Endeavour Mining : Management Report

Q1

MANAGEMENT REPORT

For the three months ended 31 March 2022 and 2021

(Expressed in Millions of United States Dollars)

Table of Contents
MANAGEMENT REPORT
1. BUSINESS OVERVIEW...............................................................................................................................................	3
1.1. OPERATIONS DESCRIPTION..........................................................................................................................	3
2. HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2022 ...........................................................................	4
3. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ......................................................................................................	5
3.1. HEALTH AND SAFETY....................................................................................................................................	5
3.2. COVID-19RESPONSE....................................................................................................................................	5
4. OPERATIONS REVIEW ..............................................................................................................................................	7
4.1. OPERATIONAL REVIEW SUMMARY..............................................................................................................	7
4.2. BOUNGOU GOLD MINE................................................................................................................................	8
4.3. HOUNDE GOLD MINE...................................................................................................................................	10
4.4. ITY GOLD MINE ............................................................................................................................................	12
4.5. MANA GOLD MINE.......................................................................................................................................	14
4.6. SABODALA-MASSAWAGOLD MINE.............................................................................................................	16
4.7. WAHGNION GOLD MINE..............................................................................................................................	18
4.8. DISCONTINUED OPERATIONS - KARMA MINE .............................................................................................	20
5. FINANCIAL REVIEW ..................................................................................................................................................	21
5.1. STATEMENT OF COMPREHENSIVE (LOSS)/EARNINGS .................................................................................	21
5.2. CASH FLOWS ................................................................................................................................................	23
5.3. SUMMARISED STATEMENT OF FINANCIAL POSITION .................................................................................	25
5.4. LIQUIDITY AND FINANCIAL CONDITION.......................................................................................................	26
5.5. RELATED PARTY TRANSACTIONS .................................................................................................................	27
5.6. ACCOUNTING POLICIES AND CRITICAL JUDGEMENTS.................................................................................	27
6. USE OF PROCEEDS ...................................................................................................................................................	27
7. NON-GAAPMEASURES ............................................................................................................................................	29
7.1. EBITDA AND ADJUSTED EBITDA...................................................................................................................	29
7.2. CASH AND ALL-INSUSTAINING COST PER OUNCE OF GOLD SOLD .............................................................	30
7.3. ADJUSTED NET EARNINGS AND ADJUSTED NET EARNINGS PER SHARE .....................................................	33
7.4. OPERATING CASH FLOW PER SHARE ...........................................................................................................	33
7.5. NET CASH/ADJUSTED EBITDA RATIO ...........................................................................................................	34
7.6. RETURN ON CAPITAL EMPLOYED.................................................................................................................	34
8. QUARTERLY AND ANNUAL FINANCIAL AND OPERATING RESULTS.........................................................................	35
9. PRINCIPAL RISKS AND UNCERTAINTIES ...................................................................................................................	37
10. CONTROLS AND PROCEDURES ..............................................................................................................................	40
10.1. DISCLOSURE CONTROLS AND PROCEDURES .............................................................................................	40
10.2. INTERNAL CONTROLS OVER FINANCIAL REPORTING ................................................................................	40
10.3. LIMITATIONS OF CONTROLS AND PROCEDURES .......................................................................................	40

2

This Management Report should be read in conjunction with Endeavour Mining plc's ("Endeavour", the "Company", or the "Group") condensed interim consolidated financial statements for the three months ended 31 March 2022 and 2021 and Endeavour Mining plc's audited consolidated financial statements for the years ended 31 December 2021 and 2020 and notes thereto. The condensed interim consolidated financial statements has been prepared in accordance with UK adopted international accounting standards and International Financial Reporting Standards as issued by the International Accounting Standards Board ("IASB") ("IFRS") or ("GAAP"), are in compliance with the requirements of the Companies Act 2006 and are also in accordance with the requirements of the Disclosure Guidance and Transparency Rules in the United Kingdom as applicable to interim financial reporting. Endeavour Mining plc's audited consolidated financial statements for the years ended 31 December 2021 and 2020 and notes thereto has been prepared in accordance with IFRS. This Management Report is prepared as an equivalence to the Company's Management Discussions & Analysis ("MD&A") which is the Canadian filing requirement in accordance with National Instrument 51-102,Continuous Disclosure Obligations ("NI 51-102"), and includes all of the disclosures as required by NI 51-102.

This Management Report contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained herein. The reader is cautioned not to place undue reliance on forward-looking statements. All figures are in United States Dollars, unless otherwise indicated. Tabular amounts are in millions of United States Dollars, except per share amounts and where otherwise indicated. This Management Report is prepared as of 4 May 2022. Additional information relating to the Company is available, including the Company's prospectus (available on the Company's website at www.endeavourmining.com) and the Company's Annual Information Form (available on SEDAR at www.sedar.com.

1. BUSINESS OVERVIEW

1.1. OPERATIONS DESCRIPTION

Endeavour is a multi-asset gold producer focused on West Africa and dual-listed on the Toronto Stock Exchange ("TSX") and the London Stock Exchange ("LSE") under the symbol EDV on both exchanges and is quoted in the United States on the OTCQX International (symbol EDVMF). The Company's assets include four mines (Boungou, Houndé, Mana and Wahgnion) in Burkina Faso, the Ity mine in Côte d'Ivoire, the Sabodala-Massawa mine in Senegal, two development projects (Lafigué and Kalana) and a strong portfolio of exploration assets on the highly prospective Birimian Greenstone Belt across Burkina Faso, Côte d'Ivoire, Mali, Senegal, and Guinea. On 10 March 2022, the Company completed the sale of its Karma mine in Burkina Faso.

As a leading global gold producer and the largest in West Africa, Endeavour is committed to principles of responsible mining and delivering sustainable value to its employees, stakeholders, and the communities where it operates.

Figure 1: Endeavour's Principal Properties in West Africa as at 4 May 2022

3

2. HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2022

Table 1: Consolidated Highlights
		THREE MONTHS ENDED
		31 March	31 March
($m)	Unit	2022	2021
Operating data from continuing operations
Gold produced	oz	357,089	312,689
Gold sold	oz	359,094	341,122
Realised gold price1	$/oz	1,911	1,762
All-in sustaining costs ("AISC") per ounce sold 2	$/oz	848	837
Cash flow data from continuing operations
Operating cash flows before working capital	$	369.6	233.4
Operating cash flows before working capital per share2	$/share	1.49	1.12
Operating cash flows	$	299.4	203.8
Operating cash flows per share2	$/share	1.21	0.98
Profit and loss data from continuing operations
Revenue1	$	686.2	601.0
Earnings from mine operations	$	275.7	190.9
Net comprehensive (loss)/earnings attributable to shareholders	$	(56.7)	84.6
Basic (loss)/earnings per share attributable to shareholders	$/share	(0.23)	0.41
EBITDA2,3	$	217.9	302.0
Adjusted EBITDA2,3	$	397.7	325.1
Adjusted net earnings attributable to shareholders2	$	122.3	100.6
Adjusted net earnings per share attributable to shareholders2	$/share	0.49	0.48
Balance sheet data
Cash	$	1,046.6	868.2
(Net cash)/Net debt2	$	(166.6)	161.8
(Net cash)/Net debt/Adjusted EBITDA (LTM) ratio2,3	:	(0.11)	0.16

• Revenue and realised gold price are inclusive of the Sabodala-Massawa stream.

• This is a non-GAAP measure. Refer to the non-GAAP measure section of this Management Report.

• EBITDA is defined as earnings before interest, taxes, depreciation and depletion; LTM is defined as last twelve months.

4

3. ENVIRONMENT, SOCIAL AND GOVERNANCE

Endeavour is committed to being a responsible gold miner, creating long-term value and sharing the benefits of its operations with all its stakeholders, including employees, host communities and shareholders. As the largest gold miner in West Africa and a trusted partner, Endeavour's operations have the potential to provide a significant positive impact on the socio-economic development of its local communities and host countries, while minimising their impact on the environment.

Environment, social and governance ("ESG") policies, systems and practices are embedded throughout the business and the Company reports annually on its ESG performance via its Annual and Sustainability Reports. A dedicated sustainability governance structure has been established with an Environment, Sustainability and Governance Committee at board level, and an Executive Management ESG Steering Committee that it reports into.

Endeavour's ESG strategy is centered around the three pillars of ESG, with a number of priority areas identified, which are linked to clear, measurable ESG-related executive compensation targets (as outlined in the 2021 Annual Report).

To maximise Endeavour's socio-economic impact, it has identified a number of priority areas for its social investment, these are health, education, economic development and access to water and energy.

Endeavour's environmental priorities seek to address issues of both global and local concern; addressing climate change, water stewardship, protecting biodiversity, and tackling the scourge of plastic waste, which is prevalent and problematic for its local communities.

These are supported by the third pillar, a strong governance foundation. This includes respect for human rights, delivery of zero harm, support for employee well-being, diversity and inclusion, responsible sourcing, and rigorous reporting utilising the following ESG frameworks: the Task Force on Climate-related Financial Disclosures ("TCFD"), GRI, the World Gold Council's Responsible Gold Mining Principles ("RGMPs"), the Sustainability Accounting Standards Board ("SASB") and the Local Procurement Reporting Mechanism.

3.1. HEALTH AND SAFETY

Endeavour puts the highest priority on safe work practices and systems. The Company's ultimate aim is to achieve "zero harm" performance. The following table shows the safety statistics for the trailing twelve months ended 31 March 2022. The Group's lost time injury frequency rate ("LTIFR") continues to be well below the industry benchmark.

Table 2: LTIFR1 and TRIFR2 Statistics for the Trailing Twelve Months ended 31 March 2022

					Incident Category
	Fatality		Lost Time Injury	Total People	LTIFR1	TRIFR2
				Hours
Boungou	-	-	3,277,492	-	1.53
Houndé	-	1	5,166,154	0.19	0.77
Ity	-	-	6,808,702	-	0.59
Mana	-	-	4,990,008	-	2.00
Non Operations3	-	1	5,243,703	0.19	0.76
Sabodala-Massawa	-	3	6,915,321	0.43	1.88
Wahgnion	-	1	6,368,103	0.16	1.73
Total		-	6	38,769,483	0.15	1.32

1LTIFR = Number of LTIs in the Period x 1,000,000 / Total people hours worked for the period.

2Total Recordable Injury Frequency Rate ("TRIFR") = Number of (LTI+Fatalities+Restricted Work Injury+Medical Treated Injury+First Aid Injury) in the period x 1,000,000 / Total people hours worked for the period.

• "Non Operations" includes Corporate, Kalana and Exploration.

3.2. ESG UPDATES AND PERFORMANCE

Tackling Climate Change

Being responsible stewards of the environment is critical to the Group's long-term success. The Group has been reporting on its Scope 1 and Scope 2 greenhouse gas emissions since 2017 and Scope 3 emissions since 2019, and adopted TCFD in 2020.

In Q2-2021, Endeavour announced a Net Zero ambition by 2050 and a goal to reduce its emissions by 30% by 2030. To support its 2030 goal and set out a roadmap to reduce its greenhouse gas emissions, in Q3-2021 the Company commenced a detailed study of abatement opportunities at its operations across eight identified levers which is expected to be completed in Q2-2022.

To reinforce this commitment, the Company's executive compensation plans have been tied to the successful implementation of a carbon reduction strategy, which includes the commissioning of at least one solar or other substitute renewable energy power plant.

5