San Sebastián silver gold mining exploration Jalisco State, IMMSA Grupo Mexico Company

Endeavour Silver Corp. has acquired an option to purchase the San Sebastián silver-gold properties in Jalisco State, Mexico from IMMSA (Grupo Mexico), one of the largest mining companies in Mexico. The area of the land package totals
5,466 hectares (13,506 acres).

San Sebastián del Oeste is an historic silver and gold mining district located in south-western Jalisco State, approximately 155 kilometres (km) southwest of Guadalajara and 40 km northeast of Puerto Vallarta, accessible by paved and gravel roads. One small, high grade, underground silver-gold mine, Santa Quiteria (75 tonnes per day), continues to operate in the district. The San Sebastián properties being acquired by Endeavour surround the Santa Quiteria mine and represent a new, district-scale, silver-gold exploration opportunity for the Company.

For more details, please refer to the Company's news releases. (Links below)

Feb 09, 2010: Endeavour Silver Acquires Option to Purchase San S... (more...)

San Sebastian Silver & Gold Resources as of December 31, 2011

Resources Indicated
	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz	Ag oz Eq
Total Indicated	307,000	199	0.55	1,968,000	5,400	2,265,000
Resources Inferred
	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz	Ag oz Eq
Total Inferred	354,000	211	0.52	2,404,100	5,900	2,728,600

Notes:

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