $1.6 million provided from exercise of options.

Operating activities provided $55.0 million during the year ended December 31, 2022 compared to providing $23.5 million in same period of 2021. The significant non-cash adjustments to the net earnings of $6.2 million (2021 –$14.0 million) were amortization and depletion of $26.1 million (2021 – $24.5 million), share-based compensation of $3.9 million (2021 – $3.6 million), a deferred income tax expense of $12.4 million (2021 – $12.2 million), finance costs of $1.3 million (2021 – $1.0 million), a loss on other investments of $3.5 million (2021 – gain on other investments of $2.1 million), write off of exploration properties $0.7 million (2021 – $0.7 million), a gain on the disposal of the El Compas mine of $2.8 million offset by loss on disposal of other assets of $0.3 million (2021 - gain on disposal of the El Cubo mine and equipment of $5.8 million and $0.1 million gain on disposal of other assets), a write down of warehouse inventory to net realizable value of $1.3 million (2021 - $0.9 million) and a decrease in non-cash working capital of $1.0 million (2021 – increase of $8.8 million). During 2021 there was also an impairment reversal of non-current assets of $16.8 million of the El Cubo mine and equipment upon reclassification as held for sale. The decrease in non-cash working capital is primarily a result of an increase in prepaid expenses of $11.8 million, an increase in accounts payable and income taxes payable of $10.2 million, an increase in current loans and leases payable of $2.0 million, a decrease in the carrying value of investments of $2.6 million, a decrease in the decrease in the carrying value of inventories of $8.3 million and an increase in accounts receivable and income tax receivable of $2.5 million.

The Company's Mexican subsidiaries pay Impuesto al Valor Agregado ("IVA") on the purchase and sale of goods and services. The net amount paid is recoverable but is subject to review and assessment by the tax authorities. The Company regularly files the required IVA returns and all supporting documentation with the tax authorities, however, the Company has been advised that certain IVA amounts receivable from the tax authorities are being withheld pending completion of the authorities' audit of certain of the Company's third-party suppliers. Under Mexican law, the Company has legal rights to those IVA refunds and the results of the third-party audits should have no impact on refunds. A smaller portion of IVA refund requests are from time to time denied based on the alleged lack of compliance of certain formal requirements and information returns by the Company's third-party suppliers. The Company takes necessary legal action on the delayed refunds as well as any denied refunds. The Company is in regular contact with the tax authorities in respect of its IVA filings and believes that the full amount of its IVA receivables will ultimately be received; however, the timing of recovery of these amounts and the nature and extent of any adjustments to the Company's IVA receivables remains uncertain.

Investing activities during the year ended December 31, 2022 used net cash of $111.5 million compared to using net cash of $38.0 million in the same period in 2021. Capital investments totaled $109.7 million in property, plant and equipment during 2022, including $5.8 million in changes in working capital items used for purchases of equipment for Terronera, compared to $54.1 million in the same period in 2021. The capital investments were for sustaining capital at existing operations, for development capital at the Terronera Project and $36.0 million used for the acquisition of Pitarrilla. The Company used $2.1 million for investments in marketable securities during 2022 compared to generating net $6.0 million on the sale and purchase of marketable securities in the same period in 2021 and received cash of $0.4 million on the sale of the El Compas mine compared to receiving $10.1 million in 2021 on sale of the El Cubo mine.

Total investment in property, plant and equipment for the year totaled $144.4 million including total consideration of $61.6 million for the acquisition of the Pitarrilla project. At Guanaceví, the Company invested $26.6 million, with $16.9 million spent on 4.7 km of mine development and $3.5 million on mobile equipment. The Company continued to invest on upgrades for the plant and surrounding infrastructure, including $1.0 million on building and $4.6 million on plant upgrades, mine site improvements and the tailings facility and $0.6 million on office, building infrastructure and light vehicles.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 33

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At Bolañitos, the Company invested $11.8 million, with $8.9 million spent on 5.7 km of mine development and $1.6 million on mobile equipment. The Company continued to invest in upgrades for the plant and surrounding infrastructure, including $0.7 million on plant upgrades, $0.1 million on buildings, and $0.5 million on office, building infrastructure and light vehicles.

At Terronera, the Company incurred $43.4 million, with $16.8 million spent on land payments and preliminary development, $5.8 million on plant equipment deposits, $5.9 million spent on buildings, $14.4 million was invested in mine equipment and $0.5 million on light vehicles, office and IT infrastructure. The investment in mine equipment included a mobile mining fleet was financed through $9.1 million in loans payable over a 4 year period.

Exploration and general and administrative investments were $1.0 million spent on holding costs, mobile equipment, office, building infrastructure and light vehicles.

Financing activities for the year ended December 31, 2022 increased cash by $36.8 million, compared to increasing cash by $56.7 million in the same period in 2021. During the year ended December 31, 2022 the Company received gross proceeds of $46.0 million through a prospectus equity offering, paid $2.9 million in share issuance costs, received $1.6 million on the exercise of employee stock options, paid $6.1 million in interest and principal repayments on loans and leases and paid $1.9 million on redemption of performance share units. By comparison, during the same period in 2021, the Company raised gross proceeds through an ATM financing of $60.0 million, paid $1.3 million in share issue costs, received $4.7 million on the exercise of employee options and paid $4.4 million in interest and principal repayments on loans and leases and paid $2.4 million on redemption of performance share units.

On March 22, 2022, the Company completed a prospectus equity financing with the offering co-led by BMO Capital Markets and PI Financial Corp., together with a syndicate of underwriters consisting of CIBC World Markets Inc., B. Riley Securities Inc., and H.C. Wainwright & Co., LLC. The Company issued a total of 9,293,150 common shares at a price of $4.95 per share for aggregate gross proceeds of $46 million, less commission of $2.5 million and recognized $0.3 million of other transaction costs related to the financing as share issuance costs, which have been presented net within share capital. The Company used the net proceeds of the offering of $43.2 million to pay the $35 million cash consideration payable to SSR on completion of the Company's acquisition of the Pitarrilla project in Durango State, Mexico and the remainder for the Company's general corporate purposes and working capital.

The net proceeds have been used as follows:

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| | |
|:---|:---|
| **Use of proceeds (thousands)** |  |
| Net proceeds received | $43116 |
| Pitarrilla acquisition - cash payment | (35000) |
| Allocated to working capital | $8116 |

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Management of the Company believes that operating cash flow and existing working capital will be sufficient to cover 2023 capital requirements and meet its short-term obligations. The Company is assessing financing alternatives, including equity or debt or a combination of both to fund future growth, including the development of the Terronera project.

***Contingencies***

Minera Santa Cruz y Garibaldi SA de CV ("MSCG"), a subsidiary of the Company, received a Mexican peso ("MXN") 238 million assessment on October 12, 2010 by Mexican fiscal authorities for failure to provide the appropriate support for certain expense deductions taken in MSCG's 2006 tax return, failure to provide appropriate support for loans made to MSCG from affiliated companies, and deemed an unrecorded distribution of dividends to shareholders, among other individually immaterial items. MSCG immediately initiated a Nullity action and filed an administrative attachment to dispute the assessment.

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In June 2015, the Superior Court ruled in favour of MSCG on a number of the matters under appeal; however, the Superior Court ruled against MSCG for failure to provide appropriate support for certain deductions taken in MSCG's 2006 tax return. In June 2016, the Company received a MXN 122.9 million ($6.3 million) tax assessment based on the June 2015 ruling. The 2016 tax assessment comprised of MXN 41.8 million in taxes owed ($2.1 million), MXN 17.7 million ($0.9 million) in inflationary charges, MXN 40.4 million ($2.1 million) in interest and MXN 23.0 million ($1.2 million) in penalties. The 2016 tax assessment was issued for failure to provide the appropriate support for certain expense deductions taken in MSCG's 2006 tax return and failure to provide appropriate support for loans made to MSCG from affiliated companies. If MSCG agrees to pay the tax assessment, or a lesser settled amount, it is eligible to apply for forgiveness of 100% of the penalties and 50% of the interest.

The Company filed an appeal against the June 2016 tax assessment on the basis that certain items rejected by the courts were included in the new tax assessment and a number of deficiencies exist within the assessment. Since issuance of the assessment interest charges of MXN 16.1 million ($0.9 million) and inflationary charges of MXN 24.0 million ($1.3 million) has accumulated.

Included in the Company's consolidated financial statements are net assets of $964,000 held by MSCG. Following the Tax Court's rulings, MSCG has been in discussions with the tax authorities with regards to the shortfall of assets within MSCG to settle its estimated tax liability. An alternative settlement option would be to transfer the shares and assets of MSCG to the tax authorities. The Company recognized an allowance for transferring the shares and assets of MSCG amounting to $964,000 in a prior year. The Company is currently assessing MSCG's settlement options based on ongoing court proceedings and discussion with the tax authorities. The Company has been advised that the appeal filed with the Federal Tax Court and Supreme Court of Justice, against the June 2016 tax assessment has been rejected. The Company continues to assess MSCG's settlement options.

Compania Minera Del Cubo SA de CV ("Cubo"), a subsidiary of the Company, received a MXN 58.5 million ($2.9 million) assessment in 2019 by Mexican fiscal authorities for failure to provide the appropriate support for depreciation deductions taken in the Cubo 2016 tax return and denied deductions of certain suppliers. The tax assessment consists of MXN 24.1 million ($1.2 million) for taxes, MXN 21.0 million ($1.1 million) for penalties, MXN 10.4 million ($0.5 million) for interest and MXN 3.0 million ($0.1 million) for inflation. At the time of the tax assessment the Cubo entity had and continues to have sufficient loss carry forwards which would be applied against the assessed difference of taxable income. The Mexican tax authorities did not consider these losses in the assessment.

Due to the denial of certain suppliers for income tax purposes in the Cubo assessment, the invoices from these suppliers have been assessed as ineligible for refunds of IVA (value-added taxes) paid on the invoices. The assessment includes MXN 14.7 million ($0.7 million) for re-payment of IVA refunded on these supplier payments. In the Company's judgement, the suppliers and invoices meet the necessary requirements to be deductible for income tax purposes and the recovery of IVA.

The Company filed an administrative appeal related to the 2016 Cubo tax assessment. The Company had previously provided a lien on certain El Cubo mining concessions during the appeal process. To facilitate the sale of the El Cubo mine and related assets, the Company elected to pay the assessed amount of $3.5 million during Q1, 2021. During the appeal process the amount paid has been classified as a non-current income tax recoverable. Since issuance of the assessment interest charges of MXN 9.9 million ($0.5 million) and inflationary charges of MXN 1.6 million ($0.1 million) had accumulated. The Company continues to assess that it is probable that its appeal will prevail, and no provision is recognized in respect of the Cubo tax assessment.

The Company is required to use judgement to determine certain tax treatments in calculating income tax expense and IVA recoverable. A number of these judgements are subject to various uncertainties. From time to time, Mexican authorities may apply, re-interpret legislation or disregard precedents and it is possible that of these uncertainties may be resolved unfavorably for the Company.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 35

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***Capital Requirements***

As of December 31, 2022, the Company held $83.4 million in cash and $93.6 million in working capital.

The Company may be required to raise additional funds through future debt or equity financings in order to finance the development of the Terronera Project and may need to raise additional funds to carry out other business plans. The Company will continue to monitor capital markets, economic conditions, the COVID-19 global pandemic and assess its short term and long term capital needs.

See Annual Outlook on page 30 for discussion on planned capital and exploration expenditures.

***Contractual Obligations***

The Company had the following undiscounted contractual obligations at December 31, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Payments due by period (in thousands of dollars)**<br>**Contractual Obligations** | **Total** | **Less than 1**<br>**year** | **1 - 3 years** | **3 - 5 years** | **More than<br>5 years** |
| Capital asset purchases | $26576 | $26576 | $- | $- | $- |
| Loans payable | 15773 | 6643 | 7783 | 1347 |  |
| Lease liabilities | 1265 | 337 | 503 | 328 | 97 |
| Other contracts<sup>(1)</sup> | 619 | 147 | 206 | 206 | 60 |
| Other Long-Term Liabilities <sup>(2)</sup> | 11470 |  |  | 6991 | 4479 |
| Total | $55703 | $33703 | $8492 | $8872 | $4636 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Other contracts consist of office premises operating costs and short-term leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The $11,470 of other long-term liabilities is the undiscounted cost estimate to settle the Company's reclamation costs of the Guanaceví and Bolañitos mines, the Terronera development project and the Pitarrilla exploration project in Mexico. These costs include land rehabilitation, decommissioning of buildings and mine facilities, ongoing care and maintenance and other costs.

**TRANSACTIONS WITH RELATED PARTIES** 

The Company previously shared common administrative services and office space with Aztec Metals Corp., which was considered a related party company by virtue of Bradford Cooke, the Company's former Executive Chairman, being a common director. From time to time, the Company incurred third-party costs on behalf of related parties, which are charged on a full cost recovery basis. The agreement for sharing office space and administrative services ended in May 2021. The charges for these costs totaled $Nil and $9,000 for the three months and year ended December 31, 2022 (December 31, 2021 - $2,000 and $5,000 respectively). The Company had no receivable related to administration costs outstanding as at December 31, 2022 (December 31, 2021 - $1,000).

The Company was charged $26,000 and $428,000 for legal services for the three months and year ended December 31, 2022 by a law firm in which the Company's corporate secretary is a partner (December 31, 2021 - $39,000 and $276,000, respectively). The Company has $10,000 payable to the law firm as at December 31, 2022 (December 31, 2021 - $5,000).

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 36

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**FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS**

As at December 31, 2022, the carrying and fair values of Endeavour's financial instruments by category were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Expressed in thousands US dollars**<br>| **Fair Value**<br>**through**<br>**profit or loss** | **Amortized**<br>**Cost** | **Carrying**<br>**Value** | **Estimated**<br>**Fair Value** |
| **Financial assets:** |  |  |  |  |
| Cash and cash equivalents | $- | $83391 | $83391 | $83391 |
| Other investments | 10035 |  | 10035 | 10035 |
| Trade receivables | 4385 |  | 4385 | 4385 |
| Other receivables |  | 689 | 689 | 689 |
| Loan receivable |  | 3729 | 3729 | 3729 |
| Total financial assets | $14420 | $87809 | $102229 | $102229 |
| **Financial liabilities:** |  |  |  |  |
| Accounts payable and accrued liabiities | $3486 | $36345 | $39831 | $39831 |
| Loans payable |  | 14510 | 14510 | 14510 |
| Total financial liabilities | $3486 | $50855 | $54341 | $54341 |

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***Fair value hierarchy***

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by no or little market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

Assets and liabilities as at December 31, 2022 that measured at fair value on a recurring basis include:

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| | | | | |
|:---|:---|:---|:---|:---|
| **As at December 31, 2022** |  |  |  |  |
| **Expressed in thousands US dollars** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **Assets:** |  |  |  |  |
| Other investments | $10035 | $9774 | $- | $261 |
| Trade receivables | 4385 |  | 4385 |  |
| Total financial assets | $14420 | $9774 | $4385 | $261 |
| **Liabilities:** |  |  |  |  |
| Deferred share units | $3375 | $3375 | $- | $- |
| Share appeciation rights | 111 |  | 111 |  |
| Total financial liabilities | $3486 | $3375 | $111 | $- |

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**Other investments**

The Company holds marketable securities classified as Level 1 and Level 3 in the fair value hierarchy. The fair values of Level 1 investments are determined based on a market approach reflecting the closing price of each particular security at the reporting date. The closing price is a quoted market price obtained from the stock exchange that is the principal active market for the particular security, being the market with the greatest volume and level of activity for the assets. For Level 3 investments, which consist of share purchase warrants where inputs are not observable, they have an estimated value determined by using an option pricing model. Changes in fair value on available for sale marketable securities are recognized in earnings or loss.

ENDEAVOUR SILVER CORP. \| MANAGEMENT'S DISCUSSION & ANALYSIS PAGE 37

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**Trade receivables**

The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted closing price on the measurement date from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy.

**Deferred share units**

The Company has a cash settled Deferred Share Unit ("DSU") plan whereby deferred share units may be granted to independent directors of the Company in lieu of compensation in cash or stock options. The DSUs vest immediately and are redeemable for cash based on the market value of the units at the time of a director's retirement. The DSUs are classified as Level 1 in the fair value hierarchy. The liability is determined based on a market approach reflecting the closing price of the Company's common shares at the reporting date. Changes in fair value are recognized in general and administrative expenses.

**Share appreciation rights**

As part of the Company's bonus program, the Company grants share appreciation rights ("SARs") to its employees in Mexico and Chile. The SARs are subject to vesting conditions and, when exercised, constitute a cash bonus based on the value of the appreciation of the Company's common shares between the SARs grant date and the exercise date.

The SARs are classified as Level 2 in the fair value hierarchy. The liability is valued using a Black-Scholes option pricing model. Changes in fair value are recognized in salaries, wages and benefits.

***Financial Instrument Risk Exposure and Risk Management***

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management process. The types of risk exposure and the way in which such exposure is managed is provided as follows:

**Credit Risk**

The Company is exposed to credit risk on its bank accounts, accounts receivable and loan receivable. Credit risk exposure on bank accounts is limited through maintaining the Company's balances with high-credit quality financial institutions, maintaining investment policies, assessing institutional exposure and continual discussion with external advisors. Value-added tax receivables are generated on the purchase of supplies and services to produce silver, which are refundable from the Mexican government. Trade receivables are generated on the sale of concentrate inventory to reputable metal traders. The loan receivable is related to the remaining proceeds for the sale of the El Compas mine to Grupo ROSGO. There has been no indication of a change in the creditworthiness of the counterparty to the loan receivable since the initial recognition.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company manages its liquidity risk by continually monitoring forecasted and actual cash flows. The Company has in place a planning and budgeting process to help determine the funds required to support its normal operating requirement and development plans. The Company aims to maintain sufficient liquidity to meet its short-term business requirements, taking into account its anticipated cash flows from operations, its holdings of cash and cash equivalents, and its committed and anticipated liabilities.

The Company's Mexican subsidiaries pay IVA on the purchase and sale of goods and services. The net amount paid is recoverable but is subject to review and assessment by the tax authorities. The Company regularly files the required IVA returns and all supporting documentation with the tax authorities, however, the Company has been advised that certain IVA amounts receivable from the tax authorities are being withheld pending completion of the authorities' audit of certain of the Company's third-party suppliers. Under Mexican law, the Company has legal rights to those IVA refunds and the results of the third-party audits should have no impact on refunds. A smaller portion of IVA refund requests are from time to time denied based on the alleged lack of compliance of certain formal requirements and information returns by the Company's third-party suppliers. The Company takes necessary legal action on the delayed refunds as well as any denied refunds. The Company is in regular contact with the tax authorities in respect of its IVA filings and believes that the full amount of its IVA receivables will ultimately be received; however, the timing of recovery of these amounts and the nature and extent of any adjustments to the Company's IVA receivables remains uncertain.

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**Market Risk**

The significant market risk exposures to which the Company is exposed are foreign currency risk, interest rate risk, and commodity price risk.

<u>Foreign Currency Risk</u> - The Company's operations in Mexico and Canada make it subject to foreign currency fluctuations. Certain of the Company's operating expenses are incurred in Mexican pesos and Canadian dollars; therefore, the fluctuation of the U.S. dollar in relation to these currencies will consequently have an impact upon the profitability of the Company and may also affect the value of the Company's assets and the amount of shareholders' equity. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks.

<u>Interest Rate Risk</u> - In respect of financial assets, the Company's policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash equivalents in order to maintain liquidity. Fluctuations in interest rates impact the value of cash equivalents. As at December 31, 2022 the Company has $0.8 million in equipment loans with interest rates that are linked to Libor and, with other variables unchanged, a 1% increase in the Libor rate would result in an additional interest expense of $8,000.

<u>Commodity Price Risk</u> - Gold and silver prices have historically fluctuated significantly and are affected by numerous factors outside of the Company's control, including, but not limited to, industrial and retail demand, central bank lending, forward sales by producers and speculators, levels of worldwide production, short-term changes in supply and demand because of speculative hedging activities and certain other factors. The Company has not engaged in any hedging activities, other than short-term metal derivative transactions less than 90 days, to reduce its exposure to commodity price risk. At December 31, 2022, there are 75,237 oz of silver and 2,666 oz of gold, which do not have a final settlement price and the estimated revenues have been recognized at current market prices. As at December 31, 2022, with other variables unchanged, a 10% decrease in the market value of silver and gold would result in a reduction of revenue of $0.7 million.

**OUTSTANDING SHARE DATA**

As of February 28, 2023, the Company had the following securities issued, issuable and outstanding:

* 189,995,563 common shares;

* 3,899,630 common shares issuable under stock options with a weighted average exercise price of CAD$4.09 per share expiring between May 3, 2023 and March 24, 2027;

* 1,158,000 performance share units with a weighted average grant price of CAD$3.89 vesting between March 1, 2023 and March 23, 2025; and 

* 104,596 equity settled deferred share units with a weighted average grant prices of CAD$6.01 which are vested.

As at December 31, 2022, the Company's issued share capital was $657.9 million (December 31, 2021 - $585.4 million), representing 189,995,563 common shares (December 31, 2021 - 170,537,307), and the Company had options outstanding to purchase 3,899,630 common shares (December 31, 2021 - 3,848,200) with a weighted average exercise price of CAD$4.09 (December 31, 2021 - CAD$3.68).

The Company considers the items included in the consolidated statement of shareholders' equity as capital. The Company's objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may issue new shares through private placements, prospectus offerings, convertible debentures, asset acquisitions or return capital to shareholders. The Company is not subject to externally imposed capital requirements.

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**CHANGES IN ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES**

***Accounting standards adopted during the period:***

The accounting policies applied in the Company's condensed consolidated interim financial statements for the year ended December 31, 2022 are the same as those applied in the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2021 except for the following:

Property, Plant and Equipment: Proceeds before Intended Use

On May 14, 2020, the IASB published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related costs in profit or loss. The effective date was for annual periods beginning on or after January 1, 2022 and the Company adopted the policy effective January 1, 2022. As of December 31, 2022, these amendments did not affect our condensed consolidated interim financial statements as no amounts have been received from selling items produced while preparing assets for their intended use.

***Critical Accounting Estimates***

The preparation of financial statements requires the Company to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management's judgment relate to the determination of mineralized reserves and resources, plant and equipment lives, estimating the fair values of financial instruments and derivatives, impairment of non-current assets, reclamation and rehabilitation provisions, recognition of deferred tax assets, and assumptions used in determining the fair value of share-based compensation.

**Determination of ore reserves and resources**

Judgments about the amount of product that can be economically and legally extracted from the Company's properties are made by management using a range of geological, technical and economic factors, history of conversion of mineral deposits to proven and probable reserves as well as data regarding quantities, grades, production techniques, recovery rates, production costs, commodity prices and exchange rates. This process may require complex and difficult geological judgments to interpret the data. The Company uses qualified persons (as defined by NI 43-101) to compile this data.

Estimating the quantity and /or grade of reserves and resources requires the size, shape and depth of ore bodies or fields to be determined by analyzing geological data such as drilling samples. Following this, the quantity of ore that can be extracted in an economical manner is calculated using data regarding the life of mine plans and forecast sales prices (based on current and long-term historical average price trends). Changes in estimates can be the result of estimated future production differing from previous forecasts of future production, expansion of mineable ore through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineable ore.

The economic assumptions used to estimate mineral reserves may change from period to period and additional geological data is generated during the course of operations, which may change management's judgments surrounding reserves and resources. Any changes in management's judgements may impact the carrying value of mineral properties, plant and equipment, reclamation and rehabilitation provisions, recognition of deferred income tax amounts, and depreciation and depletion.

***Review of asset carrying values and assessment of impairment***

Management applies significant judgment in assessing each CGU and assets for the existence of indicators of impairment or impairment reversal at the reporting date. Internal and external factors are considered in assessing whether indicators are present that would necessitate impairment testing. Significant assumptions regarding commodity prices, operating costs, capital expenditures and discount rates are used in determining whether there are any indicators of impairment. These assumptions are reviewed regularly by senior management and compared, when applicable, to relevant market consensus views.

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If an indicator of impairment or reversal exists, the asset's recoverable amount is estimated. The recoverable amount is the greater of fair value less costs of disposal and value in use. The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about expected production and sales volumes, metal prices, ore tonnage and grades, recoveries, operating costs, future capital expenditures and appropriate discount rates for future cash flows. The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss.

As of December 31, 2022, the company determined that indicators of impairment existed at the Bolañitos mine due to a change in the reserves and resources, including a narrowing of the veins in the ore bodies which may result in lower future conversion of inferred reserves to economically mineable ore.

The recoverable amounts were based on each CGUs future cash flows expected to be derived from the Company's mining properties and represent each CGUs value in use. Expected cash flows were determined based on the life-of-mine after-tax cash flow forecast which incorporates management's best estimates of future metal prices, production based on current estimates of capacity, ore grade, recovery rate and recoverable reserves and resources, future operating costs, assets terminal value and non-expansionary capital expenditures. Expected cash flows are discounted at risk adjusted rates based on the CGUs weighted average cost of capital. As a result, management estimated the recoverable amount of the Bolañitos mine as at December 31, 2022, determined on a fair value less cost of disposal basis, and concluded no impairment charge was required. However, adverse changes in any of these assumptions in future periods may result in an impairment.

At December 31, 2021, the Company recognized a $16.8 million reversal of a previous impairment of the El Cubo mine. The El Cubo mine project, consisting of the land rights, plant, buildings and the related reclamation liability were re-classified to current assets and liabilities as "assets held for sale" and "liabilities held for sale" upon the signing of a definitive agreement to sell the El Cubo mine and related assets. Immediately prior to the classification to assets and liabilities held for sale, the carrying amounts of the land rights, plant and building were re-measured and the historical gross impairments of $216.9 million net of depletion and depreciation of $200.1 million were reversed resulting in a $16.8 million impairment reversal. Accordingly, the Company reversed the CGU impairment, limited to the carrying amount had no impairment been recognized in prior periods, net of depletion and amortization which would have been recognized in prior periods.

If an area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the period of abandonment or determination that the carrying value exceeds its fair value. The amounts recorded as mineral properties represent costs incurred to date and do not necessarily reflect present or future values.

***Achievement of commercial production***

Once a mine reaches the operating levels intended by management, deprecation of capitalized costs begins. Significant judgement is required to determine when certain of the Company's assets reach this level. Management considers several factors including: completion of a reasonable period of commissioning; consistent operating results achieved at a pre-determined level of design capacity and indications exist that this level will continue; mineral recoveries at or near expected levels; and the transfer of operations from development personnel to operational personnel has been completed.

***Estimation of the amount and timing of reclamation and rehabilitation costs***

Accounting for restoration requires management to make estimates of the future costs the Company will incur to complete the reclamation and rehabilitation work required to comply with existing laws, regulations and agreements in place at each mining operation and any environmental and social principles the Company is in compliance with. The calculation of the present value of these costs also includes assumptions regarding the timing of reclamation and rehabilitation work, applicable risk-free interest rates for discounting those future cash flows, inflation and foreign exchange rates and assumptions relating to probabilities of alternative estimates of future cash flows. Actual costs incurred may differ from those amounts estimated. Also, future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation work required to be performed by the Company. Increase in future costs could materially impact the amounts charged to operations for reclamation and rehabilitation.

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***Deferred Income Taxes***

The Company follows the asset and liability method of accounting for income taxes. Under this method, future tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and losses carried forward. Future tax assets and liabilities are measured using substantively enacted or enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the substantive enactment date. Future tax assets are recognized to the extent that they are considered more likely than not to be realized.

Judgement is required in determining the recognition and measurement of deferred income tax assets and liabilities on the balance sheet. In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. These authorities may have different interpretations of tax legislation or tax agreements than those applied by the Company in computing current and deferred income taxes. These different interpretations may alter the timing or amounts of taxable income or deductions.

Final taxes payable and receivable are dependent on many factors, including outcomes of tax litigation and resolution of disputes. The resolution of these uncertainties may result in adjustments to the Company's tax assets and liabilities.

Management assesses the likelihood and timing of taxable earnings in future periods in recognizing deferred income tax assets. Estimates of future taxable income is based on forecasted cash flows using life of mine projections and the application of existing tax laws in each jurisdiction.

To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred income tax assets recorded at the balance sheet date could be impacted. In addition, future changes to tax laws could limit the ability of the Company to obtain tax deductions in future periods from deferred income tax assets.

***Inventory***

In valuing inventories at the lower of cost and net realizable value, the Company makes estimates in determining the net realizable price and in quantifying the contained metal in finished goods and work in progress.

***Share-based Compensation***

The Company has a stock option plan and records all share-based compensation for options using the fair value method. The fair value of each option award is estimated on the date of the grant using the Black-Scholes option pricing model, with expected volatility based on historical volatility of the Endeavour common shares. The Company uses historical data to estimate the term of the option and the risk-free rate for the expected term of the option is based on the Government of Canada yield curve in effect at the time of the grant.

As part of the Company's bonus program, the Company may from time to time grant SARs to its employees in Mexico and Chile. The SARs are subject to vesting conditions and, when vested, constitute a cash bonus based on the value of the appreciation of the Company's common shares between the SARs grant date and vesting. The fair value of each SAR award is estimated on the grant date using the Black-Scholes option pricing model, with expected volatility based on historical volatility of the Endeavour common shares. The Company uses historical data to estimate the term of the option and the risk-free rate for the expected term of the option is based on the Government of Canada yield curve in effect at the time of the grant.

On March 23, 2021 the Company adopted an equity-based Share Unit Plan ("SUP"), which was approved by the Company's shareholders on May 12, 2021 The SUP allows for, with approval by the Board, granting of Performance Share Units ("PSU"s) and Deferred Share Units ("DSU"s), to its directors, officers, employees to acquire up to 1.5% of the issued and outstanding shares. The SUP incorporates all existing PSUs under the former PSU plan and any new DSUs granted and are to be subject to cash, share settlement or a combination of cash and share procedures at the discretion of the Board of Directors.

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PSUs may be granted to employees of the Company. Under the plan, vested PSUs are redeemable, at the election of the Board of Directors in its discretion, for Common Shares, a cash payment equal to the market value of a Common Share as of the redemption date, or a combination of cash and Common Shares. The PSUs granted are subject to a performance payout multiplier between 0% and 200% based on the Company's total shareholder return at the end of a three-year period, relative to the Company's total shareholder return peer group.

DSU plan will be granted to independent directors of the Company in lieu of compensation in cash or share purchase options and are redeemable at the time of a director's retirement.

***Business Combinations***

On the acquisition of a business, the acquisition method of accounting is used, whereby the purchase consideration is allocated to the identifiable assets, liabilities and contingent liabilities (identifiable net assets) on the basis of fair value at the date of acquisition. When the cost of acquisition exceeds the fair values attributable to the Company's share of identifiable net assets, the difference is treated as purchased goodwill, which is not amortized but is reviewed for impairment annually or more frequently where there is an indication of impairment. If the fair value attributable to the Company's share of the identifiable net assets exceeds the cost of acquisition, the difference is immediately recognized in profit or loss. Incremental costs related to acquisitions are expensed as incurred.

Determination of the fair value of assets acquired and liabilities assumed and the resulting goodwill, if any, requires that management make estimates based on the information provided by the acquiree. Changes to the provisional values of assets acquired and liabilities assumed, deferred income taxes and resulting goodwill, if any, will be adjusted when the final measurements are determined (within one year of acquisition date).

When purchase consideration is contingent on future events, the initial cost of the acquisition recorded includes an estimate of the fair value of the contingent amounts expected to be payable in the future. When the fair value of contingent consideration as at the date of acquisition is finalized, before the end of the 12 month measurement period, the adjustment is allocated to the identifiable assets acquired and liabilities assumed. Changes to the estimated fair value of contingent consideration subsequent to the acquisition date are recorded in profit or loss.

**RISKS AND UNCERTAINTIES**

Besides the risks discussed elsewhere in this MD&A, the following are risks and uncertainties that have affected the Company's financial statements or future performance or that may affect them in the future. See "Risk Factors" in the Company's Annual Information Form for other risks affecting the Company generally.

***Impact of COVID-19 Pandemic***

The Company's business could be significantly adversely affected by the effects of a widespread global outbreak of contagious disease, including the recent outbreak of respiratory illness caused by COVID-19. The Company cannot accurately predict the impact COVID-19 will have on third parties' ability to meet their obligations with the Company, including due to uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In particular, the continued spread of the COVID-19 globally could materially and adversely impact the Company's business including without limitation, employee health, limitations on travel, the availability of industry experts and personnel, restrictions to planned drill programs, mining and processing operations shutdowns, and other factors that will depend on future developments beyond the Company's control. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries (including those in which the Company operates), resulting in an economic downturn that could negatively impact the Company's operating results and ability to raise capital.

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***Precious and Base Metal Price Fluctuations***

The profitability of the precious metals operations in which the Company has an interest is significantly affected by changes in the market prices of precious metals. Prices for precious metals fluctuate on a daily basis, have historically been subject to wide fluctuations and are affected by numerous factors beyond the control of the Company such as the level of interest rates, the rate of inflation, central bank transactions, world supply of the precious metals, foreign currency exchange rates, international investments, monetary systems, speculative activities, international economic conditions and political developments. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Company not receiving adequate returns on invested capital or the investments retaining their respective values. Declining market prices for these metals could materially adversely affect the Company's operations and profitability.

***Fluctuations in the price of consumed commodities***

Prices and availability of commodities consumed or used in connection with exploration, development and mining, such as natural gas, diesel, oil, electricity, cyanide and other reagents fluctuate affecting the costs of production at the Company's operations. These fluctuations can be unpredictable, can occur over short periods of time and may have a materially adverse impact on the Company's operating costs or the timing and costs of various projects. The Company's general policy is not to hedge its exposure to changes in prices of the commodities used in its business.

***Foreign Exchange Rate Fluctuations***

Operations in Mexico, Chile and Canada are subject to foreign currency exchange fluctuations. The Company raises its funds through equity issuances which are generally priced in Canadian dollars or U.S. dollars, and the majority of the exploration costs of the Company are denominated in U.S. dollars, Chilean pesos and Mexican pesos. The Company may suffer losses due to adverse foreign currency fluctuations.

***Calculation of Reserves and Resources and Precious Metal Recoveries***

There is a degree of uncertainty attributable to the calculation and estimation of reserves and resources and their corresponding metal grades to be mined and recovered. Until reserves or resources are actually mined and processed, the quantities of mineralization and metal grades must be considered as estimates only. Any material change in the quantity of mineral reserves, mineral resources, grades and recoveries may affect the economic viability of the Company's properties.

***Economic Conditions for Mining***

Global financial markets are experiencing extreme volatility as a result of the ongoing COVID-19 pandemic. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by market conditions. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company's ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company.

Increased levels of volatility and market turmoil could have an adverse impact on the Company's operations and planned growth and the trading price of the securities of the Company may be adversely affected.

The Company assesses on a quarterly basis the carrying values of its mineral properties. Should market conditions and commodity prices worsen and persist in a worsened state for a prolonged period of time, an impairment of the Company's mineral properties may be required.

***Mexican Tax Assessments***

As disclosed under "Contingencies", one subsidiary of the Company in Mexico has received a tax assessment from Mexican fiscal authorities. The Company filed an appeal against the June 2016 tax assessment on the basis certain items rejected by the courts were included in the new tax assessment, while a number of deficiencies exist within the assessment. If the Company is unsuccessful this could negatively impact the Company's financial position and create difficulties for the Company in dealing with Mexican fiscal authorities in the future.

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Included in the Company's consolidated financial statements, are net assets of $964,000, including $42,000 in cash, held by MSCG. Following the Tax Court's rulings, MSCG is in discussions with the tax authorities with regards to the shortfall of assets within MSCG to settle its estimated tax liability. An alternative settlement option would be to transfer the shares and assets of MSCG to the tax authorities. The Company recognized an allowance for transferring the shares and assets of MSCG amounting to $964,000. The Company is assessing MSCG's settlement options based on on-going court proceedings and discussion with the tax authorities and has filed an appeal with the Supreme Court of Justice.

Compania Minera Del Cubo SA de CV ("Cubo"), a subsidiary of the Company, received a MXN 58.5 million ($2.9 million) assessment in 2019 by Mexican fiscal authorities for alleged failure to provide the appropriate support for depreciation deductions taken in the Cubo 2016 tax return and denied eligibility of deductions of certain suppliers. The tax assessment consists of MXN 24.1 million ($1.2 million) for taxes, MXN 21.0 million ($1.1 million) for penalties, MXN 10.4 million ($0.5 million) for interest and MXN 3.0 million ($0.1 million) for inflation. At the time of the tax assessment the Cubo entity had and continues to have sufficient loss carry forwards which would be applied against the assessed difference of taxable income. The Mexican tax authorities did not consider these losses in the assessment.

Due to the denial of certain suppliers for income tax purposes in the Cubo assessment, the invoices from these suppliers have been assessed as ineligible for refunds of IVA paid on the invoices. The assessment includes MXN 14.7 million ($0.7 million) for re-payment of IVA (value added taxes) refunded on these supplier payments. In the Company's judgement the suppliers and invoices meet the necessary requirements to be deductible for income tax purposes and the recovery of IVA.

The Company filed an administrative appeal related to the 2016 Cubo tax assessment. The Company had previously provided a lien on certain El Cubo mining concessions during the appeal process. As a condition of the sale of the El Cubo mine and related assets, the Company elected to pay the assessed amount of $3.5 million during Q1, 2021. During the appeal process the amount paid has been classified as a non-current income tax recoverable. Since issuance of the assessment interest charges of MXN 9.9 million ($500) and inflationary charges of MXN 1.6 million ($100) had accumulated. The Company continues to assess that it is probable that its appeal will prevail, and no provision is recognized in respect of the Cubo tax assessment.

The Company is required to use judgement to determine certain tax treatments in calculating income tax expense and IVA recoverable. A number of these judgements are subject to various uncertainties. From time to time, Mexican authorities may apply, re-interpret legislation or disregard precedents and it is possible that of these uncertainties may be resolved unfavorably for the Company.

***Assurance on Financial Statements***

The Company prepares the financial reports in accordance with accounting policies and methods prescribed by IFRS. In the preparation of financial reports, management may need to rely upon assumptions, make estimates or use their best judgment in determining the financial condition of the Company. Significant accounting policies and practices are described in more detail in the notes to the annual consolidated financial statements for the year ended December 31, 2022. In order to have a reasonable level of assurance that financial transactions are properly authorized, assets are safeguarded against unauthorized or improper use and transactions are properly recorded and reported, the Company has implemented and continues to analyze the internal control systems for financial reporting.

**CONTROLS AND PROCEDURES**

***Disclosure Controls and Procedures***

The Company's officers and management are responsible for establishing and maintaining disclosure controls and procedures for the Company. Disclosure controls and procedures are designed to provide reasonable assurance that material information required to be disclosed by the Company under securities legislation is recorded, processed, summarized and reported within the applicable time periods and to ensure that required information is gathered and communicated to the Company's management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as is appropriate to permit timely decisions regarding public disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

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At the end of the period covered by this MD&A, management, including the CEO and CFO, conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures pursuant to National Instrument 52-109 "Certification of Disclosure in Issuers Annual and Interim Filings" ("NI 52-109") and Rule 13a -15(b) of the U.S. Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act"). Based upon that evaluation, the Company's CEO and CFO have concluded that, as of the end of the period covered by this MD&A, the Company's disclosure controls and procedures were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits is (i) recorded, processed, summarized and reported, within the time periods specified under applicable securities legislation in Canada and in the U.S. Securities and Exchange Commission's rules and forms, and (ii) accumulated and communicated to management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

***Management's Report on Internal Controls over Financial Reporting***

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in NI 52-109 and in Rules 13a-15(f) of the U.S. Exchange Act). A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with applicable generally accepted accounting principles.

A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. It should be noted that a control system, no matter how well conceived or operated, can only provide reasonable assurance, not absolute assurance, that the objectives of the control system are met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

Management of the Company, including the CEO and CFO, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2022. In making this assessment, management used the criteria set forth in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, management has concluded that, as of December 31, 2022, the Company's internal control over financial reporting is effective. Also, management determined that there were no material weaknesses in the Company's internal control over financial reporting as at December 31, 2022.

***Changes in Internal Control over Financial Reporting***

Management, including the CEO and CFO, has evaluated the Company's internal controls over financial reporting to determine whether any changes occurred during the period that have materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.

There have been no changes in internal control over financial reporting that occurred during the fiscal year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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## Exhibit 99.3

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**Form 52-109F1**

***Certification of Annual Filings***

***Full Certificate***

I, Daniel Dickson, Chief Executive Officer of Endeavour Silver Corp., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of Endeavour Silver Corp. (the "issuer") for the financial year ended December 31, 2022.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 ***ICFR - material weakness relating to design:*** N/A

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5.3 ***Limitation on scope of design:*** N/A

6. ***Evaluation:*** The issuer's other certifying officer(s) and I have

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's DC&P at the financial year end and the issuer has disclosed in its annual MD&A our conclusions about the effectiveness of DC&P at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's ICFR at the financial year end and the issuer has disclosed in its annual MD&A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) our conclusions about the effectiveness of ICFR at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) N/A

7. ***Reporting changes in ICFR:*** The issuer has disclosed in its annual MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2022 and ended on December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

8. ***Reporting to the issuer's auditors and board of directors or audit committee:*** The issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of ICFR, to the issuer's auditors, and the board of directors or the audit committee of the board of directors any fraud that involves management or other employees who have a significant role in the issuer's ICFR.

Date: March 2, 2023

*"Daniel Dickson"*

_______________________

Daniel Dickson

Chief Executive Officer

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## Exhibit 99.4

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**Form 52-109F1**

***Certification of Annual Filings***

***Full Certificate***

I, Christine West, Chief Financial Officer of Endeavour Silver Corp., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of Endeavour Silver Corp. (the "issuer") for the financial year ended December 31, 2022.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

4. ***Responsibility:*** The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) (COSO Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 ***ICFR - material weakness relating to design:*** N/A

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5.3 ***Limitation on scope of design:*** N/A

6. ***Evaluation:*** The issuer's other certifying officer(s) and I have

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's DC&P at the financial year end and the issuer has disclosed in its annual MD&A our conclusions about the effectiveness of DC&P at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's ICFR at the financial year end and the issuer has disclosed in its annual MD&A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) our conclusions about the effectiveness of ICFR at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) N/A

7. ***Reporting changes in ICFR:*** The issuer has disclosed in its annual MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2022 and ended on December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

8. ***Reporting to the issuer's auditors and board of directors or audit committee:*** The issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of ICFR, to the issuer's auditors, and the board of directors or the audit committee of the board of directors any fraud that involves management or other employees who have a significant role in the issuer's ICFR.

Date: March 2, 2023

*"Christine West"*

_______________________

Christine West

Chief Financial Officer

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