Parral Mine, Mexico

The Parral Silver District is located some 210 km. (135 mi.) south of Chihuahua City, the capital of the State of Chihuahua, Mexico, and approximately 110 km. (70 mi.) north of Guanacevi, Durango, where Endeavour operates the Guanacevi Mines Project. Silver was first discovered in the Parral Silver District in 1631 and by 1655 more than 60 small mines were operating, principally along the Veta Colorado vein.

Land Package - 32.7 hectares (80.8 acres)

Notes:

1. Reserve cut-off at Guanacevi is 158 g/t Ag
2. Reserve cut-off at Guanajuato is 111 g/t Ag
3. Mining width is 2.0 meters
4. Dilution is 15% after it has been diluted to a minimum mining width if required
5. Resource cut-off for the Guanacevi and Guanajuato projects is 100 Ag eq
6. Reserve and Resource Silver equivalent is 55:1 for Silver to Gold
7. At the Parral project a cut-off using NSR of $40 is used with the prices listed below
8. The cut-off used for Arroyo Seco was 100 g/t Ag

Because the Parral Project resources are poly-metallic, each sample interval was assigned a value based on the net smelter return (NSR). Gold and silver prices were based on Endeavour's base case model for 2010 and zinc and lead prices were as of July 2010. Metallurgical recoveries were derived from Endeavour's metallurgical lab test-work to date. The NSR parameters were as follows:

Based on current metal prices of $33 per oz silver, $1400 per oz gold, $1.10 per lb lead and $1.10 per lb zinc, the NSR values rise 88% to approximately US$142 per tonne for indicated resources and US$139 per tonne for inferred resources.