40-F

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 40-F

[   ] REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

OR

[X] ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

Commission file number: 001-33153

ENDEAVOUR SILVER CORP.
(Exact Name of Registrant as Specified in its Charter)

British Columbia	1040	N/A
(Province or other jurisdiction of incorporation or organization)	(Primary Standard Industrial	(I.R.S. Employer Identification No.)
	Classification Code)

#1130-609 Granville Street
Vancouver, British Columbia, Canada V7Y 1G5
(604) 685-9775
(Address and Telephone Number of Registrant’s Principal Executive Offices)

DL Services Inc.	Copies to:
Columbia Center, 701 Fifth Avenue, Suite 1600	Jason K. Brenkert
Seattle, Washington 98104	Dorsey & Whitney LLP
(206) 903-5448	1400 Wewatta Street, Suite 400
(Name, address (including zip code) and telephone number (including area	Denver, Colorado 80202-5549
code) of agent for service in the United States)	(303) 629-3400

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class:	Name of Each Exchange On Which Registered:
Common Shares, no par value	NYSE

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this form:

[X] Annual Information Form          [X] Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: As at December 31, 2018, 130,781,052 common shares of the Registrant were issued and outstanding.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
[X] Yes          [   ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
[   ] Yes          [   ] No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act .
[   ] Emerging growth company.

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

2

EXPLANATORY NOTE

Endeavour Silver Corp. (the “Company” or the “Registrant”) is a Canadian issuer eligible to file its annual report pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on Form 40-F pursuant to the multi-jurisdictional disclosure system of the Exchange Act. The Company is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3 thereunder.

FORWARD-LOOKING STATEMENTS

This annual report on Form 40-F and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

Statements concerning reserves and mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the Company’s property is developed, and in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that a mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or the negative and grammatical variations of any of these terms and similar expressions) be taken, occur or be achieved,) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

• risks related to precious and base metal price fluctuations;
   
• risks related to fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and United States dollar);
   
• risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; /
   
• uncertainty in our ability to fund the development of our mineral properties or the completion of further exploration programs;
   
• uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that our development activities will result in profitable mining operations;
   
• risks related to our reserves and mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral reserves as properties are mined;
   
• risks related to changes in governmental regulations, tax and labour laws and obtaining necessary licenses and permits;
   
• risks related to our business being subject to environmental laws and regulations which may increase our costs of doing business and restrict our operations;

• risks related to our mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title;
   
• risks relating to inadequate insurance or inability to obtain insurance;
   
• risks related to our ability to successfully integrate acquisitions;
   
• uncertainty in our ability to obtain necessary financing;
   
• risks related to increased competition that could adversely affect our ability to attract necessary capital funding or acquire suitable producing properties for mineral exploration in the future;
   
• risks related to many of our primary properties being located in Mexico, including political, economic, and regulatory instability; and
   
• risks related to our officers and directors becoming associated with other natural resource companies which may give rise to conflicts of interests

This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further in the exhibits attached to this annual report on Form 40-F, including in the Annual Information Form of the Company filed as Exhibit 99.1 to this annual report on Form 40-F and are incorporated by reference herein. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made and the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

NOTE TO UNITED STATES READERS-
DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Company is permitted, under the multi-jurisdictional disclosure system adopted by the United States Securities and Exchange Commission (the “SEC”), to prepare this annual report in accordance with Canadian disclosure requirements, which differ from those of the United States. The Company has prepared its consolidated financial statements, which are filed as Exhibit 99.2 to this annual report on Form 40-F, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) and they are not comparable to financial statements of United States companies.

MINERAL RESOURCE AND RESERVE ESTIMATES

The Company’s Annual Information Form (“AIF”) filed as Exhibit 99.1 to this annual report on Form 40-F and management’s discussion and analysis for the fiscal year ended December 31, 2018 filed as Exhibit 99.4 has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ materially from the definitions in SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Act of 1933, as amended (the “Securities Act”).

Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that all or any part of a mineral deposit in these categories will ever be converted into SEC Industry Guide 7 reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this annual report on Form 40-F and the documents incorporated by reference herein contain descriptions of our mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder, including SEC Industry Guide 7.

CURRENCY

Unless otherwise indicated, all dollar amounts in this annual report on Form 40-F are in United States dollars. The exchange rate of Canadian dollars into United States dollars, on December 31, 2018, based upon the noon exchange rate as quoted by the Bank of Canada, was Cdn.$1.00 = US.$0.7330.

ANNUAL INFORMATION FORM

The Company’s AIF for the fiscal year ended December 31, 2018 is filed as Exhibit 99.1 to this annual report on Form 40-F and is incorporated by reference herein.

AUDITED ANNUAL FINANCIAL STATEMENTS

The audited consolidated financial statements of the Company for the years ended December 31, 2018 and 2017, including the report of the independent auditor with respect thereto, are filed as Exhibit 99.2 to this annual report on Form 40-F and are incorporated by reference herein.

MANAGEMENT’S DISCUSSION AND ANALYSIS

The Company’s management’s discussion and analysis for the fiscal year ended December 31, 2018 (“MD&A”) is filed as Exhibit 99.4 to this annual report on Form 40-F and is incorporated by reference herein.

TAX MATTERS

Purchasing, holding, or disposing of the Company’s securities may have tax consequences under the laws of the United States and Canada that are not described in this annual report on Form 40-F.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At the end of the period covered by this annual report on Form 40-F for the fiscal year ended December 31, 2018, an evaluation was carried out under the supervision of, and with the participation of, the Company’s management, including its Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Company’s CEO and CFO have concluded that 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 under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’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 Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) of the 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 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, including the CEO and CFO, assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. 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, 2018, the Company’s internal control over financial reporting was effective and no material weaknesses in the Company’s internal control over financial reporting were discovered.

The Company is required to provide an auditor’s attestation report on its internal control over financial reporting for the fiscal year ended December 31, 2018. In this annual report on Form 40-F, the Company’s independent registered public accounting firm, KPMG LLP (“KPMG”), has provided its opinion as to the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. KPMG has also audited the Company’s financial statements included in this annual report on Form 40-F and issued a report thereon.

Auditor’s Attestation Report

KPMG’s attestation report on the Company’s internal control over financial reporting is included in the audit report filed in Exhibit 99.3 of this annual report on Form 40-F and is incorporated by reference herein.

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting that occurred during the fiscal year ended December 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

CORPORATE GOVERNANCE

The Company’s Board of Directors (the “Board of Directors”) is responsible for the Company’s Corporate Governance policies and has separately designated standing Compensation, Corporate Governance and Nominating, and Audit Committees. The Board of Directors has determined that all the members of the Compensation, Corporate Governance and Nominating, and Audit Committees are independent, based on the criteria for independence prescribed by section 303A.02 of the NYSE Listed Company Manual.

Compensation Committee

Compensation of the Company’s CEO and all other officers is recommended by management to the Compensation Committee, established in accordance with section 303A.05 of the NYSE Listed Company Manual, for evaluation and recommendation to the Board of Directors.

The Compensation Committee develops, reviews and monitors director and executive compensation and policies. The Compensation Committee is also responsible for annually reviewing the adequacy of compensation for directors and others and the composition of compensation packages. The Company’s CEO cannot be present during the Committee’s deliberations or vote. The Compensation Committee is composed of four independent directors (as determined under section 303A.02 and section 303A.05 of the NYSE Listed Company Manual): Ricardo Campoy (Chair), Geoffrey Handley, Ken Pickering and Mario Szotlender. The Company’s Compensation Committee Charter is available on the Company’s website at www.edrsilver.com.

Corporate Governance and Nominating Committee

The Company’s Corporate Governance and Nominating Committee, established in accordance with section 303A.04 of the NYSE Listed Company Manual, is tasked with (a) developing and recommending to the Board of Directors corporate governance principles applicable to the Company; (b) identifying and recommending qualified individuals for nomination to the Board of Directors; and (c) providing such assistance as the Chair of the Board of Directors, if independent, or alternatively the lead director of the Board of Directors, may require. The Corporate Governance and Nominating Committee is composed of three independent directors (as determined under Section 303A.02 of the NYSE Listed Company Manual): Geoffrey Handley (Chair), Rex McLennan, and Mario Szotlender. The Corporate Governance and Nominating Committee Charter is available on the Company’s website at www.edrsilver.com.

The principal corporate governance responsibilities of the Corporate Governance and Nominating Committee include the following:

a)	reviewing and reassessing at least annually the adequacy of the Company’s corporate governance procedures and recommending any proposed changes to the Board of Directors for approval;
b)	reviewing and recommending changes to the Board of Directors of the Company’s Code of Conduct and considering any requests for waivers from the Company’s Code of Conduct;
c)	receiving comments from all directors and reporting annually to the Board of Directors with an assessment of the Board of Director’s performance to be discussed with the full Board of Directors following the end of each fiscal year.

The principal responsibilities of the Corporate Governance and Nominating Committee for selection and nomination of director nominees include the following:

a)	in making recommendations to the Board of Directors regarding director nominees, the Corporate Governance and Nominating Committee shall consider the appropriate size of the Board of Directors; the competencies and skills that the Board of Directors considers to be necessary for the Board of Directors, as a whole, to possess; the competencies and skills that the Board of Directors considers each existing director to possess; the competencies and skills each new nominee will bring to the Board of Directors; and whether or not each new nominee can devote sufficient time and resources to the nominee’s duties as a director of the Company;
b)	developing qualification criteria for directors for recommendation to the Board of Directors and, in conjunction with the Chair of the Board of Directors (or, if the Chair is not an independent director, any lead director of the Board of Directors), the Corporate Governance and Nominating Committee shall appoint directors to the various committees of the Board of Directors;
c)	having the sole authority to retain and terminate any search firm to be used to identify director candidates or any other outside advisors considered necessary to carry out its duties and to determine the terms of such retainer;
d)	in conjunction with the Chair of the Board of Directors (or, if the Chair of the Board of Directors is not an independent director, any lead director of the Board of Directors), overseeing the evaluation of the Board of Directors and of the Company and making recommendations to the Board of Directors as appropriate.

AUDIT COMMITTEE

The Company’s Board of Directors has a separately designated standing Audit Committee established in accordance with section 3(a)(58)(A) of the Exchange Act and section 303A.06 and 303A.07 of the NYSE Listed Company Manual. The Company’s Audit Committee is comprised of:

• Rex McLennan (Chair)
• Ken Pickering
• Ricardo Campoy
• Geoffrey Handley

In the opinion of the Company’s Board of Directors, all members of the Audit Committee are independent (as determined under Rule 10A-3 of the Exchange Act and section 303A.02 of the NYSE Listed Company Manual) and are financially literate. The members of the Audit Committee do not have fixed terms and are appointed and replaced from time to time by resolution of the Board of Directors.

The Audit Committee meets with the Company’s President, the CEO, the CFO and the Company’s independent auditors to review and inquire into matters affecting financial reporting, the system of internal accounting and financial controls, as well as audit procedures and audit plans. The Audit Committee also recommends to the Board of Directors which independent registered public auditing firm should be appointed by the Company. In addition, the Audit Committee reviews and recommends to the Board of Directors for approval the annual financial statements, the MD&A, and undertakes other activities required by exchanges on which the Company’s securities are listed and by regulatory authorities to which the Company is held responsible. The Company’s Audit Committee Charter is available on the Company’s website at www.edrsilver.com.

Audit Committee Financial Expert

The Company’s Board of Directors has determined that Rex McLennan qualifies as a financial expert (as defined in Item 407 (d)(5)(ii) of Regulation S-K under the Exchange Act), has financial management expertise (pursuant to section 303A.07 of the NYSE Listed Company Manual) and is independent (as determined under Exchange Act Rule 10A-3 and section 303A.02 of the NYSE Listed Company Manual).

PRINCIPAL ACCOUNTING FEES AND SERVICES – INDEPENDENT AUDITORS

The following table shows the aggregate fees billed to the Company by KPMG LLP and its affiliates, Chartered Professional Accountants, the Company’s independent registered public auditing firm, in each of the last two years.

	2018	2017
Audit Fees (1)	$582,500	$463,400
Tax Fees (2)	$0	$0
All other fees (3)	$0	$0
Total*	$582,500	$463,400

* All amounts are expressed in Canadian dollars

(1)	The aggregate fees billed in each of the last two fiscal years for assurance and related services by the Company’s external auditor that are reasonably related to the performance of the audit or review of the Company’s financial statements.
(2)	The aggregate fees billed in each of the last two fiscal years for professional services rendered by the company’s external auditor for tax compliance and tax advice.
(3)	The aggregate fees billed in each of the last two fiscal years for products and services provided by the Company’s external auditor, other than the services reported under clauses 1and 2 above.

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES PROVIDED BY INDEPENDENT AUDITORS

The Audit Committee pre-approves all audit services to be provided to the Company by its independent auditors. Non-audit services that are prohibited to be provided to the Company by its independent auditors may not be pre-approved. In addition, prior to the granting of any pre-approval, the Audit Committee must be satisfied that the performance of the services in question will not compromise the independence of the independent auditors. All non-audit services performed by the Company’s auditor for the fiscal year ended December 31, 2018 were pre-approved by the Audit Committee of the Company. No non-audit services were approved pursuant to the de minimis exemption to the pre-approval requirement.

OFF-BALANCE SHEET TRANSACTIONS

The Company does not have any off-balance sheet financing arrangements or relationships with unconsolidated special purpose entities.

CODE OF ETHICS

The Company has adopted a Code of Business Conduct and Ethics (the “Code”) that applies to all the Company’s directors, executive officers and employees, which is available on the Company’s website at www.edrsilver.com and in print to any shareholder who requests it. The Code meets the requirements for a “code of ethics” within the meaning of that term in General Instruction 9(b) of Form 40-F.

All amendments to the Code, and all waivers of the Code with respect to any of the officers covered by it, will be posted on the Company’s website, www.edrsilver.com within five business days of the amendment or waiver and provided in print to any shareholder who requests them. During the fiscal year ended December 31, 2018, the Company did not substantively amend, waive or implicitly waive any provision of the Code with respect to any of the directors, executive officers or employees subject to it.

CONTRACTUAL OBLIGATIONS

The following table lists as of December 31, 2018 information with respect to the Company’s known contractual obligations.

Payments due by period (in thousands of dollars)
Contractual Obligations		Total		Less than 1 year		1 – 3 years		3 – 5 years		More than 5 years
Accounts Payable	$	19,470	$	19,470	$	-	$	-	$	-
Income Tax Payable		4,050		4.050		-		-		-
Operating Leases		2,840		394		720		542		1,184
Capital Commitments		140		140		-		-		-
Other Long-Term Liabilities(1)		8,195		-		6,066		2,129		-
Total	$	34,695	$	24,054	$	6,786	$	2,671	$	1,184

(1) The $8.2 million of other long-term liabilities is the discounted cost estimate to settle the Company’s reclamation costs of the Guanacevi mine, Bolanitos mine, El Cubo and El Compas mine in Mexico. These costs include land rehabilitation, decommissioning of buildings and mine facilities, on-going care and maintenance and other costs.

NOTICES PURSUANT TO REGULATION BTR

There were no notices required by Rule 104 of Regulation BTR that the Registrant sent during the year ended December 31, 2018 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

NYSE CORPORATE GOVERNANCE

The Company’s common shares are listed on the NYSE. Sections 103.00 and 303A.11 of the NYSE Listed Company Manual permit foreign private issuers to follow home country practices in lieu of certain provisions of the NYSE Listed Company Manual. A foreign private issuer that follows home country practices in lieu of certain provision of the NYSE Listed Company Manual must disclose any significant ways in which its corporate governance practices differ from those followed by domestic companies either on the its website or in the annual report that it distributes to shareholders in the United States. A description of the significant ways in which the Company’s governance practices differ from those followed by domestic companies pursuant to NYSE standards is as follows:

Shareholder Meeting Quorum Requirement: The NYSE is of the opinion that the quorum required for any meeting of shareholders should be sufficiently high to insure a representative vote. The Company’s quorum requirement is set forth in its Memorandum and Articles. A quorum for a meeting of members of the Company is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the shares entitled to be voted at the meeting.

Proxy Delivery Requirement: The NYSE requires the solicitation of proxies and delivery of proxy statements for all shareholder meetings, and requires that these proxies shall be solicited pursuant to a proxy statement that conforms to SEC proxy rules. The Company is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act, and the equity securities of the Company are accordingly exempt from the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f) of the Exchange Act. The Company solicits proxies in accordance with applicable rules and regulations in Canada.

Shareholder Approval Requirement: The Company will follow Toronto Stock Exchange rules for shareholder approval of new issuances of its common shares. Following Toronto Stock Exchange rules, shareholder approval is required for certain issuances of shares that: (i) materially affect control of the Company; or (ii) provide consideration to insiders in aggregate of 10% or greater of the market capitalization of the listed issuer and have not been negotiated at arm’s length. Shareholder approval is also required, pursuant to Toronto Stock Exchange rules, in the case of private placements: (x) for an aggregate number of listed securities issuable greater than 25% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of closing of the transaction if the price per security is less than the market price; or (y) that during any six month period are to insiders for listed securities or options, rights or other entitlements to listed securities greater than 10% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of the closing of the first private placement to an insider during the six month period.

The foregoing are consistent with the laws, customs and practices in Canada.

In addition, the Company may from time-to-time seek relief from the NYSE corporate governance requirements on specific transactions under the NYSE Listed Company Guide, in which case, the Company shall make the disclosure of such transactions available on the Company’s website at www.edrsilver.com. Information contained on the Company’s website is not part of this annual report on Form 40-F.

MINE SAFETY DISCLOSURE

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). During the fiscal year ended December 31, 2018, the Company had no mines in the United States subject to regulation by MSHA under the Mine Act.

UNDERTAKING

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

The Company filed an Appointment of Agent for Service of Process and Undertaking on Form F-X/A with the SEC on March 28, 2013, with respect to the class of securities in relation to which the obligation to file this annual report on Form 40-F arises. Any change to the name or address of the agent for service of process will be communicated promptly to the SEC by amendment to Form F-X/A referencing the Company’s file number.

EXHIBIT INDEX

The following exhibits have been filed as part of this annual report on Form 40-F:

Exhibit	Description
Annual Information
99.1	Annual Information Form of the Company for the year ended December 31, 2018
99.2	The following audited consolidated financial statements of the Company, are exhibits to and form a part of this annual report:
	Consolidated Statements of Financial Position as of December 31, 2018 and 2017
	Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2018 and December 31, 2017
	Consolidated Statement of Changes in Equity for the years ended December 31, 2018 and December 31, 2017
	Consolidated Statements of Cash Flow for the years ended December 31, 2018 and December 31, 2017
	Notes to Consolidated Financial Statements
99.3	Independent Registered Public Accounting Firm’s Report on Consolidated Financial Statements and Attestation on Internal Control Over Financial Reporting
99.4	Management’s Discussion and Analysis
Certifications
99.5	Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.6	Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.7	Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.8	Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Consents
99.9	Consents of Peter J. Smith, P. Eng. of Smith Foster & Associates
99.10	Consents of Humberto F. Preciado, P.E. of Wood PLC
99.11	Consent of Jarita Barry, P. Geo. of P&E Mining Consultants Inc.
99.12	Consents of David Burga, P. Geo. of P&E Mining Consultants Inc.
99.13	Consents of Eugene Puritch, P. Geo., FEC, of P&E Mining Consultants Inc.

99.14	Consent of James L. Pearson, P. Eng. of P&E Mining Consultants Inc.
99.15	Consents of Yungang Wu, P. Geo. of P&E Mining Consultants Inc.
99.16	Consents of Eugenio Iasillo P. E. of Process Engineering L.L.C
99.17	Consent of Ben Peacock, P. Eng. of Knight Piesold Ltd.
99.18	Consent of Ken Embree, P. Eng. of Knight Piesold Ltd.
99.19	Consent of Deepak Malhotra, Ph.D. of Resource Development Inc
99.20	Consent of Godfrey Walton, P. Geo. of Endeavour Silver Corp.
99.21	Consents of Jeffery W. Choquette, P.E. of Hard Rock Consulting
99.22	Consents of Zachary J. Black, SME-RM of Hard Rock Consulting
99.23	Consents of Jennifer J. Brown, SME-RM of Hard Rock Consulting
99.24	Consent of KPMG LLP
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

     Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

	ENDEAVOUR SILVER CORP.
	By:	/s/ Bradford Cooke
	Name:	Bradford Cooke
	Title:	Chief Executive Officer
Date: February 25, 2019

EX-99.1

ANNUAL INFORMATION FORM

of

ENDEAVOUR SILVER CORP.

(the “Company” or “Endeavour”)

Suite 1130 - 609 Granville Street
Vancouver, British Columbia
Canada, V7Y 1G5
Phone:    (604) 685-9775
Fax:         (604) 685-9744

Dated as of February 22, 2019

TABLE OF CONTENTS

ITEM 1:	PRELIMINARY NOTES	1
1.1	Incorporation of Documents by Reference	1
1.2	Date of Information	1
1.3	Forward-Looking Statements	2
1.4	Currency and Exchange Rates	3
1.5	Classification of Mineral Reserves and Resources	3
1.6	Cautionary Note to U.S. Investors concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Mineral Resources	3
ITEM 2:	CORPORATE STRUCTURE	4
2.1	Name, Address and Incorporation	4
2.2	Subsidiaries	5
ITEM 3:	GENERAL DEVELOPMENT OF THE BUSINESS	5
3.2	Significant Acquisitions	9
ITEM 4:	DESCRIPTION OF THE BUSINESS	9
4.1	General Description	9
4.2	Risk Factors	11
4.3	Asset-Backed Securities Outstanding	21
4.4	Mineral Projects	22
ITEM 5:	DIVIDENDS	76
5.1	Dividends	76
ITEM 6:	DESCRIPTION OF CAPITAL STRUCTURE	76
6.1	General Description of Capital Structure	76
6.2	Constraints	76
6.3	Ratings	76
ITEM 7:	MARKET FOR SECURITIES	77
7.1	Trading Price and Volume	77
ITEM 8:	ESCROWED SECURITIES	78
8.1	Escrowed Securities	78
ITEM 9:	DIRECTORS AND OFFICERS	78
9.1	Name, Occupation and Security Holding	78

9.2	Cease Trade Orders, Bankruptcies, Penalties or Sanctions	79
9.3	Conflicts of Interest	81
ITEM 10:	PROMOTERS	81
ITEM 11:	LEGAL PROCEEDINGS	81
11.1	Legal Proceedings	81
11.2	Regulatory Actions	82
ITEM 12:	INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	82
12.1	Interest of Management and Others in Material Transactions	82
ITEM 13:	TRANSFER AGENT AND REGISTRAR	83
13.1	Transfer Agent and Registrar	83
ITEM 14:	MATERIAL CONTRACTS	83
14.1	Material Contracts	83
ITEM 15:	INTERESTS OF EXPERTS	83
15.1	Names of Experts	83
15.2	Interests of Experts	84
ITEM 16:	ADDITIONAL INFORMATION	85
16.1	Additional Information	85
16.2	Audit Committee	85

ITEM 1:           PRELIMINARY NOTES

1.1           Incorporation of Documents by Reference

All financial information in this Annual Information Form (“AIF”) has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as prescribed by the International Accounting Standards Board.

The information provided in the AIF is supplemented by disclosure contained in the documents listed below which are incorporated by reference into this AIF. The documents listed below are not contained within, nor attached to, this document but may be accessed at www.sedar.com or on the Company’s website at www.edrsilver.com.

Type of Document	Report Date / Effective Date	Date Filed / Posted	Document name which may be viewed at the SEDAR website at www.sedar.com
NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico	Dated March 3, 2017 and amended March 27, 2018 (Effective date: December 31, 2016)	April 6, 2018	Amended & restated technical report (NI 43-101) – English Qualification Certificate(s) and Consent(s)
NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico	Dated March 3, 2017 and amended March 27, 2018 (Effective date: December 31, 2016)	April 6, 2018	Amended & restated technical report (NI 43-101) – English Qualification Certificate(s) and Consent(s)
NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico	Dated March 3, 2017 and amended March 27, 2018 (Effective date: December 31, 2016)	April 6, 2018	Amended & restated technical report (NI 43-101) – English Qualification Certificate(s) and Consent(s)
NI 43-101 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico	Dated September 17, 2018 (Effective date: August 7, 2018)	September 18, 2018	Technical Report (NI 43-101) – English Qualification Certificate(s) and Consent(s)
Updated Mineral Resource Technical Report for the Terronera Project, Jalisco State, Mexico	Dated February 22, 2019 (Effective date: February 1, 2019)	February 25, 2019	Technical Report (NI 43-101) – English Qualification Certificate(s) and Consent(s)
NI 43-101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico	Dated May 11, 2017 (Effective date: March 27, 2017)	May 11, 2017	Technical Report (NI 43-101) – English Qualification Certificate(s) and Consent(s)

References to “the Company” or “Endeavour” are to Endeavour Silver Corp. and where applicable and as the context requires, include its subsidiaries.

1.2           Date of Information

All information in this AIF is as of December 31, 2018 unless otherwise indicated.

Endeavour Silver Corp.

1.3           Forward-Looking Statements

This AIF contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including silver and gold production and planned work programs.

Statements concerning reserves and mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed and, in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, forecasts, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

• risks related to precious and base metal price fluctuations;

• risks related to fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and United States dollar);

• risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities;

• uncertainty in our ability to fund the development of our mineral properties or the completion of further exploration programs;

• uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that our development activities will result in profitable mining operations;

• risks related to our reserves and mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral reserves as properties are mined;

• risks related to changes in governmental regulations, tax and labour laws and obtaining necessary licenses and permits;

• risks related to our business being subject to environmental laws and regulations which may increase our costs of doing business and restrict our operations;

• risks related to our mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title;

• risks relating to inadequate insurance or inability to obtain insurance;

• risks related to our ability to successfully integrate acquisitions;

• uncertainty in our ability to obtain necessary financing;

• risks related to increased competition that could adversely affect our ability to attract necessary capital funding or acquire suitable producing properties for mineral exploration in the future;

• risks related to many of our primary properties being located in Mexico, including political, economic, and regulatory instability; and

• risks related to our officers and directors becoming associated with other natural resource companies which may give rise to conflicts of interests.

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Endeavour Silver Corp.

This list is not exhaustive of the factors that may affect our forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made and the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

1.4           Currency and Exchange Rates

All dollar amounts in this AIF are expressed in U.S. dollars (“U.S.$”) unless otherwise indicated. References to “Cdn.$” are to Canadian dollars.

The high, low, average and closing noon rates for the United States dollar in terms of Canadian dollars for each of the financial periods of the Company ended December 31, 2018, December 31, 2017 and December 31, 2016, as quoted by the Bank of Canada, were as follows:

	Year ended	Year ended	Year ended
	December 31, 2018	December 31, 2017	December 31, 2016
High	1.3642	1.3743	1.4589
Low	1.2288	1.2128	1.2544
Average	1.2957	1.2986	1.32487
Closing	1.3642	1.2545	1.3427

On December 31, 2018, the noon exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was U.S.$1.00 = Cdn.$1.3642 (Cdn.$1.00 = U.S.$0.7330) . On February 22, 2019, the daily average exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was U.S.$1.00 = Cdn.$1.3196 (Cdn.$1.00 = U.S.$0.7578) .

1.5           Classification of Mineral Reserves and Resources

In this AIF, the definitions of proven and probable mineral reserves, and measured, indicated and inferred mineral resources are those used by the Canadian provincial securities regulatory authorities and conform to the definitions utilized by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, as amended.

1.6           Cautionary Note to U.S. Investors concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Mineral Resources

This AIF has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, as amended. These definitions differ materially from the definitions in SEC Industry Guide 7 under the United States Securities Act of 1933, as amended. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

3
Endeavour Silver Corp.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into SEC Industry Guide 7 reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this AIF contain descriptions of our mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder, including SEC Industry Guide 7.

ITEM 2:           CORPORATE STRUCTURE

2.1           Name, Address and Incorporation

The Company was incorporated under the laws of the Province of British Columbia on March 11, 1981 under the name, “Levelland Energy & Resources Ltd”. Effective August 27, 2002 the Company changed its name to “Endeavour Gold Corp.”, consolidated its share capital on the basis of four old common shares for one new common share and increased its share capital to 100,000,000 common shares without par value. On September 13, 2004, the Company changed its name to “Endeavour Silver Corp.”, transitioned from the Company Act (British Columbia) to the Business Corporations Act (British Columbia) and increased its authorized share capital to unlimited common shares without par value.

The Company’s principal business office is located at:

Suite 1130 - 609 Granville Street
Vancouver, British Columbia
Canada, V7Y 1G5

and its registered and records office is located at:

19^th Floor, 885 West Georgia Street
Vancouver, British Columbia
Canada, V6C 3H4

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Endeavour Silver Corp.

2.2           Subsidiaries

The Company conducts its business primarily in Mexico through subsidiary companies. The following table lists the Company’s material direct and indirect subsidiaries, their jurisdiction of incorporation, and percentage owned by the Company directly, indirectly or beneficially.

		Percentage
		owned directly
Name of Company	Incorporated	or indirectly
Endeavour Gold Corporation, S.A. de C.V.	Mexico	100%
EDR Silver de Mexico S.A. de C.V. SOFOM ENR	Mexico	100%
Minera Plata Adelante, S.A. de C.V.	Mexico	100%
Minera Santa Cruz Garibaldi S.A. de C.V.	Mexico	100%
Refinadora Plata Guanaceví, S.A. de C.V.	Mexico	100%
Mina Bolañitos S.A de C.V.	Mexico	100%
Compania Minera del Cubo S.A. de C.V.	Mexico	100%
Minas Lupycal S.A. de C.V.	Mexico	100%
Minera Oro Silver de Mexico S.A. de C.V.	Mexico	100%
Terronera Precious Metals S.A. de C.V.	Mexico	100%
Minera Plata Carina S.P.A.	Chile	100%
Oro Silver Resources Ltd.	British Columbia, Canada	100%
Endeavour Zilver S.A.R.L.	Luxembourg	100%

ITEM 3:           GENERAL DEVELOPMENT OF THE BUSINESS

The Company is a Canadian mineral company engaged in the evaluation, acquisition, exploration, development and exploitation of precious metal properties in Mexico and Chile. The Company has three producing silver-gold mines in Mexico: the Guanaceví Mine in Durango acquired in 2004, the Bolañitos Mine in Guanajuato acquired in 2007 and the El Cubo Mine in Guanajuato acquired in 2012. In addition to operating these three mines, the Company is commissioning the El Compas mine in Zacatecas, Mexico and is advancing two exploration and development projects in Mexico: the Terronera property in Jalisco acquired in 2010 that is now in the pre-feasibility stage, , and the prospective Parral properties in Chihuahua acquired in 2016.

Over the past six years, the Company has acquired and advanced three exploration projects in northern Chile: Aida project (silver), Paloma project (gold) and the Cerro Marquez project (copper-molybdenum-gold).

2018

In April 2018, the Company filed a short form base shelf prospectus that qualifies 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”). The Company filed a corresponding registration statement in the United States registering the Securities under United States federal securities laws. The distribution of Securities may be effected from time to time in one or more transactions at a fixed price or prices, which may 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 deemed to be “At-The-Market” (“ATM”) distributions.

5
Endeavour Silver Corp.

On June 13, 2018, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co., HSBC and TD Securities (together, the “Agents”). Under the terms of this ATM facility, the Company may, from time to time, sell common stock having an aggregate offering value of up to $35.7 million on the New York Stock Exchange. The Company determines, at its sole discretion, the timing and number of shares to be sold under the ATM facility. During the year ended December 31, 2018, the Company issued 3,165,642 common shares under the ATM facility at an average price of $2.61 per share for gross proceeds of $8.3 million, less commission of $0.2 million.

The Company completed an updated NI 43-101 Technical Report, Preliminary Feasibility Study for the Terronera Project, Jalisco State Mexico dated August 7, 2018 (“Terronera Updated PFS”). The Terronera Updated PFS estimates 4.4 million tonnes of Probable Mineral Reserves grading 239 g/t silver and 2.53 g/t gold containing 33.4 million silver ounces and 354,000 gold ounces at Terronera.

Initial capital expenditures are estimated to be $75.8 million, comprised of $44.3 million for plant and site infrastructure, $13.7 million for mine development, mine infrastructure and equipment, $9.7 million for owner’s costs, construction camp, engineering, procurement and construction management (EPCM), and $8.1 million for contingencies

The capital for the Phase 2 expansion from 750 tpd to 1,500 tpd is estimated to be $39.2 million. The expansion consists of $14.9 million to provide sufficient power from the state power grid, $12.0 million for underground mine development, $6.1 million for plant expansion, $2.0 million for owner’s costs, construction camp, and EPCM and $4.2 million in contingencies. An estimated $25.8 million will be required for sustaining capital after commissioning the mine, primarily for mine development and tailings expansion. The total Life of Mine (“LOM”) capital requirements are estimated to be $140.7 million.

LOM average operating costs are estimated to be $46 per tonne for mining, $20 per tonne for processing, $8 per tonne for general and administration, and $4 in royalties for a total cost of $78 per tonne. Using Base Case metal prices of $17 per oz silver and $1,275 per oz gold (compared to $18 silver and $1260 gold in 2017), total cash costs are estimated to be $0.15 per Ag oz net of the gold by-product credit, and all-in-sustaining costs at site are estimated to be $1.36 per Ag oz over the life of the mine

The mine is expected to generate LOM revenue of $815.8 million, EBITDA of $447.7 million and total free cash flow of $193.2 million. Using a discount rate of 5%, the expected discounted net present value is $117.8 million, the expected after tax internal rate of return is 23.5% and payback of capital is 5.4 years, using the Base Case assumptions

Since publishing the Terronera Updated PFS, the Company has further assessed, refined and optimized parts of the Study and discovered other veins with mineralization which it believes will improve the overall economics.

In 2018, due to the current short mine life at El Cubo, the Company planned and guided a reduced production rate in 2019 to approximately half its 1500 tonne per day capacity, at higher operating costs than 2018, while continuing to explore for new reserves to extend the mine life.

At El Cubo, exploration in 2018 did not replace the depleted reserves, so the Company will reduce the production rate in 2019 to approximately half its 1,500 tonne per day capacity. The lower production rate will result in higher operating costs. Accordingly, the Company has initiated layoffs to reflect the lower production rate in 2019. The mine will continue to run at three shifts per day but the plant will move to one shift per day. Some idled mining equipment at El Cubo was transferred to other operations. Grades are expected to be 10% lower than 2018, while recoveries are expected to remain consistent with 2018.

6
Endeavour Silver Corp.

In 2018, El Compas received its explosives permit, which allowed the mine to accelerate the development of the main access ramp. As of December 31, 2018, a total of 2.6 kilometres has been developed underground.

Since publishing the El Compas preliminary economic assessment (“El Compas PEA”), the Company continued to optimize mining methods, the crushing circuit and grinding alternatives and has been successful on a number of fronts in improving the operating metrics. The work index of the ore and the size on the motor allows the capacity of the milling circuit to increase to 325 tpd, which allows for the mining method to be changed to mechanized cut and fill from captive cut and fill. Mechanized cut and fill increases the mining rate but has the same cost profile as captive cut and fill previously disclosed in the El Compas PEA.

Additionally, the modified plant flow sheet will allow the Company to increase the ore grind size and produce a single concentrate, while still achieving recoveries similar to those outlined in the El Compas PEA, lowering overall power costs.

As a result of the modified mine plan and plant design and the delay in receiving the explosives permit, the total start up CAPEX was revised upwards to $11.3 million compared to the previous $10.0 million cost estimated in the El Compas PEA. However, the operational benefits of the modified plant design and increased mining rate should improve the overall economics of the project. The Company incurred $15.5 million on capital as of December 31, 2108. The additional costs included $2.2 million in additional mine development, an additional $1.3 million on the plant refurbishment and tailings dam and $0.7 million on site infrastructure. The delay in commercial production increased pre-production costs capitalized to the projects.

Mining and stockpiling of ore and commissioning of the El Compas plant was initiated in the second quarter using low grade ore. In August, based on recommendations of an independent engineering review, commissioning of the plant was temporarily halted to allow the tailings area to be modified, with improved drainage and deposition plans. The plant commissioning re-commenced in mid-October, however in late December, the ball mill pinion failed which brought plant operations to a halt. From mid-October to when the pinion failed, the plant processed 11,300 tonnes grading 4.59 g/t gold and 69 g/t silver, producing 1,096 gold ounces and 13,382 silver ounces.

Management re-commenced plant operations after a new pinion was installed in February 2019 and expects to attain commercial production in Q1, 2019.

2017

The Company completed an NI 43-101 Technical Report, Preliminary Feasibility Study for the Terronera Project, Jalisco State Mexico dated May 18, 2017, with effect April 3, 2017 (“Terronera PFS”). The Terronera PFS estimates 4.06 million tonnes of Probable Mineral Reserves grading 207 g/t silver and 1.95 g/t gold containing 27 million silver ounces and 255,000 gold ounces at Terronera. The Terronera PFS has been superseded by the Updated PFS described above.

The Company completed an NI 43-101 Technical Report for a Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico dated May 11, 2017 (“El Compas PEA”). The El Compas PEA estimates an initial Mineral Resource of 148,000 tonnes containing 495,000 silver ounces and 34,900 gold ounces in the Indicated category; and 217,000 tonnes containing 465,000 silver ounces and 10,600 gold ounces in the Inferred category. The El Compas Mineral Resource is a shallow high grade epithermal vein system that is estimated to provide a robust after tax return on investment of 42% using a 5% discount.

7
Endeavour Silver Corp.

Due to the positive economics, low initial capital requirements, and management’s experience in having successfully developed similar mines in Mexico, a decision was made to proceed with development in Q3, 2017. In 2017, the Company initiated the installation of project infrastructure, collaring the mine access ramp and refurbishing the plant.

2016

Equity Financings

The Company filed a short form base shelf prospectus in July 2014 to qualify the distribution of up to Cdn$200 million of common shares and various other securities of the Company and a corresponding registration statement filed in the United States. The Company filed a prospectus supplement in November 2015 for an at-the-market offering of up to U.S.$16.5 million value of common shares of the Company under the shelf prospectus on the New York Stock Exchange through Cowen and Company, LLC acting as sole agent (the “2015 ATM Offering”). During 2016, the Company sold 7,218,125 common shares at an average price of $2.13 per share under the 2015 ATM Offering for proceeds of $14.9 million, net of commission. Together with common shares sold in 2015, the Company issued a total of 8,017,694 common shares under the 2015 ATM Offering for net proceeds of $16.0 million.

The Company filed a short form base shelf prospectus in May 2016 to qualify the distribution of up to Cdn.$175 million of common shares and various other securities of the Company and a corresponding registration statement was filed in the United States. The Company filed a prospectus supplement in May 2016 for an at-the-market offering of up to U.S.$40 million value of common shares of the Company under the shelf prospectus on the New York Stock Exchange through Cowen and Company, LLC acting as sole agent (the “2016 ATM Offering”). The Company sold a total of 10,245,347 common shares under the 2016 ATM Offering to July 2016 at an average price of $3.90 per share for proceeds of $38.9 million, net of commission.

Credit Facility Amendments

On July 24, 2012, the Company entered into a $75 million revolving credit facility (“the Facility”), reducing over three years, with Scotia Capital. The purpose of the Facility was for general corporate purposes and was principally secured by a pledge of the Company’s equity interests in its material operating subsidiaries, including Refinadora Plata Guanaceví SA de CV, Minas Bolañitos SA de CV and Compania Minera del Cubo SA de CV. The Facility was subject to various qualitative and quantitative covenants, including a debt to EBITDA leverage ratio, an interest service coverage ratio and a tangible net worth calculation. During the year ended December 31, 2013, the Company extended the Facility until July 24, 2016.

On January 19, 2016, the Company signed an amended and restated credit facility (“the Amended Facility”) which became effective April 1, 2016 to convert the remaining outstanding balance under the existing revolving credit facility into a two year term loan amortized quarterly maturing on December 31, 2017. The interest rate margin on the Facility was 4.5% over LIBOR. The Facility was subject to various qualitative and quantitative covenants, including a debt to EBITDA leverage ratio, an interest service coverage ratio, a tangible net worth calculation, capital and exploration expenditure limits. At December 31, 2017, the Amended Facility was fully repaid.

8
Endeavour Silver Corp.

Acquisition of El Compas Project

On May 27, 2016, the Company issued 2,147,239 common shares of the Company to Canarc Resource Corp. (“Canarc”) and assumed Canarc’s obligation to pay an aggregate of 165 troy ounces of gold to Marlin Gold Mining Ltd. to acquire a 100% interest in Canarc’s wholly-owned subsidiary, Oro Silver Resources Ltd, which owned the El Compas project in Zacatecas, Mexico through its wholly owned Mexican subsidiary, Minera Oro Silver de Mexico SA de CV (“Minera Oro Silver”). The El Compas project consists of 28 concessions fully permitted for mining with 22 concessions subject to a 1.5% net smelter return royalty and six concessions subject to a 3.0% net smelter return royalty. Minera Oro Silver also holds a five year operating lease, renewable for an additional five years, on a 500 tpd ore processing plant located in Zacatecas, Mexico for a total annual lease cost of MXN 1.6 million (approximately $90,000), adjusted annually for inflation.

Acquisition of Parral Properties

On October 31, 2016, the Company issued 1,198,083 common shares of the Company to Silver Standard Resources Inc. (“Silver Standard”) in connection with the acquisition from Silver Standard of a 100% interest in the Parral properties located in Chihuahua, Mexico. Under the terms of the Company’s agreement with Silver Standard, the Company is to spend $2 million on exploration over the two-year period following the closing date. On completing this exploration expenditure, Endeavour will have one year to deliver a NI 43-101 technical report, including a resource estimate, and issue an additional $200,000 in common shares of the Company to Silver Standard for each 1,000,000 ounces of silver delineated in measured and indicated resources on the San Patricio and La Palmilla portions of the Parral properties, based on the 10-day average closing price of Endeavour’s common shares on the New York Stock Exchange prior to the earlier of delivery of the NI 43-101 report and October 31, 2019.

3.2           Significant Acquisitions

No significant acquisitions for which disclosure is required under Part 8 of National Instrument 51-102 were completed by the Company during its most recently completed financial year.

ITEM 4:           DESCRIPTION OF THE BUSINESS

4.1           General Description

Business of the Company
The Company’s principal business activities are the evaluation, acquisition, exploration, development and exploitation of mineral properties. The Company produces silver and gold from its underground mines at Guanaceví, Bolañitos and El Cubo, is commissioning the El Compas mine and advancing the Terronera project in Mexico. The Company also has interests and is advancing in certain exploration properties in Mexico and in Chile.

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.

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Endeavour Silver Corp.

The Company’s Guanaceví and Bolañitos mines acquired in 2004 and 2007, respectively, demonstrate its business model of acquiring fully built and permitted silver mines that were about to close for lack of ore. By bringing the money and expertise needed to find new silver ore-bodies, Endeavour successfully re-opened and expanded these mines to develop their full potential. In 2012, the Company acquired the El Cubo silver-gold mine which came with substantial reserves and resources. 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 addition to operating the Guanaceví, Bolañitos and El Cubo mines, the Company has constructed and commissioning the El Compas mine, and is advancing its Terronera project to a construction decision. The Company is also exploring a number of other properties in both Mexico and Chile towards achieving its goal to become a premier senior producer in the silver mining sector.

The Company’s business is not materially affected by intangibles such as licences, patents and trademarks, nor is it significantly affected by seasonal changes. Other than as disclosed in this AIF, the Company is not aware of any aspect of its business which may be affected in the current financial year by renegotiation or termination of contracts.

Foreign Operations
As the Company’s producing mines and mineral exploration interests are principally located in Mexico, the Company’s business is dependent on foreign operations. As a developing economy, operating in Mexico has certain risks. See “Risk Factors – Foreign Operations”.

Employees
As at December 31, 2018, the Company had approximately 15 employees based in its Vancouver corporate office and employed through its Mexican subsidiaries approximately 1,600 full and part-time employees in Mexico. Consultants and contractors are also retained from time to time to assist with or conduct specific corporate activities, development and exploration programs.

Environmental Protection
The Company’s environmental permit require that it reclaim certain lands 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 $2.3 million for the Guanaceví mine operations, $1.9 million for the Bolañitos mine operations, $4.3 million for the El Cubo mine operations and $0.2 million for the El Compas development project.

Community, Environmental and Corporate Safety Policies
Endeavour is focused on the development of sustainability programs for all stakeholders and understands that such programs contribute to the long-term benefit of the Company and society at large. Sustainability programs implemented by the Company range from improving the Company’s safety policies and practices; supporting health programs for the Company’s employees and the local communities; enhancing environmental stewardship and reclamation; sponsoring educational scholarships and job skills training programs; sponsoring community cultural events and infrastructure improvements; and supporting charitable causes.

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Endeavour Silver Corp.

4.2           Risk Factors

Investment in securities of the Company should be considered a speculative investment due to the high-risk nature of the Company’s business and the present stage of the Company’s development. The following risk factors, as well as risks currently unknown to the Company, could materially adversely affect the future business, operations and financial condition of the Company and could cause them to differ materially from the Company’s current business, property or financial results, each of which could cause investors to lose part or all of their investment in the Company’s securities.

Precious and Base Metal Price Fluctuations
The profitability of the precious metal operations in which the Company has an interest will be 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 re-agents fluctuate and affect the costs of production at our operations. These fluctuations can be unpredictable, can occur over short periods of time and may have a materially adverse impact on our operating costs or the timing and costs of various projects. Our general policy is not to hedge our exposure to changes in prices of the commodities that we use in our 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 priced in Canadian or United States dollars, and the majority of the exploration costs of the Company are denominated in United States dollars,Mexican pesos and Chilean pesos. The Company may suffer losses due to adverse foreign currency fluctuations.

Competitive Conditions
Significant competition exists for natural resource acquisition opportunities. As a result of this competition, some of which is with large, well established mining companies with substantial capabilities and significant financial and technical resources, the Company may be unable to either compete for or acquire rights to exploit additional attractive mining properties on terms it considers acceptable. Accordingly, there can be no assurance that the Company will be able to acquire any interest in additional projects that would yield reserves or results for commercial mining operations.

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Endeavour Silver Corp.

Operating Hazards and Risks
Mining operations generally involve a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include, but are not limited to, the following: environmental hazards, industrial accidents, third party accidents, unusual or unexpected geological structures or formations, fires, power outages, labour disruptions, floods, explosions, cave-ins, land-slides, acts of God, periodic interruptions due to inclement or hazardous weather conditions, earthquakes, war, rebellion, revolution, delays in transportation, inaccessibility to property, restrictions of courts and/or government authorities, other restrictive matters beyond the reasonable control of the Company, and the inability to obtain suitable or adequate machinery, equipment or labour and other risks involved in the operation of mines.

Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration, development and production of precious and base metals, any of which could result in work stoppages, delayed production and resultant losses, increased production costs, asset write downs, damage to or destruction of mines and other producing facilities, damage to life and property, environmental damage and possible legal liability for any or all damages. The Company may become subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. Any compensation for such liabilities may have a material, adverse effect on the Company’s financial position.

Our property, business interruption and liability insurance may not provide sufficient coverage for losses related to these or other hazards. Insurance against certain risks, including certain liabilities for environmental pollution, may not be available to us or to other companies within the industry at reasonable terms or at all. In addition, our insurance coverage may not continue to be available at economically feasible premiums, or at all. Any such event could have a material adverse effect on our business.

Mining Operations
The capital costs required by the Company’s projects may be significantly higher than anticipated. Capital and operating costs, production and economic returns, and other estimates contained in the Company’s current technical reports, may differ significantly from those provided for in future studies and estimates and from management guidance, and there can be no assurance that the Company’s actual capital and operating costs will not be higher than currently anticipated. In addition, delays to construction and exploration schedules may negatively impact the net present value and internal rates of return of the Company’s mineral properties as set forth in the applicable technical report. Similarly, there can be no assurance that historical rates of production, grades of ore processed, rates of recoveries or mining cash costs will not experience fluctuations or differ significantly from current levels over the course of the mining operations conducted by the Company.

There can be no assurance that the Company will be able to continue to extend the production from its current operations through exploration and drilling programs.

Infrastructure
Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploitation or development of the Company’s projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploitation or development of the Company’s projects will be commenced or completed on a timely basis, if at all; the resulting operations will achieve the anticipated production volume, or the construction costs and ongoing operating costs associated with the exploitation and/or development of the Company’s advanced projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company’s operations and profitability.

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Endeavour Silver Corp.

Exploration and Development
There is no assurance that the Company’s exploration and development programs and properties will result in the discovery, development or production of a commercially viable ore body or yield new reserves to replace or expand current reserves.

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into producing mines. At this time, other than the mineral reserves on the Company’s Guanaceví Mines Project, Bolañitos Mines Project, El Cubo Mine, El Compas Mine Projectand Terronera property, none of the Company’s properties have any defined ore-bodies with reserves.

The economics of developing silver, gold and other mineral properties are affected by many factors including capital and operating costs, variations of the tonnage and grade of ore mined, fluctuating mineral markets, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. Depending on the prices of silver, gold or other minerals produced, the Company may determine that it is impractical to commence or continue commercial production.

Substantial expenditures are required to discover an ore-body, to establish reserves, to identify the appropriate metallurgical processes to extract metal from ore, and to develop the mining and processing facilities and infrastructure. The marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond the Company’s control and which cannot be accurately foreseen or predicted, such as market fluctuations, conditions for precious and base metals, the proximity and capacity of milling and smelting facilities, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting minerals and environmental protection. In order to commence exploitation of certain properties presently held under exploration concessions, it is necessary for the Company to apply for an exploitation concession. There can be no guarantee that such a concession will be granted. Unsuccessful exploration or development programs could have a material adverse impact on the Company’s operations and profitability.

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.

Decreases in the market price of silver or gold may render the mining of reserves uneconomic.
The mineral resource and reserve figures included in the AIF and the documents incorporated by reference are estimates, which are, in part, based on forward-looking information, and no assurance can be given that the indicated level of silver and gold will be produced. Factors such as metal price fluctuations, increased production costs and reduced recovery rates may render the present proven and probable reserves unprofitable to develop at a particular site or sites for periods of time. Mineral reserve and resource estimates may need to be restated to the extent that actual precious metals prices are lower than those assumed in preparing the estimates.

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Endeavour Silver Corp.

Replacement of Reserves and Resources
The Guanaceví, Bolañitos El Cubo and El Compas mines are the Company’s only current sources of mineral production. Current life-of-mine plans provide for a defined production life for mining at the Company’s mines. The El Cubo mine has an expected mine life of less than one year and the other mines have an expected lives of two to to four years based on current proven and probable reserves, current production levels and managements estimated conversion of resources to reserves If the Company’s mineral reserves and resources are not replaced either by the development or discovery of additional reserves and/or extension of the life-of-mine at its current operating mines or through the acquisition or development of an additional producing mine, this could have an adverse impact on the Company’s future cash flows, earnings, financial performance and financial condition, including as a result of requirements to expend funds for reclamation and decommissioning.

Acquisition Strategy
As part of the Company’s business strategy, it has sought and will continue to seek new mining and development opportunities in the mining industry. In pursuit of such opportunities, it may fail to select appropriate acquisition candidates, negotiate appropriate acquisition terms, conduct sufficient due diligence to determine all related liabilities or to negotiate favourable financing terms. The Company may encounter difficulties in transitioning the business, including issues with the integration of the acquired businesses or its personnel into the Company. The Company cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit its business.

Integration of New Acquisitions
The Company’s success at completing any acquisitions will depend on a number of factors, including, but not limited to: identifying acquisitions which fit the Company’s strategy; negotiating acceptable terms with the seller of the business or property to be acquired; and obtaining approval from regulatory authorities in the jurisdictions of the business or property to be acquired.

Business or property acquisitions could place increased pressure on the Company’s cash flow if such acquisitions involve cash consideration or the assumption of obligations requiring cash payments. The integration of an acquired business or property with the Company’s existing operations require significant expenditures of time, attention and funds. The Company may not be able to integrate the operations of a recently acquired business or restructure the Company’s previously existing business operations without encountering unexpected costs, difficulties and delays. The attention required from the Company’s management team may detract from the Company’s day-to-day operations. Over the short-term, difficulties associated with integration could have a material adverse effect on the Company’s business, operating results, financial condition and the price of the Company’s common shares. In addition, the acquisition of mineral properties may subject the Company to unforeseen liabilities, including environmental liabilities.

Foreign Operations
The Company’s operations are currently conducted through subsidiaries principally in Mexico and secondarily in Chile, as such, its operations are exposed to various levels of political, economic and other risks and uncertainties which could result in work stoppages, blockades of the Company’s mining operations and appropriation of assets. Some of the Company’s operations are located in areas where Mexican drug cartels operate. These risks and uncertainties vary from region to region and include, but are not limited to, terrorism; hostage taking; local drug gang activities; military repression; expropriation; extreme fluctuations in currency exchange rates; high rates of inflation; labour unrest; the risks of war or civil unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions arising from changes in government and otherwise, currency controls and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

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Endeavour Silver Corp.

Local opposition to mine development projects could arise in Mexico, and such opposition could be violent. If the Company were to experience resistance or unrest in connection with its Mexican operations, it could have a material adverse effect on its operations and profitability. To the extent the Company acquires mineral properties in jurisdictions other than Mexico, it may be subject to similar and additional risks with respect to its operations in those jurisdictions.

Government Regulation
The Company’s operations, exploration and development activities are subject to extensive foreign federal, state and local laws and regulations governing such matters as environmental protection, management and use of toxic substances and explosives, management of natural resources, health, exploration and development of mines, production and post-closure reclamation, safety and labour, mining law reform, price controls import and export laws, taxation, maintenance of claims, tenure, government royalties and expropriation of property. There is no assurance that future changes in such regulation, if any, will not adversely affect the Company’s operations. The activities of the Company require licenses and permits from various governmental authorities.

The costs associated with compliance with these laws and regulations are substantial and possible future laws and regulations, changes to existing laws and regulations and more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expenses, capital expenditures, restrictions on or suspensions of the Company’s operations and delays in the development of its properties. Moreover, these laws and regulations may allow governmental authorities and private parties to bring lawsuits based upon damages to property and injury to persons resulting from the environmental, health and safety practices of the Company’s past and current operations, or possibly even those actions of parties from whom the Company acquired its mines or properties, and could lead to the imposition of substantial fines, penalties or other civil or criminal sanctions. The Company retains competent and well trained individuals and consultants in jurisdictions in which it does business, however, even with the application of considerable skill the Company may inadvertently fail to comply with certain laws. Such events can lead to financial restatements, fines, penalties, and other material negative impacts on the Company.

Mexican Foreign Investment and Income Tax Laws
In December 2012, the Mexican government amended federal labour laws with respect to the use of service companies, subcontracting arrangements and the obligation to compensate employees with appropriate profit-sharing in Mexico. While the Company believes it is probable that these amended labour laws will not result in any material obligation or additional profit-sharing entitlements for its Mexican employees, there can be no assurance that this will continue to be the case.

Any developments or changes in such legal, regulatory or governmental requirements as described above or otherwise are beyond the control of the Company and may adversely affect its business.

Obtaining and Renewing Government Permits
In the ordinary course of business, the Company is required to obtain and renew government permits for the operation and expansion of existing operations or for the development, construction and commencement of new operations. Obtaining or renewing the necessary governmental permits is a complex and time-consuming process involving numerous jurisdictions and possibly involving public hearings and costly undertakings on the Company’s part. The duration and success of the Company’s efforts to obtain and renew permits are contingent upon many variables not within its control including the interpretation of applicable requirements implemented by the permitting authority.

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Endeavour Silver Corp.

The Company may not be able to obtain or renew permits that are necessary to its operations, or the cost to obtain or renew permits may exceed what the Company believes it can recover from a given property once in production. Any unexpected delays or costs associated with the permitting process could delay the development or impede the operation of a mine, which could adversely impact the Company’s operations and profitability.

Environmental Factors
All phases of the Company’s operations are subject to environmental regulation in the various jurisdictions in which it operates. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that any future changes in environmental regulation will not adversely affect the Company’s operations. The costs of compliance with changes in government regulations have the potential to reduce the profitability of future operations. Environmental hazards that may have been caused by previous or existing owners or operators may exist on the Company’s mineral properties, but are unknown to the Company at present.

Title to Assets
Although the Company has or will receive title opinions for any properties in which it has a material interest, there is no guarantee that title to such properties will not be challenged or impugned. The Company has not conducted surveys of the claims in which it holds direct or indirect interests and, therefore, the precise area and location of such claims may be in doubt. The Company’s claims may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by unidentified or unknown defects.

The Company has conducted as thorough an investigation as possible on the title of properties that it has acquired or will be acquiring to be certain that there are no other claims or agreements that could affect its title to the concessions or claims. If title to the Company’s properties is disputed, it may result in the Company paying substantial costs to settle the dispute or clear title and could result in the loss of the property, which events may affect the economic viability of the Company.

Employee Recruitment and Retention
Recruiting and retaining qualified personnel is critical to the Company’s success. The Company is dependent on the services of key executives including the Company’s Chief Executive Officer, President, Chief Financial Officer and other highly skilled and experienced executives and personnel focused on managing the Company’s interests. The number of persons skilled in acquisition, exploration, development and operation of mining properties are limited and competition for such persons is intense. As the Company’s business activity grows, the Company will require additional key financial, administrative and mining personnel as well as additional operations staff. We could experience increases in our recruiting and training costs and decreases in our operating efficiency, productivity and profit margins. If we are not able to attract, hire and retain qualified personnel, the efficiency of our operations could be impaired, which could have an adverse impact on the Company’s future cash flows, earnings, financial performance and financial condition.

Potential Conflicts of Interest
The directors and officers of the Company may serve as directors and/or officers of other public and private companies, and may devote a portion of their time to manage other business interests. This may result in certain conflicts of interest.

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Endeavour Silver Corp.

To the extent that such other companies may participate in ventures in which the Company is also participating, such directors and officers of the Company may have a conflict of interest. The laws of British Columbia, Canada, require the directors and officers to act honestly, in good faith, and in the best interests of the Company and its shareholders. However, in conflict of interest situations, directors and officers of the Company may owe the same duty to another company and will need to balance the competing obligations and liabilities of their actions.

There is no assurance that the needs of the Company will receive priority in all cases. From time to time, several companies may participate together in the acquisition, exploration and development of natural resource properties, thereby allowing these companies to: (i) participate in larger properties and programs; (ii) acquire an interest in a greater number of properties and programs; and (iii) reduce their financial exposure to any one property or program. A particular company may assign, at its cost, all or a portion of its interests in a particular program to another affiliated company due to the financial position of the company making the assignment.

In determining whether or not the Company will participate in a particular program and the interest therein to be acquired by it, it is expected that the directors and officers of the Company will primarily consider the degree of risk to which the Company may be exposed and its financial position at that time.

Third Party Reliance
The Company’s rights to acquire interests in certain mineral properties have been granted by third parties who themselves may hold only an option to acquire such properties. As a result, the Company may have no direct contractual relationship with the underlying property holder.

Absolute Assurance on Financial Statements
We prepare our 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 or results of operations of the Company. Significant accounting details are described in more detail in the notes to our annual consolidated financial statements for the year ended December 31, 2018. 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, we have implemented and continue to analyze our internal control systems for financial reporting. Although we believe our financial reporting and financial statements are prepared with reasonable safeguards to ensure reliability, we cannot provide absolute assurance in that regard.

Economic Conditions for Mining
A decline in the market price for precious metal commodities has been experienced since 2013. These macro-economic events negatively affected the mining and minerals sectors in general, and the Company’s market capitalization has been significantly reduced over this period. Any sudden or rapid destabilization of global economic conditions could impact the Company's ability to obtain equity or debt financing in the future on terms favorable to the Company or at all. In such an event, the Company's operations and financial condition could be adversely impacted.

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.

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Endeavour Silver Corp.

Substantial Volatility of Share Price
The market prices for the securities of mining companies, including our own, have historically been highly volatile. The market has from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of any particular company. In addition, because of the nature of our business, certain factors such as our announcements and the public’s reaction, our operating performance and the performance of competitors and other similar companies, fluctuations in the market prices of our resources, government regulations, changes in earnings estimates or recommendations by research analysts who track our securities or securities of other companies in the resource sector, general market conditions, announcements relating to litigation, the arrival or departure of key personnel and the risk factors described in this AIF can have an adverse impact on the market price of the Common Shares.

Any negative change in the public’s perception of Endeavour’s prospects could cause the price of our securities, including the price of our Common Shares, to decrease dramatically. Furthermore, any negative change in the public’s perception of the prospects of mining companies in general could depress the price of our securities, including the price of our Common Shares, regardless of our results. Following declines in the market price of a company’s securities, securities class-action litigation is often instituted. Litigation of this type, if instituted, could result in substantial costs and a diversion of our management’s attention and resources.

Need for additional financing
The Company’s current cash and cash-flows may not be sufficient to pursue additional exploration, development or discovery of additional reserves, extension to life-of-mines or new acquisitions and, the Company may require additional financing. Additional financing may not be available on acceptable terms, if at all. The Company may need additional financing by way of private or public offerings of equity or debt or the sale of project or property interests in order to have sufficient working capital for its business objectives, as well as for general working capital purposes.

The success and the pricing of any such capital raising and/or debt financing will be dependent upon the prevailing market conditions at that time. There can be no assurance that financing will be available to the Company or, if it is available, that it will be offered on acceptable terms. If additional financing is raised through the issuance of equity or convertible debt securities of the Company, this may negatively impact the price of the Company’s common shares and could result in dilution to shareholders and the interests of shareholders in the net assets of the Company may be diluted.

Differences in U.S. and Canadian reporting of mineral reserves and resources
The Company’s mineral reserve and resource estimates are not directly comparable to those made in filings subject to SEC reporting and disclosure requirements as the Company generally reports mineral reserves and resources in accordance with Canadian practices. These practices are different from those used to report mineral reserve and resource estimates in reports and other materials filed with the SEC. It is Canadian practice to report measured, indicated and inferred resources, which are not permitted in disclosure filed with the SEC by United States issuers. Under SEC rules, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves.

Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards "as in-place tonnage and grade without reference to unit of metal measures.

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Endeavour Silver Corp.

Accordingly, information concerning descriptions of mineralization, reserves and resources contained in this AIF, or in the documents incorporated herein by reference, may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

Material weaknesses in the internal control over financial reporting
The Company documented and tested, during its most recent fiscal year, its internal control procedures in order to satisfy the requirements of Section 404 of the U.S. Sarbanes-Oxley Act (“SOX”) which requires an annual assessment by management of the effectiveness of the Company’s internal control over financial reporting and an attestation report by the Company’s independent auditor addressing this assessment. The Company may fail to achieve and maintain the adequacy of its internal control over financial reporting as such standards are modified, supplemented, or amended from time to time, and the Company may not be able to ensure that it can conclude on an ongoing basis that it has effective internal control over financial reporting in accordance with Section 404 of SOX. The Company’s failure to satisfy the requirements of Section 404 of SOX on an ongoing, timely basis could result in the loss of investor confidence in the reliability of the Company’s financial statements, which in turn could harm the business and negatively affect the trading price of the Common Shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause us to fail to meet reporting obligations.

Future acquisitions of companies may also provide the Company with challenges in implementing the required processes, procedures and controls in its acquired operations. Acquired companies may not have disclosure controls and procedures or internal control over financial reporting that are as thorough or effective as those required by securities laws currently applicable the Company.

No evaluation can provide complete assurance that the internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information required to be reported. The effectiveness of the Company’s controls and procedures could also be limited by simple errors or faulty judgments. In addition, as the Company expands, the challenges involved in implementing appropriate internal control over financial reporting will increase and will require that it continue to improve the internal control over financial reporting. Although the Company intends to devote substantial time and incur substantial costs, as necessary, to ensure ongoing compliance, it cannot be certain that it will be successful in complying with Section 404 of SOX.

As a "foreign private issuer", the Company is exempt from Section 14 proxy rules and Section 16 of the Securities Exchange Act of 1934

The Company is a "foreign private issuer" as defined in Rule 3b-4 under the United States Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act"). Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the U.S. Exchange Act pursuant to Rule 3a12-3 of the U.S. Exchange Act. Therefore, the Company is not required to file a Schedule 14A proxy statement in relation to the annual meeting of shareholders. The submission of proxy and annual meeting of shareholder information on Form 6-K may result in shareholders having less complete and timely information in connection with shareholder actions. The exemption from Section 16 rules regarding reports of beneficial ownership and purchases and sales of common shares by insiders and restrictions on insider trading in our securities may result in shareholders having less data and there being fewer restrictions on insiders' activities in our securities.

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Endeavour Silver Corp.

Lack of Dividends
The Company has never declared or paid any dividends on the Common Shares. Endeavour intends, for the foreseeable future, to retain its future earnings, if any, to finance its exploration activities and further development and the expansion of the business. The payment of future dividends, if any, will be reviewed periodically by the Board of Directors of Endeavour and will depend upon, among other things, conditions then existing including earnings, financial conditions, cash on hand, financial requirements to fund our exploration activities, development and growth, and other factors that the Board may consider appropriate in the circumstances.

Claims Under U.S. Securities Laws
The enforcement by investors of civil liabilities under the federal securities laws of the United States may be affected adversely by the fact that the Company is incorporated under the laws of British Columbia, Canada, that the independent chartered public accountants who have audited the Company’s financial statements and some or all of the Company’s directors and officers may be residents of Canada or elsewhere, and that all or a substantial portion of the Company’s assets and said persons are located outside the United States. As a result, it may be difficult for holders of the Company’s common shares to effect service of process within the United States upon people who are not residents of the United States or to realize in the United States upon judgments of courts of the United States predicated upon civil liabilities under the federal securities laws of the United States

Financial Instruments
From time to time, the Company may use certain financial instruments to manage the risks associated with changes in silver prices, interest rates and foreign currency exchange rates. The use of financial instruments involves certain inherent risks including, among other things: (i) credit risk, the risk of default on amounts owing to the Company by the counterparties with which Company has entered into such transaction; (ii) market liquidity risk, the risk that the Company has entered into a position that cannot be closed out quickly, either by liquidating such financial instrument or by establishing an offsetting position; and (iii) unrealized mark-to-market risk, the risk that, in respect of certain financial instruments, an adverse change in market prices for commodities, currencies or interest rates will result in the Company incurring an unrealized mark-to-market loss in respect of such derivative products.

Financial Reporting Standards
The Company prepares its financial reports in accordance with IFRS. In 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 are described in more detail in the Company’s audited financial statements. 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 its internal control systems for financial reporting. Although the Company believes its financial reporting and financial statements are prepared with reasonable safeguards to ensure reliability, the Company cannot provide absolute assurance.

Changes in Climate Conditions
A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is becoming more stringent. If the current regulatory trend continues, this may result in increased costs at some or all of the Company’s operations. In addition, the physical risks of climate change may also have an adverse effect on the Company’s operations. Extreme weather events have the potential to disrupt operations at the Company’s mines and may require the Company to make additional expenditures to mitigate the impact of such events. Extended disruptions to supply lines could result in interruption to production.

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Endeavour Silver Corp.

Anti-Corruption and Anti-Bribery Laws
The Company’s operations are governed by, and involve interactions with, various levels of government in foreign countries. The Company is required to comply with anti-corruption and anti-bribery laws, including the Corruption of Foreign Public Officials Act (Canada) and the Foreign Corrupt Practices Act (US) and similar laws in México. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti-corruption and anti-bribery laws. A company may be found liable for violations by not only its employees, but also by its contractors and third party agents. The Company’s internal procedures and programs may not always be effective in ensuring that it, its employees, contractors or third party agents will comply strictly with all such applicable laws. If the Company becomes subject to an enforcement action or is found to be in violation of such laws, this may have a material adverse effect on the Company’s reputation, result in significant penalties or sanctions, and have a material adverse effect on the Company’s operations.

Compliance with Canada’s Extractive Sector Transparency Measures Act
The Extractive Sector Transparency Measures Act (Canada) (“ESTMA”) requires public disclosure of certain payments to governments by companies engaged in the commercial development of minerals which are publicly listed in Canada. Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA reporting on the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends, infrastructure reporting or structuring payments to avoid reporting. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant penalties or sanctions which may also have a material adverse effect on the Company’s reputation.

Information Systems and Cyber Security
Our operations depend, in part, upon information technology systems. Our information technology systems are subject to disruption, damage or failure from a number of sources, including, but not limited to, hacking, computer viruses, security breaches, natural disasters, power loss, vandalism, theft and defects in design. Any of these and other events could result in information technology systems failures, operational delays, production downtimes, destruction or corruption of data, security breaches or other manipulation or improper use of our data, systems and networks, any of which could have adverse effects on our reputation, business, results of operations, financial condition and share price.

Our risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect our systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, we may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

4.3           Asset-Backed Securities Outstanding

The Company has not issued any asset-backed securities.

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Endeavour Silver Corp.

4.4           Mineral Projects

Summary of Mineral Reserves and Mineral Resources Estimates

The following tables summarize as at December 31, 2018 the Company’s estimated Mineral Reserves and Mineral Resources on its material mineral properties, all of which are wholly owned. Information in the following tables and the notes thereto are extracted from the respective technical reports on the material properties referred to under the description of each property below.

Silver-Gold Proven and Probable Mineral Reserves

	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz
Guanaceví	74,000	244	0.53	580,000	1,300
Bolañitos	186,000	109	1.90	653,000	11,400
El Cubo	98,000	182	1.95	572,000	6,100
El Compas	38,000	90	3.99	109,000	4,800
Total Proven	396,000	150	1.86	1,914,000	23,600
Guanaceví	687,000	283	0.73	6,248,000	16,100
Bolañitos	146,000	97	1.96	454,000	9,200
El Cubo	136,000	157	1.40	687,000	6,100
El Compas	29,000	94	4.31	88,000	4,000
Terronera	5,555,000	210	2.34	37,589,000	418,000
Total Probable	6,584,000	214	2.15	45,066,000	453,400
Total P&P	6,980,000	210	2.14	46,980,000	477,000

Silver-Gold Measured and Indicated Mineral Resources

	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz
Guanaceví	29,000	383	0.54	361,000	500
Bolañitos	136,000	136	1.86	595,000	8,200
El Cubo	69,000	184	2.12	412,000	4,700
El Compas	3,000	33	3.94	3,000	400
Total Measured	238,000	179	1.80	1,371,000	13,800
Guanaceví	999,000	287	0.77	9,230,000	24,900
Bolañitos	551,000	163	1.95	2,880,000	34,500
El Cubo	251,000	161	1.54	1,298,000	12,500
El Compas	77,000	80	4.75	197,000	11,700
Guadalupe y Calvo	1,861,000	119	2.38	7,120,000	142,400
Parral (new)	37,000	184	0.27	216,000	300
Total Indicated	3,775,000	173	1.86	20,942,000	226,300
Total M&I	4,013,000	173	1.86	22,312,000	240,100

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Endeavour Silver Corp.

Silver-Gold Inferred Mineral Resources

	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz
Guanaceví	653,000	387	0.90	8,133,000	18,900
Bolañitos	783,000	133	2.12	3,352,000	53,300
El Cubo	845,000	149	2.20	4,042,000	59,700
El Compas	212,000	74	5.37	503,000	36,500
Terronera	1,080,000	208	2.26	7,239,000	79,000
Guadalupe y Calvo	154,000	94	2.14	465,000	10,600
Parral (new)	3,138,000	296	0.27	29,812,000	26,900
Total Inferred	6,864,000	241	1.19	53,273,000	261,900

Silver-Gold-Lead-Zinc Mineral Resources

Resources	Tonnes	Ag g/t	Au g/t	Ag oz	Au oz	Pb%	Zn%
Indicated
Guanaceví	363,000	208	0.26	2,420,500	3,100	0.78	1.32
Parral (Cometa)	1,631,000	49	0.90	2,589,900	47,200	2.87	2.86
Total Indicated	1,994,000	78	0.78	5,010,400	50,300	2.49	2.58
Guanaceví	488,000	132	0.16	2,076,000	2,500	1.36	2.54
Parral (Cometa)	1,303,000	63	0.88	2,658,900	36,900	2.55	2.28
Total Inferred	1,791,000	82	0.68	4,734,900	39,400	2.23	2.35

Notes to Reserves and Resource Tables

1.	Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.	The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
4.	Mineral Resources are exclusive of and in addition to Mineral Reserves.
5.	Guanaceví Mineral Resource and Mineral Reserve cut-off grades are based on a 218 g/t silver equivalent for Santa Cruz Sur of Guanaceví and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache of Guanaceví; Metallurgical recoveries were 83.0% silver and 85.0% gold for Guanaceví
6.	Bolañitos,Mineral Resource and Mineral Reserve cut-off grades are based on a 158 g/t silver equivalent. Metallurgical recoveries were 84.3% silver and 87.7% gold for Bolañitos
7.	El Cubo Mineral Resource and Mineral Reserve cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 217 g/t silver equivalent for Areas I&IV (that comprise Santa Cecilia and San Nicolas Mines) of El Cubo. Metallurgical recoveries were 87.0% silver and 86.7% gold for El Cubo.
8.	El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.38 g/t gold equivalent. Metallurgical recoveries were 83.0% silver and 85.0% gold for El Compas

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Endeavour Silver Corp.

9.	Mineral Resource cut-off grades for Terronera are based on a 150 g/t silver equivalent and the Mineral Reserve cut-off grades for Terronera and La Luz Deposits are based on a 160 g/t and 216 g/t silver equivalent respectively.
10.	Mineral Resource and Mineral Reserve cut-off grades are based on a 150 g/t silver equivalent for Guadalupe y Calvo and Parral Properties.
11.	Mining recoveries of 93% were applied for Guanaceví, Bolañitos and El Compas, 88% for El Cubo and 95% for Terronera for Mineral Reserve Estimate calculations. Minimum mining widths were 0.8 metres for Mineral Reserve Estimate calculations.
12.	Dilution factors for Mineral Reserve Estimate calculations averaged 24% for Guanaceví, Bolañitos and El Compas, 53% for El Cubo and 10% for Terronera. Dilution factors are calculated based on internal stope dilution calculations and external dilution empirical factors
13.	Probable Mineral Reserves for Terronera includes the Terronera and La Luz Deposits.
14.	Inferred Mineral Resources for Terronera includes the Terronera, La Luz and Real Alto Area.
15.	Indicated and Inferred Mineral Resources for "Parral (new)" includes the Colorada, Palmilla and San Patricio areas.
16.	The La Colorada structure (Parral) does not contain gold on an economic scale.
17.	Price assumptions for Guanaceví, Bolañitos, El Cubo and El Compas are US$17.26/oz for silver, US$1,232/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc.
18.	Price assumptions for Terronera are US$17/oz for silver, US$1,275/oz for gold.
19.	Price assumptions for Parral are US$17/oz for silver, US$1,250/oz for gold.
20.	At the Parral (Cometa) project a cut-off using net smelter return of $40 is used with the prices listed below:

Description	Parameter	Description	Parameter
Gold Price	U.S.$1,000/oz	Gold Recovery (Overall)	75%
Silver Price	U.S.$16/oz	Silver Recovery (Overall)	71%
Lead Price	U.S.$0.65/lb	Lead Recovery (Overall)	80%
Zinc Price	U.S.$0.65/lb	Zinc Recovery (Overall)	74%
Smelter Terms	Generic Contract

• Numbers in the tables are rounded to reflect estimate precision, small differences generated by rounding are not material to the estimates
• Mineral resources are not mineral reserves and do not have to demonstrate economic viability. There is no certainty that any or part of the mineral resources will be converted into mineral reserves.
• Resources are exclusive of and in addition to mineral reserves
• See Cautionary Note to U.S. Investors concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Mineral Resources

Guanacevi Mines Project, Durango State, Mexico

The following summary of the Guanaceví Mines Project is extracted from a technical report titled “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico” prepared by Hard Rock Consulting LLC, with an effective date of December 31, 2016 and dated March 3, 2017 and amended March 27, 2018. The complete report can be viewed on SEDAR at www.sedar.com. The technical report is incorporated by reference in its entirety into this AIF.

Executive Summary

Introduction

Hard Rock Consulting, LLC (“HRC”) was retained by Endeavour Silver Corp. (“EDR”) to complete an independent technical audit and to update the mineral resource and reserve estimates for the Guanaceví Project (the “Project”) located in Durango State, Mexico. This report presents the results of HRC’s efforts, and is intended to fulfill the Standards of Disclosure for Mineral Projects according to Canadian National Instrument 43-101 (“NI 43-101”).

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Endeavour Silver Corp.

This report was prepared in accordance with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. The mineral resource and mineral reserve estimates reported here are based on all available technical data and information as of December 31, 2016.

Property Description and Ownership

The Guanaceví Project is located in the northwest portion of the Mexican state of Durango, approximately 3.6 km west of the town of Guanaceví and 260 km northwest of the capital city of Durango. The approximate geographic center of the Project is 105°58'20"W longitude and 25°54'47"N latitude. At present, the Project is comprised of 51 mineral concessions for a total property area of 4,171.5546 ha.

EDR controls the Guanaceví Project through its 100% owned Mexican subsidiary, Endeavour Gold Corporation S.A. de C.V. (Endeavour Gold). Endeavour Gold holds the project through its two 100% owned subsidiaries, Minera Plata Adelante S.A. de C.V. (Minera Plata Adelante) and Refinadora Plata Guanaceví S.A. de C.V. (Refinadora Plata Guanaceví).

Geology and Mineralization

The Guanaceví silver-gold district hosts classic, high-grade silver-gold, epithermal vein deposits characterized by low sulphidation mineralization and adularia-sericite alteration. The Guanaceví veins are typical of most other epithermal silver-gold vein deposits in Mexico in that they are primarily hosted in the Tertiary Lower Volcanic series of andesite flows, pyroclastics and epiclastics, overlain by the Upper Volcanic series of rhyolite pyroclastics and ignimbrites. Evidence is accumulating in the Guanaceví mining district that the mineralization is closely associated with a pulse of silicic eruptions that either signaled the end of Lower Volcanic Sequence magmatism or the onset of Upper Volcanic Sequence activity.

Mineralization at Guanaceví occurs in association with an epithermal low sulphidation, quartz-carbonate, fracture-filling vein hosted by a structure trending approximately N45°W, dipping 55° southwest. The Santa Cruz vein is the principal host of silver and gold mineralization at Guanaceví, and is located on the west side of the horst of the Guanaceví Formation. The mineralized vein is part of a major fault system that trends northwest and principally places the Guanaceví Formation in the footwall against andesite and/or rhyolite in the hanging wall. The fault and vein comprise a structural system referred to locally as the Santa Cruz vein structure or Santa Cruz vein fault. The Santa Cruz vein itself has been traced for 5 km along trend, and averages approximately 3.0 m in width. High-grade mineralization in the system is not continuous, but occurs in steeply northwest-raking shoots up to 200 m in strike length. A secondary mineralized vein is located sub-parallel and subjacent to the Santa Cruz vein, in the footwall, and while less continuous is economically significant in the Porvenir Dos and North Porvenir portions of the Project.

Status of Exploration

In 2016, EDR spent US $1,297,698 (including property holding costs) on exploration activities, primarily at the Porvenir and Santa Cruz mines. Surface and underground drilling programs were carried out at both mine localities, totaling 6,985 m in 30 holes, with a total of 3,070 samples submitted for assay. Regional field exploration was conducted over several concessions peripheral to the Guanaceví Project, and included collection and analysis of 323 rock samples.

Since acquisition of the Guanaceví Project in 2004, and prior to the 2016 exploration season, EDR had completed 690 diamond drill holes totaling 191,116 m and 22 reverse circulation drill holes totaling 2,977 m on the entire Guanaceví Mines Project. Of this total, approximately 147,718 m of diamond drilling in 504 holes were completed on the Santa Cruz vein structure. Holes were drilled from both surface and underground drill stations, and 54,799 samples were collected and submitted for assay.

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Endeavour Silver Corp.

Development and Operations

Conventional cut and fill mining or by long hole stope methods are employed at Guanaceví. Cut and fill stopes are generally 15m long and 5m high, and long hole stopes are 15m long and 20m high. Access to the stoping areas is provided by a series of primary and secondary ramps located in the footwall. The ramps have grades from minus 15% to plus 12%, with plus or minus 12% as standard. The cross-cuts are 4 m by 4 m for the primary ramps and 3.5 m by 3.5 m for the secondary ramps.

In the upper parts of the mine, stope access is by short (10m to 40m) cross-cuts from the ramp to the vein/stope. These cross-cuts are generally 3.5m by 3.5m in cross-section and are usually driven down at minus 18% to intersect with the stope. As the stope advances up-dip on the vein, the back is taken down the cross-cuts to maintain access until the cross-cut reaches a maximum inclination of 15%. In the lower parts of the mine (below the water table) stope access is by 90m long cross-cuts to the vein/stope. The cross-cuts are generally 3.0m by 3.5m in cross-section and are driven at plus 1% to intersect the stope (for water drainage). As the stope advances up-dip on the vein, the back is taken down in these cross-cuts to maintain access until the cross-cut reaches a maximum inclination of plus 15%.

Mining in the stopes is done with jackleg drills. Back cuts are taken 2m to 2.5m high via vertical up-hole drilling or by breasting. The broken material is mucked out using scooptrams (2 yard or 3.5 yard depending on vein width). Waste fill from mine development is placed in the stope by the same scooptrams to within 2 m to 2.5 m of the back. When the vein is less than minimum mining width, the footwall is slashed to provide adequate width. This slashing is done during the fill cycle and the slashed material remains in the stope as fill.

In 2016, the total ore production was approximately 19% from the Porvenir North mine, 74% from the Santa Cruz mine and 7% from Porvenir 4.

The production from the Porvenir North mine was distributed in three main areas of the mine (Upper Porvenir North, Deep Porvenir North and Central Porvenir North). The area of Upper Porvenir North, provided 34% of production from the mine. The stopes that contributed the most in this area were the R-3122, 3123-R and R-3124. In Deep Porvenir North, production was from the R-3133 and R-3134 stopes which represented 8% of the production. Central Porvenir North produced the most tonnage providing 39% of the total production. Stopes that contributed from this were the R-3145-2, R-3146-2, R-3149 and R-3150. The development from Porvenir North produced 15% of production from the mine. In the Upper Porvenir North mine development was from the S-3117, S-3122 and S-3123 levels. In Central Porvenir North mine development was from the S-3149, 3150-S and S-3157 levels.

In the Santa Cruz mine, the main ramp development was advanced to the 3359 and 3360 levels. During 2016 continued side ramps were developed to enter the main vein at the southern end of mine. Lateral ramps were developed from the ramp on the 4118, R-3348, 3349-R, R-3350 and R-3351 levels. Historic workings on level 13 were also opened to extract remnant ore zones. Production from stopes concentrated on the R-3352, R-3353, R-3354, R-3356, 3357-R and R-3359 stoping levels with R-3352 being the largest contributor. These stopes presented approximately 80% of the total production from Santa Cruz during 2016. Development ore represented approximately 7% of the total production.

In the Porvenir 4 mine development concentrated on the 3508 and 3509 ramps. Production from the mine was mainly from the S-3507, S-3508 and B S-3509 levels. Ore from these stopes represented approximately 24% of ore generated from the mine. Stope production concentrated on the R-3506, R-3507, R-3508, R-3508 B INT B Y R-3509 stopes.

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Endeavour Silver Corp.

As of December 31, 2016, the Guanaceví mines project had a roster of 546 employees and an additional 387 contractors. The mine operates on two 10-hour shifts, 7 days a week, whereas the mill operates on a 24/7 schedule.

Mineral Resource Estimate

Resource geologist Zachary J. Black, SME-RM, of HRC is responsible for the mineral resource estimate presented in this report. Mr. Black is a Qualified Person as defined by NI 43-101, and is independent of EDR. The mineral resources reported herein are classified as Measured, Indicated and Inferred according to CIM Definition Standards.

HRC estimated the mineral resource for the Guanaceví Project based on drillhole data constrained by geologic vein boundaries with an Inverse Distance Weighted (“ID”) algorithm. Datamine Studio RM® V1.0.73.0 (“Datamine”) software was used to complete the resource estimate in conjunction with Leapfrog Geo® V.3.0.0 (“Leapfrog”), which was used to produce the geologic model. The metals of interest at Guanaceví are gold and silver.

The Guanaceví mineral resource is comprised of 22 individual veins. The veins are further subdivided by area and modeling method. The mineral resources have been estimated using either a Vertical Longitudinal Projection (VLP) polygonal method (4 veins) or as 3-dimensional (“3D”) block model (18 veins).

The resources based on the 2D polygonal methods are estimated by using a fixed distance VLP from sample points. The VLPs are created by projecting vein geology and underground workings onto a vertical 2D long section. The 2D estimates were classified based on the distance to the nearest sample. Measured mineral resources are the area of the defined resource blocks within 10 meters of a sample. Indicated mineral resources are the area of the defined resource blocks within 20 meters of a sample. Inferred mineral resources are those blocks greater than 20 meters from a sample and have a value for estimated silver.

HRC constructed the 3D vein models using Leapfrog. Eighteen veins were modeled using a linear interpolation methodology and sample intervals. Cross-sections orthogonal to the strike of the vein were used to select intervals from drillholes representing the vein material. Level sections were used to select vein material from channel samples. Points representing the hanging wall and footwall contacts were extracted by the software to interpolate hanging wall and footwall surfaces. These surfaces were used to delineate each vein solid. The surfaces were evaluated in 3-dimensions to ensure that both the down dip and along strike continuity was maintained throughout the model. Veins were clipped against younger veins, topography, and the concession boundaries.

The mineral resource estimate includes all analytical data obtained as of December 31, 2016. Mineral resources are not mineral reserves and may be materially affected by environmental, permitting, legal, socio-economic, political, or other factors. Mineral resources are reported above a silver equivalent grade of 198 gpt, assuming a silver price of $16.29 per ounce. HRC used a cutoff grade to test for reasonable prospects for economic extraction.

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Endeavour Silver Corp.

The mineral resources for the Guanaceví mine as of December 31, 2016, are summarized in Table 1-1. The resources are exclusive of the mineral reserves.

Table 1-1 Mineral Resource Estimate, Effective Date December 31, 2016

Classification	Tonnes	Silver Equivalent	Silver		Gold
		g/t	g/t	oz.	g/t	oz.
Measured	69,000	284	248	550,300	0.47	1,000
Indicated	2,271,000	351	296	21,595,600	0.72	52,800
Measured +Indicated	2,340,000	349	295	22,145,900	0.71	53,800
Inferred	638,000	441	379	7,769,400	0.82	16,900

1.	Measured, Indicated and Inferred resource cut-off grades were 198 g/t silver equivalent at Guanaceví.
2.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3.	Metallurgical recoveries were 82.5% silver and 85.4% gold.
4.	Silver equivalents are based on a 75:1 silver: gold ratio
5.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold for resource cutoff calculations.
6.	Mineral resources are estimated exclusive of and in addition to mineral reserves.

Mineral Reserve Estimate

Mr. Jeff Choquette, P.E., MMSA-QP, of HRC is responsible for the mineral reserve estimate presented in this report. Mr. Choquette is Qualified Person as defined by NI 43-101 and is independent of EDR. The mineral reserve estimate for EDR’s Guanaceví Project has an effective date of December 31st, 2016. The mineral reserve estimate includes the Santa Cruz and Porvenir Norte areas of the mine and the ore stockpiles at the mill site. Stope designs for reporting the mineral reserves were created utilizing the updated resources and cutoffs established for 2016. All the stopes are within readily accessible areas of the active mining areas. Ore is processed in the on-site mill, leaching circuit and Merrill Crowe process capable of processing 1,300 tpd.

HRC utilized Datamine’s Mineable Shape Optimizer (“MSO”) program to generate the stopes for the reserve mine plan. The MSO stope designs are then used to design stopes on levels along with the required development for the final mine plans. The stopes were created based solely on Measured and Indicated resources above the calculated cutoff, which have demonstrated to be economically viable; therefore, Measured and Indicated mineral resources within the stopes have been converted to Proven and Probable mineral reserves as defined by CIM. Inferred mineral resources are classified as waste. Dilution is applied to Measured and Indicated resource blocks depending on the mining method chosen.

The mining breakeven cut-off grade, which includes internal stope dilution, was utilized in Datamine’s MSO to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. The average cut-off grade used for the Guanaceví property is 198 g/t Ag equivalent. Silver equivalent grade is calculated as the silver grade + (gold grade * 75), taking into account gold and silver prices and expected mill recoveries.

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Endeavour Silver Corp.

Mineral reserves are derived from Measured and Indicated resources after applying the economic parameters as stated above, and utilizing Datamine’s MSO program to generate stope designs for the reserve mine plan. The Guanaceví Project mineral reserves are derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the Measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For Guanaceví Project, this applies to blocks located within approximately 10m of existing development and for which EDR has a mine plan in place.
• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economic and for which EDR has a mine plan in place. For the Guanaceví mine project, this is applicable to blocks located a maximum of 35m either vertically or horizontally from development with one exception in the main lower Santa Cruz vein the maximum distance to development was extended to 110m as this area is currently being developed.

The Proven and Probable mineral reserves for the Guanaceví mine as of December 31, 2016 are summarized in Table 1-2. The reserves are exclusive of the mineral resources reported in Section 14 of this report.

Table 1-2 Mineral Reserve Estimate

Classification	Tonnes (t x 1,000)	AgEq g/t	Ag g/t	Ag (oz) * 1,000	Au g/t	Au (oz) * 1,000	% Dilution
Proven	86.5	284	247	686.2	0.49	1.37	26%
Probable	508.2	311	262	4,285.20	0.64	10.48	30%
Total Proven and Probable Reserves	594.7	307	260	4,971.40	0.62	11.84	29%

1.	Reserve cut-off grades are based on a 198 g/t silver equivalent.
2.	Metallurgical Recoveries were 82.5% silver and 85.4% gold.
3.	Mining Recoveries of 95% were applied.
4.	Minimum mining widths were 1.4 meters.
5.	Dilution factors averaged 29%. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill and 30% for long hole.
6.	Silver equivalents are based on a 75:1 silver:gold ratio.
7.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold.
8.	Mineral resources are estimated exclusive of and in addition to mineral reserves.
9.	Figures in table are rounded to reflect estimate precision; small differences generated by rounding are not material to estimates.

Conclusions and Recommendations

The QP considers the Guanaceví resource and reserve estimates presented here to conform with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. These resources and reserves form the basis for EDR’s ongoing mining operations at the Guanaceví Mines Project.

The QP is unaware of any significant technical, legal, environmental or political considerations which would have an adverse effect on the extraction and processing of the resources and reserves located at the Guanaceví Mines Project. Mineral resources which have not been converted to mineral reserves, and do not demonstrate economic viability shall remain mineral resources. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.

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The QP considers that the mineral concessions in the Guanaceví mining district controlled by EDR continue to be highly prospective both along strike and down dip of the existing mineralization.

EDR’s Guanaceví Mines Project has an extensive mining history with well-known silver and gold bearing vein systems. Ongoing exploration has continued to demonstrate the potential for the discovery of additional resources at thep project and within the district surrounding the mine. Since EDR took control of the Guanaceví mines Property, new mining areas have enabled EDR to increase production by providing additional sources of mill feed. EDR’s operation management teams continue to search for improvements in efficiency, lowering costs and researching and applying low-cost mining techniques.

2017 exploration budgets for Guanaceví are approved for 8,000 meters of drilling. The approved budget for this drilling is estimated at US $1,200,000 for the year.

HRC recommends that the continuation of the conversion of all resources into reserves from 2D polygons to 3D block models be continued. During 2015 and 2016, considerable progress was made in this regard. Additional modeling efforts should be made to define the mineralized brecciated areas as they have been an import source of economic material encountered in the current operation, and could provide additional tonnage to support the mine plan.

Currently EDR utilizes the exploration drilling and chip and muck samples in their resource and reserve calculations. HRC recommends that future efforts focus on constructing block models for resource and reserve reporting utilizing only the exploration and underground drilling results. The chip and muck samples should be used to develop the production model. This will help in keeping data densities consistent in each modeling effort and allow another level into the reconciliation process to compare modeling results.

Although the reconciliations conducted by EDR show good comparisons on planned values versus actual values the reconciliation process should be improved to include the estimated tonnes and grade from the resource models. By comparing the LOM plan on a monthly basis to the plant production the actual physical location of the material mined may be different in the plan versus the actual area that was mined. Due to the many faces that are mined during a day this can only be completed on an average monthly basis to account for the blending of this material at the mill. The monthly surveyed as mined areas should be created and saved on a monthly basis for reporting the modeled tonnes for each month. The combination of the 3D block models and 2D and polygonal reserves makes this process difficult but considerable progress has been made during the last year to get all resources and reserves into 3D block models. The model predicted results versus actuals can then be used to determine if dilution factors need to be adjusted or perhaps the resource modeling parameters may require adjustment if there are large variances. On a yearly basis, the mill production should be reconciled to the final concentrate shipments and resulting adjustment factors should be explained and reported.

Guanaceví Mines Project 2018 Company Update

Exploration update

In 2017, the Company spent $1.4 million (including property holding costs) on exploration activities, mainly on underground drilling conducted at the Porvenir and Santa Cruz Mines. The underground drilling program included a total of 6,794 m in 29 holes, with a total of 2,995 samples submitted for assay. Field exploration activities were carried out over numerous concessions peripheral to the Guanaceví Project, and included the collection and analysis of 157 rock samples.

In 2018, the Company spent $0.7 million (including property holding costs) on exploration activities, mainly on underground drilling conducted at the Porvenir, Santa Cruz and Milache Mines. The underground drilling program included a total of 5,691 m in 24 holes.

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Endeavour Silver Corp.

For 2019, the approved exploration budget for Guanaceví is $1,200,000, including 6,000 metres of underground drilling. The main objective is to determine the extension to depth of the Santa Cruz vein in North Porvenir, Santa Cruz Mine and Milache Mine.

Mineral Resource Estimation

The estimation of the mineral resource for the Guanaceví mining operation is based on drill hole data constrained by geologic vein boundaries. Both, exploration and production data are used for modelling estimation and classification. The interpolation is assessed through Ordinary Kriging algorithm. The channel composite database cut-off date for mineral resource estimation was August 31, 2018. The exploration database cut-off date for mineral resource estimation was September 30, 2018.

The Company used criteria of distance from composites and the number of samples to classify the mineral resources into measured, indicated, inferred. Measured mineral resources are those blocks with at least 16 composites, laying within a distanced no greater than 15 metres. Indicated mineral resources are these blocks estimated by at least 4 composites laying no farther than 25 metres from samples. Inferred mineral resources are those blocks, which distance to borehole composites and channel samples is greater than 50 metres.

Mineral Resources stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Measured	29,300	383	0.54	360,800	500
Indicated	998,900	287	0.77	9,230,400	24,900
Total Measured & Indicated	1,028,200	290	0.77	9,591,200	25,400
Total Inferred	653,300	387	0.90	8,133,200	18,900

Notes for mineral resource estimation

1.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the mineral resources will be converted into mineral reserves.
2.	Mineral resources are exclusive of and in addition to mineral reserves
3.	Guanaceví Mineral Resource and Mineral Reserve cut-off grades are based on a 218 g/t silver equivalent for Santa Cruz Sur of Guanaceví and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache of Guanaceví;
4.	Dilution factor and Mining recovery for Mineral Resources are not applied.
5.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

Mineral Reserve Estimation

The mineral reserve estimate includes the Santa Cruz and Porvenir Norte areas of the mine.

The mining breakeven cut-off grade of 218 g/t silver equivalent for Santa Cruz Sur and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache, includes internal stope dilution and was utilized to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. Silver equivalent grade is calculated as the silver grade plus (gold grade multiplied by 75), taking into account gold and silver prices and expected mill recoveries.

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Mineral reserves are derived from Measured and Indicated resources after applying the economic parameters as stated below, and utilizing Vulcan software to generate stope designs for the reserve mine plan. The Guanaceví Project mineral reserves are derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the Measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For Guanaceví Project, this applies to blocks located within approximately 15 metres of existing development and for which EDR has a mine plan in place.
• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economic and for which EDR has a mine plan in place. For the Guanaceví mine project, this is applicable to blocks located a maximum of 25 metres to 35 metres either vertically or horizontally from development and the drill holes data.

Mineral Reserves stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Proven	73,900	244	0.53	579,800	1,300
Probable	686,700	283	0.73	6,248,400	16,100
Total Proven & Probable	760,600	279	0.71	6,828,200	17,400

Notes for mineral reserve estimation

1.	Guanaceví Mineral Resource and Mineral Reserve cut-off grades are based on a 218 g/t silver equivalent for Santa Cruz Sur of Guanaceví and 222 g/t silver equivalent for Santa Cruz, Porvenir and Milache of Guanaceví;
2.	Guanaceví Metallurgical Recoveries are 83.0% silver and 85.0% gold
3.	Mining recoveries of 93% were applied for mineral reserve estimate calculations
4.	Minimum mining widths are 0.8 meters for mineral reserve estimate calculations
5.	Dilution factor is 24%, the dilution factors are calculated based on estimates of internal dilution of cameras and external empirical factor dilution.
6.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

Bolañitos Mines Project (formerly the Guanajuato Mines Project), Guanajuato State, Mexico

The following summary of the Bolañitos Mines Project is extracted from the technical report titled “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico” prepared by Hard Rock Consulting LLC, with an effective date of December 31, 2016 and dated March 3, 2017 and amended March 27, 2018. The complete report can be viewed on SEDAR at www.sedar.com. The technical report is incorporated by reference in its entirety into this AIF.

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Executive Summary

Introduction

Hard Rock Consulting, LLC (“HRC”) was retained by Endeavour Silver Corp. (“EDR”) to complete an independent technical audit and to update the mineral resource and reserve estimates for the Bolañitos Project (the “Project”) located in Guanajuato State, Mexico. This report presents the results of HRC’s efforts, and is intended to fulfill the Standards of Disclosure for Mineral Projects according to Canadian National Instrument 43-101 (“NI 43-101”). This report was prepared in accordance with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. The mineral resource and mineral reserve estimates reported here are based on all available technical data and information as of December 31, 2016.

Property Description and Ownership

In 2007, EDR acquired the Bolañitos mine from Industrias Peñoles S.A. de C.V. (Peñoles), the owner at the time, and Minas de la Luz, S.A. de C.V. (Minas de la Luz), the operator at the time. The acquisition included the Mina Cebada, Mina Bolañitos, Mina Golondrinas and Mina Asunción (as well as a few other currently closed mines). Minas de la Luz continued as the operator of the mines until June, 2007, when EDR assumed control. The Mina Asunción is very close to the Mina Bolañitos and the two are currently connected underground.

The Bolañitos Project is located in the state of Guanajuato, Mexico. The mine consists of three operating mines: the Bolañitos, Lucero, and Asuncion mines, which are located near the town of La Luz, about 12 km to the northeast of Guanajuato. All of the mines are readily accessed by paved and gravel roads. EDR also owns the inactive Cebada mine, located about 5 km north of the city of Guanajuato, and the inactive Golondrinas mine, which is 3.5 km to the southwest of Cebada.

Geology and Mineralization

The Bolañitos mine is located in eastern part of the Guanajuato mining district, in the southeastern portion of the Sierra de Guanajuato, which is an anticlinal structure about 100 km long and 20 km wide. Bolañitos is located on the northeast side of this structure where typical primary bedding textures dip 10° to 20° to the north-northeast. Economic mineralization at Bolañitos is known to extend as much as 250 m vertically from 2300 m to 2050 m elevation with the exception of the La Luz vein that extends 400 m vertically from 2300 m to 1900 m.

The Guanajuato mining district is characterized by classic, high grade silver-gold, epithermal vein deposits with low sulfidation mineralization and adularia-sericite alteration. Veins in the Guanajuato district are typical of most epithermal silver-gold vein deposits in Mexico with respect to the volcanic or sedimentary host rocks and the paragenesis and tenor of mineralization. The Guanajuato mining district hosts three major mineralized fault systems, the La Luz, Veta Madre and Sierra systems.

Of the geological formations associated with the Guanajuato district, only the Esperanza and La Luz Formations occur in the Bolañitos mine area with mineralization residing primarily within the La Luz Formation. Mineralization is known to dissipate at the contact with the Esperanza Formation.

The Veta Madre historically was the most productive vein in the Guanajuato district, and is by far the most continuous, having been traced on the surface for nearly 25 km. The vein dips from 35° to 55º to the southwest with measured displacement of around 1,200m near the Las Torres mine and 1,700 m near La Valenciana mine. The most productive veins at Bolañitos strike parallel to the Veta Madre system.

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Bolañitos mineralization is directly related to faulting. Mineralization occurs as open-space fillings in fracture zones or impregnations in locally porous wall rock. Veins which formed in relatively open spaces are the main targets for mining.

Mineralized veins at Bolañitos consist of the classic banded and brecciated epithermal variety. Silver occurs primarily in dark sulfide-rich bands within the veins, with little mineralization within the wall rocks. The major metallic minerals reported include pyrite, argentite, electrum and ruby silver, as well as some galena and sphalerite, generally deeper in the veins. Mineralization is generally associated with phyllic (sericite) and silicification alteration which forms haloes around the mineralizing structures. The vein textures are attributed to the brittle fracturing-healing cycle of the fault-hosted veins during and/or after faulting.

Economic concentrations of precious metals are present in “shoots” distributed vertically and laterally between non-mineralized segments of the veins. Overall, the style of mineralization is pinch-and-swell with some flexures resulting in closures and others generating wide sigmoidal breccia zones.

Status of Exploration

In 2016, EDR spent US $240,249 (including property holding costs) on exploration activities, including drilling, at the Bolañitos Project. The target areas explored at the Bolañitos Project in 2016 included:

• Bolañitos North (La Luz-San Antonio de los Tiros),

• La Loba Margaritas, and

• Bolañitos South (San Cayetano and Emma)

A combined total of 9 drillholes were completed in the Bolañitos North (4 holes) and Bolañitos South (5 holes) areas for a total of 2,528 meters. Geological mapping and surface sampling was conducted in all three of the areas explored.

Mineral Resource Estimate

Resource geologist Zachary J. Black, SME-RM, of HRC is responsible for the mineral resource estimate presented here. Mr. Black is a Qualified Person as defined by NI 43-101, and is independent of EDR. EDR estimated the mineral resource for the Bolañitos mine Project based on drillhole data constrained by geologic vein boundaries under the direct supervision of HRC. Datamine Studio RM® V1.0.73.0 (“Datamine”) software was used to audit the resource estimate in conjunction with Leapfrog Geo® V.3.0.0 (“Leapfrog”), which was used to produce a geologic model. The metals of interest at Bolañitos are gold and silver.

The Bolañitos mineral resource is comprised of 21 individual veins. The veins are further subdivided into areas and modeling method. The mineral resources have been estimated using either a Vertical Longitudinal Projection (VLP) polygonal method (9 veins) or as 3-dimensional (“3D”) block model (12 veins). The 3D models have been split into 2 areas based on the vein location within the deposit.

The resources based on the 2D polygonal methods are estimated by using a fixed distance Vertical Longitudinal Projection (VLP) from sample points. The VLPs are created by projecting vein geology and underground workings onto a vertical 2D long section. Resource blocks are constructed on the VLP based on the sample locations in the plane of the projection. EDR geologists review the data for sample trends and delineate areas with similar characteristics along the sample lines. The areas are then grouped based on mining requirements and the average grades and thicknesses of the samples are tabulated for each block. Resource volumes are calculated from the delineated area and the horizontal thickness of the vein, as recorded in the sample database. The volume and density are used to determine the overall resource tonnage for each area, and the grades are reported as a length weighted average of the samples inside each resource block.

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Endeavour Silver Corp.

HRC validated the vein models provided by EDR using Leapfrog. Ten veins were modeled by EDR using a series of cross-sectional interpretations. The sectional interpretations are based primarily on composite intercepts and are used to construct 3D vein solids in Vulcan. Cross-sections orthogonal to the strike of the vein and level plan sections were used to insure sample selections for compositing were contained within the modeled veins. HRC confirmed the areas reported in EDR resource sheets loading AutoCAD® long VLP’s provided by EDR into ArcGIS® software, and tracing the perimeter of the resource blocks and measuring the area with the built-in measuring tool. The dip of the vein and true thickness are known variables.

The mineral resource estimate for the Bolañitos Project as of December 31^st, 2016, is summarized in Table 1-1. The mineral resources are exclusive of the mineral reserves.

Table 1-1 Mineral Resource Estimate, Effective Date December 31st, 2016

Classification	Tonnes	Silver Equivalent	Silver		Gold
		g/t	g/t	oz	g/t	oz
Measured	89,000	329	150	427,600	2.29	6,500
Indicated	698,000	325	162	3,630,300	2.04	45,800
Measured + Indicated	787,000	325	161	4,057,900	2.07	52,300
Inferred	1,150,000	330	153	5,674,700	2.29	84,800

1.	Measured, Indicated and Inferred resource cut-off grades were 162 g/t silver equivalent at Bolañitos.
2.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3.	Metallurgical recoveries were 79.6% silver and 84.5% gold.
4.	Silver equivalents are based on a 75:1 silver:gold ratio
5.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold for resource cutoff calculations.
6.	Mineral resources are estimated exclusive of and in addition to mineral reserves.

Mineral Reserve Estimate

Mr. Jeff Choquette, P.E., MMSA QP Member, of HRC is responsible for the mineral reserve estimate presented in this report. Mr. Choquette is Qualified Person as defined by NI 43-101 and is independent of EDR. The reserve calculation for the Bolañitos Project was completed in accordance with NI 43-101 and has an effective date of December 31st, 2016. Stope designs for reporting the reserves were created utilizing the updated resources and cutoffs established for 2016. All of the stopes are within readily accessible areas of the active mining areas. Ore is processed in the on-site mill and floatation process capable of processing 1,600 tpd.

HRC utilized Datamine’s MSO (Mineable shape optimizer) program to generate the stopes for the reserve mine plan. The stopes were created based solely on Measured and Indicated resources above the calculated cutoff, which have demonstrated to be economically viable; therefore, Measured and Indicated mineral resources within the stopes have been converted to Proven and Probable mineral reserves as defined by CIM. Inferred mineral resources are classified as waste. Dilution is applied to Measured and Indicated resource blocks depending on the mining method chosen.

The mining breakeven cut-off grade, which includes internal stope dilution, was utilized in Datamine’s MSO to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. The average cut-off grade used for the Bolañitos property is 162 g/t Ag equivalent. Silver equivalent grade is calculated as the silver grade + (gold grade * 75), taking into account gold and silver prices and expected mill recoveries.

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Endeavour Silver Corp.

Mineral reserves are derived from Measured and Indicated resources after applying the economic parameters as previously stated, and utilizing Datamine’s MSO program to generate stope designs for the reserve mine plan. The Bolañitos Project mineral reserves are derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the Measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For Bolañitos Project, this applies to blocks located within approximately 10m of existing development and for which EDR has a mine plan in place.

• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economic and for which EDR has a mine plan in place. For the Bolañitos mine project, this is applicable to blocks located a maximum of 35m either vertically or horizontally from development.

The Proven and Probable mineral reserves for the Bolañitos Project as of December 31, 2016 are summarized in Table 1-2. The reserves are exclusive of the mineral resources reported in Section 14 of this report.

Table 1-2 Mineral Reserve Estimate

Classification	Tonnes (t x 1,000)	AgEq g/t	Ag g/t	Ag (oz) * 1,000	Au g/t	Au (oz) * 1,000	% Dilution
Proven	157.2	311	90	456.7	2.84	14.34	21%
Probable	238.2	245	104	798.3	1.81	13.82	20%
Total Proven and Probable Reserves	395.4	271	99	1255.0	2.22	28.17	21%

1.	Reserve cut-off grades are based on a 162 g/t silver equivalent.
2.	Metallurgical Recoveries were 79.6% silver and 84.5% gold.
3.	Mining Recoveries of 95% were applied.
4.	Minimum mining widths were 0.8 meters.
5.	Dilution factors averaged 21.0%. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill and 30% for long hole.
6.	Silver equivalents are based on a 75:1 silver:gold ratio.
7.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold.
8.	Mineral resources are estimated exclusive of and in addition to mineral reserves.
9.	Figures in table are rounded to reflect estimate precision; small differences generated by rounding are not material to estimates.

Conclusions and Recommendations

The QP considers the Bolañitos mineral resource and reserve estimates presented herein to conform with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. These mineral resources and reserves form the basis for EDR’s ongoing mining operations at the Bolañitos Mines Project.

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The QP is unaware of any significant technical, legal, environmental or political considerations which would have an adverse effect on the extraction and processing of the resources and reserves located at the Bolañitos Mines Project. Mineral resources which have not been converted to mineral reserves, and do not demonstrate economic viability shall remain mineral resources. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.

The QP considers that the mineral concessions in the Bolañitos mining district controlled by EDR continue to be highly prospective both along strike and down dip of the existing mineralization.

EDR’s Bolañitos Mines Project has an extensive mining history with well-known silver and gold bearing vein systems. Ongoing exploration has continued to demonstrate the potential for the discovery of additional resources at the project and within the district surrounding the mine. Outside of the currently known reserve/resource areas, the mineral exploration potential for the Bolañitos Project is considered to be very good. Parts of the known vein splays beyond the historically mined areas also represent good exploration targets for additional resource tonnage.

Since EDR took control of the Bolañitos Mines Project, new mining areas have enabled EDR to increase production by providing additional sources of mill feed. EDR’s operation management teams continue to search for improvements in efficiency, lowering costs and researching and applying low-cost mining techniques.

In 2017, EDR will conduct a surface drilling program in the Bolañitos South and Bolañitos North areas. The planned program included 6,000 meters of drilling at an estimated cost of $900,000.

HRC recommends that the process of converting mineral resources into reserves from 2D polygons to 3D block models be continued. During the last couple of years, considerable progress has been made on this process with only nine veins remaining to be converted to 3D. Additional modeling efforts should be made to define the mineralized brecciated areas as they have been an important source of economic material encountered in the current operation, and could provide additional tonnage to support the mine plan.

EDR currently utilizes the exploration drilling and chip and muck samples in their resource and reserve calculations. HRC recommends that future efforts focus on constructing block models for resource and reserve reporting utilizing only the exploration and underground drilling results. The chip and muck samples should be used to develop the production model. This will help keep data densities consistent in each modeling effort and will provide another level in the reconciliation process to compare modeling results.

Although the reconciliations conducted by EDR show good comparison between planned versus actual values, the reconciliation process should be improved to include the estimated tonnes and grade from the resource models. Because the LOM plan is compared to the plant production on a monthly basis, the actual physical location of the material mined may be different than the planned location. Due to the many stopes that are mined during a day this can only be completed on an average monthly basis due to blending of stope material into the mill. The monthly surveyed as mined areas should be created into triangulation solids and saved on a monthly basis for reporting the modeled tonnes for each month. The combination of the 3D block models and 2D and polygonal reserves makes this process difficult but considerable progress has been made during the last year to get all resources and reserves into 3D block models. The model-predicted results versus actual can then be used to determine if dilution factors need to be adjusted, or perhaps the resource modeling parameters may require adjustment if there are large variances. The mill production should be reconciled to the final concentrate shipments on a yearly basis, and resulting adjustment factors should be explained and reported.

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Endeavour Silver Corp.

Bolañitos Mines Project 2018 Company Update

Exploration update
In 2017, the Company spent $0.8 million on exploration activities, including surface and underground drilling at the Bolañitos Project. Surface drilling was conducted at the Bolañitos South (San Cayetano) and Siglo XX Targets, totaling 3,442 m in 12 drill holes. The underground drilling program focused on the La Luz and Plateros veins, a total of 17 drill holes were completed with 3,866 metres.

In 2018, the Company spent $0.7 million on exploration activities, including surface and underground drilling at the Bolañitos Project. Surface drilling was conducted at the San Miguel, Herradura and Belen targets totaling 4,197 metres in 23 drill holes. The underground drilling program focused on the La Luz and Plateros veins, a total of 45 drill holes were completed with 9,945 metres.

In 2019, the Company planns to conduct a 5,000 metre underground drill program focused on the Plateros and San Miguel veins budgeted to cost $750,000.

Mineral resources estimation
The channel composite database cut-off date for mineral resource estimation was August 31, 2018. The exploration database cut-off date for mineral resource estimation was September 30, 2018.

The Company used criteria of distance from composites and the number of samples to classify the mineral resources into measured, indicated, inferred. Measured mineral resources are those blocks with at least 16 composites, laying within a distanced no greater than 15 metres. Indicated mineral resources are these blocks estimated by at least 4 composites laying no farther than 25 metres from samples. Inferred mineral resources are those blocks, which distance to borehole composites and channel samples is greater than 50 metres.

Mineral resources stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Measured	136,200	136	1.86	595,500	8,200
Indicated	551,100	163	1.95	2,879,700	34,500
Total Measured & Indicated	687,300	157	1.93	3,475,200	42,700
Total Inferred	782,800	133	2.12	3,352,000	53,300

Notes for mineral resource estimation

1.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the mineral resources will be converted into mineral reserves.
2.	Mineral resources are exclusive of and in addition to mineral reserves
3.	Bolañitos Mineral Resource and Mineral Reserve cut-off grades are based on a 158 g/t silver equivalent
4.	Minimum mining widths are 0.8 metres for mineral reserve estimate calculations
5.	Dilution factor and Mining recovery for Mineral Resources are not applied.
6.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

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Mineral reserves estimation

The reserve calculation for the Bolañitos mining operation was completed with an effective date of December 31st, 2018.

The mining breakeven cut-off grade, which includes internal stope dilution, was utilized to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. The average cut-off grade used for the Bolañitos property is 158 g/t Ag equivalent. Silver equivalent grade is calculated as the silver grade in addition to gold grade multiplied by 75, taking into account gold and silver prices and expected mill recoveries.

Mineral reserves are derived from Measured and Indicated resources after applying the economic parameters as previously stated, and utilizing program to generate stope designs for the reserve mine plan. The Bolañitos mineral reserves are derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For Bolañitos Project, this applies to blocks located within approximately 15m of existing development and for which EDR has a mine plan in place.

• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economic and for which EDR has a mine plan in place. For the Bolañitos mine project, this is applicable to blocks located a maximum of 25 metres to 35 metres either vertically or horizontally from development and the drill holes data.

Mineral reserves stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Proven	186,400	109	1.90	653,200	11,400
Probable	145,700	97	1.96	454,300	9,200
Total Proven & Probable	332,100	104	1.93	1,107,500	20,600

Notes for mineral reserve estimation

1.	Bolañitos Mineral Reserve cut-off grades are based on a 158 g/t silver equivalent
2.	Bolañitos Metallurgical Recoveries are 84.3% silver and 87.7% gold
3.	Mining recoveries of 93% were applied for mineral reserve estimate calculations
4.	Minimum mining widths are 0.8 metres for mineral reserve estimate calculations
5.	Dilution factor is 24%, The dilution factors are calculated based on estimates of internal dilution of cameras and external empirical factors dilution.
6.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

El Cubo Mines Project, Guanajuato State, Mexico

The following summary of the El Cubo Mines Project is extracted from the technical report titled “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico” prepared by Hard Rock Consulting LLC, with an effective date of December 31, 2016 and dated March 3, 2017 and amended March 27, 2018. The complete report can be viewed on SEDAR at www.sedar.com. The technical report is incorporated by reference in its entirety into this AIF.

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Endeavour Silver Corp.

Executive Summary

Introduction

Hard Rock Consulting, LLC (“HRC”) was retained by Endeavour Silver Corp. (“EDR”) to complete an independent technical audit and to update the mineral resource and reserve estimates for the El Cubo Project (the “Project”) located in Guanajuato State, Mexico. This report presents the results of HRC’s efforts, and is intended to fulfill the Standards of Disclosure for Mineral Projects according to Canadian National Instrument 43-101 (“NI 43-101”). This report was prepared in accordance with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. The mineral resource and mineral reserve estimates reported here are based on all available technical data and information as of December 31, 2016.

Property Description and Ownership

EDR acquired a 100% interest in the El Cubo Project in July 2012, through purchase of issued and outstanding shares of Mexgold and ensuing acquisition of Mexgold subsidiaries Compañía Minera Del Cubo, S.A. de C.V., AuRico Gold GYC, S.A. de C.V. and Metales Interamericanos, S.A. de C.V.

The El Cubo property is located in central Mexico, in Guanajuato State near the village of El Cubo, approximately 10 km east of the City of Guanajuato and about 280 km northwest of Mexico City. The geographic center of the property is located at roughly 21°00’17” N Latitude and 101°12’ 25” W Longitude, at an elevation of 2265 m above mean sea level. The El Cubo property consists of 57 mining concessions covering an area of approximately 8,141 ha, including several mine adits, ramps, shafts, and the 2000 tpd El Tajo flotation plant.

Geology and Mineralization

The El Cubo mine is located on the southeast flank of the Sierra Madre Occidental geological province in the southeastern portion of the Sierra de Guanajuato, an anticlinal structure about 100 km long and 20 km wide. The property is underlain by a volcano-sedimentary sequence of Mesozoic to Cenozoic age volcanic, sedimentary, and intrusive rocks, some members of which host the veins exploited by the mine. The Cenozoic rocks may have been emplaced in a caldera setting with hydrothermal alteration occurring at approximately 27 Ma (Buchanan, 1980).

The Guanajuato mining district is characterized by classic, high grade silver-gold, epithermal vein deposits with low sulfidation mineralization and adularia-sericite alteration. Veins in the Guanajuato district are typical of most epithermal silver-gold vein deposits in Mexico with respect to the volcanic or sedimentary host rocks and the paragenesis and tenor of mineralization. The Guanajuato mining district hosts three major mineralized fault systems, the La Luz, Veta Madre and Sierra systems. The El Cubo mine exploits veins of the Sierra fault system.

The northwest striking and southwest dipping faults are the main structures containing the very important Villalpando, La Loca, Dolores and Pastora-Fortuna veins. These veins are generally steeply dipping with some northeast dipping sections. The Capulin fault offsets the northwest-striking vein systems at the south end of the El Cubo mine, displacing the Dolores vein downward to the south.

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Veins are the main targets for mining. Some weak stockworks that grade into disseminations are viable targets, especially if they are close enough to surface and can be mined from an open pit. An historic open cut exists on the Dolores vein in the vicinity of the El Tajo mill. The Villalpando and the Dolores veins have been actively mined since the early stages of mining at El Cubo.

Mineralized veins at El Cubo consist of the classic banded and brecciated epithermal variety. Silver occurs primarily in dark sulfide-rich bands within the veins, generally with little mineralization within the wall-rocks. The major metallic minerals reported include pyrite, argentite, electrum and ruby silver, as well as some galena and sphalerite, generally deeper in the veins. Mineralization is generally associated with phyllic (sericite) alteration and silicification which form haloes around the mineralizing structures. The vein textures are attributed to the brittle fracturing-healing cycle of the fault-hosted veins during and/or after faulting.

Economic concentrations of precious metals are present in “shoots” distributed vertically and laterally between non-mineralized segments of the veins, and at important vein intersections. The silver-rich veins, such as Villalpando, contain quartz, adularia, pyrite, acanthite, naumannite and native gold. Native silver is widespread in small amounts. Much of the native silver is supergene. Silver sulfosalts (pyrargyrite and polybasite) are commonly found at depth. Gold-rich veins, such as San Nicolas, contain quartz, pyrite, minor chalcopyrite and sphalerite, electrum, and aguilarite.

Status of Exploration

Historical exploration at El Cubo was largely conducted by drifting along known veins, with very little drilling. Drilling exploration prior to 2000 was sporadic, and the associated information poorly organized. Drilling activity at the El Cubo Project increased significantly between 2000 and 2009, in conjunction with the acquisition of El Cubo by Mexgold, and later by Aurico, producing credible data for 844 drillholes (approximately 180,019 m). The drillhole data applies to both surface and underground drilling, at a variety of drillhole diameters, which occurred mainly over the Villalpando, Dolores, La Loca, San Nicolas, San Eusebio, Pastora, Puertecito and La Cruz structures.

In 2009, AuRico began the year with a dedicated six-month program of data compilation followed by extensive field mapping over the Sierra Vein system. At year end, AuRico had completed 16 core holes for 3,361 m in the Dolores SE target. Exploration carried out in 2010 consisted of drilling in the Dolores, Capulin, Villalpando Sur, Villalpando Gap, Puertecito, and La Cruz target areas. Exploration activities carried out in 2011 focused on drilling the step-out and in-fill on the 2009 Dolores Vein discovery.

In early 2012, AuRico drilled 16 drillholes on the Dolores SE target, but all surface exploration drilling was put on hold subject to AuRico completing the purchase and sale agreement for the El Cubo mine. At that time, El Cubo exploration geologists were in the process of geologically mapping and surface sampling the Cebolletas, Villalpando Sur, Cabrestantes and San Nicolás areas.

Between 2012 and 2015, EDR’s drilling and field exploration efforts were focused on locating mineralized bodies over primary and secondary structures, mainly near the current production areas. Surface drilling was conducted over the Villalpando (Villalpando Gap, Asunción & Villalpando South), Dolores (Dolores North), La Loca & La Paz veins. The mine exploration drilling program was undertaken to determine the extent of additional mineralization near areas currently being mined. The principal targets were the Villalpando (Area II and IV) and Dolores (II) vein systems, though a number of other structures also explored. As of December 2014, a total of 72,969 m of drilling had been completed in 277 holes, with an associated 16,522 samples.

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In 2015, EDR spent US $1,686,569 (including property holding costs) on exploration activities, including drilling, at the El Cubo Project. Field exploration activities at El Cubo were mainly focused on the Cubo North area, with the intent of continuing to define targets of interest for possible future drilling programs. Geological mapping, trenching and sampling were also conducted in the Cubo Central and Cubo South areas, as well the surrounding Nayal-Cabrestantes, Los Pinguicos, Olga Margarita-Janet, La Providencia and El Eden areas.

During 2015, Endeavour Silver completed a total of 7,178.55 m in 25 surface diamond drillholes at the El Cubo Mines Project. A total of 2,603 samples were collected and submitted for assays. Surface drilling exploration carried out in 2015 is summarized in Table 1-1.

Table 1-1 Exploration Drilling Activities in 2015

Project Area	Number of Holes	Total Meters	Number of Samples Taken
Violeta	4	1,655.90	446
Asunción	2	305.80	156
Cubo Central	8	2,116.50	642
Villalpando North	4	1,349.10	596
Nayal-Cabrestantes	7	1,751.25	763
Total	25	7,178.55	2,603

In 2016, Endeavour Silver spent US $1,060,668 (including property holding costs) on exploration activities mainly in the Nayal-Cabrestantes, Asunción (Villalpando vein) and Cubo Central areas in a continuing effort to identify and evaluate mineralized zones as potential targets for further exploration. A total of 3,799 m were drilled in 13 surface diamond drill holes at the Project, and a total of 777 samples were collected and submitted for assay. Surface exploration drilling undertaken during 2016 is summarized in Table 1-2.

Table 1-2 Exploration Drilling Activities in 2016

Project Area	Number of Holes	Total Metres	Number of Samples Taken
Asunción	5	1,901.60	314
Nayal-Cabrestantes	8	1,897.60	463
Total	13	3,799.20	777

An underground drilling exploration program was also conducted in 2016 on targets (La Loca, Vein 274, SJD & San Nicolás) located in close proximity to active mines. A total of 12 underground drill holes were completed for 1,710 m at the El Cubo Project (Table 1-3), and a total of 584 samples were collected and submitted for analysis.

Table 1-3 Underground Exploration Drilling Activities in 2016

Project Area	Number of Holes	Total Metres	Number of Samples Taken
Mine Exploration	12	1,709.90	584
Total	12	1,709.90	584

In 2017, EDR plans to conduct a surface drilling program (approximately 3,000 m of drilling) mainly focused on the Cubo North La Sauceda areas. Planned underground drilling (approximately 3,000 m of drilling) will focus on structures near active mining areas. Regional exploration in 2017 will continue in and proximal to the La Sauceda area.

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Development and Operations

The El Cubo Mine is now organized into two discrete physical areas, previously the mine was organized into four areas. Area 1 covers the north end of the Villalpando system with access through the Sta. cecillia ramp, the previous level 3 of the upper La Loca vein and the previous area 4 of the lower El Cubo concessions with access from the Sta. Lucia shaft. Area 2 includes the southern end of the Villalpando and Dolores vein systems, and is principally accessed from the Dolores ramp at El Tajo and from a crosscut on Level 4. Each area has separate crews and infrastructure for access, stoping, ventilation, and ore haulage. The area separations are geographic, and by level.

Conventional drill and blast methods are used to extract the ore at El Cubo, and access to the mining areas is provided by ramps, adits and shafts. Mine development headings are drilled by jumbo and by jackleg. The choice of equipment is generally guided by the anticipated vein widths, stoping method, and equipment availability. The stoping methods used at El Cubo are 80% mechanized cut-and-fill and 20% longhole open- stoping.

It is standard procedure throughout the mine to install systematic ground control. Ground control is carried out using a combination of split sets, mesh, w-straps, and cable bolts. The type of support varies according to the conditions encountered, but split sets are most common and are complemented as needed with mesh and/or w-straps. Cable bolting is required during the preparation of stopes for longhole blasting. The cable bolts are installed by drilling holes in the hanging wall and fixing the bolts in place with cement pumped into the hole.

The upper levels of the mine are dry. Water inflows are a factor in the lowest development levels where it is collected, pumped, and distributed as additional water for the needs of mine production.

The lowest historic development level of the mine, Level 9 of the Villalpando vein, was flooded until the latter part of 2013. The mine has been gradually dewatered and new development is pursuing mineral in the lower levels.

After the strike ended in 2011, Blake (2011) provided a preliminary geotechnical study to AuRico to determine if ground deterioration had occurred and if so, what rehabilitation effort might be needed in order for mining to resume. The geotechnical study concluded that in most cases, scaling and spot bolting would sufficiently mitigate deterioration, and rehabilitation work was carried out in three stopes according to recommendations.

The ventilation system at El Cubo is a combination of natural and mechanical, but relies mostly on natural ventilation. Air flow enters through the various access ramps, shafts, raise bore holes, and old mine openings, and moves down to the lower part of the mine, exhausting through a series of partially open old areas of the mine, raise bore holes, and conventional driven raises.

As of December 31, 2016, the company had a total of 610 direct employees distributed in different departments. There are 290 contract persons for personal transport, security, underground development, underground mining and ore transport from underground to surface and to the plant.

Mineral Resource Estimate

Resource geologist Zachary J. Black, SME-RM, of HRC is responsible for the mineral resource estimate presented here. Mr. Black is a Qualified Person as defined by NI 43-101, and is independent of EDR. HRC estimated the mineral resource for the El Cubo Mine Project based on drillhole data constrained by geologic vein boundaries with an Inverse Distance Weighted (“ID”) algorithm. Datamine Studio RM® V1.0.73.0 (“Datamine”) software was used to complete the resource estimate in conjunction with Leapfrog Geo® V.3.0.0 (“Leapfrog”), which was used to produce the geologic model. The metals of interest at El Cubo are gold and silver.

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HRC constructed the vein models using Leapfrog. Twenty-two veins were modeled using a linear interpolation methodology and sample intervals. Cross-sections orthogonal to the strike of the vein were used to select intervals from drillholes representing the vein material. Level sections were used to select vein material from channel samples. Points representing the hanging wall and footwall contacts were extracted by the software to interpolate hanging wall and footwall surfaces. These surfaces were used to delineate each vein solid. The surfaces were evaluated in 3-dimensions to ensure that both the down dip and along strike continuity was maintained throughout the model. Vein volumes were clipped using a distance buffer of 100 meters, except the Villalpando vein, which used a distance buffer of 125 meters, from the selected vein intercepts. Veins were clipped against younger veins, topography, and the concession boundaries.

The 3D geologic solids were converted to block models using Datamine. Block model prototypes were created for each of the 3D veins. The model prototypes are rotated along strike and down dip and encompass the entire vein. A block size of 10m x 10m in the strike and dip directions was established. The blocks in the z direction were sub-blocked to the vein thickness. The El Cubo 3D models were validated by comparison of the global descriptive statistics from the Inverse Distance Weighting (“ID”), Ordinary Krige (“OK”), Nearest Neighbor (“NN”), and composite data, and inspection of the ID block model on long section in comparison to the composite grades.

HRC used the kriging efficiency, distance from samples, and the number of samples to classify the mineral resources into measured, indicated, inferred. Measured mineral resources are those blocks with at least 15 composites, a kriging efficiency of at least 75%, and a distance no greater than 10 meters. Indicated mineral resources are those blocks at least 20 meters from a sample. Inferred mineral resources are those blocks greater than 20 meters from a sample and have a value for estimated silver.

The mineral resource estimate includes all analytical data obtained as of December 31, 2016. Mineral resources are not mineral reserves and may be materially affected by environmental, permitting, legal, socio-economic, political, or other factors. Mineral resources are reported above a silver equivalent grade of 177 gpt, assuming a silver price of $16.29 per ounce. HRC used a cutoff grade to test for reasonable prospects for economic extraction.

The mineral resources for the El Cubo mine as of December 31, 2016, are summarized in Table 1-4. The resources are exclusive of the mineral reserves.

Table 1-4 Mineral Resource Estimate, Effective Date December 31, 2016

Classification	Tonnes	Silver Equivalent	Silver		Gold
		g/t	g/t	oz.	g/t	oz.
Measured	213,000	414	192	1,318,500	3.13	21,400
Indicated	732,000	366	194	4,561,100	2.44	57,400
Measured + Indicated	945,000	377	194	5,879,600	2.60	78,800
Inferred	1,453,000	411	214	10,004,000	2.78	129,900

1.	Measured, Indicated and Inferred resource cut-off grades were 177 g/t silver equivalent at El Cubo.
2.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
3.	Metallurgical recoveries were 87.8% for silver and 84.7% for gold.

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4.	Silver equivalents are based on a 75:1 silver:gold ratio
5.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold for resource cutoff calculations.
6.	Mineral resources are estimated exclusive of and in addition to mineral reserves.

Mineral Reserve Estimate

Mr. Jeff Choquette, P.E., MMSA QP, of HRC is responsible for the mineral reserve estimate presented here. Mr. Choquette is Qualified Person as defined by NI 43-101 and is independent of EDR. The mineral reserve calculation for EDR’s El Cubo Mine in Guanajuato, Mexico was completed in accordance with NI 43-101, and based on all data and information available as of December 31^st, 2016. Stope designs for reporting the reserves were created utilizing the updated resources and cutoffs established for 2016. All of the stopes are within readily accessible areas of the active mining areas. Ore is processed in the on-site mill and floatation facility capable of processing 1,600 tpd, if excess mined tonnage is produced the ore is trucked to EDR’s Bolañitos mill for processing.

HRC utilized Datamine’s Mineable Shape Optimizer (“MSO”) program to generate the stopes for the reserve mine plan. The MSO stope designs are then used to design stopes on levels along with the required development for the final mine plans. The stopes were created based solely on Measured and Indicated resources above the calculated cutoff, which have demonstrated to be economically viable; therefore, Measured and Indicated mineral resources within the stopes have been converted to Proven and Probable mineral reserves as defined by NI 43-101. Measured and Indicated mineral resources generated from the 2D polygon resource model were also converted to mineral reserves, provided that associated grades fell above the calculated cutoff and economic viability could be demonstrated. Inferred mineral resources are classified as waste. Dilution is applied to Measured and Indicated resource blocks depending on the mining method chosen.

The mining breakeven cut-off grade was utilized in Datamine’s MSO to generate the stope designs for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. The average cut-off grade used for the El Cubo property is 177 g/t Ag equivalent. Silver equivalent grade is calculated as the silver grade + (gold grade * 75), taking into account gold and silver prices and expected mill recoveries.

Mineral reserves are derived from Measured and Indicated resources after applying the economic parameters as stated Section 15.1.2, utilizing Datamine’s MSO program to generate stope designs for the reserve mine plan. The MSO stope designs are then used to design stopes on levels along with the required development for the final mine plans. Mineral reserves for the El Cubo Project have been derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the Measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For El Cubo, this applies to blocks located within approximately 10 m of existing development, and for which EDR has a mine plan in place.

• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economically viable and for which EDR has a mine plan in place. For the El Cubo Project, this applies to all blocks for which EDR has a mine plan in place.

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The Proven and Probable mineral reserves for the El Cubo Project as of December 31, 2016 are summarized in Table 1-5. The reserves are exclusive of the mineral resources reported in Section 14 of this report.

Table 1-5 Mineral Reserve Estimate

Classification	Tonnes (t x 1,000)	AgEq g/t	Ag g/t	Ag (oz) * 1,000	Au g/t	Au (oz) * 1,000	% Dilution
Proven	409.3	295	154	2,028.9	1.99	26.24	26%
Probable	452.7	280	159	2,311.1	1.71	24.85	33%
Total Proven and Probable Reserves	861.9	287	157	4,340.0	1.84	51.09	30%

1.	Reserve cut-off grades are based on a 184 g/t silver equivalent.
2.	Metallurgical Recoveries were 87.8% silver and 84.7% gold.
3.	Mining Recoveries of 95% were applied.
4.	Minimum mining widths were 0.8 meters.
5.	Dilution factors averaged 30%. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill and 30% for long hole.
6.	Silver equivalents are based on a 75:1 silver:gold ratio.
7.	Price assumptions are $16.29 per ounce for silver and $1,195 per ounce for gold.
8.	Mineral resources are estimated exclusive of and in addition to mineral reserves.
9.	Figures in table are rounded to reflect estimate precision; small differences generated by rounding are not material to estimates.

Conclusions and Recommendations

The QP considers the El Cubo resource and reserve estimates presented here to conform with the requirements and guidelines set forth in Companion Policy 43-101CP and Form 43-101F1 (June 2011), and the mineral resources and reserves presented herein are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards - For Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014. These resources and reserves form the basis for Endeavour Silver’s ongoing mining operations at the El Cubo Mines Project.

The QP is unaware of any significant technical, legal, environmental or political considerations which would have an adverse effect on the extraction and processing of the resources and reserves located at the El Cubo Mines Project. Mineral resources which have not been converted to mineral reserves, and do not demonstrate economic viability shall remain mineral resources. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.

The QP considers that the mineral concessions in the El Cubo mining district controlled by Endeavour Silver continue to be highly prospective both along strike and down dip of the existing mineralization. The El Cubo mine has been in nearly continuous production for decades. A substantial effort combining direct underground exploration, underground drilling, and surface drilling will be necessary to sustain the mine and continually expand mineral resources and reserves. The El Cubo concessions cover at least 5 km of the trace of the vein system across the district. The Villalpando-Asunción area continues to provide the bulk of production from the mine, and is currently the focus of future mineral resource and reserve development. The Dolores vein is an important parallel structure along which new mineral resources and reserves have been added through a combination of underground development and diamond drilling.

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The mine has considerable potential to develop both exploration targets close to existing operations outlined by underground drilling and those identified by surface exploration. The 2017 exploration for El Cubo is approved for 6,000 meters of drilling. The approved budget for this drilling is estimated at US $900,000 for the year.

HRC recommends that the process of converting mineral resources into reserves from 2D polygons to 3D block models be continued. Considerable progress has been completed via this process with 22 of the 37 veins now converted into 3D block models. Additional modeling efforts should be made to define the mineralized brecciated areas as they have been an important source of economic material encountered in the current operation, and could provide additional tonnage to support the mine plan.

EDR currently utilizes the exploration drilling and chip and muck samples in their resource and reserve calculations. HRC recommends that future efforts focus on constructing block models for resource and reserve reporting utilizing only the exploration and underground drilling results. The chip and muck samples should be used to develop the production model. This will help keep data densities consistent in each modeling effort and will provide another level in the reconciliation process to compare modeling results.

Although the reconciliations conducted by EDR show good comparison between planned versus actual values, the reconciliation process should be improved to include the estimated tonnes and grade from the resource models. Because the LOM plan is compared to the plant production on a monthly basis, the actual physical location of the material mined may be different than the planned location. Due to the many stopes that are mined during a day this can only be completed on an average monthly basis due to blending of stope material into the mill. The monthly surveyed as mined areas should be created into triangulation solids and saved on a monthly basis for reporting the modeled tonnes for each month. The combination of the 3D block models and 2D and polygonal reserves makes this process difficult but considerable progress has been made during the last year to get all resources and reserves into 3D block models. The model-predicted results versus actual can then be used to determine if dilution factors need to be adjusted, or perhaps the resource modeling parameters may require adjustment if there are large variances. The mill production should be reconciled to the final concentrate shipments on a yearly basis, and resulting adjustment factors should be explained and reported.

El Cubo Mines Project 2018 Company Update

Exploration update
In 2017, the Company spent $1.3 million on exploration activities, including drilling, at the El Cubo Project. The exploration drilling program included 6,563 m (18 drill holes) of surface drilling at the Cubo North Target (Rosita, La Conda, San Cayetano-Providencia, Villalpando North and La Fe veins, also an exploratory drill hole at the San Amado Mine area). The underground drilling program was conducted in close proximity to active mines (San Nicolas, Tuberos, San Eusebio and Villalpando (Asunción) veins) and a total of 21 underground drill holes completed with 4,460 metres. A combined 2,591 samples were submitted for analysis.

In 2018, the Company spent $1.0 million on drilling and exploration activities at the El Cubo Project. The exploration drilling program included 2,984 m (15 drill holes) of surface drilling at the Cubo North Target (Barragana-San Cosme, San Cayetano-Providencia, Villalpando North and La Fe veins). The underground drilling program was conducted in close proximity to Villalpando (Asunción) veins) and a total of 12 underground drill holes completed with 2,870 metres.

In 2019, the Company plans to conduct a 2,000 metre surface drilling program with budgeted expenditures of $300,000, to extend Villalpando mining areas.

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Mineral resources estimation
The estimation of the mineral resource for the El Cubo mining operation is based on drill hole data constrained by geologic vein boundaries. Both, exploration and production data are used for modelling estimation and classification. The interpolation is assessed through Ordinary Kriging algorithm. The channel composite database cut-off date for mineral resource estimation was August 31, 2018. The exploration database cut-off date for mineral resource estimation was September 30, 2018.

The Company used criteria of distance from composites and the number of samples to classify the mineral resources into measured, indicated, inferred. Measured mineral resources are those blocks with at least 16 composites, laying within a distanced no greater than 15 metres. Indicated mineral resources are these blocks estimated by at least 4 composites laying no farther than 25 metres from samples. Inferred mineral resources are those blocks, which distance to borehole composites and channel samples is greater than 50 metres.

Mineral resources stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Measured	69,500	184	2.12	411,500	4,700
Indicated	251,200	161	1.54	1,298,100	12,500
Total Measured & Indicated	320,700	166	1.67	1,709,600	17,200
Total Inferred	844,900	149	2.20	4,041,700	59,700

Notes for mineral resource estimation

1.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the mineral resources will be converted into mineral reserves.
2.	Mineral resources are exclusive of and in addition to mineral reserves
3.	El Cubo Mineral Resource and Mineral Reserve cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 217 g/t silver equivalent for Areas I&IV (that comprise Santa Cecilia and San Nicolas Mines) of El Cubo
4.	Dilution factor and Mining recovery for Mineral Resources are not applied.
5.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

Mineral reserves estimation
Stope designs for reporting the reserves were created utilizing the updated resources and cutoffs established for 2018.

The mining breakeven cut-off grade was utilized for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. Two average cut-off grade used for the El Cubo property: 196 g/t Ag equivalent for Area 2 and 217 g/t Ag equivalent for Areas 1 & 4. Silver equivalent grade is calculated as the silver grade in addition to gold grade multiplied by 75, taking into account gold and silver prices and expected mill recoveries.

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Mineral reserves are derived from mineral resources after applying the economic parameters utilizing Datamine’s MSO program to generate stope designs for the reserve mine plan. The MSO stope designs are then used to design stopes on levels along with the required development for the final mine plans. Mineral reserves for the El Cubo Mine have been derived and classified according to the following criteria

• Proven mineral reserves are the economically mineable part of the measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For El Cubo, this applies to blocks located within approximately 15 metres of existing development, and for which EDR has a mine plan in place.

• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economically viable and for which EDR has a mine plan in place. For the Cubo mine project, this is applicable to blocks located a maximum of 25 metres to 35 metres either vertically or horizontally from development and the drill holes data.

Mineral reserves stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Proven	97,800	182	1.95	572,300	6,100
Probable	136,000	157	1.40	686,700	6,100
Total Proven & Probable	233,800	167	1.63	1,259,000	12,200

Notes for mineral reserve estimation

1.	El Cubo Mineral Resource and Mineral Reserve cut-off grades are based on a 196 g/t silver equivalent for Area II (that comprises Dolores Mine) of El Cubo and 217 g/t silver equivalent for Areas I&IV (that comprise Santa Cecilia and San Nicolas Mines) of El Cubo
2.	El Cubo Metallurgical Recoveries are 87.0% silver and 86.7% gold
3.	Mining recoveries of 88% were applied for mineral reserve estimate calculations
4.	Minimum mining widths are 0.8 meters for mineral reserve estimate calculations
5.	Dilution factor for long hole method is 53%, The dilution factor is calculated based on estimates of internal dilution of cameras and external empirical factors dilution.
6.	Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

Terronera Project, Jalisco State, Mexico

On September 18, 2018, the Company filed the NI 43-101 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico (“Terronera PFS”) prepared by Smith Foster and Associates with an effective date of August 7, 2018 and dated September 17, 2018. With the exception of some minor changes to terms for consistency with terms used in this AIF, the below summary is a direct extract and reproduction of the summary contained in the Terronera PFS, without material modification or revision. The complete report can be viewed on SEDAR at www.sedar.com. The Terronera PFS is incorporated by reference in its entirety into this AIF.

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Executive Summary

Introduction

Endeavour Silver Corp. (Endeavour Silver) commissioned Smith Foster & Associates Inc. (SFA) to prepare an Updated Preliminary Feasibility Study (UPFS) for the Terronera Project compliant with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101). Since the issuance of the Preliminary Feasibility Study (PFS) for the Terronera Project on April 3, 2017, Endeavour Silver has carried out further Mineral Resource drilling, tests, optimization studies, and analyses aimed at optimizing the performance and economics of the project. Endeavour Silver determined that the resulting material changes to the Mineral Resource justified the preparation of a new Technical Report.

Endeavour Silver is a mid-tier silver mining Company engaged in the exploration, development, and production of mineral properties in Mexico. Endeavour Silver is focused on growing its production, Mineral Reserves, and Mineral Resources in Mexico. Endeavour Silver owns and operates the Guanaceví Mine located in the northwestern Durango State, and the El Cubo and Bolañitos Mines, both located near the city of Guanajuato in Guanajuato State, Mexico. In July, 2018 Endeavour Silver began operations at its El Compas Mine in Zacatecas, Mexico.

This report follows the format and guidelines of Form 43-101F1, Technical Report for National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101), and its Companion Policy 43-101 CP, as amended by the CSA and which came into force on June 30, 2011 and was unofficially amended on May 9, 2016.

This report has an effective date of August 7, 2018. The Mineral Resource and Mineral Reserve Estimates reported in this Technical Report comply with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards and Definitions, as required under NI 43-101 regulations.

In this Technical Report, the term San Sebastián Property refers to the entire area covered by the mineral concessions, while the term Terronera Project refers to the area within the mineral concession and separate surface lands on which the current exploration programs and proposed mining, processing, and tailings storage will be conducted.

This Technical Report includes technical information which requires subsequent calculations or estimates to derive sub-totals, totals, and weighted averages. Such calculations or estimations inherently involve a degree of rounding and consequently introduce a margin of error. The Qualified Persons (QPs) responsible for this report do not consider such errors to be material to the calculations presented herein. The conclusions and recommendations in this report reflect the QPs best independent judgment in light of the information available at the time of writing.

Summarized briefly below is key information in the Technical Report, including property description and ownership, geology and mineralization, the status of exploration and development, Mineral Resource and Mineral Reserve Estimates, mineral processing and metallurgical testing, environmental studies and permitting, capital and operating costs, economic analysis, and the QPs conclusions and recommendations

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Location and Property Description

The San Sebastián Properties of Endeavour Silver cover most of the historic San Sebastián silver and gold mining district located in southwestern Jalisco State, approximately 155 km southwest of Guadalajara and 40 km northeast of Puerto Vallarta near the town of San Sebastian del Oeste, accessible by paved and gravel roads. One small, high-grade, underground silver-gold mine, La Quiteria (300 tonnes per day - tpd), continues to operate in the district. The San Sebastián Properties surround the La Quiteria Mine and represent a new, district-scale, silver-gold exploration opportunity for the Company.

Ownership

In February, 2010, Endeavour Silver acquired an option to purchase the San Sebastián silver-gold Properties in Jalisco State from Industrial Minera México S.A. de C.V. (IMMSA), also known as Grupo Mexico, one of the largest mining companies in Mexico. In 2013, Endeavour Silver completed the acquisition of a 100% interest in the San Sebastián Properties from IMMSA. IMMSA retained a 2% NSR royalty on mineral production from part of the properties.

Endeavour Silver holds the Terronera Project through its 100% owned Mexican subsidiary, Endeavour Gold Corporation S.A. de C.V. (Endeavour Gold). Endeavour Gold holds the Project through its 100% owned subsidiary Terronera Precious Metals S.A. de C.V.

At present, the Terronera Project is comprised of 23 mineral concessions totalling 17,961 hectares (ha) and certain surface lands upon which mining surface operations, mineral processing, and tailings and waste rock storage are proposed to occur. The core group of 10 concessions totalling 3,388 ha was owned by IMMSA. These concessions cover the main area of the known mining district.

In 2012, Endeavour Silver also filed and received title for 2 concessions (San Sebastián 10 Fracc. 1 and Fracc. 2) totalling 2,078 ha. Additionally, in 2013, Endeavour Silver filed a total of 7 concessions (San Sebastian 12, San Sebastian 13, San Sebastian 14, San Sebastian 15, San Sebastian 16, San Sebastian 17 and San Sebastian 18) totalling 4,163 ha. To date, 5 of these concessions have been titled, with the exception of San Sebastian 15 (fractioned in 3 claims) and San Sebastian 16.

In 2015, Endeavour Silver acquired an option to purchase a group of properties (Los Pinos Fracc. I, Los Pinos Fracc. II and La Fundisión 2 Fracc. I, totalling 8,373 ha), surrounding the San Sebastián silver-gold Properties, from Agregados Mineros de Occidente S.A. de C.V. (AGREMIN). In addition, in 2017 Endeavour Silver also acquired from AGREMIN another option to purchase the La Única Fracc. II (3,538 ha) concession.

At the end of 2017, Endeavour Silver filed a total of 3 concessions at the southern boundary of the Terronera Properties, these concessions were called Cerro Gordo 1 (499.7 ha), Cerro Gordo 2 (500 ha), and Cerro Gordo 3 (400 ha). Titling of these concessions is in process.

The annual 2018 concession tax for the San Sebastian Properties is estimated to be approximately 3,980,426 Mexican pesos (pesos), which in US dollars ($) is equal to $199,021 at an exchange rate of 20 pesos to $1.00.

History

Although the San Sebastián silver and gold mines were first discovered in 1542, and there were several periods of small-scale mining over the last 450 years, the only significant modern exploration in the district was carried out by IMMSA in the late 1980’s and early 1990’s.

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According to Southworth in his 1905 volume on Mexican mining, “These veins have been mined for more than three centuries, and the production has been enormous. Many exceptionally rich bonanzas have been extracted, with the aggregate production totals many millions.” However, while this may have been the case, the data available appear to suggest that this mining district was a minor silver producer when compared to the more well-known districts which have been among the world class producers.

Ramirez, in his 1884 volume entitled “Noticia Histórica de la Riqueza Minera De Mexico Y de Su Actual Estado de Explotación or Historical News of the Mineral Wealth of Mexico” does not appear to mention the Sebastián del Oeste region as a major past or current producing district. Even the Consejo de Recursos Minerales 1992 Monograph for the State of Jalisco has no production records for the San Sebastián mining district and only briefly mentions the district and some of the more well-known veins.

As is the case with many mines in Mexico which were owned by individuals or corporations, the historical production records have not survived the revolutions, passing of the individual owners, closing of the mines, corporate failure, or government seizure of assets. Therefore, the exact silver production is unknown.

Geology and Mineralization

The San Sebastián Properties cover a classic, low sulphidation, epithermal vein system in four mineralized vein sub-districts named Los Reyes, Santiago de los Pinos, San Sebastián and Real de Oxtotipan. Each sub-district consists of a cluster of quartz (calcite, barite) veins mineralized with sulphide minerals (pyrite, argentite, galena and sphalerite). Each vein cluster spans about 3 km by 3 km in area. In total, more than 50 small mines were developed historically on at least 20 separate veins.

The San Sebastián veins tend to be larger and can carry high grade silver-gold mineralized deposits. For example, the La Quiteria Vein ranges up to 15 m thick, and the La Quiteria Mine averages about 280 g/t silver and 0.5 g/t gold over a 3 m to 4 m width. This high-grade mineralized zone appears to extend into the San Sebastián Properties both along strike and immediately down dip.

Exploration Program

In 2010, Endeavour Silver commenced exploration activities on the Terronera Project and in 2011 the first drilling campaign was conducted at the Real Alto (Real, Animas-Los Negros, Escurana and Tajo Veins) and Quiteria West Targets. In 2012, the surface drilling program continued at Real Alto and a single deep drill hole was drilled at Quiteria West.

The drilling program over the Terronera Vein was conducted from early 2012 to the end of 2016. The structure has been tested with 149 drill holes totalling 43,526 m. Additionally 7 drill holes were completed at the Terronera North area (2,783 m).

In 2016, exploration activities focused on the definition and evaluation of new drilling targets around the Terronera Project and near the future Mine Operations. Nine drilling targets were tested, including the new discovery of La Luz.

Between 2011 and 2016, Endeavour Silver had drilled 70,885 m in 248 diamond drill holes over the entire Terronera Project. Holes were drilled from surface and 22,351 samples have been collected and submitted for analysis.

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During 2017, a total of 12,252 m drilled in 47 drill holes, mainly conducted at La Luz (to date a total of 41 drill holes have been completed over the structure totalling 9,796 m of drilling), with the objective to add Mineral Resources to the Terronera Project. Eight other structures were also tested (El Muro, Los Espinos, Los Reyes, El Fraile, Vista Hermosa, La Escondida, La Atrevida and Quiteria West). The 2017 drilling program included 2,308 samples.

2013 Mineral Resource Estimate

The Mineral Resource Estimate discussed in the Technical Report Audit of the Mineral Resource Estimate for the San Sebastian Project dated March 27, 2014 was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on November 27, 2010. The effective date of this Mineral Resources Estimate is December 31, 2013.

2017 Mineral Resource and Mineral Reserve Estimates

The Mineral Resource and Mineral Reserve Estimates presented in the first PFS were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014 and unofficially ammended on May 9, 2016. The effective date of the Mineral Resource and Mineral Reserve Estimates is April 3, 2017.

2018 Mineral Resource and Mineral Reserve Estimates

The Mineral Resource and Mineral Reserve Estimates presented in this UPFS were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014 and unofficially ammended on May 9, 2016. The effective date of the Mineral Resource and Mineral Reserve Estimates is August 7, 2018.

Cut-off Grade

The Mineral Resource cut-off grade determined by P&E for the Terronera and La Luz Deposits was 150 g/t AgEq.

The Mineral Reserve cut-off grades determined by P&E for the Terronera and La Luz Deposits were 160 g/t and 216 g/t AgEq respectively.

See Section 14.12 for AgEq cut-off details for the Mineral Resource Estimate based on prices of $17/oz silver and $1,275/oz gold.

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Table 1.1 Summary of the Terronera Mineral Resource at a Cut-off Grade of 150 g/t AgEq^(1-6)

Class	Tonnes ('000's)	Ag g/t	Contained Ag (k oz)	Au g/t	Contained Au (k oz)	AgEq g/t	Contained AgEq (k oz)
Indicated	4,237	240	32,658	2.20	299	405	55,083
Inferred	1,015	258	8,400	1.82	59	395	12,825

1.	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.	The Mineral Resources in this report were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves.
4.	AgEq g/t = Ag g/t + (Au g/t x 75)
5.	Historical mined areas were depleted from the Terronera Vein wireframe
6.	Mineral Resources are inclusive of Mineral Reserves

Table 1.1 La Luz Mineral Resource at a Cut-off Grade of 150 g/t AgEq

Class	Tonnes ('000's)	Ag g/t	Contained Ag (k oz)	Au g/t	Contained Au (k oz)	AgEq g/t	Contained AgEq (k oz)
Indicated	126	192	779	13.60	55	1,212	4,904
Inferred	58	145	269	12.15	23	1,060	1,994

1.	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.	The Mineral Resources in this report were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves.
4.	AgEq g/t = Ag g/t + (Au g/t x 75)
5.	Mineral Resources are inclusive of Mineral Reserves

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A summary of the Terronera and La Luz Probable Mineral Reserve Estimate is given in Table 1.3.

Table 1.3 Terronera and La Luz Probable Mineral Reserve Estimate ⁽¹⁾

Deposit	Tonnes (‘000’s)	Au g/t	Ag g/t	AgEq g/t	Au oz (‘000’s)	Ag oz (‘000’s)	AgEq oz (‘000’s)
Terronera	4,559	2.00	226	376	290	33,082	54,832
La Luz	142	11.40	158	1,013	52	721	4,621
Total	4,701	2.28	224	395	342	33,803	59,453

1. See Section 15.1 for Mineral Reserve cut-off details

Mineral Processing and Metallurgical Testing

ALS Metallurgy (ALS) conducted locked and open cycle flotation testing for the Terronera project at its metallurgical testing facility in Kamloops, B.C. The primary objectives of the test program were to enhance the levels of precious metal recovery and improve final concentrate grade.

The open cycle flotation data developed by ALS Metallurgy indicate that by using a relatively coarse primary grind size, a medium grade gold and silver bearing second cleaner concentrate may be produced. The designed process flow includes a two stage crushing circuit followed by closed circuit grinding to achieve a flotation feed grind size of 80 percent passing 150 mesh (100 microns). Flash flotation inclusion in the grinding circuit improves the levels of recovery. A regrind circuit provides improved liberation of precious metals mineralization and higher final concentrate grade.

The UPFS is based on a 750 tpd throughput in Years 1 and 2 expanding to 1,500 tpd in Year 3. The project will produce a high grade concentrate. The expected overall levels of recovery are:

• Gold 80.4 percent
• Silver 84.6 percent

Further studies are recommended to upgrade the process plant feed, lower the grinding costs, and increase process recoveries.

Mining Methods

The underground mine operations at Terronera and La Luz will be accessed via main access ramps. In the case of Terronera, the ramp access will connect to a main haulage drift and in the case of La Luz it will connect approximately centrally to the deposit. Both deposits will be mined by cut-and-fill mining using trackless underground equipment, including scooptrams, haulage trucks, and electric-hydraulic drill jumbos for their primary ore production, and longhole mining for recovery of sill pillars.

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Recovery Methods

A beneficiation plant utilizing Flash flotation was selected for recovery of precious metals present in the Terronera Deposit.

The Terronera Project comprises the following processing circuits:

• Coarse ore storage yard (12,000 tonnes capacity)

• Stock pile (2,000 tonnes capacity)

• Crushing plant (two stage - closed circuit - 1,500 tpd capacity)

• Fine ore storage lines A and B

• Primary grinding lines A and B (750 tpd capacity each)

• Flotation Stages lines A and B (750 tpd capacity each)

o Flash flotation

o Rougher & Scavenger

o Two stage cleaning

• Final Concentrate sedimentation and filtration (1,500 tpd capacity)

• Final Concentrate storage and shipping (1,500 tpd capacity)

• Tailings sedimentation (1,500 tpd capacity)

• Reclaimed and fresh water systems

• Dry tailings filter plant

• Dry stack tailings storage facility (TSF)

Power will be provided by on-site, natural gas-fired generators in Year 1 and 2 and by CFE via a new 115kV transmission line beginning Year 3.

Fresh water will be pumped from the underground (U/G) mining operations to a fresh water tank and fed by gravity to the process plant, fire water system, potable water system, and water trucks.

Environmental Studies, Permitting, and Social Impact

The Company submitted a Manifest of Environmental Impact (MIA) to the Mexico environmental permitting authority known as SEMARNAT (Secretaria de Medio Ambiente y Recursos Naturales) in December, 2013.

A SEMARNAT permit for the Terronera Project was issued in October, 2014 for a 500 tpd project with tailings reporting to a traditional slurry deposit.

In February, 2017 a modified MIA application was issued by SEMARNAT to expand the proposed process rate to up to 1,500 tpd and to establish the tailings storage facility to store filtered dry tailings.

The Terronera Mine Project is designed to comply with the environmental regulations and standards in place in México. The mining infrastructure and supporting facilities are designed to minimize the impact to the natural environment.

Mexican law requires that an environmental monitoring program of surface and ground water, creek sediments, soil, air, vegetation and wildlife conditions be implemented. The current SEMARNAT regulatory objective is to limit transmission of contaminants such that pre-mining environmental conditions are maintained downstream of the permitted mine perimeter. This program will be required before and during mining operations and after mine closure.

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The Terronera Mine tailings storage facility (“TSF”) will be designed to store filtered tailings, or “drystack” tailings, to minimize downstream contamination risk and to maximize geotechnical stability in the seismically active coastal area of western Mexico. The Terronera TSF design accommodates approximately 3 million cubic metres of compacted tailings which provides a storage capacity for the life of the mine.

Capital and Operating Costs

The Terronera Project has an estimated initial capital cost of $75.8 million for the 750 tpd plant. The estimated capital cost to expand to 1,500 tpd in Year 3 is $39.2 million for a total estimated capital cost of $114.9 million.

Average operating costs over the 9.5 year life-of-mine (LOM) of $46.08 per tonne for mining, $19.58 per tonne for processing, and $8.40 per tonne for General and Administration were developed and estimated from first principles using unit labour and materials costs from Endeavour Silver’s current operations in Mexico.

Economic Analysis

This Technical Report contains forward-looking projections based on assumptions the QPs believe are reasonable. The projected mine production rates, development schedules, and estimates of future cash flows involve known and unknown risks, uncertainties, and other factors that may affect the actual results.

An economic analysis utilizing a pre-tax and after-tax cash flow financial model was prepared for the base case mine plan. The metal prices assumed in the base case are $17/oz silver and $1,275/oz gold. Mexican tax policies for mining include an overriding royalty on gross revenues, after smelter deductions, of 0.5% applied to precious metal mines (gold, silver and platinum). A Special Mining Duty of 7.5% is levied on earnings before income tax and depreciation allowance. Corporate income taxes of 30% are applied to earnings after the usual allowable deductions for depreciation, loss carry-forwards etc. The Special Mining Duty and the overriding royalty are also deductible for the purpose of calculating corporate income tax. The financial model incorporates these taxes in computing the after-tax cash flow amounts, net present value (NPV), and internal rate of return (IRR).

The Terronera Project key financial indicators for the base case are as follows:

• After-tax rate of return 23.5%
• Project payback period 5.4 years
• After-Tax Net Present Value (5% discount) of US$117,818,000

Under the base case assumptions, these key indicators describe a financially viable project which, as the sensitivity analysis summarized in Table 1.4 demonstrates, has considerable upside potential should metal prices improve or operating costs decrease.

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Table 1.4 Base Case After-Tax NPV & IRR Sensitivities

Variance	Operating Costs			Initial Capital			Metal Prices
	NPV (5%) ($million)	IRR	Payback (yrs)	NPV (5%) ($million)	IRR	Payback (yrs)	NPV (5%) ($million)	IRR	Payback (yrs)
-20%	148.9	28.1%	5.0	132.5	28.6%	5.1	33.8	10.6%	7.2
-10%	133.4	25.8%	5.2	125.2	25.8%	5.2	76.1	17.3%	6.1
Base Case	117.8	23.5%	5.4	117.8	23.5%	5.4	117.8	23.5%	5.4
10%	99.7	20.6%	5.7	110.5	21.4%	5.6	154.7	28.4%	5.0
20%	81.3	17.7%	6.1	103.1	19.5%	5.8	191.6	33.2%	4.6

Conclusions and Recommendations

The Terronera Mineral Resource and Mineral Reserve Estimates presented conform to the current CIM Definition Standards for Mineral Resources and Mineral Reserves, as required under NI 43-101 “Standards of Disclosure for Mineral Projects.” The estimation approach and methodology used is reasonable and appropriate based on the data available.

The project is subject to technical, legal, environmental, and political risks that are similar to the risks faced by Endeavour Silver on its current operations in Mexico. The QPs consider these risks to be manageable and should not have an adverse effect on the continued development of the Terronera Project.

Based on a review of the Terronera Project and the encouraging results to date, it is recommended that Endeavour Silver:

• Continue exploratory drilling nearby mineralized bodies to extend the mine life

• Investigate the inclusion of an HPGR crusher as the tertiary crusher to give the lowest energy requirement for size reduction. Estimated cost $25,000

• Higher grade zones should be analyzed for metallic gold and silver content to address the possibility of the presence of coarse precious metal

• Evaluate ore sorting techniques to upgrade the process plant feed. Estimated cost $5,000

• Optimize the grinding circuit. Estimated cost $35,000

• Conduct more detailed analyses based on additional or updated data for the deposit in order to support the next stage of engineering. Additional data requirements include:

• Creating a 3D lithological model. Estimated cost $25,000

• Creating a 3D structural model. Estimated cost $25,000

• The rock mass characteristics in the immediate vicinity of the crown pillar and to the east of the Arroyo Fault zone should be better defined during the next phase of design or during the early stages of mining. Estimated cost $75,000 plus drilling

• Additional geomechanical logging should be completed to better define difference in structural trends around geomechanical drillhole KP16-02. Estimated cost $25,000

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• Additional hydrogeological data should be collected if the project economics or operating conditions are sensitive to the groundwater conditions and groundwater inflow estimate. For example, the completion of additional packer testing and the installation of additional vibrating wire piezometres could be used to refine the hydrogeological characterization and evaluate the potential for spatial variability. Estimated cost including 60l/sec pump station $150,000

• The groundwater pore pressure data from the vibrating wire piezometers should be recorded and reviewed on a regular basis. Estimated cost $15,000

• Update the geomechanical domain definition, stability analyses, recommendations, and groundwater inflow estimate to account for the results of the additional data inputs and any changes to underground mine plan. Any significant changes to the mine plan should be reviewed from a geomechanical perspective

• Advance the current preliminary TSF area design, associated hauling accessways, and tailings delivery infrastructure to construction design level in conjunction with the feasibility level analysis. Estimated cost $150,000

• Refer to Table 16.2 for preliminary ground support recommendations for cut and fill stopes

Environmental

Wood Environment & Infrastructure Solutions, Inc. (formerly Amec Foster Wheeler Environment & Infrastructure Inc. referred throughout the document as Wood) recommends that, as the Terronera Project moves through its study and development process, timely applications that support the Proposed Development Schedule be submitted for all permits and approvals required in Mexico for mining developments as described in Section 20. Costs associated with these permits are included in the recommended budget referenced in the Section below.

Further Studies

Given the risk-mitigating features of the Terronera Project and the positive results of the economic analysis, the QPs consider the project is ready to proceed to Feasibility Study or, if the Company is sufficiently confident, to development and production.

The recommended budget to prepare a Feasibility study is US$1,200,000.

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On February 25, 2019, the Company filed the Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico (“Updated Terronera Resource”) prepared by P&E Engineering with an effective date of February 1, 2019 and dated February 22, 2019. With the exception of some minor changes to terms for consistency with terms used in this AIF, the below summary is a direct extract and reproduction of the summary contained in the report without material modification or revision. The complete report can be viewed on SEDAR at www.sedar.com. The Updated Terronera Resource is incorporated by reference in its entirety into this AIF.

Summary

Introduction

Endeavour Silver Corp. (Endeavour Silver) commissioned P&E Mining Consultants Inc. to prepare an Updated Mineral Resource Estimate Technical Report for the Terronera Project compliant with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101). Since the issuance of the Updated Preliminary Feasibility Study (UPFS) for the Terronera Project on September 17, 2018, Endeavour Silver has carried out further Mineral Resource drilling on the Terronera Vein. Endeavour Silver determined that the resulting material changes to the Project justified the preparation of an Updated Mineral Resource Estimate Technical Report.

Endeavour Silver is a mid-tier silver mining company engaged in the exploration, development, and production of mineral properties in Mexico. Endeavour Silver is focused on growing its production, Mineral Resources, and Mineral Reserves in Mexico. Since start-up in 2004, Endeavour Silver has posted numerous consecutive years of growth of its silver mining operations. Endeavour Silver owns and operates the Guanaceví Mine located in the northwestern Durango State, and the El Cubo and Bolañitos Mines, both located near the city of Guanajuato in Guanajuato State, Mexico. In July, 2018 Endeavour Silver was in the process of commissioning the operations at its El Compas Mine in Zacatecas, Mexico.

This Technical Report follows the format and guidelines of Form 43-101F1, Technical Report for National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101), and its Companion Policy 43-101 CP, as amended by the CSA.

This Technical Report has an effective date of February 1, 2019. The Mineral Resource Estimate reported in this Technical Report complies with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards and definitions, as required under NI 43-101 regulations.

In this Technical Report, the term San Sebastián Property refers to the entire area covered by the mineral concessions, while the term Terronera Project (the Project) refers to an area within the mineral concession and separate surface lands on which the current exploration programs and Mineral Resource Estimate are located

This Technical Report includes technical information which requires subsequent calculations or estimates to derive sub-totals, totals, and weighted averages. Such calculations or estimations inherently involve a degree of rounding and consequently introduce a very small margin of error. The Qualified Persons responsible for this Technical Report do not consider such minor errors to be material to the calculations presented herein.

The conclusions and recommendations in this Technical Report reflect the Qualified Person’s best independent judgment in light of the information available at the time of writing.

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Summarized briefly below is key information in the Technical Report, including property description and ownership, geology and mineralization, the status of exploration and development, Mineral Resource Estimate, metallurgical testing, environmental and conclusions and recommendations of the Qualified Persons.

Location and Property Description

San Sebastian del Oeste (San Sebastián) is an historic silver and gold mining district located in southwestern Jalisco State, approximately 155 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, La Quiteria (130 tonnes per day ( tpd)), continues to operate in the district. The San Sebastián Properties acquired by Endeavour Silver surround the La Quiteria Mine and represent a new, district-scale, silver-gold exploration opportunity for the Company.

Ownership

In February, 2010, Endeavour Silver acquired an option to purchase the San Sebastián silver-gold Properties in Jalisco State from Industrias Minera México S.A. de C.V. (IMMSA), also known as Grupo Mexico, one of the largest mining companies in Mexico.

Endeavour Silver holds the Terronera Project through its 100% owned Mexican subsidiary, Endeavour Gold Corporation S.A. de C.V. (Endeavour Gold). Endeavour Gold holds the Project through its 100% owned subsidiaries Terronera Precious Metals S.A. de C.V. (TPM) and Minera Plata Adelante S.A. de C.V. (Minera Plata).

At present, the Terronera Project is comprised of 24 mineral concessions totalling 17,369 hectares (ha) and certain surface lands upon which future mining surface operations, mineral processing, and tailings and waste rock storage are proposed to occur. The core group of 10 concessions totalling 3,388 ha was owned by IMMSA. These concessions cover the main area of the known mining district. In 2013, Endeavour Silver completed the acquisition of a 100% interest in the San Sebastián Properties from IMMSA. IMMSA retained a 2% NSR royalty on mineral production from the properties.

In 2012, Endeavour Silver also filed and received title for two concessions (San Sebastián 10 Fracc. 1 and Fracc. 2) totalling 2,078 ha. Additionally, in 2013, Endeavour Silver filed a total of seven concessions (San Sebastian 12, San Sebastian 13, San Sebastian 14, San Sebastian 15, San Sebastian 16, San Sebastian 17 and San Sebastian 18) totalling 4,163 ha. To date, five of these concessions have been titled, with the exception of San Sebastian 15 and San Sebastian 16, which were filed again on November and August of 2018 respectively.

In 2015, Endeavour Silver acquired an option to purchase a group of properties (Los Pinos Fracc. I, Los Pinos Fracc. II and La Fundisión 2 Fracc. I, totalling 8,373 ha), surrounding the San Sebastián silver-gold Properties, from Agregados Mineros de Occidente S.A. de C.V. (AGREMIN). In addition, in 2017 Endeavour Silver also acquired from AGREMIN another option to purchase the La Única Fracc. II (3,538 ha) concession. These Properties and Agreement were transferred by AGREMIN to its related Company named Compañia Plata San Sebastian S.A. de C.V. On December 2018, the option agreement for La Fundision 2 Fracc. I (Title 228866) and La Única Fracc. II (Title 225185) concessions, was terminated. The cancellation is currently in process.

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At the end of 2017, Endeavour Silver acquired a total of three concessions at the southern boundary of the San Sebastian Properties which were called Cerro Gordo 1 (499.7 ha), Cerro Gordo 2 (500 ha) and Cerro Gordo 3 (400 ha). Two of these concessions have been titled, with the exception of Cerro Gordo 3 (filed again in June of 2018). In early 2018, Endeavour Silver filed and received title for two more concessions in the area: Cerro Gordo 4 (400 ha) and Cerro Gordo 5 (399 ha).

In August of 2018, Endeavour Silver acquired an exploration and option agreement covering the property named La Unica Fracc. I (2157 ha) from Compañia Plata San Sebastian S.A. de C.V.

The annual 2019 concession tax for all the San Sebastian Properties was MXP 4,138,726 which is equal to US $206,936 (at an exchange rate of 20 MXP to US$1.00 dollar).

History

Although the San Sebastián silver and gold mines were first discovered in 1542, and there were several periods of small-scale mining over the last 450 years, the only significant modern exploration in the district was carried out by IMMSA in the late 1980s and early 1990s.

As is the case with many mines in Mexico which were owned by individuals or corporations, the historical production records have not survived the revolutions, passing of the individual owners, closing of the mines, corporate failure, or government seizure of assets. Therefore, the exact San Sebastián area silver production is unknown.

Geology and Mineralization

The San Sebastián Properties cover a classic, low sulphidation, epithermal vein system in four mineralized vein sub-districts named Los Reyes, Santiago de Los Pinos, San Sebastián and Real de Oxtotipan. Each sub-district consists of a cluster of quartz (calcite, barite) veins mineralized with sulphide minerals (pyrite, argentite, galena and sphalerite). Each vein cluster spans approximately 3 km x 3 km in area. In total, more than 50 small mines were developed historically on at least 20 separate veins.

The San Sebastián veins tend to be large and can host high grade silver-gold mineralized deposits. For example, the La Quiteria Vein ranges up to 15 m thick, and the Santa Quiteria Mine averages about 280 g/t silver (Ag) and 0.5 g/t gold (Au) over a 3 m to 4 m width. This high grade mineralized zone appears to extend into the San Sebastián Properties both along strike and immediately down dip.

Exploration

In 2010, Endeavour Silver commenced exploration activities on the Terronera Project and in 2011 the first drilling campaign was conducted at the Real Alto (Real, Animas-Los Negros, Escurana and Tajo veins) and Quiteria West Targets. In 2012, the surface drilling program continued at Real Alto and a single deep drill hole was drilled at Quiteria West.

The first Endeavour Silver drilling program over the Terronera Vein was conducted from early 2012 to the end of 2016; the structure has been tested with 149 drill holes totalling 43,526 m. Additionally, seven drill holes were completed at the Terronera North area (2,783 m).

In 2016, exploration activities focused on the definition and evaluation of new drilling targets around the Terronera Project and near the proposed future mine operations. Nine drilling targets were tested, including the discovery of the La Luz Vein.

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Between 2011 and 2016, Endeavour Silver had drilled 70,885 m in 248 diamond drill holes over the entire Terronera Project. Holes were drilled from surface and 22,351 samples have been collected and submitted for analysis.

During 2017, a total of 12,252 m was drilled in 47 drill holes, with the objective to add Mineral Resources to the Terronera Project. This drilling was mainly conducted at the La Luz Deposit. To date a total of 41 drill holes have been completed over that structure totalling 9,796 m. Eight other structures were also tested: El Muro, Los Espinos, Los Reyes, El Fraile, Vista Hermosa, La Escondida, La Atrevida and Quiteria West. The 2017 drilling program included 2,308 assay samples.

During 2018, a total of 18,774 m was drilled in 39 surface diamond drill holes to further delineate the Terronera Vein, including 3,007 samples collected and submitted for analysis

In late 2018, Endeavour Silver engaged Knight Piésold Ltd. (“KP”) to provide geomechanical and hydrogeological support for the proposed underground mine for the La Luz Vein of the Terronera Project. The investigation program consisted of geomechanical drill holes with core orientation and detailed geomechanical logging, a hydrogeological packer testing at approximately 30 m downhole intervals, and a nested vibrating wire piezometer installation. Two drill holes were completed by the end of 2018, totalling 405 m. One drill hole was still pending completion for early 2019. The analysis of this recent work is currently in progress.

2013 Mineral Resource Estimate

The Mineral Resource Estimate discussed in the Technical Report Audit of the Mineral Resource Estimate for the San Sebastian Project dated March 27, 2014 was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on November 27, 2010. The effective date of that Mineral Resource Estimate is December 31, 2013.

2015 Mineral Resource Estimate

In 2015, P&E updated the Terronera Project Mineral Resource Estimate. As of April 30, 2015, the Terronera Vein was estimated to contain Indicated Mineral Resources of 2.9 Mt at 211 g/t Ag and 1.65 g/t Au and Inferred Resources of 1.2 Mt at 218 g/t Ag and 1.39 g/t Au. The cut-off grade was 100 g/t AuEq, using a 70:1 ratio based on prices of US $18/oz silver and US $1,250/oz gold.

2017 Mineral Resource and Mineral Reserve Estimates

The Mineral Resource and Mineral Reserve Estimates presented in the initial PFS were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014. The effective date of the Mineral Resource and Mineral Reserve Estimates is April 3, 2017. As of May 11, 2017, the Terronera Vein was estimated to contain Indicated Mineral Resources of 3,959,000 t at 232 g/t Ag and 2.18 g/t Au and Inferred Mineral Resources of 720,000 t at 309 g/t Ag and 1.48 g/t Au. The cut-off grade was 150 g/t AgEq, using a 70:1 ratio based on US $18/oz silver and US $1,225/oz gold

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August 2018 Mineral Resource and Mineral Reserve Estimates

The Mineral Resource and Mineral Reserve Estimates presented in the Updated Preliminary Feasibility Study were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014. The effective date of the Mineral Resource and Mineral Reserve Estimates is August 1, 2018. As of August 7, 2018, the Terronera Vein was estimated to contain Indicated Mineral Resources of 4,363,000 t at 239 g/t Ag and 2.53 g/t Au and Inferred Mineral Resources of 1,073,000 t at 252g/t Ag and 2.38 g/t Au. The cut-off grade was 150 g/t AgEq, using a 75:1 ratio based on US $17/oz silver and US $1275/oz gold.

2019 Mineral Resource Estimate

The Mineral Resource Estimate presented in this Updated Mineral Resource Estimate Technical Report was estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014. The effective date of the Mineral Resource Estimate is February 1, 2019.

Cut-Off Grade

The cut-off grade selected for the 2019 Mineral Resource Estimate was 150 g/t silver equivalent (AgEq). See Section 14.12 for AgEq cut-off details based on metal prices of US $17.50/oz silver and US $1,275/oz gold and is presented in Table 1.1.

TABLE 1.1 SUMMARY OF THE UPDATED TERRONERA MINERAL RESOURCE ESTIMATE AT A CUT-OFF GRADE OF 150 G/T AGEQ (1-5)
Classification	Tonnage (kt)	Ag (g/t)	Contained Ag (koz)	Au (g/t)	Contained Au (koz)	AgEq (g/t)	Contained AgEq (koz)
Indicated	5,275	227.2	38,537	2.35	398	403.4	68,416
Inferred	1,022	212.2	6,970	1.70	56	339.8	11,161

1.	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio- political, marketing, or other relevant issues.
2.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.	The Mineral Resources in this report were estimated using the CIM Definition Standards for Mineral Resources and Mineral Reserves.
4.	AgEq g/t = Ag g/t + (Au g/t x 75)
5.	Historical mined areas were depleted from the Terronera Vein wireframeand Mineral resource model.

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A summary of the La Luz Mineral Resource Estimate at a cut-off grade of 150 g/t AgEq is presented in Table 1.2.

TABLE 1.2 LA LUZ MINERAL RESOURCE ESTIMATE AT A CUT-OFF GRADE OF 150 G/T AGEQ (1-5)
Classification	Tonnage (kt)	Ag (g/t)	Contained Ag (koz)	Au (g/t)	Contained Au (koz)	AgEq (g/t)	Contained AgEq (koz)
Indicated	126	192	779	13.60	55	1,212	4,904
Inferred	58	145	269	12.15	23	1,060	1,994

1.	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio- political, marketing, or other relevant issues.
2.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3.	The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4.	AgEq g/t = Ag g/t + (Au g/t x 70)

Mineral Processing and Metallurgical Testing

ALS Metallurgy (ALS) conducted locked and open cycle flotation tests for the Terronera Project at its metallurgical testing facility in Kamloops, B.C. The primary objectives of the test program were to enhance the levels of precious metal recovery and improve final concentrate grades.

The open cycle flotation data developed by ALS indicate that at a relatively coarse primary grind size, a medium grade gold and silver bearing second cleaner concentrate may be produced. The process flow sheet includes a two stage crushing circuit followed by closed circuit grinding to achieve a flotation feed grind size of 80% passing 150 mesh (100 microns). Flash flotation inclusion in the grinding circuit improves the levels of recovery. A regrind circuit provides improved liberation of precious metals mineralization and higher final concentrate grade. The Project will produce a high grade concentrate with the expected overall recoveries of

• Gold 80.4% and Silver 84.6%.

Further studies are recommended to upgrade the process plant feed, lower the grinding costs, and increase process recoveries.

Environmental Studies, Permitting, and Social Impact

The Company submitted a Manifest of Environmental Impact (MIA) to the Mexico environmental permitting authority known as SEMARNAT (Secretaria de Medio Ambiente y Recursos Naturales) in December, 2013.

A SEMARNAT permit for the Terronera Project was issued in October, 2014 for a 500 tpd project with tailings reporting to a traditional slurry deposit.

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In February, 2017 a modified MIA application was issued by SEMARNAT to expand the proposed process rate to up to 1,500 tpd and to establish a future proposed tailings facility to store filtered dry tailings.

The Terronera Mine Project is designed to comply with the environmental regulations and standards in place in México. The proposed future mining infrastructure and supporting facilities are designed to minimize the impact to the natural environment.

Mexican law requires that an environmental monitoring program of surface and ground water, creek sediments, soil, air, vegetation and wildlife conditions be implemented. The current SEMARNAT regulatory objective is to limit transmission of contaminants such that pre-mining environmental conditions are maintained downstream of the permitted mine perimeter. This program will be required before and during proposed future mining operations and after mine closure.

Conclusions and Recommendations

The Terronera and La Luz Mineral Resource Estimates presented herein conform to the current CIM Definition Standards for Mineral Resources and Mineral Reserves, as required under NI 43-101 “Standards of Disclosure for Mineral Projects.” The estimation approach and methodology used is reasonable and appropriate based on the data available.

The Terronera Project is subject to technical, legal, environmental, and political risks that are similar to the risks faced by Endeavour Silver on its other current operations in Mexico. The Qualified Persons named in this Technical Report consider these risks to be manageable and should not have an adverse effect on the continued development of the Terronera Project.

Given the risk-mitigating features of the Terronera Project and the positive results of this Updated Mineral Resource Estimate, the Qualified Persons recommended that Endeavour Silver budget the following:

•	Geology and vein targeting	US$ 200,000.
•	2nd Updated Pre-Feasibility Study	US$1,200,000.

El Compas Project, Zacatecas State, Mexico

On May 11, 2017, the Company filed the NI 43-101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico (“El Compas PEA”) prepared by Smith Foster and Associates with an effective date of March 27, 2017 and dated May 11, 2017. With the exception of some minor changes to terms for consistency with terms used in this AIF, the below summary is a direct extract and reproduction of the summary contained in the El Compas PEA, without material modification or revision. The complete report can be viewed on SEDAR at www.sedar.com. The El Compas PEA is incorporated by reference in its entirety into this AIF.

Executive Summary

Introduction

Endeavour Silver Corp. (Endeavour Silver) commissioned Smith Foster & Associates Inc. (SFA) to prepare a Preliminary Economic Assessment (PEA) for the El Compas Project compliant with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101).

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Endeavour Silver is a mid-tier silver mining company engaged in the exploration, development, and production of mineral properties in Mexico. Endeavour Silver is focused on growing its production and Mineral Reserves and Mineral Resources in Mexico. Since start-up in 2004, Endeavour Silver has posted numerous consecutive years of growth of its silver mining operations. Endeavour Silver owns and operates the Guanaceví Mine located in the northwestern Durango State, and the El Cubo and Bolañitos Mines, both located near the city of Guanajuato in Guanajuato State, Mexico. In May, 2016 Endeavour Silver acquired Oro Silver Resources Ltd. which owned the El Compas gold-silver mine property and held a five-year renewable lease on the 500tpd La Plata mineral processing plant in Zacatecas, Mexico. This report follows the format and guidelines of Form 43-101F1, Technical Report for National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101), and its Companion Policy 43-101 CP, as amended by the CSA and which came into force on June 30,2011.

This report has an effective date of March 27, 2017. The Mineral Resource Estimate reported in this report complies with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards and definitions, as required under NI 43-101 regulations.

This report includes technical information which requires subsequent calculations or estimates to derive sub-totals, totals, and weighted averages. Such calculations or estimations inherently involve a degree of rounding and consequently introduce a margin of error. The QP’s do not consider such errors to be material to the calculations presented herein.

The conclusions and recommendations in this report reflect the QP's best independent judgment in light of the information available at the time of writing.

Summarized briefly below is key information in the report, including property description and ownership, geology and mineralization, the status of exploration and development, Mineral Resource and Mineral Reserve Estimates, mineral processing and metallurgical testing, environmental studies and permitting, capital and operating costs, economic analysis, and the QP’s conclusions and recommendations.

Location and Property Description

The 3,990 hectare El Compas property is located in the southern portion of the state of Zacatecas, Mexico. The El Compas Project comprises a mine site to the south of Zacatecas city and a plant site to the north of the city. The two sites are connected by 20km of gravel road and each site is close to paved roads that connect that site to Zacatecas city.

The state of Zacatecas constructed the La Plata processing plant in 2012/13 to service local small miners in the area. The plant operated for 13 months before closing in October, 2014. The plant is leased to Endeavour Silver on the basis it will accept up to 20% of the feed for the plant on a toll basis from local small miners.

Ownership

On May 30, 2016 Endeavour Silver completed the acquisition of Oro Silver Resources Ltd., a wholly-owned subsidiary of Canarc Resource Corporation (Canarc), which held the El Compas gold-silver mine property and a five-year renewable lease on the 500tpd La Plata mineral processing plant.

The project is comprised of 28 concessions fully permitted for mining. Of these, 22 concessions are subject to a 1.5% net smelter return royalty, while 6 concessions are subject to a 3.0% NSR royalty.

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History

The mining district of Zacatecas was mined from 1570 to the start of the Mexican Revolution in 1910. Most of the mining in this period was by small-scale shaft excavations. Several mining companies explored the area from the mid -1990’s to the present.

In 2005, Minera Hochschild de Mexico S.A. de C.V. (MHM) carried out an extensive exploration program focused mainly on the El Compas vein system. The program identified numerous targets characterized by north and northwest trending mineralized veins and faults of which eight were tested by diamond drilling. A total of twenty holes totaling over 5,516m were drilled. Significant gold and silver grades were found at depth in many of the target structures, including 15.2 g/t Au and 155 g/t Ag over 1.05m from the El Compas 4 Vein, located 1.4km southeast of the El Compas Vein.

An initial Mineral Resource Estimate for the El Compas deposit was completed in 2011 by SRK Consulting and, in 2016, Mining Plus Canada Consulting Ltd. prepared an updated Mineral Resource Estimate for Canarc.

Local small miners supplied the La Plata processing plant with mill feed during the time it operated from September, 2013 to October, 2014. No details of the amounts mined or processed are on record.

Geology and Mineralization

The Zacatecas mining district is located at the transition of the Sierra Madre Occidental and Mesa Central physiographic provinces in north-central Mexico and is marked by the north-west striking Rio Santa Maria fault system. The district covers a belt of Tertiary aged epithermal vein deposits that contain silver, gold and base metals including copper, lead and zinc. The dominant structural features that localize mineralization are of Tertiary age, and are interpreted to be related to the development of a volcanic center with subsequent caldera development and north-westerly trending basin-and-range structures.

The veins at El Compas strike predominantly north and north-west and are hosted partly in volcanic and sedimentary rocks of the Chilitos formation and partly in overlying volcanic rocks of the La Virgen formation.

The Compas and Orito veins have the characteristics of a low sulfidation epithermal vein system. They occur in a region characterised by numerous, high silver-grade intermediate sulfidation epithermal vein systems.

Exploration Program

From the mid 1990’s until the present a number of companies have explored the Orito district. District-wide surface exploration in 2005 by Minera Hochschild de Mexico S.A. de C.V. (MHM) identified numerous targets characterized by north and/or north-west trending mineralized veins and faults, eight of which were tested by diamond drilling. In total 5,516m of drilling in 20 NQ holes were completed. Results of the drilling confirmed the presence of significant gold and silver grades at depth in a number of the target structures tested.

From November, 2007 to August, 2013, Oro Silver completed three phases of a diamond drill program. The objectives of this program were to expand the Compas and Orito Mineral Resource Estimates where they were still open, upgrade Inferred Mineral Resources to the Indicated Mineral Resource category by infill drilling, confirm the continuity of grade and thickness in areas of higher grade mineralization with close spaced drilling and, finally, to test the El Compas and other veins for higher grade gold and silver mineralization at significantly deeper levels than in the past.

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The results from both MHM and Oro Silver drilling were utilized in the current Mineral Resource Estimate after drilling by Endeavour Silver verified the earlier drilling.

In late 2016, Endeavour Silver drilled 5,306m over 21 drill holes on the Ana Camila vein, a splay of the Orito vein located about 550m southeast of Orito. This drilling is exploratory in nature and Endeavour Silver has outlined a new high-grade, south plunging mineralized zone over 250m long by 100m deep, starting approximately 100m below surface and still open to surface and at depth and it has not been added to the Mineral Resource Estimate that is part of this 43-101 report.

Mineral Resource Estimate

The Mineral Resource Estimate presented herein is reported in accordance with the Canadian Securities Administrators’ National Instrument 43-101 and has been estimated in conformity with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)Definition Standards for Mineral Resources and Mineral Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on November 27, 2010. The effective date of this Mineral Resource Estimate is March 27, 2017.

The Mineral Resource Estimate was derived from applying a150 g/t AgEq cut-off grade to the block model and reporting the resulting tonnes and grade for potentially mineable areas.

Mineral Resource Cut-off Grade

The cut-off grade selected by Endeavour Silver for reporting the Mineral Resource Estimate is 150 g/t silver equivalent (AgEq), using a 70:1 Au to Ag ratio based on prices of US $18/oz silver and US $1,225/oz gold, with no base metal credits applied.

A summary of the Mineral Resource at a cut-off grade of 150 g/t AgEq is given in Table 1.1.

Table 1.1 Summary of the El Compas Mineral Resource Estimate at a Cut-off Grade of 150 g/t AgEq

Classification	Tonnes (000s)	Ag gpt	Au gpt	AgEq gpt	Ag oz (000s)	Au oz (000s)	AgEq oz (000s)
Indicated	148.4	104	7.31	616	495	34.9	2,939
Inferred	216.8	76	5.38	453	527	37.5	3,158

(1)	CIM definitions were followed for Mineral Resource Estimates
(2)	Mineral Resources are estimated by conventional 3D block modeling based on wire-framing at a 150 g/t AgEq cut-off grade and inverse distance cubed grade interpolation.
(3)	AgEq is calculated using the formula: AgEq= Ag g/t + (70*Au g/t).
(4)	For the purpose of Mineral Resource estimation, assays were capped between 15 to 60 g/t for Au and between 150 to 700 g/t for Ag.
(5)	Metal prices for the Mineral Resource Estimate are: US$18.00/oz Ag and US$1,225/ oz Au.
(6)	A bulk density of 2.99 tonnes/m3 has been applied for volume to tonnes conversion.
(7)	Grade model blocks are 1.25m x 2.5m x 2.5m
(8)	Mineral Resources are estimated from the 2,400m El to the 2,250m El, or from surface to approximately 150 m depth.
(9)	Mineral Resources are classified as Indicated and Inferred based on drill hole location, interpreted geologic continuity and quality of data.

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(10)	A small amount of the Mineral Resource was historically mined in the upper portion of the Compas Vein and this material has not been included in the Mineral Resource Estimate.
(11)	Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(12)	The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

Mineral Processing and Metallurgical Testing

Endeavour Silver contracted RDi to undertake metallurgical testwork with the primary objective of producing a saleable combined gravity and flotation concentrate. This would result in minimum capital to upgrade the existing process plant leased from the state government in Zacatecas, Mexico.

The testwork results indicate that a saleable gravity plus flotation concentrate can be produced with reasonable recoveries. The metal recoveries recommended for the economic model are 83.5% gold and 73% silver.

Mining Methods

The mine access portal is located in the wall of a nearby quarry just southwest of the Compas Vein. The development schedule focuses on critical-path development required to start development of the Compas Vein, and delays the non-critical path Orito Vein development.

Captive cut and fill mining is the proposed mining method for both the Compas and Orito Veins. Mine dilution is estimated to be 12%, represented by an approximate 30cm thick skin around the mining outline.

Dilution grades were estimated within this 30cm skin. Mine dilution and extraction was applied to stope mineable tonnes only.

A conceptualized captive cut and fill mining method plan has been laid out to extract the deposit using in-stope micro scooptrams and hand-held pneumatic drills. Primary access to the mineral deposit will be via a 535m long trackless haulage ramp, from the portal, at the 2265m elevation. The Compas and Orito Vein mineralization are connected by a 407m long haulage ramp.

Multiple working faces can be accessed by mining a number of stope lifts at the same time via up-and-down ramps constructed in the stopes on the backfill. There are an estimated 48 - 3m high lifts at the Compas Vein and 38 – 3m high lifts at the Orito Vein. Mining advances from the bottom up.

Fresh air enters the mining areas through the service raises in each mining area and also through the portal.

There is a total life-of-mine (LOM) 4,536m of mine and stope development planned.

The mineralized material to be mined in the mine plan totals 300,000 tonnes, containing 829,000 oz silver and 61,000 oz gold for 5,099,000 oz AgEq as shown in Table 1.2.

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Table 1.2 Summary of the Mineralized Material to be Mined

	Tonnes (‘000’s)	Ag g/t	Au g/t	AgEq g/t	Ag oz (‘000’s)	Au oz (‘000’s)	AgEq oz (‘000’s)
Indicated	114	99	6.81	576	363	25	2,113
Inferred	186	78	5.99	497	466	36	2,986

(1)	P&E Mining Consultants Inc. estimated diluted and extractable Mineralized Material to be mined using a cut-off grade of 200 g/t silver equivalent and employing captive cut and fill mining methodology.
(2)	Mining extraction was estimated at 95% and dilution was calculated at an average of 12%

Recovery Methods

The treatment of the El Compas process plant feed will be performed at the La Plata processing facility located 20 km from the mine. The process plant will be modified to produce a single gold-silver concentrate which would be sold to smelters or refineries. The process flowsheet will consist of conventional comminution, gravity and froth flotation.

Endeavour Silver will upgrade the existing plant so that it can safely and reliably process 250tpd of mill feed averaging ± 5 g/t Au and ± 96 g/t Ag.

The projected recoveries of gold and silver based on open-circuit rougher and cleaner flotation tests are 83.5% and 73%, respectively. The cleaner concentrate grade will be 868 g/t Au and 12,095 g/t Ag.

Environmental Studies, Permitting, and Social Impact

A Manifestación de Impacto Ambiental (MIA) for the El Compas Project was reviewed and approved by SEMARNAT in September, 2014. In an updated approval issued in March, 2016, the processing plant and tailings facility were removed from the MIA approval, as it was identified that Endeavour Silver would rely on leased existing facilities. This relieves Endeavour Silver of environmental and permitting liabilities associated with the processing and tailings management.

The processing plant and tailings facility are owned by the Zacatecas state government and collectively are known as the “La Plata” facility. The facility is operated by a trust called the Fideicomiso Público de Promoción y Desarrollo Minero. SEMARNAT approved MIA for the “La Plata” facility in July, 2012. Another important piece of environmental legislation is the Ley General de Desarrollo Forestal Sustentable (LGDFS). Article 117 of the LGDFS indicates that authorizations must be granted by SEMARNAT for land use changes to industrial purposes. An application for change in land use or Cambio de Uso de Suelo (CUS), must be accompanied by a Technical Supporting Study (Estudio Técnico Justificativo, or ETJ).

The CUS application for the El Compas Project, accompanied by an ETJ, was reviewed and approved by SEMARNAT in June, 2013. Similarly, the “La Plata” facility received its approved CUS in March, 2013.

The existing tailings storage facility (TSF) was previously designed, constructed, and operated for a limited time by others. The TSF will be modified to suit the requirements of El Compas, which include storing tailings for 4 years at a milling rate of 250 tonnes per day (tpd). The total capacity in the TSF is approx. 365,000 tonnes of tailings.

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Knight Piésold Ltd. (KP) developed the concept for tailings and water management in the TSF using the existing facilities. The tailings management concept utilizes upstream embankment expansions with fill and coarse drained tailings as construction materials placed and compacted in the upstream embankment zone.

Capital and Operating Costs

The El Compas Project has a total estimated capital cost of US$10million. The process plant upgrade costs are based on firm quotes from qualified local contractors and all estimates were prepared by engineers and construction personnel with direct experience on recent mine projects in Mexico.

Operating costs of US$70 per tonne for mining, US$26 per tonne for processing, and US$14per tonne for General and Administration were estimated using unit rates and costs for labour, material, and equipment taken from the current mine and plant operations of Endeavour Silver and electrical supply costs from the Commission Federal de Electricidad (CFE).

Economic Analysis

An economic analysis utilizing a pre-tax and after-tax cash flow financial model was prepared for the base case mine plan.

The metal prices assumed in the base case are US$18/oz silver and US$1,260/oz gold.

The Mexico tax policies for mining changed effective January 1, 2014. An overriding royalty on gross revenues, after smelter deductions, of 0.5% applies to precious metal mines (gold, silver and platinum). A new Special Mining Duty of 7.5% is levied on earnings before income tax and depreciation allowance. Corporate income taxes of 30% are applied to earnings after the usual allowable deductions for depreciation, loss carry-forwards etc. The Special Mining Duty and the over-riding royalty are also deductible for the purpose of calculating corporate income tax. The financial model incorporates these taxes in computing the after-tax cash flow amounts, NPV, and IRR.

The El Compas Project key financial indicators for the base case are as follows:

• After-tax rate of return 42.1%

• Project payback period 2.1years from start of production

• After-Tax Net Present Value (5% discount) of US$12,598,000

These key indicators describe a project whose base case is financially viable and which, as the sensitivity analysis in Table 1.3 demonstrates, has considerable upside potential should the size of the deposit increase or metal prices improve

Table 1.3 Base Case After-Tax NPV and IRR Sensitivities

	OperatingCosts		Initial Capital		Metal Prices
Variance	NPV (5%)	IRR	NPV (5%)	IRR	NPV (5%)	IRR
-20%	$      16.3	52.7%	$       14.5	55.5%	$        4.1	17.6%
-10%	$      14.5	47.4%	$       13.6	48.2%	$        8.4	30.2%
Base Case	$       12.6	42.1%	$       12.6	42.1%	$       12.6	42.1%
10%	$       10.5	35.8%	$       11.6	36.9%	$       16.4	52.1%
20%	$         8.4	29.5%	$       10.7	32.4%	$       20.2	61.8%

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(1) The PEA economic analysis is preliminary in nature in that it is based on production schedules that include Inferred Mineral Resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized or that Inferred Mineral Resources will ever be upgraded to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability

Conclusions and Recommendations

The El Compas Mineral Resource Estimate presented here conforms to the current CIM Definition Standards for Mineral Resources and Mineral Reserves, as required under NI 43-101 “Standards of Disclosure for Mineral Projects.” The estimation approach and methodology used is reasonable and appropriate based on the data available.

There are no known significant technical, legal, environmental, or political considerations which would have an adverse effect on the Mineral Resource Estimate or the continued exploration and development of the El Compas Property.

The QP’s conclude that the economic analysis of the El Compas Project is based on sound inputs and cost estimates that take significant risks out of the project and provide a reliable basis for quantifying the key financial indicators of the project and for examining the project’s most critical sensitivities.

These key indicators describe a project whose base case is financially profitable and which, as the sensitivity analysis demonstrates, has considerable upside potential should the size of the deposit increase or metal prices improve.

The QP’s conclude that, given the many positive features of the project, the manageable risks, and Endeavour Silver’s record of successfully developing similar projects in Mexico it is reasonable for Endeavour Silver to make a production decision on the basis of this PEA. Such a decision should be subject to Endeavour Silver obtaining an explosives permit and obtaining clarity by the state on its new Revenue Tax.

The QP’s recommend that Endeavour Silver:

• Acquires other properties to produce more process plant feed

• Continues exploratory drilling nearby mineralized bodies to extend mine life and possibly increase the mine production rate

• Considers long hole or mechanized mining methods in certain areas of the mine that may improve economics

• Carries out additional locked-cycle testing to further enhance gold and silver recoveries

• Completes geotechnical testing on additional tailings samples to confirm the material properties and suitability as a construction material for the tailings embankment

• Continues to meet with the state Government to clarify and confirm the amount of the new Environmental Tax applicable to El Compas

• Complies fully with all existing permit conditions

• Applies for an explosives permit

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Should Endeavour Silver make a production decision on the basis of this PEA, the QP’s stress that such a decision will not be based on a Pre-Feasibility Study or Feasibility Study stating Mineral Reserves demonstrating economic and technical viability and caution that historically such projects have a much higher risk of economic or technical failure.

The QP’s recommend that any development of El Compas be engineered, constructed, and operated in accordance with this PEA and subsequent technical studies.

El Compas Mines Project 2018 Company Update

Exploration update
In 2018, the Company spent $0.8 million on exploration activities, including drilling, at the El Compas Project. The exploration drilling program included 4,677 m (14 drill holes) of surface drilling at the Calicanto and Compas South targets.

In 2019, the Company plans to conduct a 5,500 metre surface drilling program with planned expenditures of $825,000 to test the extension of the El Compas vein, and continue to drill the Misie and Karla targets.

Mineral resources estimation
The estimation of the mineral resource for the El Compas mining operation is based on drill hole data constrained by geologic vein boundaries. Both, exploration and production data are used for modelling estimation and classification. The interpolation is assessed through Ordinary Kriging algorithm. The channel composite database cut-off date for mineral resource estimation was October 15, 2018.

The Company used criteria of distance from composites and the number of samples to classify the mineral resources into measured, indicated, inferred. Measured mineral resources are those blocks with at least 16 composites, laying within a distanced no greater than 15 metres. Indicated mineral resources are these blocks estimated by at least 4 composites laying no farther than 25 metres from samples. Inferred mineral resources are those blocks, which distance to borehole composites and channel samples is greater than 50 metres.

Mineral resources stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Measured	2,800	33	3.94	3,000	360
Indicated	76,700	80	4.75	197,200	11,700
Total Measured & Indicated	79,500	78	4.72	200,200	12,060
Total Inferred	211,700	74	5.37	503,400	57,500

Notes for mineral resource estimation

• Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the mineral resources will be converted into mineral reserves
• Mineral resources are exclusive of and in addition to mineral reserves
• El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.38 g/t gold equivalent.
• Minimum mining widths are 0.8 metres for mineral reserve estimate calculations

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• Dilution factor and Mining recovery for Mineral Resources are not applied.
• Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

Mineral reserves estimation

Stope designs for reporting the reserves were created utilizing the updated resources and cutoffs established for 2018.

The mining breakeven cut-off grade was utilized for defining the reserves. The cut-off is stated as silver equivalent since the ratio between gold and silver is variable and both commodities are sold. Two average cut-off grade used for the El Compas property: 196 g/t Ag equivalent for Area 2 and 217 g/t Ag equivalent for Areas 1 & 4. Silver equivalent grade is calculated as the silver grade in addition to gold grade multiplied by 75, taking into account gold and silver prices and expected mill recoveries.

Mineral reserves are derived from mineral resources after applying the economic parameters utilizing Datamine’s MSO program to generate stope designs for the reserve mine plan. The MSO stope designs are then used to design stopes on levels along with the required development for the final mine plans. Mineral reserves for the El Compas Mine have been derived and classified according to the following criteria:

• Proven mineral reserves are the economically mineable part of the Measured resource for which mining and processing / metallurgy information and other relevant factors demonstrate that economic extraction is feasible. For El Compas, this applies to blocks located within approximately 15 metres of existing development, and for which Endeavour has a mine plan in place.
• Probable mineral reserves are those Measured or Indicated mineral resource blocks which are considered economically viable and for which Endeavour has a mine plan in place. For the El Compas mine project, this is applicable to blocks located a maximum of 25 metres to 35 metres either vertically or horizontally from development and the drill holes data.

Mineral reserves stated as at 31 of December 2018

Resource Classification	Tonnes	Silver g/t	Gold g/t	Silver oz	Gold oz
Proven	37,600	90	3.99	108,800	4,800
Probable	29,000	94	4.31	87,700	4,000
Total Proven & Probable	66,600	92	4.13	196,500	8,800

Notes for mineral reserve estimation

• El Compas Mineral Resource and Mineral Reserve cut-off grades are based on a 3.38 g/t gold equivalent
• El Compas Metallurgical Recoveries are 83.0% for silver and 85.0% for gold
• Mining recoveries of 93% were applied for mineral reserve estimate calculations
• Minimum mining widths are 0.8 metres for mineral reserve estimate calculations
• Dilution factor is 24%. The dilution factors are calculated based on estimates of internal dilution of cameras and external empirical factors.
• Price assumptions are $17.26 per ounce for silver and $1,232 per ounce for gold

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Parral Properties

In October 2016, the Company acquired a 100% interest in the Parral properties located in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico. SGM, the Mexican Geological Survey, estimates historic production of approximately 250 million ounces (oz) of silver from this district. The properties cover 3,432 hectares, across three large properties, Veta Colorada, La Pamilla and San Patricio. These properties are accessible by paved highway and a well maintained gravel road only five kilometres north of the city of Hidalgo Del Parral. The area has excellent infrastructure including grid power, water, labour, services and three nearby 500 tonne-per-day plants. Historical drilling and sampling has shown La Palmilla property has strong potential to discover low-grade mineralization amenable to open pit mining, while all properties have excellent potential to discover new high-grade resources in under-explored areas along strike of Veta Colorada, San Patricio, Palmilla and numerous other veins on the properties. Some of these large veins have been traced for over eight kilometres. Land access agreements are already in place for exploration.

ITEM 5:         DIVIDENDS

5.1         Dividends

The Company has not declared any dividends during the past three fiscal years ended December 31, 2018. The Company otherwise has no present intention of paying dividends on its common shares as it anticipates that all available funds will be invested to finance further acquisition, exploration and development of its mineral properties.

ITEM 6:         DESCRIPTION OF CAPITAL STRUCTURE

6.1         General Description of Capital Structure

The Company’s authorized share capital is comprised of an unlimited number of common shares without par value. All common shares of the Company rank equally as to voting rights, dividends and participation in the distribution of assets upon dissolution, liquidation or winding-up and in all other respects. Each share carries one vote per share at meetings of the shareholders of the Company.

The following table provides a summary concerning the Company’s share capital as of December 31, 2018:

	December 31, 2018
Authorized share capital	Unlimited number of common shares without par value
Number of shares issued and outstanding	130,781,052 common shares without par value

As at February 22, 2019, the Company has 131,416,223 common shares issued and outstanding.

6.2         Constraints

The Company is not aware of any constraints imposed on the ownership of its securities to ensure that the Company has a required level of Canadian ownership.

6.3         Ratings

The Company is not aware of any ratings, including provisional ratings, from rating organizations for the Company’s securities that are outstanding and continue in effect.

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ITEM 7:        MARKET FOR SECURITIES

7.1         Trading Price and Volume

The Company’s common shares are listed for trading on the Toronto Stock Exchange (“TSX”) under the symbol “EDR” and on the New York Stock Exchange (“NYSE”) under the symbol “EXK”.

The following table sets forth the price ranges and volume traded of the common shares of the Company for each month in 2018 on the TSX, the Canadian marketplace on which the greatest volume of trading or quotation for the common shares generally occurs.

Month	High (Cdn.$)	Low (Cdn.$)	Volume Traded
Dec-18	3.03	2.27	6,333,793
Nov-18	2.88	2.35	2,874,676
Oct-18	3.34	2.45	4,538,688
Sep-18	3.10	2.75	2,655,668
Aug-18	3.80	2.76	4,033,853
Jul-18	4.40	3.72	3,448,797
Jun-18	4.35	3.52	5,208,506
May-18	4.04	3.50	5,191,335
Apr-18	4.09	3.05	7,916,337
Mar-18	3.29	2.72	6,565,423
Feb-18	3.05	2.53	5,373,232
Jan-18	3.42	2.84	6,901,832

The following table sets forth the price ranges and volume traded of the common shares of the Company for each month in 2018 as reported by the NYSE. The data includes common shares sold through the NYSE in connection with the 2018 ATM Offering and common shares sold through certain quotation systems in the United States.

Month	High (U.S.$)	Low (U.S.$)	Volume Traded
Dec-18	2.26	1.81	19,463,174
Nov-18	2.20	1.76	14,793,273
Oct-18	2.57	1.86	19,421,648
Sep-18	2.40	2.08	12,420,752
Aug-18	2.92	2.09	22,147,386
Jul-18	3.35	2.80	16,856,568
Jun-18	3.32	2.71	29,014,884
May-18	3.15	2.71	26,095,433
Apr-18	3.24	2.37	30,618,722
Mar-18	2.55	2.12	25,125,690
Feb-18	2.45	2.00	24,441,174
Jan-18	2.70	2.29	33,663,164

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ITEM 8:         ESCROWED SECURITIES

8.1         Escrowed Securities

To the Company’s knowledge, as at December 31, 2018, there were no escrowed common shares of the Company or common shares of the Company subject to contractual restriction on transfer.

ITEM 9:         DIRECTORS AND OFFICERS

9.1         Name, Occupation and Security Holding

The following is a list of the current directors and executive officers of the Company, their province/state and country of residence, their current positions with the Company and their principal occupations during the five preceding years. Each director is elected to serve until the next annual general meeting of shareholders or until his successor is elected or appointed, or unless his office is earlier vacated under any of the relevant provisions of the articles of the Company or the Business Corporations Act (British Columbia).

Name and Province/State and Country of Residence	Position	Date of Appointment as Director	Principal Occupation During Five Preceding Years
Bradford J. Cooke British Columbia, Canada	Director and Chief Executive Officer	July 25, 2002	Chief Executive Officer of Endeavour
Godfrey J. Walton British Columbia, Canada	Director, President and Chief Operating Officer	July 25, 2002	President and Chief Operating Officer of Endeavour
Ken Pickering(1)(3)(4) British Columbia, Canada	Director	August 20, 2012	Independent Director of several public mineral exploration and mining companies
Mario D. Szotlender(1)(2)(4) Caracas, Venezuela	Director	July 25, 2002	Independent Consultant and Director of several public mineral exploration and mining companies
Geoffrey Handley(1)(2)(3) Sydney, Australia	Director and Chairman	June 14, 2006	Independent Director of public mineral exploration and mining companies
Rex McLennan(2)(3)(4) British Columbia, Canada	Director	June 14, 2007	Independent Director of public mineral exploration and mining companies
Ricardo Campoy(1)(3) New York, USA	Director	July 9, 2010	Managing Director, Capstone Headwaters MB
Daniel Dickson British Columbia, Canada	Chief Financial Officer	N/A	Chief Financial Officer of Endeavour
Luis Castro Durango, Mexico	Vice President, Exploration	N/A	Vice President, Exploration of Endeavour

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Name and Province/State and Country of Residence	Position	Date of Appointment as Director	Principal Occupation During Five Preceding Years
Nicholas Shakesby Texas, USA	Vice President, Operations, Mexico	N/A	Vice President, Operations, Mexico of Endeavour since October 2018; Operations Manager, Mining Associates Ltd. from January 2015 to June 2018, Operations Manager, MMEX Mining from January 2008 to December 2014.
Dale Mah British Columbia, Canada	Vice President of Corporate Development	N/A	Vice President of Corporate Development of Endeavour since June 2016; Vice President, Geology, Quintana Resources Capital from April 2014 to May 2016; prior thereto, Mining Analyst, Dundee Capital Markets from January 2012 to April 2013
Christine West British Columbia, Canada	Vice President, Controller	N/A	Controller of Endeavour since January 2008; Appointed Vice President Controller of Endeavour March 2017
Bernard Poznanski British Columbia, Canada	Corporate Secretary	N/A	Lawyer, Koffman Kalef LLP, Business Lawyers

(1)	Member of Compensation Committee and Member
(2)	Member of Corporate Governance and Nominating Committee
(3)	Member of Audit Committee
(4)	Member of Sustainability Committee

As at February 22, 2019, the directors and executive officers of the Company as a group beneficially owned, or controlled or directed, directly or indirectly, an aggregate of 1,325,925 common shares of the Company, representing approximately 1.0% of the issued and outstanding common shares of the Company.

9.2         Cease Trade Orders, Bankruptcies, Penalties or Sanctions

Other than as disclosed herein, no director or executive officer of the Company is, as at the date of this AIF, or has been, within the ten years preceding the date of this AIF, a director, chief executive officer or chief financial officer of any company (including the Company) that

(a)

was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, when such order was issued while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company, or

(b)

was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, that was issued after such person ceased to be a director, chief executive officer or chief financial officer of the relevant company, and which resulted from an event that occurred while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company.

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Ricardo Campoy was a director of Century Mining Corporation (“Century”) when the BCSC issued a management cease trade order on May 5, 2009 in connection with Century’s failure to timely file financial statements and related management’s discussion and analysis for its financial year ended December 31, 2008. On June 16, 2009, the BCSC revoked this management cease trade order after Century filed the required records.

Mario Szotlender is a director of Fortuna Silver Mines Inc. (“Fortuna”) and was a director of Fortuna when a management cease trade order was issued by the BCSC on April 3, 2017 against the CEO and CFO of Fortuna in connection with Fortuna’s failure to timely file financial statements, related management discussion and analysis and an annual information form for its financial year ended December 31, 2016. Fortuna reported that the delay in the filing of these documents was due to pending resolution of a regulatory review of certain of the Company’s filings by the United States Securities and Exchange Commission. On May 25, 2017, the BCSC revoked this management cease trade order after Fortuna filed the required records.

Other than as disclosed herein, no director or executive officer of the Company or any shareholder holding a sufficient number of common shares of the Company to affect materially the control of the Company:

(a)	is, as at the date of this AIF, or has been, within the ten years preceding the date of this AIF, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets,
(b)	has, within the ten years preceding the date of this AIF, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of that person,
(c)	has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority, or
(d)	has been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision regarding the Company.

Geoffrey Handley was a director of Mirabela Nickel Limited (“Mirabela”) until January 11, 2014. On February 25, 2014, within a year of Mr. Handley ceasing to be a director, Mirabela announced that it had entered into a legally binding plan support agreement (“PSA”) which established a framework for a proposed recapitalization of Mirabela, subject to certain terms and conditions, as well as the appointment of certain persons of KordaMentha, a restructuring firm, as joint and several voluntary administrators under the Australian Corporations Act 2001. Mirabela also announced that, under the PSA, the proposed recapitalization was to be effected through a recapitalization and restructuring plan to be implemented through a deed of company arrangement in Australia and an extrajudicial reorganization proceeding to be filed by Mirabela Brazil before the competent Brazilian court. Trading in securities of Mirabela on the Australian Securities Exchange was suspended from October 7, 2013 to June 30, 2014.

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9.3         Conflicts of Interest

The Company's directors and officers may serve as directors or officers of other companies or have significant shareholdings in other resource companies and, to the extent that such other companies may participate in ventures in which the Company may participate, the directors of the Company may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation. In the event that such a conflict of interest arises at a meeting of the Company's directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms. From time to time several companies may participate in the acquisition, exploration and development of natural resource properties thereby allowing for their participation in larger programs, permitting involvement in a greater number of programs and reducing financial exposure in respect of any one program. It may also occur that a particular company will assign all or a portion of its interest in a particular program to another of these companies due to the financial position of the company making the assignment. In accordance with the laws of British Columbia, the directors of the Company are required to act honestly, in good faith and in the best interests of the Company. In determining whether or not the company will participate in a particular program and the interest therein to be acquired by it, the directors will primarily consider the degree of risk to which the Company may be exposed and its financial position at the time.

The directors and officers of the Company are aware of the existence of laws governing the accountability of directors and officers for corporate opportunity and requiring disclosure by the directors of conflicts of interest and the Company will rely upon such laws in respect of any directors' and officers' conflicts of interest in or in respect of any breaches of duty by any of its directors and officers. All such conflicts will be disclosed by such directors or officers in accordance with the Business Corporations Act (British Columbia) and they will govern themselves in respect thereof to the best of their ability in accordance with the obligations imposed upon them by law.

To the best of its knowledge, the Company is not aware of any such conflicts of interest.

ITEM 10:         PROMOTERS

Since January 1, 2017 no person or company has acted as a promoter of the Company.

ITEM 11:         LEGAL PROCEEDINGS

11.1         Legal Proceedings

Other than discussed below, there are no material legal proceedings in the Company’s last fiscal year to which the Company is a party or to which any of its property is subject, and there are no such proceedings known to the Company to be contemplated.

Minera Santa Cruz y Garibaldi SA de CV (“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.

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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 ($6.2 million) tax assessment based on the June 2015 ruling. The 2016 tax assessment is 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 ($2.0 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 and 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 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 6.3 million ($0.3 million) and inflationary charges of MXN 9.5 million ($0.5 million) has accumulated.

Included in the Company’s consolidated financial statements, are net assets of $595,000, 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. As of December 30, 2016, the Company recognized an allowance for transferring the shares and assets of MSCG amounting to $595,000. The Company is currently assessing MSCG’s settlement options based on ongoing court proceedings and discussion with the tax authorities.

11.2         Regulatory Actions

During the year ended December 31, 2018, there were no penalties or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority and there were no settlement agreements that the Company entered into before a court relating to securities legislation or with a securities regulatory authority. Except as described in item 11.1, there are no other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision.

ITEM 12:         INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

12.1         Interest of Management and Others in Material Transactions

None of the following persons or companies has had any material interest, direct or indirect in any transaction since January 1, 2016 that has materially affected or is reasonably expected to materially affect the Company:

(a)	a director or executive officer of the Company;
(b)	a person or company that beneficially owns, or controls or directs, directly or indirectly more than 10% of any class or series of the outstanding voting securities of the Company; and
(c)	an associate or affiliate of any of the persons or companies referred to in the above paragraphs (a) or (b).

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The Company’s directors and officers may serve as directors or officers of other public resource companies or have significant shareholdings in other public resource companies and, to the extent that such other companies may participate in ventures in which the Company may participate, the directors of the Company may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation. The interests of these companies may differ from time to time. See “Risk Factors – Potential Conflicts of Interest” and “Conflict of Interest”

ITEM 13:         TRANSFER AGENT AND REGISTRAR

13.1         Transfer Agent and Registrar

The transfer agent and registrar for the common shares of the Company is Computershare Investor Services Inc. at its principal offices in Vancouver, British Columbia and Toronto, Ontario.

ITEM 14:         MATERIAL CONTRACTS

14.1         Material Contracts

Other than noted below, there are no contracts that are material to the Company that were entered into during the financial year ended December 31, 2018 or prior thereto but which are still in effect, other than contracts entered into in the ordinary course of business of the Company:

ITEM 15:         INTERESTS OF EXPERTS

15.1         Names of Experts

KPMG LLP is the external auditor of the Company and reported on the fiscal 2018 audited financial statements of the Company filed on SEDAR.

The Qualified Persons who completed the reserves and resources estimate for the Guanaceví Project are Zachary J. Black, SME-RM, Jeffery W. Choquette, P.E. and Jennifer J. Brown, SME-RM, of Hard Rock Consulting. They are the authors of the report “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico” dated March 3, 2017 and amended March 27, 2018 (effective date of December 31, 2016) filed on SEDAR. The Qualified Persons who completed the reserves and resources for the Bolañitos Mines Project are Zachary J. Black, SME-RM, Jeffery W. Choquette, P.E. and Jennifer J. Brown, SME-RM, of Hard Rock Consulting. They are the authors of the report “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolañitos Project, Guanajuato State, Mexico” dated March 3, 2017 and amended March 27, 2018 (effective date of December 31, 2016) filed on SEDAR.

The Qualified Persons who completed the estimate of the reserves and resources for the El Cubo Mine are Zachary J. Black, SME-RM, Jeffery W. Choquette, P.E. and Jennifer J. Brown, SME-RM, of Hard Rock Consulting. They are the authors of the report “National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico” dated March 3, 2017 and amended March 27, 2018 (effective date of December 31, 2016) filed on SEDAR.

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The Qualified Persons who completed the Preliminary Economic Assessment for the El Compas Project are Peter J. Smith, P. Eng. of Smith Foster & Associates, Ken Embree, P. Eng. of Knight Piesold Consulting, Jarita Barry, P. Geo., David Burga, P. Geo., Yungang Wu, P. Geo., P. Geo., James L. Pearson, P. Eng. Eugene Puritch, P. Eng., FEC, of P&E Mining Consultants Inc., and Deepak Malhotra, PhD. of Resource Development Inc. They are the authors of the report “NI 43-101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” dated May 11, 2017 (effective date of March 27, 2017) filed on SEDAR.

The Qualified Persons who completed the Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project are Peter J. Smith, P. Eng. of Smith Foster & Associates, David Burga, P. Geo., Yungang Wu, P. Geo., P. Geo., Eugene J. Puritch, P. Eng, FEC, CET of P&E Mining Consultants Inc., Eugenio Iasillo, P. E. of Processing Engineering L.L.C., Benjamin Peacock. P. Eng., of Knight Piesold Consulting and Humberto F. Preciado, Ph.D., P.E. of Wood Environment and Infrastructure Solutions, Inc. They are the authors of the report “NI 43-101 Technical Report Updated Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” dated September 17, 2018effective date of August 7, 2018) filed on SEDAR.

The Qualified Persons who completed the Updated Mineral Resource Estimate Technical Report for the Terronera Project are David Burga, P. Geo., Yungang Wu, P. Geo., P. Geo., Eugenio Iasillo, P.E., Humberto Preciado, P. E. and Eugene J. Puritch, P. Eng, FEC, CET of P&E Mining Consultants Inc., They are the authors of the report “Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico” dated February 22, 2019 with an effective date of February 1, 2019) filed on SEDAR.

Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in the Updated Company Mineral Reserve and Resource Estimates of the Guanaceví Mine, the Bolañitos Mine, the El Cubo Mine, the El Compas Mine and the Guadalupe y Calvo and Parral exploration projects.

15.2         Interests of Experts

KPMG LLP is the auditor of the Company and has confirmed with respect to the Company that it is independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations and also that it is a firm of independent accountants with respect to the Company under all relevant United States professional and regulatory standards.

To the best of the Company’s knowledge, other than Mr. Walton, the other experts named in Item 15.1 did not have any registered or beneficial interest, direct or indirect, in any securities or other property of the Company when the experts prepared their respective reports or afterwards, nor will they receive any such interest.

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ITEM 16:         ADDITIONAL INFORMATION

16.1         Additional Information

Additional information relating to the Company may be found on SEDAR at www.sedar.com. Additional information, including directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities and securities authorized for issuance under equity compensation plans, if applicable, is contained in the Company’s Information Circular for its most recent Annual General Meeting of shareholders held on May 3, 2018. Additional financial information is also provided in the Company’s financial statements and management’s discussion and analysis for its most recently completed financial year ended December 31, 2018.

16.2         Audit Committee

1.             The Audit Committee’s Charter

National Instrument 52-110 - Audit Committees (“NI 52-110”) requires every issuer to disclose certain information concerning the constitution of its audit committee and its relationship with its independent auditor, as set forth below.

2.             Composition of the Audit Committee

The Company’s audit committee is comprised of four directors, as set forth below:

Geoffrey Handley Ricardo Campoy Ken Pickering Rex McLennan

As defined in NI 52-110, Geoffrey Handley, Ken Pickering, Ricardo Campoy and Rex McLennan are “independent” directors. The Company therefore meets the requirement in NI 52-110 that all audit committee members be independent directors.

All of the members of the audit committee are financially literate.

3.             Relevant Education and Experience

Geoffrey Handley – Mr. Handley is a geologist with a Science Degree and over 30 years of experience in the exploration and mining industry which included analyzing the financial statements of mining companies as an investment analyst and, later, as the manager/executive responsible for corporate mergers and acquisition activities at Placer Dome Inc.

Ricardo Campoy – Mr. Campoy has a Bachelor of Science in Mine Engineering from the Colorado School of Mines and a Master of International Management (Finance) from the American Graduate School of International Management. Mr. Campoy has over 30 years of experience as a mine engineer, investment banker and financial advisor for the resource industry, financial institutions and investment funds.

Ken Pickering - Mr. Pickering is a professional engineer and mining executive with more than 45 years of experience working in the natural resource sector building and managing major mining operations in Canada, Chile, Australia, Peru and the United States.

85
Endeavour Silver Corp.

Rex McLennan - Mr. McLennan holds a Master of Business Administration degree (Finance & Accounting) from McGill Universityand a Bachelor of Science degree (Mathematics & Economics) from the University of British Columbia. Mr. McLennan has an ICD.D designation with the Canadian Institute of Corporate Directors. Mr. McLennan was a past Chief Financial Officer of Viterra Inc., a major global agricultural commodity company, and from 1997 to 2005, he was the Executive Vice President and Chief Financial Officer of Placer Dome Inc., a major global mining company. In his earlier career in the oil and gas industry he held positions of increasing responsibility in business planning, finance and treasury for Imperial Oil, a publicly traded Canadian subsidiary of Exxon Corporation.

4.             Reliance on Certain Exemptions

At no time since the commencement of the Company’s most recently completed financial year has the Company relied on the following exemptions or provisions under NI 52-110:

(a)	the exemption in section 2.4 (De Minimis Non-audit Services),
(b)	the exemption in section 3.2 (Initial Public Offerings),
(c)	the exemption in subsection 3.3(2) (Controlled Companies)
(d)	the exemption in section 3.4 (Events Outside Control of Member),
(e)	the exemption in section 3.5 (Death, Disability or Resignation of Audit Committee Member), or
(f)	the exemption in section 3.6 (Temporary Exemption for Limited and Exceptional Circumstances)
(g)	section 3.8 (Acquisition of Financial Literacy),
(h)	an exemption from NI 52-110, in whole or in part, granted under Part 8 (Exemptions).

5.             Audit Committee Oversight

At no time since the commencement of the Company’s most recently completed financial year has a recommendation of the audit committee to nominate or compensate an external auditor not been adopted by the Board of Directors.

6.             Pre-Approval Policies and Procedures

The audit committee has not adopted specific policies and procedures for the engagement of non-audit services. Subject to the requirements of NI 52-110, the engagement of non-audit services is considered by the Company’s Board of Directors and, where applicable, by the audit committee, on a case-by-case basis.

7.             External Auditor Service Fees (By Category)

Set forth below are details of certain service fees paid to the Company’s external auditor in each of the last two fiscal years for audit services:

Financial Year End	Audit Fees(1)	Audit-related Fees(2)	Tax Fees(3)	All Other Fees(4)
December 31, 2018	Cdn.$582,500	Nil	Nil	Nil
December 31, 2017	Cdn.$463,400	Nil	Nil	Nil

(1)	Relates to fees for audit services.
(2)	Relates to fees for assurance and related services by the Company’s external auditor that are reasonably related to the performance of the audit or review of the issuer’s financial statements and are not reported under “Audit Fees”.
(3)	Relates to fees for professional services rendered by the Company’s external auditor for tax compliance, tax advice, and tax planning.
(4)	Relates to fees for products and services provided by the Company’s external auditor other than the services reported under the other categories.

86
Endeavour Silver Corp.

SCHEDULE “A”

ENDEAVOUR SILVER CORP. (the "Company")

Audit Committee Charter
(effective August 1, 2012)

This Audit Committee Charter has been approved by the Board of Directors (the “Board”) of Endeavour Silver Corp. (the “Company”) as of the date set out above.

1.	Purpose Of Audit Committee
1.1	The purpose of the Audit Committee (the “Committee”) is to act as the representative of the Board in carrying out its oversight responsibilities relating to:

(a)	The audit process;
(b)	The financial accounting and reporting process to shareholders and regulatory bodies; and
(c)	The system of internal financial controls.

1.2	All reasonably necessary costs to allow the Committee to carry out its duties shall be paid for by the Company. Also, in carrying out the foregoing duties, the Committee shall have the right and the ability to retain any outside legal, accounting or other expert advice or assistance to assist the Committee members in the proper completion of their duties, for and on behalf of the Company and at the Company’s cost, without any requirement for further Board or management approval of such expenditure.
2.	Composition
	The Committee shall consist of a minimum of three Directors, all of whom are “independent” within the meaning of National Instrument 52-110 - Audit Committees in Canada, and as required by all applicable United States securities laws and regulations and the policies of the New York Stock Exchange. The Committee shall be appointed annually by the Board immediately following the Annual General Meeting of the Company. Each member of the Committee shall be financially literate, meaning that each member must be able to read and understand financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements. One member of the Committee must have accounting and financial expertise, meaning that the member possesses financial or accounting credentials or has experience in finance or accounting.
3.	Duties
3.1	The Committee’s duty is to monitor and oversee the operations of management and the external auditor. Management is responsible for establishing and following the Company’s internal controls and financial reporting processes and for compliance with applicable laws and policies. The external auditor is responsible for performing an independent audit of the Company’s financial statements in accordance with generally accepted auditing standards, and for issuing its report on the statements. The Committee should review and evaluate this Charter on an annual basis.

A-1
Endeavour Silver Corp.

3.2 The specific duties of the Committee are as follows:

(a)	Management Oversight:
	(i)	Review and evaluate the adequacy of the Company’s processes for identifying, analyzing and managing financial risks, including foreign exchange and liquidity that may prevent the Company from achieving its objectives;
	(ii)	Review and evaluate the adequacy of the Company’s processes over internal controls,;
	(iii)	Review and evaluate the adequacy of the Company’s processes over the status and adequacy of internal information systems and security;
	(iv)	Meet with the external auditor at least once a year in the absence of management;
	(v)	Request the external auditor’s assessment of the Company’s financial and accounting personnel;
	(vi)	Review and approve the Company’s hiring policies regarding partners, employees and former partners and employees of the present and former external auditor of the Company.

(b)	External Auditor Oversight
	(i)	Recommend to the Board the selection and, where applicable, the replacement of the external auditor to be appointed or nominated annually for shareholder approval;
	(ii)	Recommend to the Board the compensation to be paid to the external auditor;
	(iii)	Review and evaluate the external auditor’s process for identifying and responding to key audit and internal control risks;
	(iv)	Review the scope and approach of the annual audit;
	(v)	Inform the external auditor of the Committee’s expectations;
	(vi)	Review the independence of the external auditor on an annual basis;
	(vii)	Review with the external auditor both the acceptability and the quality of the Company’s financial reporting standards;
	(viii)	Resolve any disagreements between management and the external auditor regarding financial reporting;
	(ix)	Review and pre-approve all audit and audit-related services and the fees and other compensation related thereto, and any non-audit services, provided by the Company’s external auditor. The authority to pre-approve non-audit services may be delegated by the Committee to one or more independent members of the Committee, provided that such pre-approval must be presented to the Committee’s first scheduled meeting following such pre-approval. Pre-approval of non-audit services is satisfied if:

A-2
Endeavour Silver Corp.

A.	the aggregate amount of all the non-audit services that were not pre-approved is reasonably expected to constitute no more than 5% of the total amount of fees paid by the Company and subsidiaries to the Company’s external auditor during the fiscal year in which the services are provided;
B.	the Company or a subsidiary did not recognize the services as non-audit services at the time of the engagement; and
C.	the services are promptly brought to the attention of the Committee and approved, prior to completion of the audit, by the Committee or by one or more of its members to whom authority to grant such approvals has been delegated by the Committee; and

(x) Confirm with the external auditor that the external auditor is ultimately accountable to the Board and the Committee, as representatives of the shareholders.

(c)	Financial Reporting Oversight
	(i)	Review with management and the external auditor the Company’s annual and interim financial statements, management’s discussion and analysis, any annual and interim earnings press releases and any reports or other financial information to be submitted to any governmental and/or regulatory body, or the public, including any certification, report, opinion, or review rendered by the external auditor, for the purpose of recommending their approval to the Board prior to their filing, issue or publication;
	(ii)	Ensure that adequate procedures are in place for the review of the Company’s public disclosure of financial information extracted or derived from the Company’s financial statements (other than the public disclosure referred to in (i) above), as well as review any financial information and earnings guidance provided to analysts and rating agencies, and periodically assess the adequacy of those procedures; and
	(iii)	Discuss with the external auditor the quality and the acceptability of the International Financial Reporting Standards applied by management.

(d)	“Whistleblower” Procedures
	(i)	Establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters; and
	(ii)	Establish procedures for the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

A-3
Endeavour Silver Corp.

EX-99.2

 

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 22, 2019

/s/ Bradford Cooke	/s/ Dan Dickson
Chief Executive Officer	Chief Financial Officer

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 2

KPMG LLP	Telephone  (604) 691-3000
Chartered Professional Accountants	Fax               (604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet        www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors

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, 2018 and 2017, the related consolidated statements of comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018 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, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2018, 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, 2018, 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 22, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 3(o) to the consolidated financial statements, the Company has changed its accounting policies for revenue and financial instruments as of January 1, 2018 due to the adoption of IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial instruments and has included in Note 3(o) the impact on the statement of financial position as at January 1, 2018.

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.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMGInternationalCooperative(“KPMGInternational”), aSwissentity. KPMGCanadaprovidesservicesto KPMG LLP.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 3

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.

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

//s// KPMG LLP

Vancouver, Canada
February 22, 2019

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMGInternationalCooperative(“KPMGInternational”), aSwissentity. KPMGCanadaprovidesservicesto KPMG LLP.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 4

KPMG LLP	Telephone        (604) 691-3000
Chartered Professional Accountants	Fax                     (604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet              www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
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, 2018, 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, 2018, 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 Endeavour Silver Corp. (the Company) as of December 31, 2018 and 2017, the related consolidated statements of comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018 and the related notes (collectively, the consolidated financial statements), and our report dated February 22, 2019 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 the accompanying “Management’s Responsibility for 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.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMGInternationalCooperative(“KPMGInternational”), aSwissentity. KPMGCanadaprovidesservicesto KPMG LLP.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 5

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

Vancouver, Canada
February 22, 2019

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMGInternationalCooperative(“KPMGInternational”), aSwissentity. KPMGCanadaprovidesservicesto KPMG LLP

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 6

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

			December 31,			December 31,
	Notes		2018			2017
ASSETS
Current assets
Cash and cash equivalents	4	$	33,376		$	38,277
Restricted cash	4		-			1,000
Other investments	5		88			168
Accounts receivable	6		26,947			34,012
Inventories	7		14,894			13,131
Prepaid expenses			2,704			1,911
Total current assets			78,009			88,499
Non-current deposits			1,114			610
Deferred income tax asset	20		9,147			655
Mineral properties, plant and equipment	9,10		88,777			88,816
Total assets		$	177,047		$	178,580
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities		$	19,470		$	19,068
Income taxes payable			4,050			3,185
Total current liabilities			23,520			22,253
Deferred lease inducement			217			236
Provision for reclamation and rehabilitation	12		8,195			7,982
Deferred income tax liability	20		335			1,592
Total liabilities			32,267			32,063
Shareholders' equity
Common shares, unlimited shares authorized, no par value, issued   and outstanding 130,781,052 shares (Dec 31, 2017 - 127,488,410 shares)	Page 9		459,109			450,740
Contributed surplus	Page 9		9,676			8,747
Accumulated other comprehensive income (loss)	Page 9		-			127
Retained earnings (deficit)			(324,005	)		(313,097	)
Total shareholders' equity			144,780			146,517
Total liabilities and shareholders' equity		$	177,047		$	178,580

Commitments and contingencies (Notes 9 ,12, 20 and 21)

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

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 7

ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(expressed in thousands of US dollars, except for shares and per share amounts)

			Years ended
			December 31,			December 31,
	Notes		2018			2017
Revenue		$	150,509		$	150,499
Cost of sales:
Direct production costs			105,003			103,330
Royalties			1,653			1,740
Share-based payments	13 (c)(f)		(93	)		202
Depreciation and depletion			38,412			16,582
Write down of inventory to net realizable value	7		2,026			166
			147,001			122,020
Mine operating earnings (loss)			3,508			28,479
Expenses:
Exploration	15		12,383			12,898
General and administrative	16		8,626			7,914
			21,009			20,812
Operating earnings (loss)			(17,501	)		7,667
Finance costs	17		211			715
Other income (expense):
Write down of inventory to net realizable value	7		(650	)		-
Write off of IVA receivable			(194	)		-
Foreign exchange			(81	)		433
Investment and other			926			502
			1			935
Earnings (loss) before income taxes			(17,711	)		7,887
Income tax expense (recovery):
Current income tax expense	20		4,477			4,650
Deferred income tax expense (recovery)	20		(9,749	)		(6,447	)
			(5,272	)		(1,797	)
Net earnings (loss) for the year			(12,439	)		9,684
Other comprehensive income (loss), net of tax
Reclassification for realized (gain) loss on other investments			-			(72	)
Unrealized gain (loss) on other investments			-			155
Total other comprehensive income (loss) for the year			-			83
Comprehensive income (loss) for the year		$	(12,439	)	$	9,767
Basic earnings (loss) per share based on net earnings		$	(0.10	)	$	0.08
Diluted earnings (loss) per share based on net earnings	13 (g)	$	(0.10	)	$	0.08
Basic weighted average number of shares outstanding			128,600,421			127,340,834
Diluted weighted average number of shares outstanding	13 (g)		128,600,421			127,957,573

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

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 8

ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(expressed in thousands of US dollars, except share amounts)

									Accumulated
									Comprehensive			Retained			Total
		Number		Share		Contributed			Income			Earnings			Shareholders'
	Note	of shares		Capital		Surplus			("OCI") (Loss)			(Deficit)			Equity
Balance at December 31, 2016		127,080,264	$	449,594	$	6,689		$	44		$	(323,068	)	$	133,259
Exercise of options	13 (c)	60,000		207		(65	)		-			-			142
Issued for performance share units	13 (f)	193,825		439		(439	)		-			-			-
Issued on acquistion of mineral properties, net	9 (e)	154,321		500		-			-			-			500
Share based compensation	13 (c)(f)	-		-		2,849			-			-			2,849
Unrealized gain (loss) on other investments	5	-		-		-			155			-			155
Realized (gain) loss on other investments	5	-		-		-			(72	)		-			(72	)
Expiry and forfeiture of options	13 (c)	-		-		(287	)		-			287			-
Earnings (loss) for the year		-		-		-			-			9,684			9,684
Balance at December 31, 2017		127,488,410		450,740		8,747			127			(313,097	)		146,517
Public equity offerings, net of issuance costs	13 (b)	3,165,642		7,982		-			-			-			7,982
Exercise of options	13 (c)	127,000		387		(131	)		-			-			256
Share based compensation	13 (c)(f)	-		-		2,426			-			-			2,426
Unrealized gain (loss) on other investments tranferred to retained earnings	3 (o)	-		-		-			(127	)		127			-
Expiry and forfeiture of options	13 (c)	-		-		(1,404	)		-			1,404			-
Reallocation of performance share unit liability	3 (o)	-		-		38			-			-			38
Earnings (loss) for the year		-		-		-			-			(12,439	)		(12,439	)
Balance at December 31, 2018		130,781,052	$	459,109	$	9,676		$	-		$	(324,005	)	$	144,780

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

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 9

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

			Years ended
			December 31,			December 31,
	Notes		2018			2017
Operating activities
Net earnings (loss) for the year		$	(12,439	)	$	9,684
Items not affecting cash:
Share-based compensation	13 (c)(f)		2,426			2,861
Depreciation and depletion	9		38,777			16,990
Deferred income tax expense (recovery)	20		(9,749	)		(6,425	)
Unrealized foreign exchange loss (gain)			41			(403	)
Finance costs	17		150			715
Write off of IVA receivable			194			-
Write off of mineral properties	9		-			233
Write down of inventory to net realizable value	7		2,676			-
(Gain) loss on available for sale assets			-			(72	)
Unrealized loss (gain) on other investments			80			-
Net changes in non-cash working capital	18		4,492			(7,993	)
Cash from operating activities			26,648			15,590
Investing activites
Property, plant and equipment expenditures	9		(40,398	)		(39,835	)
Proceeds from disposition of other investments			-			72
Redemption of (investment in) non-current deposits			1			49
Cash used in investing activities			(40,397	)		(39,714	)
Financing activities
Repayment of credit facility	11		-			(9,000	)
Restricted cash	4		1,000			(1,000	)
Interest paid	11		-			(461	)
Public equity offerings	13 (b)		8,273			-
Exercise of options	13 (c)		256			142
Share issuance costs	13 (b)		(640	)		-
Cash from (used in) financing activites			8,889			(10,319	)
Effect of exchange rate change on cash and cash equivalents			(41	)		403
Increase (decrease) in cash and cash equivalents			(4,860	)		(34,443	)
Cash and cash equivalents, beginning of the year			38,277			72,317
Cash and cash equivalents, end of the year		$	33,376		$	38,277

Supplemental cash flow information (Note 18)

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

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 10

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(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). 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. 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 reporting period for the year ended December 31, 2018.
	The Board of Directors approved the consolidated financial statements for issue on February 22, 2019.
	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.
	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 Zilver SARL, 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., Terronera Mining Company and Terronera Precious Metals S.A. de C.V. 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 except for new accounting standards adopted during the year, which were adopted either on a prospective basis or on a retrospective basis, without restatement of comparative periods as described in Note 3(o).
	(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 profit or loss.
	(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, plant and equipment useful lives, estimating the fair values of financial instruments and derivatives, impairment of non-current assets, reclamation and rehabilitation provisions, recognition of deferred tax assets, valuations in business combinations and assumptions used in determining the fair value of share-based compensation.
	Significant areas requiring the use of management estimates relate to the valuation of accounts receivable, inventory, mineral property, plant and equipment, impairment of non-current assets, provision for reclamation and rehabilitation, share capital 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 proven and probable reserves may impact the carrying value of mineral properties, plant and equipment (Note 9), reclamation and rehabilitation provisions (Note 12), recognition of deferred income tax amounts (Note 20), and depreciation and depletion (Note 9).

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 11

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s properties. Estimating the quantity and /or grade of reserves 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 actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineral reserves.

Assessment of impairment factors (accounting policy Note 3g)
Management applies significant judgment in assessing each cash-generating unit and assets for the existence of indicators of impairment at the reporting date. Internal and external factors are considered in assessing whether indicators of impairment 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.

Achievement of commercial production (accounting policy Note 3f)
Once a mine reaches the operating levels intended by management, depreciation of capitalized costs begins. Significant judgment 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 policy Note 3i)
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. 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.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 12

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

Taxes (Note 20)
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.

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. Deferred income tax assets are disclosed in Note 20.

Inventory (Note 7)
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.

(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 ninety days, or that are readily convertible into cash.

(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 profit or loss.

(e)   Inventories
Production inventories are valued at the lower of production cost and net realizable value. 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 dore 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.

(f)   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 or 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 once management determines 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 and proceeds received during the development phase ceases when the property is capable of operating at levels intended by management.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 13

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

Exploration and evaluation costs are those costs required to find 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 or 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. Technical feasibility and commercial viability generally coincide with the establishment of proven and probable reserves; however, this determination may be impacted by management’s assessment of certain modifying factors.

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 is recorded at cost and amortized using the straight-line method at rates varying from 5% to 30% annually. The accumulated costs of mineral properties that are developed to the stage of commercial production 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.

(g)   Impairment of Non-Current Assets
The Company’s tangible assets are reviewed for indications of impairment at each financial statement date. If an indicator of impairment 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 profit and loss for the period.

The recoverable amount is the greater of fair value less costs to sell 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. 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.

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 the statement of comprehensive income 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.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 14

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(h)   Deferred Lease Inducement
Lease inducements received in the form of reimbursed leasehold improvement costs are amortized over the term of the lease as a reduction of rent expense.

(i)   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 profit or loss for the period.

(j)   Revenue recognition
Revenue relating to the sale of metals 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 those products. In determining whether the Company has satisfied a 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 has significant risks and rewards of ownership of the asset. Revenue from the sale of concentrates is based on prevailing market prices and estimated mineral content which is subject to adjustment upon final settlement based on metal prices, weights and assays. For each reporting period until final settlement, estimates of metal prices are used to record sales. 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 balance. 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. Revenue is recorded in the consolidated statement of comprehensive income, gross of treatment and refining costs paid to counterparties under the terms of the sales agreements.

(k)   Share-based payments
The Company has a share option plan and performance share unit plan which are described in Note 13(c) and Note 13(f) respectively. The Company records all share-based compensation for options using the fair value method with graded vesting. Under the fair value method, share-based payments are measured at the fair value of the consideration received or the fair value of the equity instruments issued or liabilities incurred, whichever is more reliably measurable, and are charged over the vesting period. 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. 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(d) and Note 13(e), 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.

(l)   Income taxes
The Company follows the asset and liability method of accounting for 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 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 deferred tax assets and liabilities of a change in tax rates is recognized in the statement of comprehensive income 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.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 15

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(m)   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.

(n)   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) 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. 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 the statement of comprehensive income profit or loss statement. Incremental costs related to acquisitions are expensed as incurred.

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. When the fair value of contingent consideration as at the date of acquisition is finalized and before the end of the twelve 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 the consolidated statement of comprehensive income.

(o)   Accounting standards adopted during the year

Amendments to IFRS 2, Share-based Payment (“IFRS 2”)
On June 20, 2016, the IASB issued amendments to IFRS 2 clarifying how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a share-based payment that changes the classification of a transaction from cash-settled to equity settled.

The amendments apply for annual periods beginning on or after January 1, 2018. As a practical simplification, the amendments can be applied prospectively. Retrospective or early application is permitted if information is available without the use of hindsight. The Company has adopted the amendments to IFRS 2 in its financial statements for the annual period beginning on January 1, 2018 on a prospective basis.

The Company has Performance Share Units (“PSU”) with a net settlement feature, which permits cash settlement for withholding tax obligations. The expense for the PSUs has previously been bifurcated with the cash settlement portion of the expense recognized as a liability until settlement, and the remaining expense allocated to Contributed Surplus. Upon adoption of the amendments to IFRS 2, the PSU liability at January 1, 2018 of $38 was reallocated to Contributed Surplus.

IFRS 9 Financial Instruments (“IFRS 9”)
In November 2009, the IASB issued IFRS 9 as the first step in its project to replace IAS 39, Financial Instruments: Recognition and Measurement. On July 24, 2014 the IASB issued the complete IFRS 9. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flows of the financial asset.

Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 16

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

IFRS 9 amends some of the requirements of IFRS 7, Financial Instruments: Disclosures, including added disclosures about investments in equity instruments measured at fair value in other comprehensive income, and guidance on the measurement of financial liabilities and de-recognition of financial instruments. The mandatory effective date of IFRS 9 is for annual periods beginning on or after January 1, 2018 with early adoption permitted, and must be applied retrospectively with some exemptions permitted.

As a result of the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments retrospectively. The change did not result in a change in carrying value of any of the Company’s financial instruments on transition date. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The adoption of the expected credit loss impairment model did not have a significant impact on the Company’s financial statements.

The Company’s financial instruments are accounted for as follows under IFRS 9 as compared to the Company’s previous policy in accordance with IAS 39.

	January 1, 2018
	IAS 39	IFRS 9
Assets
Cash and cash equivalents	Amortized cost	Amortized cost
Restricted cash	Amortized cost	Amortized cost
Trade and other receivables (other than derivatives)	Amortized cost	Amortized cost
Trade receivables (derivative component)	Fair value through profit or loss	Fair value through profit or loss
Marketable securities	Fair value through other comprehensive income	Fair value through profit or loss
Liabilities
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Performan share units and Deferred share units	Fair value through profit or loss	Fair value through profit or loss

Under IFRS 9, the Company’s equity marketable securities are designated as financial assets at fair value through profit or loss. For equity instruments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Company did not make any such election upon adoption of IFRS 9.

IFRS 9 does not require restatement of comparative periods. Accordingly, the Company has reflected the retrospective impact of the adoption of IFRS 9 due to the change in accounting policy for marketable securities as an adjustment to opening components of equity as at January 1, 2018.

The fair value of marketable securities is $168 under both IAS 39 and IFRS 9 as at January 1, 2018, the date of initial application of IFRS 9, and is presented in Other Investments in the consolidated balance sheet. On adoption, the unrealized gain in fair value of $127, previously recognized in accumulated other comprehensive income has been reallocated to retained earnings.

As a result of the adoption of IFRS 9, the Company’s accounting policy for financial instruments has been updated as follows:

Financial Instruments

The Company recognizes financial assets and financial liabilities on the date the Company becomes party to the contractual provisions of the instruments. 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.

The Company classifies and measures financial assets (excluding derivatives) on initial recognition as described below:

• Cash and equivalents and restricted cash include cash and term deposits with original maturities of less than 90 days are classified as financial assets at fair value through profit and loss and are measured at fair value. Unrealized gains and losses related to changes in fair value are reported in income;

• Trade and other receivables are classified as and measured at amortized cost using the effective interest method, less impairment allowance, in any;

• Investments in equity instruments are designated as financial assets through profit or loss and are recorded at fair value on settlement date, net of transaction costs. Subsequent to initial recognition, changes in fair value are recognized in income.

Derivative financial instruments, including embedded derivatives in trade receivables measured at amortized cost, are recorded in the consolidated balance sheets at fair value. Subsequent to initial recognition, changes in estimated fair value at each reporting date are recognized through profit or loss.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 17

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company did not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities.

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”)
On May 28, 2014, the IASB issued IFRS 15. The new standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. IFRS 15 replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have also been introduced, which may affect the amount and/or timing of revenue recognized.

On April 12, 2016 the IASB issued Clarifications to IFRS 15, Revenue from Contracts with Customers, which is effective at the same time as IFRS 15. The clarifications to IFRS 15 provide additional guidance with respect to the five-step analysis, transition, and the application of the standard to licenses of intellectual property.

The Company adopted IFRS 15 and the clarifications effective January 1, 2018 with no impact on the measurement of revenue in the consolidated financial statements.

Dore sales
IFRS 15 requires that revenue from contracts with customers be recognized upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the Company’s revenue recognition policy as set out in Note 3(j) of the 2017 Annual Financial Statements, as the condition is generally satisfied when title transfers to the customer. As such, upon adoption, this requirement under IFRS 15 resulted in no impact to the Company’s financial statements as the timing of revenue recognition on dore sales is unchanged.

Concentrate sales
The Company assessed all of its existing concentrate sales agreements and determined that there is no change in the timing of revenue recognition, as control transfers to the smelting companies at the time of delivery, consistent with the Company’s current accounting policy as set out in Note 3(j) of the 2017 Annual Financial Statements.

(p) Changes in IFRS not yet adopted

IFRS 16, Leases (“IFRS 16”)
On January 13, 2016, the IASB published a new standard, IFRS 16, Leases, which replaces IAS 17 – Leases and its associated interpretive guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract based on whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 effective January 1, 2019 and has selected the modified retrospective transition approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied.

Upon the adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and/or corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

The Company is currently quantifying the effect of this standard on our financial statements. During the fourth quarter, management has continued the scoping of contracts across our operations, has continued a detailed review of contracts and commenced quantification of the qualifying leases. At this time, the quantitative estimate of the effects of the new standard range between $2,000 and $3,000. The Company expects the time frame to complete the implementation of the accounting policies, estimates and processes will continue into the early part of 2019.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 18

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

	IFRIC 23, Uncertainty over Income Tax Treatments (“IFRIC 23”)
	On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019.
	The Interpretation requires an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution and if it is probable that the tax authorities will accept the uncertain tax treatment. If estimated that it is not probable that the uncertain tax treatment will be accepted by authorities, the tax uncertainty would be measured based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty.
	The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The Company does not expect the adoption of the Interpretation to have a material impact on the financial statements.
4.	CASH, CASH EQUIVALENTS AND RESTRICTED CASH
	Cash and cash equivalents of the Company are comprised of bank balances and highly liquid investments that are readily convertible to cash with an original maturity of 90 days or less at the date of purchase.

		December 31		December 31
		2018		2017
Bank balances	$	33,376	$	38,782
Short-term deposits		-		495
	$	33,376	$	39,277

The Company issued a letter of credit which was guaranteed by cash deposits, classified as restricted cash on the balance sheet at December 31, 2017 of $1.0 million. Under the terms of the Las Torres processing facility lease, which was acquired with the El Cubo mine, the Company was required to provide financial guarantees to the owner of the Las Torres Facility as security against any damages. In March 2018 a payment was made to the owner of the Las Torres Facility for $0.5 million and the letter of credit was removed.

5.

OTHER INVESTMENTS

		December 31		December 31
		2018		2017
Investment in marketable securities, at cost	$	41	$	41
Unrealized gain (loss) on marketable securities		47		127
	$	88	$	168

Marketable securities are classified as Level 1 in the fair value hierarchy (Note 21) and as available-for-sale financial assets. The fair values of available-for-sale 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 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. Changes in fair value on marketable securities are recognized in profit or loss.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 19

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

6. ACCOUNTS RECEIVABLE

			December 31		December 31
	Note		2018		2017
Trade receivables (1)		$	5,627	$	8,114
IVA receivables(2)			15,353		19,989
Income  taxes  recoverable			5,587		5,549
Due from related parties	8		1		2
Other receivables			379		358
		$	26,947	$	34 ,012

(1)	The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos, El Cubo and El Compas mines. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted one-month forward 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 (Note 21).
(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 improper delays and denials have occurred within Compania Minera del Cubo (“El Cubo”) and Refinadora Plata Guanaceví S.A. de C.V. (“Guanaceví,”). At December 31, 2018, El Cubo holds $4,888 and Guanaceví holds $6,957 in IVA receivables which the Company and its advisors deem to be recoverable from tax authorities (December 31, 2017 – $10,392 and $8,812 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.

7. INVENTORIES

		December 31		December 31
		2018		2017
Warehouse inventory	$	8,638	$	7,809
Stockpile inventory(4)		1,564		-
Work in process inventory(3)		322		496
Finished goods inventory (1)(2)		4,370		4,826
	$	14,894	$	13,131

(1)	The Company held 199,897 silver ounces and 1,956 gold ounces as of December 31, 2018 (December 31, 2017 – 241,321 and 1,226, respectively). These ounces are carried at the lower of cost and net realizable value. As at December 31, 2018, the quoted market value of the silver ounces was $3,091 (December 31, 2017 - $4,070) and the quoted market value of the gold ounces was $2,507 (December 31, 2017 - $1,590).
(2)	The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $1,635 for finished goods inventory held at the Guanaceví mine. Of this amount $1,106 is comprised of cash costs and $529 relates to depreciation and depletion and was expensed in the period. The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $189 for finished goods inventory held at the El Compas mine. Of this amount $139 is comprised of cash costs and $50 relates to depreciation and depletion and was expensed to Other income (expenses).
(3)	The work in process inventory balance at December 31, 2018 is net of a write down to net realizable value of $390 for work in process inventory held at the Guanaceví mine. Of this amount $252 is comprised of cash costs and $139 relates to depreciation and depletion and was expensed in the period.
(4)	The stockpile inventory balance at December 31, 2018 is net of a write down to net realizable value of $461 for stockpile inventory held at the El Compas mine. Of this amount $320 is comprised of cash costs and $141 relates to depreciation and depletion and was expensed to Other income (expenses).

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 20

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

8.	RELATED PARTY TRANSACTIONS
	The Company shares common administrative services and office space with a company related by virtue of a common director and from time to time will incur third party costs on behalf of related parties on a full cost recovery basis. The charges for these costs totaled $16 for the year ended December 31, 2018 (December 31, 2017 - $24). The Company has a $1 net receivable related to these costs as of December 31, 2018 (December 31, 2017 – $2).
	The Company was charged $189 for legal services for the year ended December 31, 2018 by a legal firm in which the Company’s corporate secretary is a partner (December 31, 2017 - $60). The Company has $5 payable to the legal firm as at December 31, 2018 (December 31, 2017 - $Nil).
	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
		2018		2017
Salaries and short-term employee benefits	$	2,754	$	2,793
Non-executive director's fees		194		204
Non-executive director's deferred share units		87		(484	)
Share-based payments		2,108		2,588
	$	5,143	$	5,101

The non-executive directors’ deferred share units are cash settled. The recognized expense (recovery) includes the fair value of new issuances of deferred share units during the period and the change in fair value of all outstanding deferred share units during the reporting period. During the year ended December 31, 2018, the Company granted 103,884 (December 31, 2017 – 37,832) deferred share units with a fair value of $297 (December 31, 2017 - $115) at the date of grant. At December 31, 2018, there were 652,276 cash settled deferred share units outstanding with a fair value of $1,407 (December 31, 2017 – 548,392 outstanding with a market value of $1,320).

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 and performance share units (Notes 13(c) and (f)). 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 21

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

9. MINERAL PROPERTIES, PLANT AND EQUIPMENT

(a) Mineral properties, plant and equipment comprise:

								Machinery					Transport
		Mineral						&					& office
		properties			Plant			equipment			Building		equipment			Total
Cost
Balance at December 31, 2016	$	457,401		$	94,871		$	61,812		$	10,671	$	9,595		$	634,350
Additions		28,682			3,177			5,386			1,191		2,038			40,474
Disposals		(233	)		(27	)		(4,354	)		-		(1,100	)		(5,714	)
Balance at December 31, 2017		485,850			98,021			62,844			11,862		10,533			669,110
Additions		30,377			4,480			3,411			482		1,701			40,451
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	516,227		$	102,501		$	66,255		$	12,344	$	12,234		$	709,561
Accumulated amortization and impairment
Balance at December 31, 2016	$	419,320		$	85,563		$	46,196		$	9,214	$	7,819		$	568,112
Amortization		12,161			1,672			2,682			188		947			17,650
Disposals		-			(26	)		(4,353	)		-		(1,089	)		(5,468	)
Balance at December 31, 2017		431,481			87,209			44,525			9,402		7,677			580,294
Amortization		34,420			1,289			3,288			272		1,221			40,490
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	465,901		$	88,498		$	47,813		$	9,674	$	8,898		$	620,784
Net book value
At December 31, 2017	$	54,369		$	10,812		$	18,319		$	2,460	$	2,856		$	88,816
At December 31, 2018	$	50,326		$	14,003		$	18,442		$	2,670	$	3,336		$	88,777

Included in Mineral properties is $11,246 in acquisition costs for exploration and evaluation properties (December 31, 2017 – $11,334).

As of December 31, 2018, the Company has $140 committed to capital equipment purchases.

(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. In 2018, the Company expensed $926 in royalties on these properties (2017 - $1,022).

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

(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

(d) El Cubo, Mexico
In 2012, the Company acquired the exploitation contracts, mining properties and related assets to the El Cubo silver-gold mine 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.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 22

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(e) El Compas, Mexico
In 2016, the Company issued 2,147,239 common shares to Canarc Resource Corp. (“Canarc”), a related party company, and assumed Canarc’s obligation to pay an aggregate of 165 troy ounces of gold to Marlin Gold Mining Ltd to acquire a 100% interest in Canarc’s wholly owned subsidiary, Oro Silver Resources Ltd., which owns the El Compas project through its wholly owned Mexican subsidiary, Minera Oro Silver de Mexico SA de CV (“Minera Oro Silver”).

The 3,990 hectare El Compas project located in Zacatecas, Mexico consists of 28 concessions fully permitted for mining with 22 concessions subject to a 1.5% net smelter return royalty and six concessions subject to a 3.0% net smelter return royalty. In 2018, the Company expensed $29 in royalties on these properties (2017 - $Nil).

Minera Oro Silver also holds a five-year operating lease, renewable for an additional five years, on a 500 tonne per day ore processing plant located in Zacatecas, Mexico for a total annual lease cost of 1,632,000 Mexican Pesos (approximately $90), adjusted annually for inflation. At acquisition, the plant was not operational and required significant capital investment to restore to an operational state. During 2018, the Company refurbished and commenced commissioning of the processing plant.

Acquisition of Veta Grande Properties
On April 24, 2017, the Company entered into a definitive agreement with Impact Silver Corp. (“Impact Silver”) to acquire a 100% interest in Impact Silver’s Veta Grande properties, located in the Zacatecas state, Mexico (“the agreement”). On June 5, 2017, Endeavour paid $500 in Endeavour common shares, being 154,321 common shares at $3.24 per share, representing the 10-day volume weighted average closing price of Endeavour’s shares on the New York Stock Exchange (“NYSE”) prior to the date of the agreement.

Acquisition of Calicanto Properties
On July 21, 2016, the Company entered into a definitive agreement with Compania Minera Estrella de Plata SA de CV. (“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

(f) Terronera, Mexico
In February 2013, the Company acquired a 100% interest in the Terronera project, located in Jalisco, Mexico. The Company is required to pay a 2% NSR royalty on any production from the Terronera properties.

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

(g) Acquisition of Parral Properties
On September 13, 2016, the Company entered into a definitive agreement with Silver Standard Resources Inc. (“Silver Standard”) to acquire a 100% interest in Silver Standard’s Parral properties, located in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico (“the agreement”).

On October 31, 2016, Endeavour paid $5,300 in Endeavour common shares, being 1,198,083 common shares at $4.39 per share, representing the closing price of Endeavour’s shares on the New York Stock Exchange (“NYSE”) prior to the date of closing the acquisition.

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. Upon completing this exploration expenditure, Endeavour has one year to deliver a National Instrument 43-101 (“NI 43-101”) technical report, including a resource estimate, and issue an additional $200 in common shares to Silver Standard for each one million ounces of silver delineated in measured and indicated resources on the San Patricio and La Palmilla properties, based on the 10-day average closing price of Endeavour’s common shares on the NYSE prior to the earlier of delivery of the NI 43-101 report and the third anniversary of the initial closing date under the Agreement. Silver Standard will also retain a 1% net smelter returns royalty on production from the San Patricio and La Palmilla properties. As of December 31, 2018, the Company has reported an insignificant amount of measured and indicated resources on the San Patricio and La Palmilla properties.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 23

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

	(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 Company’s Guadalupe y Calvo exploration property in Chihuahua, Mexico. The property is subject to a 2% net smelter return (“NSR”) royalty on mineral production.
	These properties and subsequently acquired property concessions acquired by the Company in the district are maintained with nominal property tax payments to the Mexican government.
	(i) Mineral property contingencies
	The Company has entered into other non-material option agreements on exploration properties in Mexico and Chile.
	Management believes the Company has diligently investigated rights of ownership of all its mineral properties to a level which is acceptable by prevailing industry standards with respect to the current stage of development of each property in which it has an interest and, to the best of its knowledge, all agreements relating to such ownership rights are in good standing. However, all properties may be subject to prior claims, agreements or transfers, and rights of ownership may be affected by undetected defects.
10.	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. In previous years, 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 CGUs 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.
	In previous years, the carrying values of the Guanaceví, El Cubo and Bolañitos CGUs, including associated deferred income tax estimates, were greater than their estimated recoverable amounts calculated on a discounted cash flow basis and impairments charges were recorded.
	For the previously impaired CGU’s any modest decrease in any one key assumption in isolation could cause the estimated recoverable amount to be less than or equal to the net carrying value. Other than timing of production based on the revised mine plans and associated changes in per-unit costs, Management’s long-term estimates have not significantly changed from the previous years.
	As at December 31, 2018, the Company tested the recoverability of the Guanaceví CGU due to 2018 operational challenges and determined that no additional impairment was required.
11.	CREDIT FACILITY
	In 2016, the Company signed an amended and restated credit facility (“the Amended Facility”) which became effective April 1, 2016 to convert the remaining outstanding balance under an existing revolving credit facility into a two year term loan amortized quarterly maturing on December 31, 2017. The interest rate margin on the Amended Facility was 4.5% over LIBOR and the Company paid a fee of $300 upon signing. The Amended Facility was subject to various qualitative and quantitative covenants, including a debt to EBITDA leverage ratio, an interest service coverage ratio, a tangible net worth calculation, capital and exploration expenditure limits. At December 31, 2017, the Amended Facility was fully repaid.
	The Company recognized $629 of interest expense and deferred commitment fees and legal costs during 2017 in finance costs.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 24

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

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 $2,280 for the Guanaceví mine, $1,921 for the Bolañitos mine, $4,326 for the El Cubo mine and $162 for the El Compas development project.
	The timing of cash flows has been estimated based on the 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 2.6% for Guanaceví, 2.5% for Bolañitos and El Cubo and 8.5% for El Compas and with an inflation rate of 2.0% for all sites except El Compas which estimates an inflation rate of 4.3%.
	Changes to the reclamation and rehabilitation provision balance during the year are as follows:

		Guanaceví		Bolañitos		El Cubo		El Compas		Total
Balance at December 31, 2016		2,058		1,755		4,033		-		7,846
Accretion		28		17		41		-		86
Disturbance incurred during the year		-		-		-		50		50
Balance at December 31, 2017	$	2,086	$	1,772	$	4,074	$	50	$	7,982
Accretion		43		32		74		1		150
Disturbance incurred during the year		-		-		-		63		63
Balance at December 31, 2018	$	2,129	$	1,804	$	4,148	$	114	$	8,195

13.	SHARE CAPITAL
	(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, 2018, the Company is not subject to externally imposed capital requirements.
	(b)    Public Offerings
	In April 2018, the Company filed a short form base shelf prospectus that qualifies 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”). The Company filed a corresponding registration statement in the United States registering the Securities under United States federal securities laws. The distribution of Securities may be effected from time to time in one or more transactions at a fixed price or prices, which may 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 deemed to be “At- The-Market” (“ATM”) distributions.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 25

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

On June 13, 2018, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co., HSBC and TD Securities (together, the “Agents”). Under the terms of this ATM facility, the Company may, from time to time, sell common stock having an aggregate offering value of up to $35.7 million on the New York Stock Exchange. The Company determines, at its sole discretion, the timing and number of shares to be sold under the ATM facility. During the year ended December 31, 2018, the Company issued 3,165,642 common shares under the ATM facility at an average price of $2.61 per share for gross proceeds of $8,273, less commission of $186.

During the year ended December 31, 2018, the Company also recognized $105 of additional deferred transaction costs, related to the ATM financing as share issuance costs, which have been presented net of share capital.

Subsequent to December 31, 2018, the Company issued 635,171 common shares under the ATM facility at an average price of $2.23 per share for gross proceeds of $1,419, less commission of $32.

(c)   Purchase 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 re-ratified in 2018, 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 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 year:

Expressed in Canadian dollars	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
			Weighted			Weighted
	Number		average	Number of		average
	of shares		exercise price	shares		exercise price
Outstanding, beginning of year	5,792,800		$4.00	4,458,050		$3.93
Granted	1,262,500		$3.80	1,572,000		$4.32
Exercised	(127,000	)	$2.65	(60,000	)	$3.03
Cancelled	(940,500	)	$4.15	(177,250	)	$5.49
Outstanding, end of the period	5,987,800		$3.96	5,792,800		$4.00
Options exercisable at the end of the period	4,946,300		$3.96	4,509,600		$3.91

The following table summarizes the information about stock options outstanding at December 31, 2018:

Expressed in Canadian dollars
	Options Outstanding			Options exercisable
	Number	Weighted Average	Weighted		Weighted
	Outstanding	Remaining	Average	Number Exercisable	Average
Price	as at	Contractual Life	Exercise	as at	Exercise
Intervals	December 31, 2018	(Number of Years)	Price	December 31, 2018	Price
$2.00 - $2.99	1,009,500	1.4	$2.65	1,009,500	$2.65
$3.00 - $3.99	1,250,500	4.4	$3.80	478,400	$3.80
$4.00 - $4.99	3,727,800	2.4	$4.37	3,458,400	$4.37
	5,987,800	2.6	$3.96	4,946,300	$3.96

During the year ended December 31, 2018, the Company recognized share-based compensation expense of $1,976 (December 31, 2017 - $2,759) based on the fair value of the vested portion of options granted in the current and prior years.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 26

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

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:

	Year Ended	Year Ended
	December 31, 2018	December 31, 2017
Weighted-average fair value of option in CAN$	$1.96	$2.30
Risk-free interest rate	2.05%	0.85%
Expected dividend yield	0%	0%
Expected stock price volatility	69%	73%
Expected option life in years	3.79	3.86

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, 2018, the unvested share option expense not yet recognized was $643 (December 31, 2017 - $841) which is expected to be recognized over the next 20 months

(d)   Deferred Share Units

The Company has a 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 share purchase 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.

Expressed in Canadian dollars	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
		Weighted		Weighted
	Number	Average	Number	Average
	of units	Grant Price	of units	Grant Price
Outstanding, beginning of year	548,392	$3.44	510,560	$3.39
Granted	103,884	$3.68	37,832	$4.11
Redeemed	-	-	-	-
Outstanding, end of period	652,276	$3.48	548,392	$3.44
Fair value at period end	652,276	$2.94	548,392	$3.02

During the year ended December 31, 2018, the Company recognized an expense on director’s compensation related to DSUs, which is included in general and administrative salaries, wages and benefits, of $88 (December 31, 2017 – recovery of $484 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, 2018, there are 652,276 deferred share units outstanding (December 31, 2017 – 548,392) with a fair market value of $1,407 (December 31, 2017 - $1,319) recognized in accounts payable and accrued liabilities.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 27

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(e)   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.

	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
	Number		Weighted Average	Number		Weighted Average
	of units		Grant Price	of units		Grant Price
Outstanding, beginning of year	911,993		$3.80	579,660		$4.20
Granted	-		-	489,000		$3.30
Exercised	(96,661	)	$2.21	(46,668	)	$2.21
Cancelled	(121,332	)	$3.96	(109,999	)	$4.38
Outstanding, end of period	694,000		$3.99	911,993		$3.80
Exercisable at the end of the period	553,679		$4.16	212,672		$3.69

During the year ended December 31, 2018, the Company recognized a recovery related to SARs, which is included in operation and exploration salaries, wages and benefits, of $245 (December 31, 2017 – recovery of $139) based on the fair value of new grants and the change in the fair value of the SARs granted in the current and prior years. As of December 31, 2018, there are 694,000 SARs outstanding (December 31, 2017 – 911,993) with a fair market value of $72 (December 31, 2017 - $341) recognized in accounts payable and accrued liabilities.

The SARs are 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 amortizes the fair value of SARs on a graded basis over the respective vesting period of each tranche of SARs awarded.

(f)   Performance Share Units Plan

The Company has a Performance Share Unit (“PSU”) plan whereby performance share units may be granted to employees of the Company. Once performance conditions have been met, a PSU is redeemable into one common share entitling the holder to receive the common share for no additional consideration. The maximum number of common shares authorized for issuance from treasury under the PSU plan is 1,000,000.

	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
	Number of units		Number of units
Outstanding, beginning of year	200,000		325,000
Granted	446,000		200,000
Cancelled	(30,000	)	-
Settled for shares	-		(193,825	)
Settled for cash	-		(131,175	)
Outstanding, end of period	616,000		200,000

There were 446,000 PSUs granted during the year ended December 31, 2018 (December 31, 2017 – 200,000). The PSUs vest at the end of a three-year period if certain pre-determined performance and vesting criteria are achieved. Performance criteria is based on the Company’s share price performance relative to a representative group of other mining companies. 170,000 PSUs vest on May 3, 2020 and 446,000 PSUs vest on May 3, 2021.

During the year ended December 31, 2018, the Company recognized share-based compensation expense of $450 related to the PSUs (December 31, 2017 –$101).

On April 12, 2017, 193,825 common shares were issued and $449 was paid in cash in settlement of 325,000 vested PSUs granted in 2016.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 28

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(g) Diluted Earnings per Share

		Year Ended
		December 31,			December 31,
		2018			2017
Net earnings (loss)	$	(12,439	)	$	9,684
Basic weighted average number of shares outstanding		128,600,421			127,340,834
Effect of dilutive securities:
Stock options		-			416,739
Performance share units		-			200,000
Diluted weighted average number of share outstanding		128,600,421			127,957,573
Diluted earnings (loss) per share	$	(0.10	)	$	0.08

	As of December 31, 2018, there are 4,978,300 anti-dilutive stock options (December 31, 2017 – 3,905,800 stock options).
14.	REVENUE

		Year Ended
		December 31,		December 31,
Revenue by product		2018		2017
Concentrate sales	$	111,052	$	105,203
Provisional pricing adjustments		228		1,925
Total revenue from concentrate sales		111,280		107,128
Dore sales		39,229		43,371
Total revenue	$	150,509	$	150,499

Provisional pricing adjustments on sales of concentrates 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, 2018, a 10% change to the underlying metals prices would result in a change in revenue and accounts receivable of $904 based on the total quantities of metals in sales contracts for which the provisional pricing periods were not yet closed.

15.

EXPLORATION

		December 31		December 31
		2018		2017
Depreciation and depletion	$	111	$	126
Share-based compensation		340		252
Salaries, wages and benefits		2,690		2,568
Direct exploration expenditures		9,242		9,952
	$	12,383	$	12,898

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 29

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

16. GENERAL AND ADMINISTRATIVE

		December 31		December 31
		2018		2017
Depreciation and depletion	$	254	$	282
Share-based compensation		2,179		2,407
Salaries, wages and benefits		3,038		2,240
Direct general and administrative		3,155		2,985
	$	8,626	$	7,914

	Included in salaries, wages and benefits is an $88 expense of directors’ deferred share units for the year ended December 31, 2018 (December 31, 2017 – recovery of $484).
17.	FINANCE COSTS

		December 31		December 31
		2018		2017
Accretion on provision for reclamation and rehabilitation	$	150	$	86
Credit facility finance costs		-		629
Other financing costs		61		-
	$	211	$	715

18. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

		Year ended
		December 31,			December 31,
		2018			2017
Net changes in non-cash working capital:
Accounts receivable	$	7,303		$	(8,520	)
Inventories		(3,304	)		884
Prepaid expenses		(793	)		126
Accounts payable and accrued liabilities		421			963
Income taxes payable		865			(1,446	)
	$	4,492		$	(7,993	)
Non-cash financing and investing activities:
Reclamation included in mineral property, plant and equipment		63			50
Fair value of exercised options allocated to share capital		131			65
Fair value of performance share units allocated to share capital		-			439
Fair value of shares issued on property acquisition		-			500
Other cash disbursements:
Income taxes paid		3,449			8,015
Special mining duty paid		1,012			2,020

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 30

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

19.

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 four operating mining segments, Guanaceví, Bolañitos, El Cubo and El Compas, which are located in Mexico, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

December 31, 2018
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	14,477	$	765	$	3,947	$	4,776	$	8,863	$	548	$	33,376
Other Investments		88		-		-		-		-		-		88
Accounts receivables		176		1,924		9,386		2,760		8,996		3,705		26,947
Inventories		-		-		6,310		3,736		2,939		1,909		14,894
Prepaid expenses		1,666		75		706		26		129		102		2,704
Non-current deposits		76		-		308		151		74		505		1,114
Deferred income tax asset		-		-		6,782		1,549		816		-		9,147
Mineral property, plant and equipment		573		11,791		34,933		9,348		11,323		20,809		88,777
Total assets	$	17,056	$	14,555	$	62,372	$	22,346	$	33,140	$	27,578	$	177,047
Accounts payable and accrued liabilities	$	6,045	$	287	$	5,528	$	1,872	$	4,347	$	1,391	$	19,470
Income taxes payable		1,028		-		926		878		1,218		-		4,050
Deferred lease inducement		217		-		-		-		-		-		217
Provision for reclamation and rehabilitation		-		-		2,128		1,805		4,148		114		8,195
Deferred income tax liability		-		-		-		36		-		299		335
Total liabilities	$	7,290	$	287	$	8,582	$	4,591	$	9,713	$	1,804	$	32,267

December 31, 2017
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	20,884	$	1,034	$	6,212	$	2,360	$	7,594	$	193	$	38,277
Restricted cash		1,000		-		-		-		-		-		1,000
Other Investments		168		-		-		-		-		-		168
Accounts receivables		341		893		12,115		4,100		15,602		961		34,012
Inventories		-		-		8,476		2,178		2,477		-		13,131
Prepaid expenses		1,090		128		125		77		176		315		1,911
Non-current deposits		76		-		316		144		74		-		610
Deferred income tax asset		-		-		-		655		-		-		655
Mineral property, plant and equipment		691		11,285		42,264		6,766		15,929		11,881		88,816
Total assets	$	24,250	$	13,340	$	69,508	$	16,280	$	41,852	$	13,350	$	178,580
Accounts payable and accrued liabilities	$	5,965	$	225	$	4,484	$	1,774	$	5,721	$	899	$	19,068
Income taxes payable		727		-		1,499		940		19		-		3,185
Deferred lease inducement		236		-		-		-		-		-		236
Provision for reclamation and rehabilitation		-		-		2,086		1,772		4,074		50		7,982
Deferred income tax liability		-		200		528		637		227		-		1,592
Total liabilities	$	6,928	$	425	$	8,597	$	5,123	$	10,041	$	949	$	32,063

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 31

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2018
Silver revenue	$	-		$	-		$	32,267		$	14,310		$	38,903		$	-		$	85,480
Gold revenue		-			-			6,962			25,495			32,572			-			65,029
Total revenue	$	-		$	-		$	39,229		$	39,805		$	71,475		$	-		$	150,509
Salaries, wages and benefits:
mining	$	-		$	-		$	5,382		$	5,102		$	9,309		$	-		$	19,793
processing		-			-			1,644			1,065			2,201			-			4,910
administrative		-			-			2,580			2,360			3,116			-			8,056
stock based compensation		-			-			(31	)		(31	)		(31	)		-			(93	)
change in inventory		-			-			662			(383	)		(42	)		-			237
Total salaries, wages and benefits		-			-			10,237			8,113			14,553			-			32,903
Direct costs:
mining		-			-			20,332			10,716			13,197			-			44,245
processing		-			-			6,783			6,590			8,211			-			21,584
administrative		-			-			1,886			1,670			2,336			-			5,892
change in inventory		-			-			1,021			(815	)		80			-			286
Total direct production costs		-			-			30,022			18,161			23,824			-			72,007
Depreciation and depletion:
depreciation and depletion		-			-			22,352			931			14,609			-			37,892
change in inventory		-			-			765			(70	)		(175	)		-			520
Total depreciation and depletion		-			-			23,117			861			14,434			-			38,412
Royalties		-			-			1,123			190			340			-			1,653
Write down of inventory to NRV		-			-			2,026			-			-			-			2,026
Total cost of sales	$	-		$	-		$	66,525		$	27,325		$	53,151		$	-		$	147,001
Earnings (loss) before taxes	$	(8,079	)	$	(12,258	)	$	(27,296	)	$	12,480		$	18,324		$	(882	)	$	(17,711	)
Current income tax expense (recovery)		-			-			642			2,507			1,328			-			4,477
Deferred income tax expense (recovery)		-			-			(7,475	)		(1,530	)		(1,043	)		299			(9,749	)
Total income tax expense (recovery)		-			-			(6,833	)		977			285			299			(5,272	)
Net earnings (loss)	$	(8,079	)	$	(12,258	)	$	(20,463	)	$	11,503		$	18,039		$	(1,181	)	$	(12,439	)

The Exploration segment included $777 of costs incurred in Chile for the year ended December 31, 2018 (December 31, 2017 - $448).

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 32

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2017
Silver revenue	$	-		$	-		$	37,161		$	15,265		$	31,934		$	-		$	84,360
Gold revenue		-			-			6,210			33,154			26,775			-			66,139
Total revenue	$	-		$	-		$	43,371		$	48,419		$	58,709		$	-		$	150,499
Salaries, wages and benefits:
mining	$	-		$	-		$	6,027		$	5,023		$	8,798		$	-		$	19,848
processing		-			-			1,951			978			1,765			-			4,694
administrative		-			-			2,948			2,419			3,023			-			8,390
stock based compensation		-			-			68			67			67			-			202
change in inventory		-			-			209			(91	)		36			-			154
Total salaries, wages and benefits		-			-			11,203			8,396			13,689			-			33,288
Direct costs:
mining		-			-			12,567			11,777			15,900			-			40,244
processing		-			-			6,709			6,921			8,742			-			22,372
administrative		-			-			2,164			1,893			2,906			-			6,963
change in inventory		-			-			833			(227	)		59			-			665
Total direct production costs		-			-			22,273			20,364			27,607			-			70,244
Depreciation and depletion:
depreciation and depletion		-			-			13,934			1,900			1,332			-			17,166
change in inventory		-			-			(569	)		(6	)		(9	)		-			(584	)
Total depreciation and depletion		-			-			13,365			1,894			1,323			-			16,582
Royalties		-			-			1,239			228			273			-			1,740
Write down of inventory to NRV		-			-			166			-			-			-			166
Total cost of sales	$	-		$	-		$	48,246		$	30,882		$	42,892		$	-		$	122,020
Earnings (loss) before taxes	$	(7,694	)	$	(10,564	)	$	(4,875	)	$	17,537		$	15,817		$	(2,334	)	$	7,887
Current income tax expense (recovery)		(10	)		-			676			3,981			3			-			4,650
Deferred income tax expense (recovery)		-			200			(5,589	)		(1,473	)		415			-			(6,447	)
Total income tax expense (recovery)		(10	)		200			(4,913	)		2,508			418			-			(1,797	)
Net earnings (loss)	$	(7,684	)	$	(10,764	)	$	38		$	15,029		$	15,399		$	(2,334	)	$	9,684

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 33

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

20.	INCOME TAXES
	(a) Tax Assessments
	Minera Santa Cruz y Garibaldi SA de CV (“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 a MXN 122.9 million ($6,200) tax assessment based on the June 2015 ruling. The 2016 tax assessment comprised of MXN 41.8 million in taxes owed ($2,100), MXN 17.7 million ($900) in inflationary charges, MXN 40.4 million ($2,000) 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, failure to provide appropriate support for loans made to MSCG from affiliated companies. The MXN 123 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, while a number of deficiencies exist within the assessment. Since issuance of the assessment interest charges of MXN 6.3 million ($500) and inflationary charges of MXN9.5 million ($500) has accumulated.
	Included in the Company’s consolidated financial statements, are net assets of $595, including $42 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. As of December 31, 2018, the Company has recognized an allowance for transferring the shares and assets of MSCG amounting to $595. The Company is currently assessing MSCG’s settlement options based on on-going court proceedings and discussion with the tax authorities.
	(b) Deferred Income Tax

		December 31,			December 31,
Mexico operations		2018			2017
Deferred income tax assets:
Tax loss carryforwards	$	13,709		$	9,326
Provision for reclamation and rehabilitation		2,823			2,754
Other		3,774			1,959
Deferred income tax liabilities:
Inventories		(1,838	)		(1,816	)
Mineral properties, plant and equipment		(9,621	)		(12,523	)
Other		(35	)		(637	)
Deferred income tax assets (liabilities), net	$	8,812		$	(937	)

As at December 31, 2018, the Company had available for deduction against future taxable income in Mexico non-capital losses of approximately $149,924 (2017 – $142,494). These losses, if unutilized, expire between 2019 to 2028.

As at December 31, 2018, the Company had $1,962 non-capital losses in Canada (2017 –$6,175), which expire between 2025 to 2027, and capital losses of $12,002 (2017 – $15,570), which do not expire.

When circumstances cause a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change will be reflected in current income.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 34

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

(c) Income Tax Expense

		December 31,			December 31,
		2018			2017
Current income tax expense (recovery):
Current income tax expense in respect of current year	$	2,559		$	3,779
Special mining duty		1,850			844
Adjustments recognized in the current year in relation to prior years		68			27
Deferred income tax expense (recovery):
Deferred tax expense recognized in the current year		(10,745	)		(4,375	)
Special mining duty		1,315			586
Adjustments recognized in the current year in relation to prior years		(319	)		(2,658	)
Total income tax expense (recovery)	$	(5,272	)	$	(1,797	)

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,
		2018			2017
Canadian statutory tax rates		27.00%			26.00%
Income tax expense computed at Canadian statutory rates	$	(4,782	)	$	2,050
Foreign tax rates different from statutory rate		(5,018	)		(3,412	)
Change in tax rates		291			-
Withholding taxes, net of tax credits		665			678
Stock-based compensation		541			743
Foreign exchange		3,738			(2,381	)
Inflationary adjustment		3,710			2,539
Other items		1,259			956
Adjustments recognized in the current year in relation to prior years		(319	)		(61	)
Current year losses not recognized		4,212			2,612
Special mining duty Mexican tax		535			1,430
Recognition of previously unrecognized losses		(10,104	)		(6,951	)
Income tax expense	$	(5,272	)	$	(1,797	)

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 35

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

21. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

(a) Financial assets and liabilities

As at December 31, 2018, the carrying and fair values of the Company’s financial instruments by category are as follows:

	Fair value
	through profit	Amortized	Carrying
	or loss	cost	value	Fair value
	$	$	$	$
Financial assets:
Cash and cash equivalents	-	33,376	33,376	33,376
Investments	88	-	88	88
Trade and other receivables	6,007	-	6,007	6,007
Total financial assets	6,095	33,376	39,471	39,471
Financial liabilities:
Accounts payable and accrued liabilites	1,479	17,991	19,470	19,470
Total financial liabilities	1,479	17,991	19,470	19,470

Fair value measurements

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:
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. As a result, these financial assets have been included in Level 1 of the fair value hierarchy.

Deferred share units are determined based on a market approach reflecting the Company’s closing share price.
Level 2:

The Company determines the fair value of the embedded derivatives related to its trade receivables based on the quoted closing price obtained from the silver and gold metal exchanges.

The Company determines the fair value of the SARs liability using an option-pricing model.

Level 3:
The Company has no assets or liabilities included in Level 3 of the fair value hierarchy There were no transfers between levels 1, 2 and 3 during the year ended December 31, 2018.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 36

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

Assets and liabilities as at December 31, 2018 measured at fair value on a recurring basis include:

	Total	Level 1	Level 2	Level 3
	$	$	$	$
Financial assets:
Investments	88	88	-	-
Trade receivables	5,627	-	5,627	-
Total financial assets	5,715	88	5,627	-
Financial liabilities:
Deferred share units	1,407	1,407	-	-
Share appreciation rights	72	-	72	-
Total financial liabilities	1,479	1,407	72	-

(b) 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, investments, and accounts receivable. Credit risk exposure on bank accounts and short-term investments 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 (“IVA”) receivables are generated on the purchase of supplies and services to produce silver and gold, which are refundable from the Mexican government. Trade receivables are generated on the sale of concentrate inventory to reputable metal traders.

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

Below is an aged analysis of the Company’s receivables:

		Carrying		Gross		Carrying		Gross
		amount		impairment		amount		impairment
		December 31, 2018				December 31, 2017
Less than 1 month	$	9,211	$	-	$	13,799	$	-
1 to 3 months		4,284		-		3,943		-
4 to 6 months		1,039		-		3,282		-
Over 6 months		12,413		194		12,988		2,212
Total accounts receivable	$	26,947		194	$	34,012	$	2,212

At December 31, 2018, 99% of the receivables that were outstanding greater than one month were comprised of IVA and tax receivables in Mexico (December 31, 2017 – 98%) and 1% of the receivables outstanding greater than one month are pending finalizations of concentrate sales.

At December 31, 2018, an impairment loss of $194 relates to IVA receivable claims from prior years (December 31, 2017 - $2,212).

Liquidity Risk

The Company ensures that there is sufficient capital in order to meet short term business requirements. The Company’s policy is to invest cash at floating rates of interest, while cash reserves are maintained in cash equivalents in order to maintain liquidity after taking into account the Company’s holdings of cash equivalents, money market investments, marketable securities and receivables. The Company believes that these sources, operating cash flows and its policies will be sufficient to cover the likely short-term cash requirements and commitments.

In the normal course of business, the Company enters into contracts that give rise to future minimum payments. The following table summarizes the remaining contractual maturities of the Company’s financial liabilities and operating and capital commitments at December 31, 2018:

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 37

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

	Less than	1 to 3	4 to 5	Over 5
	1 year	years	years	years	Total
	$	$	$	$	$
Accounts payable and accrued liabilities	19,470	-	-	-	19,470
Income taxes payable	4,050	-	-	-	4,050
Provision for reclamation and rehabilitation	-	6,066	2,129	-	8,195
Capital expenditure commitments	140	-	-	-	140
Operating leases	394	720	542	1,184	2,840
Total contractual obligations	24,054	6,786	2,671	1,184	34,695

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 are as follows:

		December 31, 2018						December 31, 2017
		Canadian Dollar			Mexican Peso			Canadian Dollar			Mexican Peso
Financial assets	$	721		$	26,969		$	1,484		$	29,502
Financial liabilities		(2,767	)		(15,438	)		(2,984	)		(17,586	)
Net financial assets (liabilities)	$	(2,046	)	$	11,531		$	(1,500	)	$	11,916

Of the financial assets listed above, $26 (2017 – $441) represents cash and cash equivalents held in Canadian dollars and $4,522 (2017 - $3,192) represents cash held in Mexican Pesos. The remaining cash balance is held in US dollars.

As at December 31, 2018, with other variables unchanged, a 5% strengthening of the US dollar against the Canadian dollar would increase net earnings by $97 due to these financial assets and liabilities.

As at December 31, 2018, with other variables unchanged, a 5% strengthening of the US dollar against the Mexican peso would decrease net earnings by $547 due to these financial assets and liabilities.

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, 2018 there are 274,033 ounces of silver and 3,770 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, 2018, with other variables unchanged, a 10% decrease in the market value of silver and gold would result in a reduction of revenue of $0.9 million.

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 38

ENDEAVOUR SILVER CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2018 and 2017
(expressed in thousands of US dollars, unless otherwise stated)

HEAD OFFICE	Suite #1130, 609 Granville Street
	Vancouver, BC, Canada V7Y 1G5
	Telephone:               (604) 685-9775
	1-877-685-9775
	Facsimile:                 (604) 685-9744
	Website:                   www.edrsilver.com
DIRECTORS	Geoff Handley
	Ricardo Campoy
	Bradford Cooke
	Rex McLennan
	Kenneth Pickering
	Mario Szotlender
	Godfrey Walton
OFFICERS	Bradford Cooke - Chief Executive Officer
	Godfrey Walton - President and Chief Operating Officer
	Dan Dickson - Chief Financial Officer
	Nicholas Shakesby – Vice President, Operations
	Luis Castro - Vice-President, Exploration
	Dale Mah - Vice-President, Corporate Development
	Christine West – Vice-President, Controller
	Manuel Echevarria – Vice President, New Projects
	Bernard Poznanski - Corporate Secretary
REGISTRAR AND	Computershare Trust Company of Canada
TRANSFER AGENT	3rd Floor - 510 Burrard Street
	Vancouver, BC, V6C 3B9
AUDITORS	KPMG LLP
	777 Dunsmuir Street
	Vancouver, BC, V7Y 1K3
SOLICITORS	Koffman Kalef LLP
	19th Floor – 885 West Georgia Street
	Vancouver, BC, V6C 3H4
SHARES LISTED	Toronto Stock Exchange
	Trading Symbol - EDR
	New York Stock Exchange
	Trading Symbol – EXK

ENDEAVOUR SILVER CORP.   |   CONSOLIDATED FINANCIAL STATEMENTS
	PAGE 39

EX-99.3

KPMG LLP	Telephone (604) 691-3000
Chartered Professional Accountants	Fax              (604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet      www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
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, 2018 and 2017, the related consolidated statements of comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018 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, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2018, 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, 2018, 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 22, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 3(o) to the consolidated financial statements, the Company has changed its accounting policies for revenue and financial instruments as of January 1, 2018 due to the adoption of IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial instruments and has included in Note 3(o) the impact on the statement of financial position as at January 1, 2018.

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.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

Endeavour Silver Corp.
Page 2

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.

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

//s// KPMG LLP

Vancouver, Canada
February 22, 2019

KPMG LLP	Telephone  (604) 691-3000
Chartered Professional Accountants	Fax               (604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet       www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
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, 2018, 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, 2018, 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 Endeavour Silver Corp. (the Company) as of December 31, 2018 and 2017, the related consolidated statements of comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018 and the related notes (collectively, the consolidated financial statements), and our report dated February 22, 2019 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 the accompanying “Management’s Responsibility for 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.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

Endeavour Silver Corp.
Page 2

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

Vancouver, Canada
February 22, 2019

EX-99.4

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2018

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, 2018 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”). 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 (“U.S.”) dollars and tabular amounts are expressed in thousands of U.S. dollars unless otherwise indicated. This MD&A is dated as of February 22, 2019 and all information contained is current as of February 22, 2019 unless otherwise stated.

Cautionary Note to U.S. Investors concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Mineral Resources:

This MD&A has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ materially from the definitions in SEC Industry Guide 7 under the U.S. Securities Act of 1933, as amended.

Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into SEC Industry Guide 7 reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this MD&A contains descriptions of the Company’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Industry Guide 7.

609 Granville Street, Suite 1130, PO Box #10328, Vancouver, B.C., Canada V7Y 1G5
Phone: 604.685.9775 | Fax: 604.685.9744 | Toll Free: 1.877.685.9775 Email: info@edrsilver.com
www.edrsilver.com

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 Endeavour’s anticipated performance in 2019, 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, capital expenditures and sustaining capital. 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: 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 Godfrey Walton, M.Sc., P.Geo., President and Chief Operating Officer of Endeavour, a Qualified Person within the meaning of NI 43-101.

TABLE OF CONTENTS

Operating Highlights	Page 3	Consolidated Financial Results	Page 17
History and Strategy	Page 4	Selected Annual Information	Page 19
Consolidated Operations	Page 5	Non IFRS Measures	Page 20
Guanaceví Operations	Page 8	Quarterly Results and Trends	Page 26
Bolañitos Operations	Page 10	Annual Outlook	Page 30
El Cubo Operations	Page 12	Liquidity and Capital Resources	Page 32
Development Activities	Page 13	Changes in Accounting Policies	Page 38
Exploration Results	Page 15	Risks and Uncertainties	Page 44
Reserves and Resources	Page 16	Controls and Procedures	Page 49

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

Three Months Ended December 31			2018 Highlights	Year Ended December 31
20 18	20 17	% Change		20 18	20 17	% Change
			Production
1,386,505	1,436,962	(4%)	Silver ounces produced	5,522,068	4,919,788	12%
13,117	14,577	(10 %)	Gold ounces produced	52,967	53,007	(0%)
1,359,256	1,400,705	(3%)	Payable silver ounces produced	5,417,633	4,803,589	13%
12,821	14,245	(10 %)	Payable gold ounces produced	51,826	51,797	0%
2,370,280	2,530,237	(6%)	Silver equivalent ounces produced(1)	9,494,593	8,895,313	7%
9.22	7.97	16%	Cash costs per silver ounce(2)(3)	8.06	8.06	0%
14.30	11.38	26%	Total production costs per ounce(2)(4)	15.21	11.68	30%
14.20	12.70	12%	All-in sustaining costs per ounce(2)(5)	15.45	16.96	(9%)
309,036	349,924	(12%)	Processed tonnes	1,266,831	1,279,873	(1%)
93.52	84.38	11%	Direct production costs per tonne(2)(6)	86.32	82.36	5%
11.53	11.57	(0%)	Silver co-product cash costs(7)	11.15	11.88	(6%)
984	885	11%	Gold co-product cash costs(7)	902	886	2%
			Financial
33.8	41.6	(19%)	Revenue ($ millions)	150 .5	150 .5	0%
1,264,340	1,392,518	(9%)	Silver ounces sold	5,461,197	4,892,855	12%
11,819	14,117	(16%)	Gold ounces sold	51,318	51,460	(0%)
14.88	16.84	(12%)	Realized silver price per ounce	15.65	17.24	(9%)
1,270	1,288	(1%)	Realized gold price per ounce	1,267	1,285	(1%)
(3.7)	2.7	(237%)	Net earnings (loss) ($ millions)	(12.4)	9.7	(228%)
0.4	7.9	(95%)	Mine operating earnings ($ millions)	3.5	28.5	(88%)
8.5	12.7	(33%)	Mine operating cash flow(8) ($ millions)	43.9	45.4	(3%)
0.1	4.6	(99%)	Operating cash flow before working capital changes (9)	22.2	23.6	(6%)
2.2	6.9	(68%)	Earnings before ITDA(10) ($ millions)	21.9	25.6	(14%)
54.5	66.2	(18%)	Working capital ($ millions)	54.5	66.2	(18%)
			Shareholders
(0.03)	0.02	(250%)	Earnings (loss) per share – basic	(0.10)	0.08	(225%)
0.00	0.04	(100%)	Operating cash flow before working capital changes per share (9)	0.17	0.19	11%
130,511,679	127,486,671	2%	Weighted average shares outstanding	128,600,421	127,340,834	1%

(1)	Silver equivalents are calculated using a 75:1 ratio. 2017 Silver equivalents have been restated from 70:1 to 75:1 for comparative purposes.
(2)	The Company reports non-IFRS measures which include cash costs net of by-products on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, 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 20.
(3)	Cash costs net of by-products per payable silver ounce include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 & 23.
(4)	Total production costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites. See Reconciliation to IFRS on pages 22 & 23.
(5)	All-in sustaining cost per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on page 24.
(6)	Direct production costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. See Reconciliation to IFRS on pages 22 & 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 & 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.

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 3

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.

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 business model of acquiring fully built and permitted silver mines that were about to close for lack of ore. By bringing the money and expertise needed to find new silver ore-bodies, the Company successfully re-opened and expanded these mines to develop 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 2012, the Company acquired the El Cubo silver-gold mine located in Guanajuato, Mexico. The El Cubo property came with substantial reserves and resources and the mine was already operating at 1,100 tonnes per day (tpd). After acquisition, the Company initiated a two-year operational turn-around and capital investment program aimed at increasing throughput, grade and productivity in order to reduce operating costs and return the operation to profitability.

In addition to operating the Guanaceví, Bolañitos and El Cubo mines, the Company is currently commissioning the El Compas mine for commercial production in Q1, 2019. The Company is advancing the Terronera development project and several 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.

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

REVIEW OF OPERATING RESULTS

The Company operates the Guanaceví, Bolañitos and El Cubo mines in Mexico. In addition, the Company is currently commissioning the fully built and permitted El Compas project anticipating commercial production in Q1, 2019.

Consolidated Production Results for the Three Months and Years Ended December 31, 2018 and 2017

Three Months Ended December 31			CONSOLIDATED	Year Ended December 31
2018	2017	% Change		2018	2017	% Change
309,036	349,924	(12%)	Ore tonnes processed	1,266,831	1,279,873	(1%)
157	152	3%	Average silver grade (gpt)	156	140	11%
88.8	84.1	6%	Silver recovery (%)	86.9	85.4	2%
1,386,505	1,436,962	(4%)	Total silver ounces produced	5,522,068	4,919,788	12%
1,359,256	1,400,705	(3%)	Payable silver ounces produced	5,417,633	4,803,589	13%
1.55	1.56	(1%)	Average gold grade (gpt)	1.53	1.54	(1%)
85.4	83.3	3%	Gold recovery (%)	84.9	83.9	1%
13,117	14,577	(10%)	Total gold ounces produced	52,967	53,007	(0%)
12,821	14,245	(10%)	Payable gold ounces produced	51,826	51,797	0%
2,370,280	2,530,237	(6%)	Silver equivalent ounces produced(1)	9,494,593	8,895,313	7%
9.22	7.97	16%	Cash costs per silver ounce(2)(3)	8.06	8.06	0%
14.30	11.38	26%	Total production costs per ounce(2)(4)	15.21	11.68	30%
14.20	12.70	12%	All in sustaining cost per ounce(2)(5)	15.45	16.96	(9%)
93.52	84.38	11%	Direct production costs per tonne(2)(6)	86.32	82.36	5%
11.53	11.57	(0%)	Silver co-product cash costs(7)	11.15	11.88	(6%)
984	885	11%	Gold co-product cash costs(7)	902	886	2%

(1)	Silver equivalents are calculated using a 75:1 ratio. 2017 Silver equivalents have been restated from 70:1 to 75:1 for comparative purposes.
(2)	The Company reports non-IFRS measures which include cash costs net of by-products on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, 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 20.
(3)	Cash costs net of by-products per payable silver ounce include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 & 23.
(4)	Total production costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites. See Reconciliation to IFRS on pages 22 & 23.
(5)	All-in sustaining costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on page 24.
(6)	Direct production costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. See Reconciliation to IFRS on pages 22 & 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 & 26.

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

Consolidated Production

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Consolidated silver production during Q4, 2018 was 1,386,505 ounces (oz), a decrease of 4% compared to 1,436,962 oz in Q4, 2017, and gold production was 13,117 oz, a decrease of 10% compared to 14,577 oz in Q4, 2017. Plant throughput was 309,036 tonnes at average grades of 157 grams per tonne (gpt) silver and 1.55 gpt gold, compared to 349,924 tonnes grading 152 gpt silver and 1.56 gpt gold in Q4, 2017. Silver production was lower in Q4, 2018 compared to Q4, 2017, due to decreased throughput at each operation. The lower throughput was offset by improved recoveries as a result of increased residency time.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Consolidated silver production during 2018 was 5,522,068 ounces, an increase of 12% compared to 4,919,788 oz in 2017, and gold production was 52,967 oz, nearly flat compared to 53,007 oz over the same period in 2017. Plant throughput was 1,266,831 tonnes at average grades of 156 grams per tonne (gpt) silver and 1.53 gpt gold, compared to 1,279,873 tonnes grading 140 gpt silver and 1.54 gpt gold in 2017. Silver production was higher in 2018 compared to 2017 due to higher mine output and silver grades at El Cubo and Bolañitos, partially offset by lower throughput and silver grades at Guanaceví. Higher gold production in 2018 compared to 2017 was primarily due to higher gold grades at El Cubo and higher recoveries from all operations. Gold production was offset by lower gold production from Bolañitos where gold grades dipped 20%.

In 2018, Company’s performance resulted in a 7% production shortfall compared to the 2018 consolidated production guidance, due to the delayed commercial production at El Compas, lower gold grades mined at Bolañitos and lower mine output and silver grades at Guanaceví.

Consolidated Operating Costs

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Direct production costs per tonne in Q4, 2018 increased 11% compared with Q4, 2017 a 12% drop in throughput on a consolidated basis.

Consolidated cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) increased 16% primarily due to the lower productivity and increased profit sharing compared to the prior year. Similarly, all-in sustaining costs (also a non-IFRS measure) which, compared to Q4, 2017, increased 12% to $14.20 per oz in Q4, 2018. This increase in all-in sustaining costs was also a result of lower productivity in Q4, 2018 compared to Q4, 2017.

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

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Direct production costs per tonne in 2018 increased 5% compared to 2017. The higher production costs per tonne were driven mainly from Guanaceví, which included costs related to the implementation of a productivity optimization program and slightly higher labour and contractor costs within the operations. Improved efficiencies at El Cubo and Bolañitos partially offset the higher costs incurred at Guanaceví.

The higher direct costs per tonne was offset by 11% higher silver grades and improved silver and gold recoveries resulting in flat consolidated cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute). All-in sustaining costs (a non-IFRS measure) which, compared to 2017, decreased 9% to $15.45 per oz in 2018. This decrease in all-in sustaining costs is attributable to the lower capital expenditures, lower stock based compensation and slightly lower exploration expenditures in 2018 compared to 2017, partially offset by higher general and administration charges at the corporate level.

For the year ended December 31, 2018, direct production costs were $86.32 per tonne compared to the guided range of $80-$85 per tonne. The lower throughput and higher costs than planned at Guanaceví drove the higher consolidated direct costs per tonne than guided.

Consolidated cash costs, net of gold by-product credits, were guided to be $6.00 -$7.00 per oz of silver in 2018 and consolidated cash costs expressed on a co-product basis were guided to be $10.00 -$11.00 per oz silver and $750-$800 per oz gold. For the year ended December 31, 2018, cash costs, net of gold by-product credits, were $8.06 per oz and cash costs expressed on a co-product basis were $11.15 per oz silver and $902 per gold oz. The lower than planned throughput resulted in higher than guided costs per tonne and costs per ounce.

All-in sustaining costs (AISC), net of gold by-product credits, in accordance with the World Gold Council standard, were guided to be $15.00 -$16.00 per oz of silver produced in 2018 reflecting new investments in sustaining exploration and development programs. For the year ended December 31, 2018 AISC, net of gold by-product credits, is $15.45 as the Company spent less on sustaining capital expenditures than guided. The lower capital expenditures were offset by higher operating costs on a per ounce basis.

Management assumed a $17 per oz silver price, $1,275 per oz gold price, and 19:1 Mexican peso per US dollar exchange rate for its 2018 cost guidance.

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

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 for over 500 people and engages 482 contractors. Guanaceví mine production was below plant capacity due to the operational issues mentioned under “Guanaceví Production Results”. The development of two new orebodies, Milache and SCS, is expected to provide sufficient ore and plan flexibility to meet the designed capacity of the plant. Initial production at Milache commenced in October 2018 with 300 tpd expected in 2019 and the SCS portal was collared in late 2018 with 200-300 tpd production expected in H2, 2019.

Production Results for the Three Months and Years Ended December 31, 2018 and 2017

Three Months Ended December 31			GUANACEVÍ	Year Ended December 31
2018	2017	% Change		2018	2017	% Change
75,528	83,881	(10 %)	Ore tonnes processed	307,042	321,113	(4%)
222	241	(8%)	Average silver grade (g/ t)	222	230	(3%)
89.8	83.7	7%	Silver recovery (%)	89.6	87.0	3%
484,197	544,117	(11%)	Total silver ounces produced	1,963,773	2,066,448	(5%)
483,713	543,573	(11%)	Payable silver ounces produced	1,961,788	2,064,382	(5%)
0.58	0.54	7%	Average gold grade (g/ t)	0 .59	0 .53	11%
88.0	85.5	3%	Gold recovery (%)	89.7	86.6	4%
1,240	1,245	(0%)	Total gold ounces produced	5,224	4,740	10%
1,238	1,245	(1%)	Payable gold ounces produced	5,218	4,736	10%
577,197	637,492	(9%)	Silver equivalent ounces produced(1)	2,355,573	2,421,948	(3%)
19.38	12.39	56%	Cash costs per silver ounce(2)(3)	17.57	13.41	31%
27.24	19.92	37%	Total production costs per ounce(2)(4)	29.42	20 .20	46%
27.49	17.57	56%	All in sustaining cost per ounce(2)(5)	27.01	22.87	18%
144.57	99.39	45%	Direct production costs per tonne(2)(6)	133.78	105.13	27%
18.51	13.04	42%	Silver co-product cash costs(7)	17.21	13.95	23%
1,579	997	58%	Gold co-product cash costs(7)	1,393	1,040	34%

(1)	Silver equivalents are calculated using a 75:1 ratio. 2017 Silver equivalents have been restated from 70:1 to 75:1 for comparative purposes.
(2)	The Company reports non-IFRS measures which include cash costs net of by-product on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, 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 Reconciliation to IFRS on page 20.
(3)	Cash costs net of by-product per payable silver ounce include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 & 23.
(4)	Total production costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites. See Reconciliation to IFRS on pages 22 & 23.
(5)	All-in sustaining cost per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on page 24.
(6)	Direct production costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. See Reconciliation to IFRS on pages 22 & 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 & 26.

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

Guanaceví Production Results

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Silver production at the Guanaceví mine during Q4, 2018 was 484,197 oz, a decrease of 11% compared to 544,177 oz in Q4, 2017, and gold production was 1,240 oz, flat compared to 1,245 oz in Q4, 2017. Plant throughput was 75,528 tonnes at average grades of 222 gpt silver and 0.58 gpt gold, compared to 83,881 tonnes grading 241 gpt silver and 0.54 gpt gold in Q4, 2017. The Q4, 2018 throughput and silver grade decreased compared to Q4, 2017 as electrical brown outs and pump failures impacted daily volume output and dilution reduced ore grade from the Santa Cruz zone.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Silver production at the Guanaceví mine during 2018 was 1,963,773 oz, a decrease of 5% compared to 2,066,448 oz in 2017, and gold production was 5,224 oz, an increase of 10% compared to 4,740 oz in 2017. Plant throughput was 307,042 tonnes at average grades of 222 gpt silver and 0.59 gpt gold, compared to 321,113 tonnes grading 230 gpt silver and 0.53 gpt gold in 2017. Guanaceví silver production was lower due to the slightly lower throughput and silver grade partly offset by higher silver recoveries. Higher gold grades due to variations in the ore deposit resulted higher gold production and higher gold recoveries in 2018 compared to previous year.

Management guided 2018 production at Guanaceví to range from 2.2 to 2.5 million oz silver and 5,000 to 5,500 oz gold. In 2018, Guanaceví continued to face operational challenges and fell short of guidance. The remaining reserves at the two operating mines, Porvenir Norte and Santa Cruz, are now deeper, narrower and lower grade compared to prior years, resulting in lower production from these areas than anticipated. The permitting and development of two new shallower, wider, higher grade orebodies, Milache and SCS, suffered delays which resulted in a shortfall of both tonnes and grades to the plant. At year-end, the Milache orebody had three underground levels open and advancing in lower grade ore with grades increasing with depth as, modeled. A new ramp was collared late in the year to develop the SCS orebody. Management expects both new orebodies will reach their planned production rates during 2019.

Guanaceví Operating Costs

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Direct production costs per tonne in Q4, 2018 rose 45% compared with Q4, 2017, as a result of the lower mine output, pump failures and maintenance costs. The higher costs per tonne, with lower silver and gold grade ore, resulted in 56% higher cash costs per oz, net of byproduct credits (a non-IFRS measure and a standard of the Silver Institute). Water pumping issues and the impact on productivity attributed to the higher costs per tonne year over year, while productivity gains are expected as the mine enters new ore bodies. All-in sustaining costs (a non-IFRS measure) which, compared to Q4, 2017, rose 56% to $27.49 per oz in Q4, 2018. The rise in cash costs and the slightly higher capital both contributed the rise in costs compared to Q4, 2017.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
As a result of a 4% decrease in throughput, an investment in an optimization program and continued water pumping issues, direct production costs per tonne in 2018 rose 27% compared to 2017. The higher costs per tonne was partially offset with higher gold grade and improved recoveries resulting in 31% higher cash costs per oz, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute). All-in sustaining costs (also a non-IFRS measure) which, compared to 2017 increased 18%.

At Guanaceví, the two operating mines, Porvenir Norte and Santa Cruz, are now deeper, narrower, lower grade and higher cost than in prior years. In 2018, Endeavour completed the permitting and initial development of two new shallower, wider, higher grade, lower cost orebodies, Milache and Santa Cruz Sur (SCS) with expenditures classified as sustaining capital. As of December 31, 2018, $5.5 million was invested at Milache developing three levels of the ore body. A new mine access ramp was collared at SCS in late 2018 to facilitate development of the orebody in 2019. The Milache and SCS production rates are expected to climb each quarter to their respective 200-300 tpd capacities by mid-year, first to fill the plant to its 1,200 tpd capacity and then to steadily displace the higher cost production at Porvenir Norte and Santa Cruz.

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

Bolañitos Operations

The Bolañitos operation encompasses three undergound silver-gold mines and a flotation plant. Bolañitos provides steady employment for over 350 people and engages 205 contractors.

Production Results for the Three Months and Years Ended December 31, 2018 and 2017

Three Months Ended December 31			BOLAÑITOS	Year Ended December 31
2018	2017	% Change		2018	2017	% Change
105,768	124,172	(15%)	Ore tonnes processed	439,005	446,924	(2%)
82	86	(5%)	Average silver grade (g/ t)	86	80	8%
84.4	81.8	3%	Silver recovery (%)	80.4	81.3	(1%)
235,326	280,712	(16%)	Total silver ounces produced	975,555	934,238	4%
228,184	269,484	(15%)	Payable silver ounces produced	946,995	896,869	6%
1.77	2.18	(19%)	Average gold grade (g/ t)	1.79	2.24	(20%)
85.8	82.8	4%	Gold recovery (%)	83.6	83.6	0%
5,166	7,204	(28%)	Total gold ounces produced	21,127	26,910	(21%)
5,037	7,025	(28%)	Payable gold ounces produced	20,621	26,238	(21%)
622,776	821,012	(24%)	Silver equivalent ounces produced(1)	2,560,080	2,952,488	(13%)
2.59	(2.73)	195%	Cash costs per silver ounce(2)(3)	2.14	(4.00)	154%
2.25	(1.47)	(253%)	Total production costs per ounce(2)(4)	3.08	(1.80)	271%
5.12	1.01	407%	All in sustaining cost per ounce(2)(5)	9.00	1.62	454%
66.43	67.04	(1%)	Direct production costs per tonne(2)(6)	64.20	67.68	(5%)
10.39	10.01	4%	Silver co-product cash costs(7)	10.49	10.29	2%
887	765	16%	Gold co-product cash costs(7)	849	767	11%

(1)	Silver equivalents are calculated using a 75:1 ratio. 2017. Silver equivalents have been restated from 70:1 to 75:1 for comparative purposes.
(2)	The Company reports non-IFRS measures which include cash costs net of by-products on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, 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, September 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 Reconciliation to IFRS on page 20.
(3)	Cash costs net of by-product per payable silver ounce include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 & 23.
(4)	Total production costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites. See Reconciliation to IFRS on pages 22 & 23.
(5)	All-in sustaining cost per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on page 24.
(6)	Direct production costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. See Reconciliation to IFRS on pages 22 & 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 & 26.

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

Bolañitos Production Results

Management guided 2018 production at Bolañitos to range from 1.0 to 1.1 million oz silver and 23,500 to 25,500 oz gold. In 2018, Bolañitos throughput exceeded plan however grades were below the mine plan, which was modified to include new but lower grade resources along the margins of the LL-Asuncion and Plateros veins to extend the mine life, resulting in lower production grades and metal production compared to guidance.

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Silver production at the Bolañitos mine was 235,326 oz in Q4, 2018, a decrease of 16% compared to 280,712 oz in Q4, 2017, and gold production was 5,166 oz in Q4, 2018, a decrease of 28% compared to 7,204 oz in Q4, 2017. Plant throughput in Q4, 2018 was 105,768 tonnes at average grades of 82 gpt silver and 1.77 gpt gold, compared to 124,172 tonnes grading 86 gpt silver and 2.18 gpt gold in Q4, 2017. Silver production decreased due to the combination of slightly lower silver grades and lower throughput partly offset by slightly higher recoveries, while gold production decreased 28% due to the lower throughput and lower gold grades partly offset by slightly higher recoveries. Gold grades were planned to be lower in 2018 compared to 2017 but gold grades were lower than plan as the lower grade resources along the margins of the LL-Asuncion and Plateros veins were mined to extend the mine life.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Silver production at the Bolañitos mine was 975,555 oz in 2018, an increase of 4% compared to 934,238 oz in 2017, and gold production was 21,127 oz in 2018, a decrease of 21% compared to 26,910 oz in 2017. Plant throughput in 2018 was 439,005 tonnes at average grades of 86 gpt silver and 1.79 gpt gold, compared to 446,924 tonnes grading 80 gpt silver and 2.24 gpt gold in 2017. Silver production increased due to higher silver grades partly offset by lower throughput and recoveries, while gold production decreased 21% due to the lower throughput and gold grades. Gold grades were planned to be lower in 2018 compared to 2017.

Bolañitos Operating Costs

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Direct production costs per tonne in Q4, 2018 decreased 1% to $66.43 per tonne due to normal variations in productivity, supplies and labour. Lower gold grades resulted in higher cash costs per ounce, net of by-product credits (which is a non-IFRS measure and a standard of the Silver Institute), of $2.59 per oz of payable silver in Q4, 2018 compared to negative $2.73 per oz in Q4, 2017. Similarly, all-in sustaining costs (also a non-IFRS measure) increased in Q4, 2018 to $5.12 per oz compared to $1.01 per oz in Q4, 2017 primarily attributed to the lower gold credit and lower capital and exploration expenditures.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Direct production costs per tonne in 2018 decreased 5% to $64.20 per tonne due to normal variations in productivity, supplies and labour. The lower cost per tonne was offset by lower gold grades resulting in higher cash costs per ounce, net of by-product credits (which is a non-IFRS measure and a standard of the Silver Institute), of $2.14 oz of payable silver in 2018 compared to negative $4.00 per oz in 2017. Similarly, all-in sustaining costs (a non-IFRS measure) increased in 2018 to $9.00 per oz compared to $1.62 per oz in the same period of 2017 primarily attributed to the lower gold credit and higher capital expenditures. The Company is investing into the LL-Asuncsion and Plateros ore bodies to extend the life of the operations.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 11

El Cubo Operations

The El Cubo operation includes two operating underground silver-gold mines and a flotation plant. El Cubo currently employs over 500 people and engages 252 contractors.

Production Results for the Three Months and Years Ended December 31, 2018 and 2017

Three M onths Ended December 31			EL CUBO	Year Ended December 31
20 18	20 17	% Change		20 18	20 17	% Change
127,740	141,871	(10%)	Ore tonnes processed	520,784	511,836	2%
181	157	15%	Average silver grade (g/ t)	176	136	29%
89.7	85.5	5%	Silver recovery (%)	87.6	85.8	2%
666,982	612,133	9%	Total silver ounces produced	2,582,740	1,919,102	35%
647,359	587,648	10%	Payable silver ounces produced	2,508,850	1,842,338	36%
1.93	1.61	20%	Average gold grade (g/ t)	1.87	1.55	21%
84.7	83.4	1%	Gold recovery (%)	85.0	83.7	2%
6,711	6,128	10%	Total gold ounces produced	26,616	21,357	25%
6,546	5,975	10%	Payable gold ounces produced	25,987	20,823	25%
1,170,307	1,071,733	9%	Silver equivalent ounces produced(1)	4,578,940	3,520,877	30%
3.97	8.78	(55%)	Cash costs per silver ounce(2)(3)	2.87	7.93	(64%)
8.89	9.38	(5%)	Total production costs per ounce(2)(4)	8.68	8.69	(0%)
7.48	13.56	(45%)	All in sustaining cost per ounce(2)(5)	8.86	17.80	(50%)
85.77	90.69	(5%)	Direct production costs per tonne(2)(6)	77.00	80.90	(5%)
8.84	11.90	(26%)	Silver co-product cash costs(7)	8.46	11.79	(28%)
754	910	(17%)	Gold co-product cash costs(7)	685	879	(22%)

(1)	Silver equivalents are calculated using a 75:1 ratio. Silver equivalents have been restated from 70:1 to 75:1 for comparative purposes.
(2)	The Company reports non-IFRS measures which include cash costs net of by-products on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce and direct production costs per tonne, 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 Reconciliation to IFRS on page 20.
(3)	Cash costs net of by-products per payable silver ounce include mining, processing (including smelting, refining, transportation and selling costs), and direct overhead, net of gold credits. See Reconciliation to IFRS on pages 22 & 23.
(4)	Total production costs per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, amortization, depletion and amortization at the operation sites. See Reconciliation to IFRS on page 22 & 23.
(5)	All-in sustaining cost per ounce include mining, processing (including smelting, refining, transportation and selling costs), direct overhead, corporate general and administration, on-site exploration, share-based compensation, reclamation and sustaining capital net of gold credits. See Reconciliation to IFRS on page 24.
(6)	Direct production costs per tonne include mining, processing (including smelting, refining, transportation and selling costs) and direct overhead at the operation sites. See Reconciliation to IFRS on pages 22 & 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 & 26.

El Cubo Production Results

Management guided 2018 production at El Cubo to range from 2.5 to 2.7 million oz silver and 22,500 to 24,500 oz gold. In 2018, El Cubo had a good year, with both throughput and grades coming in above the mine plan. Variations in the V-Asuncion orebody resulted in higher gold grades, but also lower silver grades than planned. The higher throughput resulted in silver production meeting guidance and gold production exceeding guidance. However, exploration was not able to replace the depleted resources, so the Company plans to reduce the production rate in 2019 to approximately one-half its 1500 tonne per day capacity, which will result in higher operating costs compared to 2018, while continuing to explore for new resources to extend the mine life.

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Silver production at the El Cubo mine was 666,982 oz in Q4, 2018, an increase of 9% compared to 612,133 oz in Q4, 2017, and gold production was 6,711 oz in Q4, 2018, an increase of 10% compared to 6,128 oz in Q4, 2017. Plant throughput in Q4, 2018 was 127,740 tonnes at average grades of 181 gpt silver and 1.93 gpt gold, compared to 141,871 tonnes grading 157 gpt silver and 1.61 gpt gold in Q4, 2017. The higher metal production is a result of higher grades and recoveries, partly offset by lower throughput.

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Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Silver production at the El Cubo mine was 2,582,740 oz in 2018, an increase of 35% compared to 1,919,102 oz in 2017, and gold production was 26,616 oz in 2018, an increase of 25% compared to 21,357 oz in 2017. Plant throughput in 2018 was 520,784 tonnes at average grades of 176 gpt silver and 1.87 gpt gold, compared to 511,836 tonnes grading 136 gpt silver and 1.55 gpt gold in 2017. The higher metal production is primarily a result of significantly improved ore grades being mined from the center of the Villalpando-Asuncion orebody and slightly higher throughput and recoveries.

El Cubo Operating Costs

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
Direct production costs fell to $85.77 per tonne in Q4, 2018 a slight decrease from Q4, 2017 due to normal variations in supplies and labour. The substantial increase in metal grades resulted in 55% reduced cash costs per ounce, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute), decreasing in Q4, 2018 to $3.97 per oz of payable silver compared to $8.78 per oz in Q4, 2017. Similarly, all-in sustaining costs decreased 45% at $7.48 per oz in Q4, 2018 compared to $13.56 per oz in Q4, 2017. The decrease in all-in sustaining costs was a result of the lower operating costs per unit and reduced capital expenditures on the development of the Villalpando ore body.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
Higher throughput was partially offset by higher contractor costs and labour costs resulting in a 5% decrease in direct production costs to $77.00 per tonne. The substantial increase in metal grades resulted in 64% reduced cash costs per ounce, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute), decreasing in 2018 to $2.87 per oz of payable silver compared to $7.93 per oz over the same period in 2017. Similarly, all-in sustaining costs decreased 50% at $8.86 per oz in 2018 compared to $17.80 per oz over the same period in 2017. The decrease in all-in sustaining costs was a result of the lower operating costs per unit and reduced capital expenditures on the development of the Villalpando ore body.

Development Activities

El Compas Project

The El Compas project is a small but high grade, permitted gold-silver mine and a small leased flotation plant in the historic silver mining district of Zacatecas, with good exploration potential to expand resources and scale up production. There is also potential for the Company to acquire other properties in the area to consolidate resources and exploration targets in the district.

El Compas currently employs over 120 people and engages 141 contractors

A NI 43-101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico (“El Compas PEA”) dated May 11, 2017 was filed by the Company. Due to the positive economics, low initial capital requirements, and management’s experience in having successfully developed similar mines in Mexico, a decision was made to proceed with development in Q3, 2017. The Company initiated the installation of project infrastructure, collaring the mine access ramp and refurbishing the plant. As previously announced, the development of the main access ramp proceeded using a form of low impact gunpowder and in March 2018 El Compas received its explosives permit, which allowed the mine to accelerate the development of the main access ramp. As of December 31, 2018, a total of 2.6 kilometres has been developed underground.

Since publishing the El Compas PEA, the Company continued to optimize mining methods, the crushing circuit and grinding alternatives and has been successful on a number of fronts in improving the operating metrics. The work index of the ore and the size on the motor allows the capacity of the milling circuit to increase to 325 tpd, which allows for the mining method to be changed to mechanized cut and fill from captive cut and fill. Mechanized cut and fill increases the mining rate but has the same cost profile as captive cut and fill previously disclosed in the El Compas PEA.

Additionally, the modified plant flow sheet will allow the Company to increase the ore grind size and produce a single concentrate, while still achieving recoveries similar to those outlined in the El Compas PEA, lowering overall power costs and improving the long-term stability of the tailings facility.

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As a result of the modified mine plan and plant design and the delay in receiving the explosives permit, the total start up CAPEX was revised upwards to $11.3 million compared to the previous $10.0 million cost estimated in the El Compas PEA. However, the operational benefits of the modified plant design and increased mining rate should improve the overall economics of the project. As of December 31, 2018, the Company had incurred $15.5 million in capital expenditures to date. The additional costs included $2.2 million in additional mine development, an additional $1.3 million on the plant refurbishment and tailings dam and $0.7 million on site infrastructure. The delay in commercial production increased pre-production costs capitalized to the projects.

Mining and stockpiling of ore and commissioning of the El Compas plant was initiated in Q2, 2018 using low grade ore. In the middle of August 2018, based on an independent engineering review, commissioning of the plant was temporarily halted to allow the tailings area to be dewatered and excess clay removed for improved drainage. A second fine tailings area was excavated in September 2018 to improve overall settling of the fine tailings and allow the coarse tailings storage area to form a solid beach. The plant commissioning re-commenced in mid-October 2018, however in late December, the ball mill pinion failed which brought plant operations to a halt. From mid-October to mid -December the plant processed 11,300 tonnes grading 4.59 g/t gold and 69 g/t silver, producing 1,096 gold ounces and 13,382 silver ounces during the commissioning process.

Management re-commenced plant operations after a new pinion was installed in February 2019 and expected to attain commercial production in Q1, 2019. During these delays, the mine continued to operate and stockpiled over 13,500 ore tonnes.

Terronera Project

The Terronera project features a newly discovered high grade silver-gold mineralized zone in the Terronera vein, which is now over 1,400 metres long, 400 metres deep, 3 to 16 metres thick, and still open along strike to the southeast and down dip. In April 2017, the Company updated its NI 43-101 Mineral Resource and Reserve Estimates and completed an initial Pre-Feasibility Study (“2017 PFS”) for the Terronera mine project located 40 kilometres northeast of Puerto Vallarta in the state of Jalisco, Mexico.

In August 2018, the Company completed an updated Pre-Feasibility Study (“2018 PFS”) for its Terronera mine project, including an updated Mineral Resource and Reserve Estimate. The updated Terronera Mineral Resource and Reserve Estimates that formed the basis for the updated 2018 PFS reflect significantly higher tonnes, grades and contained silver, gold and silver equivalent ounces in each category due to positive exploration drill results in 2017 and the inclusion of the high grade La Luz vein, compared to the previous estimates that were the basis for the 2017 PFS. As a result, the 2018 PFS shows significantly higher revenues, EBITDA, free cash flow, mine life and NPV with significantly lower cash costs and all-in sustaining costs per silver oz. The 2018 PFS projects higher annual gold production and slightly lower annual silver production for the same annual silver equivalent production, generating a higher internal rate of return at a moderately lower daily throughput, slightly higher capital investment and lower silver price compared to the 2017 PFS.

Initial capital expenditures are estimated to be $75.8 million, comprised of $44.3 million for plant and site infrastructure, $13.7 million for mine development, mine infrastructure and equipment, $9.7 million for owner’s costs, construction camp, engineering, procurement and construction management (“EPCM”), and $8.1 million for contingencies.

The capital for the Phase 2 expansion from 750 tpd to 1,500 tpd is estimated to be $39.2 million. The expansion consists of $14.9 million to provide sufficient power from the state power grid, $12.0 million for underground mine development, $6.1 million for plant expansion, $2.0 million for owner’s costs, construction camp, and EPCM and $4.2 million in contingencies. An estimated $25.8 million will be required for sustaining capital after commissioning the mine, primarily for mine development and tailings expansion. The total Life of Mine (“LOM”) capital requirements are estimated to be $140.7 million.

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LOM average operating costs are estimated to be $46 per tonne for mining, $20 per tonne for processing, $8 per tonne for general and administration, and $4 in royalties for a total cost of $78 per tonne. Using Base Case metal prices of $17 per oz silver and $1,275 per oz gold (compared to $18 silver and $1260 gold in 2017), total cash costs are estimated to be $0.15 per Ag oz net of the gold by-product credit, and all-in-sustaining costs at site are estimated to be $1.36 per Ag oz over the life of the mine.

The mine is expected to generate LOM revenue of $815.8 million, EBITDA of $447.7 million and total free cash flow of $193.2 million. Using a discount rate of 5%, the expected discounted net present value (NPV) is $117.8 million, the expected after tax internal rate of return (IRR) is 23.5% and payback of capital is 5.4 years.

Management is currently awaiting a number of catalysts to advance the Terronera to mine development. Engineering trade-off studies and economic modeling are being continued. All required documents have been filed with Mexican government agencies for the final environmental permits (tailings facilities), receipt of which is anticipated in the coming months.

Subject to receiving the remaining government permit, finalizing appropriate financing, and completing certain additional optimization work on the 2018 PFS, management intends to seek approval from the Company’s board of directors to commence development of the Terronera mine and related facilities.

There are a number of recommended activities in the 2018 PFS that Endeavour plans to pursue in order to further optimize the project and improve the economics, including:

• Continue exploration drilling on the Terronera vein and other nearby veins to expand resources and extend mine life
• Revising the mine plan to incorporate new Mineral Reserves
• Continue investigating crushing alternatives to provide the lowest cost energy requirement
• Optimizing the grinding circuits to produce an increased particle size
• Continue evaluating power alternatives to reduce capital costs
• Expand the tailings storage facility to incorporate a longer mine life

Management continues to advance the recommended activities including incorporating the 2018 drill results into the mineral reserves and resources and mine plan. The 2018 drilling resulted in upgrading 850,000 tonnes of inferred resources to reserves that will extend the mine life and should improve the overall economics of the project.

Exploration Results

In 2018, the Company planned to drill 64,000 metres and spend $14.1 million on brownfields and greenfields exploration, development engineering, and land payments across its portfolio of properties. At the three existing mines, 17,000 metres of core drilling were planned at a cost of $2.8 million. At the exploration and development projects, expenditures of $8.3 million were planned to drill 47,300 metres, to advance engineering studies and meet property holding obligations. In 2018, the Company incurred $11.8 million to drill 55,319 metres across its portfolio, publish the 2018 Terronera PFS and advance Terronera to a development decision.

In 2018 at the operating mines, 5,854 metres were drilled at the El Cubo operation testing the north part of the Cubo district and an extension of the Villalpando vein, 11,272 metres were drilled at the Bolañitos operations testing the depth of the La Luz and Plateros veins to extend the known mineralization and discovering the San Miguel vein and 5,691 metres were drilled at the Guanaceví operation to test extensions of the Santa Cruz ore body.

At Terronera, $4.7 million was initially budgeted to complete an updated PFS and a 25,400 metre drill program. $1.7 million was spent on the completion of the PFS and continued advancement of the project to a development decision. See Development Activities – Terronera project on Page 14 for detailed discussion).

The 2018 drilling focused on extending mineralization in the Terronera vein to the southeast of the current resource, plus testing other known mineralized veins. The Company incurred $3.4 million primarily drilling 19,654 metres of in-fill holes to upgrade approximately 850,000 tonnes of inferred resources to indicated resources and to expand the inferred resources at depth. The 2018 drilling continued to intersect high grade mineralization and has resulted in the deepest mineralized hole drilled to date, intersecting 618 gpt silver and 3.2 gpt gold over 21.2 metres true width in hole TR11-4 at 430 metres vertical depth, and remains open at depth. The Terronera mine plan will be modified to accommodate the newly defined resources, extending the mine life and should improve the overall economics of the project. Additionally, the exploration team discovered multiple new mineralized veins south of the Terronera veins, staking an additional 2,200 hectares along the southern property boundary to cover possible extension of the Real Alto vein system.

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At El Compas, 6,600 drill metres were planned for $1.0 million primarily on the Calicanto concessions. The 2018 drilling was to further test the new zones of high grade mineralization within the Misie-Karla-Karla HW and Calicanto veins discovered in 2017. As of December 31, 2018, $0.7 million has been spent drilling 4,700 metres testing extensions of the Compas ore body and targeting the Calicanto veins. Drill results were positive as the holes continued to intersect high grade silver-gold mineralization along strike and down dip. Drill results should have a positive impact on the Company’s resources for the Calicanto property, part of the El Compas mine. The high silver and gold grades, good continuity of mineralization and significant exploration upside to expand the resources reinforce our view that El Compas is a scalable asset. Positive drill results incurred by a partner on the Calicanto property and the adjacent property will be further in tested in 2019.

At Parral, $2.2 million was budgeted for drilling 12,000 metres to extend historic and new resource areas. As of December 31, 2018, the Company drilled 8,171 metres for $1.7 million resulting in continued intersection of mineralized veins. Since acquisition three mineralized areas have been intersected, of which the largest and central zone now measures 600 metres long by 250 metres vertical (starting 150 m deep) by 1-3 metres true thickness, still open to the south and at depth. Additionally, metallurgical testing of drill core samples from the Veta Colorada (Sierra Plata, El Verde and Remedios-Argentina zones), Palmilla and Cometa veins on the Parral property indicates excellent metal recoveries by flotation and leaching. Cometa is the only vein with significant lead and zinc best suited for floatation, the other veins contain primarily silver and minor gold best suited to leaching. A preliminary economic assessment was initiated and is expected to be completed in Q2 2019.

In Chile, the Company budgeted for a 3,000 metre drill program on one property to explore for bulk tonnage silver-lead-zinc manto mineralization. The Company deferred the drill program to 2019, but incurred $0.8 million in prospecting, legal and administrative fees.

The Company has entered into separate agreements to acquire three separate exploration projects in northern Chile (Aida, Paloma and Cerro Marquez), each of which has excellent potential for large, new discoveries. The projects cover major alteration systems that can be seen on satellite imagery, yet each project has had no significant previous exploration data due to a historic lack of access. The Company developed road access to the Aida and Cerro Marquez projects and completed several phases of early stage exploration work to identify high priority targets for drilling. The Paloma project returned encouraging early stage rock sample results to also establish high priority targets from exploration work for drilling in 2019.

For the Aida project, the Company can purchase 100% interest in three historic concessions, subject to a 2% NSR, for $3.2 million payable over five years with the final payment due in 2023. The 2% NSR can be purchased at any time for $2.0 million per concession

For the Paloma project, the Company can acquire up to a 70% interest from Compania Minera del Pacifico, S.A. (CMP), a large Chilean iron ore mining company. The Company can acquire its initial 51% interest by paying $0.75 million and spending $5.0 million on exploration over five years with the final option payment due in 2023, followed by a second option to acquire 70% by completing a preliminary economic assessment and a prefeasibility study by 2025.

For the Cerro Marquez project, the Company entered an agreement to purchase a 100% interest in seven concessions that covers 7,800 hectares, subject to a 2% NSR. The Company can acquire the concessions by spending $1.53 million on exploration and paying $2.5 million over four years with the final payment due in 2020. Each 1% NSR can be purchased for $1.25 million. The Company has staked 20 concessions surrounding the seven historic concessions.

Reserves and Resources

Proven and Probable silver and gold Mineral Reserves increased year on year by 38% and 35% respectively to 46.3 million oz silver and 426,700 oz gold. On a silver equivalent basis, Mineral Reserves now total 80.4 million oz (at a silver to gold ratio of 80:1). The increased Mineral Reserves are mainly due to in-fill drilling and a robust economic assessment at Terronera, which expanded the Indicated Mineral Resources and converted them to Probable Mineral Reserves, and development of the Milache orebody at Guanaceví, where Indicated Mineral Resources were converted to Probable Mineral Reserves. Excluding the Terronera Mineral Reserves, silver and gold Mineral Reserves at the operating mines increased by 46% and decreased by 2% respectively, notwithstanding significantly reduced Mineral Reserves at El Cubo.

Measured and Indicated silver and gold Mineral Resources declined by 25% and 20% respectively to 27.3 million oz silver and 290,400 oz gold. The decrease in Measured and Indicated Mineral Resources was mainly the result of conversion to Mineral Reserves at the existing operations. Total Inferred silver Mineral Resources increased by 9% due to the success of the 2018 drilling at Parral, where Inferred Mineral Resource Estimates for silver and gold increased 55% and 49% respectively.

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2018 Mineral Reserve and Resource Estimate Highlights (Compared to December 31, 2017)

• Silver Proven and Probable Mineral Reserves increased 40% to 47.0 million ounces (oz)
• Gold Proven and Probable Mineral Reserves increased 51% to 477,000 oz
• Silver equivalent Proven and Probable Mineral Reserves of 85.1 million oz (80:1 silver:gold ratio)
  
• Silver Measured and Indicated Mineral Resources decreased 25% to 27.3 million oz
• Gold Measured and Indicated Mineral Resources decreased 20% to 290,400 oz
• Silver equivalent Measured and Indicated Mineral Resources of 50.5 million oz (80:1 silver:gold ratio)
  
• Silver Inferred Mineral Resources increased 10% to 58.3 million oz
• Gold Inferred Mineral Resources increased 8% to 324,400 oz
• Silver equivalent Inferred Mineral Resources 84.2 million oz (80:1 silver:gold ratio)

Mineral Reserve and Resource estimates are based on pricing assumptions of $17.26 per ounce of silver and $1,232 per ounce of gold at Guanaceví, Bolañitos and El Cubo, $18.00 per ounce of silver and $1,250 per ounce of gold at Terronera and $18.00 per ounce of silver and $1,225 per ounce of gold at El Compas.

Note to U.S Investors: Mineral reserve and resources are as defined by Canadian securities laws. See “Cautionary Note to U.S. Investors concerning Estimates of Mineral Reserves and Measured, Indicated and Inferred Mineral Resources”.

Consolidated Financial Results

Three months ended December 31, 2018 (compared to the three months ended December 31, 2017)
In Q4, 2018, the Company’s mine operating earnings was $0.4 million (Q4, 2017: $7.9 million) on sales of $33.8 million (Q4, 2017: $41.6 million) with cost of sales of $33.4 million (Q4, 2017: $33.7 million).

In Q4, 2018, the Company had an operating loss of $3.4 million (Q4, 2017: operating earnings of $3.6 million) after exploration costs of $2.0 million (Q4, 2017: $2.4 million) and general and administrative costs of $1.8 million (Q4, 2017: $1.9 million).

The loss before taxes in Q4, 2018 was $4.7 million (Q4, 2017: earnings before taxes $1.9 million) after finance costs of $0.1 million (Q4, 2017: $0.1 million), a foreign exchange loss of $1.1 million (Q4, 2017: $2.0 million), and investment and other income of $0.6 million (Q4, 2017: $0.4 million), a write off of IVA receivable of $0.2 million (Q4, 2017: Nil) and a write down to net realizable value of inventory held at El Compas of $0.6 million (Q4, 2017: Nil). The Company realized a net loss for the period of $3.6 million (Q4, 2017: net earnings of $2.7 million) after an income tax recovery of $1.1 million (Q3, 2017: $0.8 million).

Sales of $33.8 million in Q4, 2018 represented a 19% decrease over the $41.6 million for the same period in 2017. There was a 9% decrease in silver ounces sold and a 12% decrease in the realized silver price resulting in a 20% decrease in silver sales. There was a 16% decrease in gold ounces sold and a 1% decrease in realized gold prices resulting in an 18% decrease in gold sales. During the period, the Company sold 1,264,340 oz silver and 11,819 oz gold, for realized prices of $14.88 and $1,270 per oz respectively, compared to sales of 1,392,518 oz silver and 14,117 oz gold, for realized prices of $16.84 and $1,288 per oz, respectively, in the same period of 2017. The realized price of silver and gold were within 4% of average silver and gold spot prices during the period of $14.54 and $1,228, with the differences due to the timing of sales and the mark-to-market adjustments for the concentrate sales that are pending finalization.

The Company increased its finished goods silver and gold inventory to 199,897 oz and 1,956 oz, respectively at December 31, 2018 compared to 102,775 oz silver and 733 oz gold at September 30, 2018. The cost allocated to these finished goods was $4.4 million at December 31, 2018 compared to $2.0 million at September 30, 2018. At December 31, 2018, the finished goods inventory fair market value was $5.6 million compared to the fair value of $2.3 million at September 30, 2018.

Cost of sales for Q4, 2018 was $33.4 million, an increase of 1% over the cost of sales of $33.7 million for the same period of 2017. The 1% increase in cost of sales was primarily due to increased depletion at the Guanaceví and El Cubo mines.

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Exploration expenses decreased in Q4, 2018 to $2.0 million from $2.4 million in the same period of 2017 primarily due to planned timing of drilling activities for 2018. General and administrative expenses decreased by 5% to $1.8 million in Q4, 2018 compared to $1.9 million in the same period of 2017 due to a weaker Canadian dollar during Q4, 2018 compared to Q4, 2017 and due to decreased costs for director’s deferred share units, which are marked to market at each period end. In Q4, 2018 there was a related recovery of $0.1 million due to a decrease in the company’s share price during Q4 2018 compared to an expense of $29 thousand due to a moderate increase in the Company’s share price during Q4 2017.

The Company experienced a foreign exchange loss of $1.1 million in Q4, 2018 compared to a loss of $2.0 million in Q4, 2017. The $1.1 million loss was primarily due to the weakening of the Mexican peso against the U.S. Dollar from September 30, 2018 to December 31, 2018, which resulted in lower valuations on the peso denominated cash and receivable amounts.

There was an income tax recovery of $1.1 million in Q4, 2018 compared to a recovery of $0.8 million in Q4, 2017. The $1.1 million tax recovery is comprised of $1.5 million in current income tax expense (Q4, 2017: $3.0 million) and $2.6 million in deferred income tax recovery (Q4, 2017: deferred income tax recovery $3.8 million). The deferred income tax recovery of $2.6 million is a result of the amortization of temporary tax differences related to Guanaceví’s mine development, the recognition of deferred tax assets related to the El Compas mine and the depreciation of the Mexican peso and its monetary impact on loss carryforwards related to the Guanaceví mine.

Year ended December 31, 2018 (compared to the year ended December 31, 2017)
For the year ended December 31, 2018, the Company’s mine operating earnings were $3.5 million (2017: $28.5 million) on sales of $150.5 million (2017: $150.5 million) with cost of sales of $147.0 million (2017: $122.0 million).

The Company had an operating loss of $17.5 million (2017: operating earnings of $7.7 million) after exploration costs of $12.4 million (2017: $12.9 million) and general and administrative costs of $8.6 million (2017: $7.9 million).

The loss before taxes was $17.7 million (2017: earnings before tax $7.9 million) after finance costs of $0.2 million (2017: $0.7 million), a foreign exchange loss of $0.1 million (2017: foreign exchange gain of $0.4 million), investment and other income of $0.9 million (2017: $0.5 million) a write off of IVA receivable of $0.2 million (Q4, 2017: Nil) and a write down to net realizable value of inventory held at El Compas of $0.6 million (Q4, 2017: Nil).. The Company realized a net loss for the period of $12.4 million (2017: net earnings $9.7 million) after an income tax recovery of $5.3 million (2017: $1.8 million).

Sales of $150.5 million for 2018 were flat compared to $150.5 million in 2017. There was a 12% increase in silver ounces sold, offset by a 9% decrease in the realized silver price resulting in a 1% increase in silver sales. Gold ounces sold were relatively flat compared with 2017 with a 1% decrease in realized gold prices resulting in a 2% decrease in gold sales. During the period, the Company sold 5,461,197 oz silver and 51,318 oz gold, for realized prices of $15.65 and $1,267 per oz respectively, compared to sales of 4,892,855 oz silver and 51,460 oz gold, for realized prices of $17.24 and $1,285 per oz, respectively, in 2017. The realized price of silver and gold were within 1% of average silver and gold spot prices during the period of $15.71 and $1,269, with the differences due to the timing of sales and the mark-to-market adjustments for the concentrate sales that are pending finalization.

The Company decreased its finished goods silver inventory to 199,897 oz and decreased its finished goods gold inventory to 1,956 oz, respectively at December 31, 2018 compared to 241,321 oz silver and 1,226 oz gold at December 31, 2017. The cost allocated to these finished goods was $4.4 million at December 31, 2018 compared to $4.8 million at December 31, 2017. At December 31, 2018, the finished goods inventory fair market value was $5.6 million compared to the fair value of $5.7 million at December 31, 2017.

Cost of sales for 2018 was $147.0 million, an increase of 20% over the cost of sales of $122.0 million for 2017. The 20% increase in cost of sales was primarily due to increased depletion at the Guanaceví and El Cubo mines.

Exploration expenses decreased to $12.4 million from $12.9 million in 2017 due to a slight reduction of planned drilling activities for 2018. General and administrative expenses increased by 9% to $8.6 million compared to $7.9 million in 2017 primarily due to increased costs for director’s deferred share units, which are marked to market at each period end. During 2018 there was a related expense of $0.1 million due to an increase in the company’s share price during the period compared to a recovery of $0.5 million due to a decrease in the Company’s share price during 2017.

The Company experienced a foreign exchange loss of $0.1 million compared to a gain of $0.4 million in 2017. The $0.1 million loss was primarily due to the weakening of the Mexican peso against the U.S. Dollar from December 31, 2017 to December 31, 2018, which resulted in lower valuations on the peso denominated cash and receivable amounts.

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There was an income tax recovery of $5.3 million compared to a recovery of $1.8 million in 2017. The $5.3 million tax recovery is comprised of $4.4 million in current income tax expense (2017: $4.7 million) and $9.7 million in deferred income tax recovery (2017: $6.5 million). The deferred income tax recovery of $9.7 million is a result of the amortization of temporary tax differences related to Guanaceví’s mine development, the recognition of deferred tax assets related to the El Compas mine and the depreciation of the Mexican peso and its monetary impact on loss carryforwards related to the Guanaceví mine.

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. In previous years, 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.

In previous years, the carrying values of the Guanaceví, El Cubo and Bolañitos CGUs, including associated deferred income tax estimates, were greater than their estimated recoverable amounts calculated on a discount cash flow basis and impairments charges were recorded.

For the previously impaired CGU’s any modest decrease in any one key assumption in isolation could cause the estimated recoverable amount to be less than or equal to the net carrying value. Other than timing of production based on the revised mine plans and associated changes in per-unit costs, Management’s long-term estimates have not significantly changed from the previous years.

As at December 31, 2018, the Company tested the recoverability of the Guanaceví CGU due to 2018 operational challenges and determined that no additional impairment was required.

Selected Annual Information

Expressed in thousands US dollars	Year ended December 31
except per share amounts	2018	2017	2016
Revenue	$150,509	$150,499	$156,767
Net earnings (loss)	(12,439)	9,684	3,910
Basic earnings (loss) per share	(0.10)	0.08	0.03
Diluted earnings (loss) per share	(0.10)	0.08	0.03
Dividends per share	-	-	-
Total assets	177,047	178,580	180,510
Total long-term liabilities	8,747	9,810	15,691

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

Non-IFRS Measures

Mine operating cash flow 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.

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
	2018	2017	2018	2017
Mine operating earnings	$397	$7,887	$3,508	$28,479
Share-based compensation	-	47	(93)	202
Amortization and depletion	6,110	4,804	38,412	16,582
Write down of inventory to net realizable value	2,026	-	2,026	166
Mine operating cash flow before taxes	$8,533	$12,738	$43,853	$45,429

Operating cash flow before working capital adjustment 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 before working capital adjustments is calculated as operating cash flow minus working capital adjustments. Operating cash flow before working capital adjustments is used by management to assess operating performance irrespective of working capital changes and is provided to investors as a measure of the Company’s operating performance.

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
	20 18	20 17	20 18	20 17
Cash from operating activities	$9,964	$5,601	$26,648	$15,590
Net changes in non-cash working capital	9,907	964	4,492	(7,993)
Operating cash flow before working capital adjustments	$57	$4,637	$22,156	$23,583

Operating cash flow 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 irrespective of working capital changes and is provided to investors as a measure of the Company’s operating performance.

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
except for share numbers and per share amounts	20 18	20 17	20 18	20 17
Operating cash flow before working capital adjustments	$57	$4,637	$22,156	$23,583
Basic weighted average shares outstanding	130,511,679	127,486,671	128,600,421	127,340,834
Operating cash flow before working capital changes per share	$0.00	$0.04	$0.17	$0.19

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

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 write offs

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.

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
	2018	2017	2018	2017
Net earnings (loss) for the period	($3,661)	$2,669	($12,439)	$9,684
Depreciation and depletion – cost of sales	6,110	4,804	38,412	16,582
Depreciation and depletion – exploration	35	24	111	126
Depreciation and depletion – general & administration	72	107	254	282
Depreciation and depletion – write down of inventory to net realizable value	668	-	668	-
Finance costs	51	105	211	715
Current income tax expense	1,533	2,924	4,477	4,650
Deferred income tax expense (recovery)	(2,591)	(3,737)	(9,749)	(6,447)
Earnings before interest, taxes, depletion and amortization	$2,217	$6,896	$21,945	$25,592
Share based compensation	532	620	2,426	2,861
Adjusted earnings before interest, taxes depletion and amortization	$2,749	$7,516	$24,371	$28,453

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

Cash costs per ounce, total production costs per ounce and direct production 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 are similar to those reported by other mining companies. Cash costs per ounce, production costs per ounce and direct production 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. 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	Three Months Ended December 31, 20 18				Three Months Ended December 31, 20 17
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Direct production costs per financial statements	$8,721	$5,526	$10,697	$24,944	$7,805	$7,707	$12,887	$28,399
Royalties	236	36	85	357	353	65	85	503
Special mining duty (1)	-	94	237	331	-	492	-	492
Opening finished goods	(643)	(87)	(565)	(1,295)	(2,763)	(325)	(493)	(3,581)
Finished goods NRV adjustment	1,358	-	-	1,358	-	-	-	-
Closing finished goods	1,247	1,457	502	3,206	2,942	385	387	3,714
Direct production costs	10,919	7,026	10,956	28,901	8,337	8,324	12,866	29,527
By-product gold sales	(1,422)	(5,189)	(8,402)	(15,013)	(1,569)	(8,831)	(7,789)	(18,189)
Opening gold inventory fair market value	154	96	620	870	598	453	359	1,410
Closing gold inventory fair market value	(279)	(1,341)	(604)	(2,224)	(631)	(681)	(278)	(1,590)
Cash costs net of by-product	9,372	592	2,570	12,534	6,735	(735)	5,158	11,158
Amortization and depletion	2,891	(140)	3,358	6,109	4,123	337	344	4,804
Share-based compensation	-	-	-	-	17	15	15	47
Opening finished goods depletion	(354)	(3)	(361)	(718)	(1,141)	(22)	(13)	(1,176)
NRV cost adjustment	668	-	-	668	-	-	-	-
Closing finished goods depletion	597	64	186	847	1,096	8	8	1,112
Total production costs	$13,174	$513	$5,753	$19,440	$10,830	($397)	$5,512	$15,945

	Three Months Ended December 31, 2018				Three Months Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Throughput tonnes	75,528	105,768	127,740	309,036	83,881	124,172	141,871	349,924
Payable silver ounces	483,713	228,184	647,359	1,359,256	543,573	269,484	587,648	1,400,705
Cash costs per ounce	$19.38	$2.59	$3.97	$9.22	$12.39	($2.73)	$8.78	$7.97
Total production costs per oz	$27.24	$2.25	$8.89	$14.30	$19.92	($1.47)	$9.38	$11.38
Direct production costs per tonne	$144.57	$66.43	$85.77	$93.52	$99.39	$67.04	$90.69	$84.38

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

Expressed in thousands US dollars	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Direct production costs per financial statements	$40,290	$26,305	$38,408	$105,003	$33,408	$28,693	$41,229	$103,330
Royalties	1,123	190	340	1,653	1,239	228	273	1,740
Special mining duty (1)	-	615	1,235	1,850	-	943	(99)	844
Opening finished goods	(2,942)	(385)	(387)	(3,714)	(3,948)	-	(385)	(4,333)
Finished goods NRV adjustment	1,358	-	-	1,358	117	-	-	117
Closing finished goods	1,247	1,457	502	3,206	2,942	385	387	3,714
Direct production costs	41,076	28,182	40,098	109,356	33,758	30,249	41,405	105,412
By-product gold sales	(6,962)	(25,495)	(32,572)	(65,029)	(6,210)	(33,154)	(26,775)	(66,139)
Opening gold inventory fair market value	631	681	278	1,590	771	-	253	1,024
Closing gold inventory fair market value	(279)	(1,341)	(604)	(2,224)	(631)	(681)	(278)	(1,590)
Cash costs net of by-product	34,466	2,027	7,200	43,693	27,688	(3,586)	14,605	38,707
Amortization and depletion	23,117	861	14,434	38,412	13,365	1,894	1,323	16,582
Share-based compensation	(31)	(31)	(31)	(93)	68	67	67	202
Opening finished goods depletion	(1,096)	(8)	(8)	(1,112)	(567)	-	(1)	(568)
NRV cost adjustment	668	-	-	668	49	-	-	49
Closing finished goods depletion	597	64	186	847	1,096	8	8	1,112
Total production costs	$57,721	$2,913	$21,781	$82,415	$41,699	($1,617)	$16,002	$56,084

	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Throughput tonnes	307,042	439,005	520,784	1,266,831	321,113	446,924	511,836	1,279,873
Payable silver ounces	1,961,788	946,995	2,508,850	5,417,633	2,064,382	896,869	1,842,338	4,803,589
Cash costs per ounce	$17.57	$2.14	$2.87	$8.06	$13.41	($4.00)	$7.93	$8.06
Total production costs per oz	$29.42	$3.08	$8.68	$15.21	$20.20	($1.80)	$8.69	$11.68
Direct production costs per tonne	$133.78	$64.20	$77.00	$86.32	$105.13	$67.68	$80.90	$82.36

Expressed in thousands US dollars	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Closing finished goods	1,247	1,457	502	3,206	2,942	385	387	3,714
Closing finished goods depletion	597	64	186	847	1,096	8	8	1,112
Finished goods inventory	$1,844	$1,521	$688	$4,053	$4,038	$393	$395	$4,826

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

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

All-in sustaining costs per ounce and all-in costs per ounce 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.

Expressed in thousands US dollars	Three Months Ended December 31, 2018				Three Months Ended December 31, 20 17
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Cash costs net of by-product	$9,372	$592	$2,570	$12,534	$6,735	($735)	$5,158	$11,158
Operations stock based compensation	-	-	-	-	17	15	15	47
Corporate general and administrative	307	332	632	1,271	299	441	558	1,298
Corporate stock based compensation	106	115	218	438	114	177	227	518
Reclamation - amortization/ accretion	10	8	18	36	7	4	11	22
Mine site expensed exploration	(65)	68	195	198	(77)	-	348	271
Capital expenditures sustaining	3,568	54	1,208	4,830	2,456	370	1,652	4,478
All In Sustaining Costs	$13,298	$1,168	$4,841	$19,307	$9,551	$272	$7,969	$17,792
Growth exploration				1,638				2,015
Growth capital expenditures				2,811				3,782
All In Costs				$23,756				$23,589

	Three Months Ended December 31, 2018				Three Months Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Throughput tonnes	75,528	105,768	127,740	309,036	83,881	124,172	141,871	349,924
Payable silver ounces	483,713	228,184	647,359	1,359,256	543,573	269,484	587,648	1,400,705
Silver equivalent production (ounces)	577,197	622,776	1,170,307	2,370,280	637,492	821,012	1,071,733	2,530,237
Sustaining cost per ounce	$27.49	$5.12	$7.48	$14.20	$17.57	$1.01	$13.56	$12.70
All In costs per ounce				$17.48				$16.84

Expressed in thousands US dollars	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Cash costs net of by-product	$34,466	$2,027	$7,200	$43,693	$27,688	($3,586)	$14,605	$38,707
Operations stock based compensation	(31)	(31)	(31)	(93)	68	67	67	202
Corporate general and administrative	1,536	1,670	2,987	6,193	1,423	1,734	2,068	5,225
Corporate stock based compensation	541	588	1,051	2,179	655	799	953	2,407
Reclamation - amortization/ accretion	43	32	74	149	28	17	41	86
Mine site expensed exploration	711	741	963	2,415	272	778	1,150	2,200
Capital expenditures sustaining	15,717	3,497	9,979	29,193	17,080	1,647	13,909	32,636
All In Sustaining Costs	$52,983	$8,523	$22,223	$83,729	$47,214	$1,456	$32,793	$81,463
Growth exploration				9,517				10,320
Growth capital expenditures				11,205				7,199
All In Costs				$104,451				$98,982

	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Throughput tonnes	307,042	439,005	520,784	1,266,831	321,113	446,924	511,836	1,279,873
Payable silver ounces	1,961,788	946,995	2,508,850	5,417,633	2,064,382	896,869	1,842,338	4,803,589
Silver equivalent production (ounces)	2,355,573	2,560,080	4,578,940	9,494,593	2,421,948	2,952,488	3,520,877	8,895,313
Sustaining cost per ounce	$27.01	$9.00	$8.86	$15.45	$22.87	$1.62	$17.80	$16.96
All In costs per ounce				$19.28				$20.61

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

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
	2018	2017	2018	2017
Capital expenditures sustaining	$4,830	$4,478	$29,193	$32,636
Growth capital expenditures	2,811	3,782	11,205	7,199
Property, plant and equipment expenditures	$7,641	$8,260	$40,398	$39,835

Expressed in thousands US dollars	Three Months Ended December 31		Year Ended December 31
	2018	2017	2018	2017
Mine site expensed exploration	$198	$271	$2,415	$2,200
Growth exploration	1,638	2,015	9,517	10,320
Exploration expenditures	$1,836	$2,286	$11,932	$12,520
Exploration depreciation and depletion	35	34	111	102
Exploration share-based compensation	94	59	340	197
Exploration expense	$1,965	$2,379	$12,383	$12,819

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	Three Months Ended December 31, 2018				Three Months Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Direct production costs per financial statements	$8,721	$5,526	$10,697	$24,944	$7,805	$7,707	$12,887	$28,399
Royalties	236	36	85	357	353	65	85	503
Special mining duty (1)	-	94	237	331	-	492	-	492
Opening finished goods	(643)	(87)	(565)	(1,295)	(2,763)	(325)	(493)	(3,581)
Closing finished goods	1,247	1,457	502	3,206	2,942	385	387	3,714
Direct production costs	10,919	7,026	10,956	28,901	8,337	8,324	12,866	29,527

	Three Months Ended December 31, 2018				Three Months Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Silver production (ounces)	484,197	235,326	666,982	1,386,505	544,117	280,712	612,133	1,436,962
Average realized silver price ($)	14.88	14.88	14.88	14.88	16.84	16.84	16.84	16.84
Silver value ($)	7,204,851	3,501,651	9,924,692	20,631,194	9,162,930	4,727,190	10,308,320	24,198,440
Gold production (ounces)	1,240	5,166	6,711	13,117	1,245	7,204	6,128	14,577
Average realized gold price ($)	1,270	1,270	1,270	1,270	1,288	1,288	1,288	1,288
Gold value ($)	1,574,800	6,560,820	8,522,970	16,658,590	1,603,560	9,278,752	7,892,864	18,775,176
Total metal value ($)	8,779,651	10,062,471	18,447,662	37,289,784	10,766,490	14,005,942	18,201,184	42,973,616
Pro-rated silver costs	82%	35%	54%	55%	85%	34%	57%	56%
Pro-rated gold costs	18%	65%	46%	45%	15%	66%	43%	44%
Silver co-product cash costs	$18.51	$10.39	$8.84	$11.53	$13.04	$10.01	$11.90	$11.57
Gold co-product cash costs	$1,579	$887	$754	$984	$997	$765	$910	$885

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

Expressed in thousands US dollars	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Direct production costs per financial statements	$40,290	$26,305	$38,408	$105,003	$33,408	$28,693	$41,229	$103,330
Royalties	1,123	190	340	1,653	1,239	228	273	1,740
Special mining duty (1)	-	615	1,235	1,850	-	943	(99)	844
Opening finished goods	(2,942)	(385)	(387)	(3,714)	(3,948)	-	(385)	(4,333)
Finished goods NRV adjustment	1,358	-	-	1,358	117	-	-	117
Closing finished goods	1,247	1,457	502	3,206	2,942	385	387	3,714
Direct production costs	41,076	28,182	40,098	109,356	33,758	30,249	41,405	105,412

	Year Ended December 31, 2018				Year Ended December 31, 2017
	Guanaceví	Bolañitos	El Cubo	Total	Guanaceví	Bolañitos	El Cubo	Total
Silver production (ounces)	1,963,773	975,555	2,582,740	5,522,068	2,066,448	934,238	1,919,102	4,919,788
Average realized silver price ($)	15.65	15.65	15.65	15.65	17.24	17.24	17.24	17.24
Silver value ($)	30,733,047	15,267,436	40,419,881	86,420,364	35,625,564	16,106,263	33,085,318	84,817,145
Gold production (ounces)	5,224	21,127	26,616	52,967	4,740	26,910	21,357	53,007
Average realized gold price ($)	1,267	1,267	1,267	1,267	1,285	1,285	1,285	1,285
Gold value ($)	6,618,808	26,767,909	33,722,472	67,109,189	6,090,900	34,579,350	27,443,745	68,113,995
Total metal value ($)	37,351,855	42,035,345	74,142,353	153,529,553	41,716,464	50,685,613	60,529,063	152,931,140
Pro-rated silver costs	82%	36%	55%	56%	85%	32%	55%	55%
Pro-rated gold costs	18%	64%	45%	44%	15%	68%	45%	45%
Silver co-product cash costs	$17.21	$10.49	$8.46	$11.15	$13.95	$10.29	$11.79	$11.88
Gold co-product cash costs	$1,393	$849	$685	$902	$1,040	$767	$879	$886

(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		2018				2017
share numbers and per share amounts	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue	$33,833	$37,581	$38,765	$40,330	$41,640	$39,782	$32,636	$36,441
Direct cost	24,943	28,378	25,413	26,269	28,399	27,400	23,483	24,048
Royalties	357	421	177	698	503	457	340	440
Mine operating cash flow	8,533	8,782	13,175	13,363	12,738	11,925	8,813	11,953
Share-based compensation	-	-	(130)	37	47	63	92	-
Amortization and depletion	6,110	13,562	8,689	10,051	4,804	4,394	3,271	4,113
Write down on inventory	2,026	-	-	-	-	166	-	-
Mine operating earnings (loss)	$397	($4,780)	$4,616	$3,275	$7,887	$7,302	$5,450	$7,840
Basic earnings (loss) per share	($0.03)	($0.04)	($0.04)	$0.02	$0.02	$0.01	$0.00	$0.05
Diluted earnings (loss) per share	($0.03)	($0.04)	($0.04)	$0.02	$0.02	$0.01	$0.00	$0.05
Weighted shares outstanding	130,511,679	128,805,441	127,570,254	127,488,410	127,486,671	127,456,410	127,318,926	127,095,764
Net earnings (loss)	($3,661)	($5,452)	($5,651)	$2,325	$2,669	$996	($16)	$6,035
Amortization and depletion	6,217	13,199	7,939	9,837	4,935	4,540	3,333	4,182
Finance costs	51	62	49	49	105	166	208	236
Current income tax	1,533	291	1,965	688	2,924	882	545	299
Deferred income tax	(2,591)	(2,957)	(2,415)	(1,786)	(3,737)	(510)	(403)	(1,797)
NRV cost adjustment	668	458	835	292	-	-	-	-
EBITDA	$2,217	$5,601	$2,722	$11,405	$6,896	$6,074	$3,667	$8,955

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

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

Highlights		2018				2017
	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Processed tonnes	309,036	317,821	314,305	325,669	349,924	322,784	303,943	303,222
Guanaceví	75,528	81,268	71,275	78,971	83,881	74,649	74,984	87,599
Bolañitos	105,768	109,728	108,495	115,014	124,172	114,526	113,875	94,351
El Cubo	127,740	126,825	134,535	131,684	141,871	133,609	115,084	121,272
Silver ounces	1,386,505	1,428,828	1,355,895	1,350,840	1,436,962	1,262,064	1,143,788	1,076,974
Guanaceví	484,197	518,318	464,929	496,329	544,117	522,907	468,741	530,683
Bolañitos	235,326	236,197	248,591	255,441	280,712	253,787	231,016	168,723
El Cubo	666,982	674,313	642,375	599,070	612,133	485,370	444,031	377,568
Silver grade	157	160	156	151	152	144	135	126
Guanaceví	222	218	225	224	241	250	219	213
Bolañitos	82	84	91	86	86	85	78	66
El Cubo	181	188	171	164	157	135	137	111
Silver recovery	88.8	87.5	86.2	85.4	84.1	84.5	86.6	87.4
Guanaceví	89.8	91.0	90.2	87.3	83.7	87.2	88.8	88.5
Bolañitos	84.4	79.7	78.3	80.3	81.8	81.1	80.9	84.3
El Cubo	89.7	88.0	86.8	86.3	85.5	83.7	87.6	87.2
Gold ounces	13,117	12,968	13,674	13,208	14,577	13,648	13,058	11,724
Guanaceví	1,240	1,114	1,423	1,447	1,245	1,224	1,079	1,192
Bolañitos	5,166	4,832	5,222	5,907	7,204	6,523	6,965	6,218
El Cubo	6,711	7,022	7,029	5,854	6,128	5,901	5,014	4,314
Gold grade	1.55	1.50	1.60	1.49	1.56	1.58	1.58	1.41
Guanaceví	0.58	0.48	0.67	0.64	0.54	0.57	0.50	0.49
Bolañitos	1.77	1.67	1.82	1.91	2.18	2.15	2.27	2.40
El Cubo	1.93	2.00	1.92	1.64	1.61	1.65	1.60	1.31
Gold recovery	85.4	84.8	84.5	84.5	83.3	83.4	84.6	85.2
Guanaceví	88.0	88.8	92.7	89.0	85.5	89.5	89.5	86.4
Bolañitos	85.8	82.0	82.3	83.6	82.8	82.4	83.8	85.4
El Cubo	84.7	86.1	84.6	84.3	83.4	83.3	84.7	84.5
Cash costs per oz	$9.22	$8.86	$7.61	$6.50	$7.97	$8.11	$8.36	$7.81
Guanaceví	$19.38	$18.14	$17.46	$15.31	$12.39	$13.68	$14.94	$12.85
Bolañitos	$2.59	$6.22	$2.87	($2.77)	($2.73)	($0.52)	($4.78)	($10.28)
El Cubo	$3.97	$2.47	$2.09	$2.93	$8.78	$6.37	$7.95	$8.52
Total cost per oz(1)	$14.30	$18.16	$14.10	$13.70	$11.38	$11.74	$12.02	$11.62
Guanaceví	$27.24	$31.99	$29.03	$28.06	$19.92	$20.48	$21.63	$18.94
Bolañitos	$2.25	$7.68	$4.09	($1.42)	($1.47)	$1.81	($2.07)	($7.43)
El Cubo	$8.89	$10.91	$6.85	$7.90	$9.38	$7.13	$8.78	$9.44
AISC per oz	$14.20	$16.14	$17.28	$14.18	$12.70	$11.74	$20.46	$18.24
Guanaceví	$27.49	$28.75	$29.24	$22.62	$17.57	$23.47	$27.40	$23.78
Bolañitos	$5.12	$14.00	$12.84	$4.20	$1.01	$3.96	$3.61	($3.82)
El Cubo	$7.48	$6.96	$10.08	$11.22	$13.56	$17.95	$21.60	$20.00
Costs per tonne	$93.52	$86.33	$86.43	$79.38	$84.38	$84.81	$84.01	$75.77
Guanaceví	$144.57	$131.75	$139.24	$120.63	$99.39	$117.15	$111.42	$94.99
Bolañitos	$66.43	$64.00	$65.74	$60.87	$67.04	$71.52	$66.60	$65.18
El Cubo	$85.77	$76.55	$75.13	$70.81	$90.69	$78.13	$83.38	$70.12

(1) Total Production Cost per ounce

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

Key Economic Trends

     Precious Metal Price Trends

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 2018, the average price of silver was $15.71 per ounce, with silver trading between $13.97 and $17.52 per ounce based on the London Fix silver price. This compares to an average of $17.05 per ounce during 2017, with a low of $15.22 and a high of $18.56 per ounce. During 2018, the Company realized an average price of $15.65 per silver ounce compared with $17.24 for 2017.

During 2018, the average price of gold was $1,269 per ounce, with gold trading between $1,178 and $1,355 per ounce based on the London Fix PM gold price. This compares to an average of $1,257 per ounce during 2017, with a low of $1,146 and a high of $1,346 per ounce. During 2018, the Company realized an average price of $1,267 per ounce compared with $1,285 for 2017.

During 2017, the average price of silver was $17.05 per ounce, with silver trading between a range of $15.22 and $18.56 per ounce based on the London Fix silver price. This compares to an average of $17.14 per ounce during 2016, with a low of $13.58 and a high of $20.71 per ounce. During 2017, the Company realized an average price of $17.24 per ounce compared with $16.84 for 2016.

During 2017, the average price of gold was $1,257 per ounce, with gold trading between a range of $1,146 and $1,346 per ounce based on the London Fix PM gold price. This compares to an average of $1,251 per ounce during 2016, with a low of $1,077 and a high of $1,366 per ounce. During 2017, the Company realized an average price of $1,285 per ounce compared with $1,253 for 2016.

The major influences on precious metals prices from the start of 2016 included weaker investment demand, selling from precious metal exchange traded funds, as well as strong U.S. equity and bond markets that pulled investments from other asset classes, including precious metals. In addition, precious metal prices were also affected by an expectation of improving economic conditions, which led to the reduction of the U.S. Federal Reserve’s quantitative easing program in 2014 and the rising of borrowing rates and the anticipation of further increases until Q4, 2018. Management believes that investor uncertainty surrounding the effect of the U.S. administration’s policies, particularly implementation of tariffs, led to renewed interest in precious metals stabilizing prices during 2017, the robust economic growth in early 2018 resulted in weaker investment in the sector. In the fourth quarter, renewed uncertainty surrounding trade discussions, the results of the US mid-term elections and signals of US economic slow down has renewed interest in the precious metals that continued into Q1, 2019.

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

Currency Fluctuations
The Company’s mining 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. Generally, as the U.S. dollar strengthens, these currencies weaken, and as the U.S. dollar weakens, these currencies strengthen.

During 2018, the Mexican peso initially appreciated against the U.S. dollar, however discussions of U.S. imposed tariffs and the expectation of the election of Andres Manuel Lopez Obrador as the next Mexico president drove the Mexican peso to depreciate against the U.S. dollar at the end of the second quarter. After the election, the Mexican Peso regained its losses and stabilized with an agreement on trade with the US. During 2018, the average foreign exchange rate was $19.22 Mexican pesos per U.S. dollar, with the peso trading within a range of $18.00 to $20.77. This compares to an average of $18.91 during 2017, with a range of $17.50 to $21.92 Mexican pesos per U.S. dollar.

During the year ended December 31, 2017, the Mexican peso reversed a long negative trend and significantly appreciated against the U.S. dollar until the fourth quarter. During 2017, the average foreign exchange rate was $18.91 Mexican pesos per U.S. dollar, with the peso trading within a range of $17.50 to $21.92. This compares to an average of $18.68 during the year ended December 31, 2016, with a range of $17.17 to $20.82 Mexican pesos per U.S. dollar. The reversal of the trend in the earlier periods of 2017 is attributed to the correction from the sharp fall during the U.S. election and from rising oil prices.

During 2018, the Canadian dollar gradually depreciated against the U.S. dollar. During 2018, the average foreign exchange rate was $1.296 Canadian dollar per U.S. dollar, with the Canadian dollar trading within a range of $1.230 and $1.336. This compares to an average of $1.298 during 2017, within a range of $1.211 and $1.374 Canadian dollar per U.S. dollar.

During 2017, the Canadian dollar appreciated relative to the U.S. dollar, with significant appreciation in the third quarter. During 2017, the average foreign exchange rate was $1.298 Canadian dollar per U.S. dollar, with the Canadian dollar trading within a range of $1.211 and $1.374. This compares to an average of $1.3251 during 2016, with a range of $1.2533 and $1.4602 U.S. dollar per Canadian dollar.

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

Cost Trends

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.

2019 Outlook

Production
In 2019, consolidated silver and gold production is estimated to be about 10% lower than 2018. Silver production is expected to range from 4.4 to 5.2 million ounces and gold production is anticipated be in the 46,200-52,200 oz range. Silver equivalent production should approximate 8.1 -9.4 million oz using a 80:1 silver:gold ratio. Endeavour estimates its consolidated cash cost will be slightly higher year-on-year at $8.50 -9.50 per oz silver and the all-in sustaining cost will be equal to or slightly lower than 2018 at $15-16 per oz silver, both net of the gold byproduct credit.

Cash costs are expected to increase slightly in 2019 compared to 2018, primarily at El Cubo, whereas reduced capital expenditures in 2019 should result in lower all-in sustaining costs year-on-year, based on lower 2019 precious metal production and using lower estimated metal prices of $15.50 per oz silver and $1,240 per oz gold. The 2019 sustaining capital budget is lower than 2018 due to lower sustaining capital expenditures at El Cubo. The 2019 exploration budget for the operating mines is also lower as the focus shifts towards growth projects such as Parral.

At Guanaceví, the two operating mines, Porvenir Norte and Santa Cruz, are now deeper, narrower, lower grade and higher cost than prior years. In 2018, Endeavour completed the permitting and initial development of two new shallower, wider, higher grade, lower cost orebodies, Milache and Santa Cruz Sur (SCS). By year-end, three mine levels were being developed in mineralization at Milache, with development ore being trucked to the plant. A new mine access ramp was collared at SCS in late 2018 to facilitate development of the orebody in 2019. The Milache and SCS production rates are expected to climb each quarter to their respective 200-300 tpd capacities by mid-year, first to fill the plant to its 1200 tpd capacity and then to steadily displace the higher cost production at Porvenir Norte and Santa Cruz.

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

At Bolañitos, mine production and plant throughput are forecast slightly below 1,200 tpd, similar to the two previous years with production coming from six working areas, with the bulk of production coming from the LL-Asunción and Plateros vein orebodies. Ore grades are expected to be slightly lower than 2018, offset by improved recoveries.

At El Cubo, exploration in 2018 did not replace the depleted reserves, so the Company plans to reduce the production rate in 2019 to approximately half its 1,500 tonne per day capacity. The lower production rate will result in higher operating costs. Accordingly, the Company has initiated layoffs to reflect the lower production rate in 2019. The mine will continue to run at three shifts per day, but the plant will move to one shift per day. Some idled mining equipment at El Cubo was transferred to the El Compas mine in Zacatecas to facilitate their mine plan in 2019. Grades are expected to be 10% lower than 2018, while recoveries are expected to remain consistent with 2018.

At El Compas, the ball mill pinion failed in late December, which brought plant commissioning to a halt. However, mining operations continued and the ore stockpile now exceeds 19,000 tonnes. Management re-commenced plant operations after a new pinion was installed in February 2019 and expects to attain commercial production in Q1, 2019.

Operating Costs
Cash costs, net of gold by-product credits, are expected to be $8.50 -$9.50 per oz of silver produced in 2019. Consolidated cash costs on a co-product basis are anticipated to be $11.50 -$12.50 per oz silver and $900-$1,000 per oz gold.

All-in sustaining costs, net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $15.00 -$16.00 per oz of silver produced. When non-cash items such as stock-based compensation are excluded, AISC are forecast to be in the $14.50 -$15.50 range.

Direct operating costs are estimated to be in the range of $85-$90 per tonne.

Management has assumed a $15.50 per oz silver price, $1,240 per oz gold price, and 20:1 Mexican peso per US dollar exchange rate for its 2019 cost forecasts.

Capital Investments
In 2019, Endeavour plans to invest $20.6 million on capital projects primarily on sustaining capital at the four operating mines, and $1.8 million in growth capital to maintain the exploration concessions and cover corporate infrastructure. At current metal prices, the sustaining capital investments will be covered by operating cash flow and current cash.

At Guanaceví, a capital budget of $10.6 million is planned for 2019, to primarily advance 7.0 kilometres of mine access at the North Porvenir, Santa Cruz, Milache and SCS mines.

At Bolañitos, a capital budget of $4.2 million is planned for 2019, including $3.4 million on mine development to access reserves and resources in six working veins. An additional $0.8 million will be invested to support site infrastructure, raise the tailings dam, and fund office equipment and building improvements.

At El Compas, a capital budget of $4.0 million is planned for 2019, including $2.7 million on mine development to further advance the Compas vein and access the Orito vein. An additional $1.3 million is planned for supporting site infrastructure, including plant and mine improvements.

At El Cubo, no capital budget was allocated as all underground development is now included in the operating expenditures until further reserves are defined.

The Company is still awaiting receipt of the final dumps and tailings permit needed to advance the Terronera project to a development decision. Upon receipt of these final permits, and assuming a positive board production decision and appropriate debt financing, management will release the anticipated 2019 growth capital budget for Terronera.

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

Mine	Mine Development	Other Capital	Sustaining Capital	Growth Capital	Total Capital
Guanaceví	$9.7 million	$0.9 million	$10.6 million	-	$10.6 million
Bolañitos	$3.4 million	$0.8 million	$4.2 million	-	$4.2 million
El Cubo	-	-	-	-	-
El Compas	$2.7 million	$1.3 million	$4.0 million	-	$4.0 million
Corporate	-	-	-	$1.8 million	-
Total	$15.8 million	$3.0 million	$18.8 million	$1.8 million	$20.6 million

Exploration Expenditures

In 2019, the Company plans to drill 30,000 metres and spend $9.8 million on brownfields and greenfields exploration and development engineering across its portfolio of properties. At the four existing mines, 18,500 metres of core drilling are planned at a cost of $3.1 million. For the exploration and development projects, expenditures of $5.7 million are planned to fund 11,500 metres of core drilling and advance engineering studies at Terronera and Parral, for which the Company recently published updated NI 43-101 resource estimates, and drilling of three new projects in Chile. Another $1 million will be allocated to projects on an as needed basis during the year.

Project	2019 Activity	Drill Metres	Expenditures
Guanaceví	Drilling	6,000	$1.2 million
Bolañitos	Drilling	5,000	$0.8 million
El Cubo	Drilling	2,000	$0.3 million
El Compas	Drilling	5,500	$0.8 million
Terronera	Economic Study	-	$0.8 million
Parral	Drilling/ Economic Study	6,000	$2.3 million
Guadalupe y Calvo	Mapping/ Sampling	-	$0.1million
Chile	Drilling	-	$2.5 million
Unallocated	-	-	$1.0 million
Total		24,500	$9.8 million

Liquidity and Capital Resources

Cash and cash equivalents (including restricted cash) decreased from $39.3 million at December 31, 2017 to $33.4 million at December 31, 2018. The Company had working capital of $54.5 million at December 31, 2018 (December 31, 2017 - $66.2 million). The $15.8 million decrease in working capital is due to investing $40.4 million into property, plant and equipment and offset by cash generated from operating activities and $7.9 million raised through equity sales.

Operating activities generated cash of $26.6 million during 2018 compared to $15.6 million of cash during 2017. The significant non-cash adjustments to the net loss of $12.4 million were depreciation and depletion of $38.8 million, share-based compensation of $2.4 million, a deferred income tax recovery of $9.7 million, a write down of inventory to net realizable value of $2.6 million and a change in working capital of $4.5 million. The change working capital was primarily due to a collection of trade and IVA receivables and an increase of production inventories with normal fluctuations in other working capital items. Inventories have increased due to the stockpiling of ore at the El Compas project during the commissioning of the plant.

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

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 were 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.

Mangement believes that historical delays and denials with respect to IVA refunds for Compania Minera del Cubo (“El Cubo”) and Refinadora Plata Adelante S.A. de C.V. (“Guanaceví,”) were improper. At December 31, 2018, El Cubo held $4.9 million and Guanaceví held $7.0 million in IVA receivables which the Company and its advisors deem to be recoverable from tax authorities (December 31, 2017 – $10.4 million and $8.8 million respectively).

During Q4, 2018, on a consolidated basis, the Company received MXN 183.5 million ($9.7 million) of IVA refunds, of which MXN 81.9 million ($4.3 million) and MXN 34.6 million ($1.8 million) pertained to El Cubo and Guaancevi, respectively. Subsequent to year end, MXN 45.6 million ($2.3 million) of IVA refunds have been collected.

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. See “Financial Instrument Risk Exposure and Risk Management-Liquidity Risk”.

Investing activities during the period used $40.4 million compared to $39.7 million in 2017. The investments in 2018 primarily relate sustaining capital at the existing operations and the construction of the El Compas operation.

Capital spending totaled $40.4 million in property, plant and equipment during 2018. At Guanaceví, the Company invested $15.7 million, with $13.6 million spent on 9.0 kilometres of mine development, $1.5 million on underground infrastructure, $0.3 million on plant improvements and $0.3 million various support items.

At El Cubo, the Company invested $9.9 million, including $8.2 million on 6.7 kilometres of mine development, $1.1 million on refurbishment of underground mobile equipment, $0.2 million on the tailings dam, and $0.4 million on other site equipment.

At Bolañitos, the Company invested $3.5 million, including $2.6 million on 3.3 kilometres of mine development and $0.3 on mine infrastructure and $0.6 million on various site equipment and support vehicles.

At El Compas, the Company has spent a total of $10.5 million in developing the El Compas ore body and refurbishment of the plant. $3.7 million was incurred in 2018 on the plant, $5.8 million was incurred on development of the main ore ramp and $1.0 million on various other equipment. See further discussion under Development Activities.

Exploration incurred net $0.6 million in holding costs and Corporate expenditures totaled $0.2 million in 2018.

Financing activities during 2018 increased cash by $8.9 million, compared to decreasing cash by $10.3 million during 2017. During 2018, the Company received gross proceeds through an at-the-market financing of $8.3 million, proceeds of $0.2 million received from exercised stock options, paid $0.6 million in share issue costs and had a release of restricted cash of $1.0 million. By comparison, during 2017, the Company paid $10.0 million to reduce its credit facility and $0.5 million in interest, offset by proceeds of $0.1 million received from exercised stock options.

In April 2018, the Company filed a short form base shelf prospectus (the “Base Shelf”) that qualifies the distribution of up to CDN$150 million of common shares, warrants or units of the Company comprising any combination of common shares and warrants (“Securities”). The distribution of Securities may be effected from time to time in one or more transactions at a fixed price or prices, which may vary with 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 deemed to be at the market distributions. The Base Shelf also provides the Company with the ability to conduct an “At-The-Market” offering through an “At-The-Market” facility (“ATM”) equity distribution agreement.

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

On June 13, 2018, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co., HSBC and TD Securities (together, the “Agents”). Under the terms of this ATM facility, the Company may, from time to time, sell common stock having an aggregate offering value of up to $35.7 million on the New York Stock Exchange. The Company determines, at its sole discretion, the timing and number of shares to be sold under the ATM facility. During 2018, the Company issued 3,165,642 common shares under the ATM facility at an average price of $2.61 per share for gross proceeds of $8.3 million, less commission of $186,000.

The principal business objective that the Company expects to accomplish using the net proceeds from the ATM facility are to advance the exploration and development of the Terronera Project and to add to the Company’s working capital.

Use of  proceeds as at December 31, 2018
Net proceeds received	$8,087
Advancement of Terronera Project	(3,285)
Remaining proceeds	$4,802

Subsequent to December 31, 2018, the Company issued an additional 635,171 shares under the ATM facility at an average price of $2.23 per share for gross proceeds of $1.4 million, less commission of $32 thousand.

Management of the Company believes that operating cash flow, existing working capital and proceeds from the ATM will be sufficient to cover 2019 capital requirements and commitments. 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.

As at December 31, 2018, the Company’s issued share capital was $459.1 million, representing 130,781,052 common shares, and the Company had options outstanding to purchase 5,987,800 common shares with a weighted average exercise price of CAD$3.96.

Contingencies

Minera Santa Cruz y Garibaldi SA de CV (“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 a MXN 122.9 million ($6.2 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 ($2.0 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, 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 6.3 million ($0.3 million) and inflationary charges of MXN 9. million ($0.5 million) has accumulated.

Included in the Company’s consolidated financial statements, are net assets of $595,000, including $42,000 in cash, 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. As of December 31, 2018, the Company recognized an allowance for transferring the shares and assets of MSCG amounting to $595,000. The Company is currently assessing MSCG’s settlement options based on ongoing court proceedings and discussion with the tax authorities.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 34

Capital Requirements

See 2019 Outlook on page 30 for discussion on planned capital and exploration expenditures.

Contractual Obligations

The Company had the following contractual obligations at December 31, 2018:

Payments due by period (in thousands of  dollars)
Contractual Obligations		Total		Less than 1 year		1- 3 years		3 - 5 years		More than 5 years
Capital Assets purchases	$	140	$	140	$	-	$	-	$	-
Operating leases		2,840		394		720		542		1,184
Other Long-Term Liabilities		8,195		-		6,066		2,129		-
Total	$	11,175	$	534	$	6,786	$	2,671	$	1,184

Transactions with Related Parties

The Company shares common administrative services and office space with Aztec Metals Corp., which is considered a related party company by virtue of Bradford Cooke being a common director. During 2017, the Company also shared common administrative services and office space with Canarc Resource Corp., which is considered a related party company by virtue of Bradford Cooke being a common director. From time to time, Endeavour incurs third-party costs on behalf of the related parties, which are charged on a full cost recovery basis. The charges for these costs totaled $2,000 and $16,000 for the three months and year ended December 31, 2018 (December 31, 2017 - $5,000 and $24,000 respectively). The Company had a $1,000 net receivable related to administration costs outstanding as at December 31, 2018 (December 31, 2017 – $2,000).

The Company was charged $27,000 and $189,000 for legal services for the three months and year ended December 31, 2018 respectively, by a firm in which the Company’s corporate secretary is a partner (December 31, 2017 - $8,000 and $60,000 respectively). The Company has $5,000 payable to the legal firm as at December 31, 2018 (December 31, 2017 - $Nil).

Financial Instruments and fair value measurements

As at December 31, 2018, the carrying and fair values of Endeavour’s financial instruments by category were as follows:

		As at December 31, 2018				As at December 31, 2017
Expressed in thousands US dollars		Carrying value		Estimated Fair value		Carrying value		Estimated Fair value
Financial assets:
Cash and cash equivalents	$	33,376	$	33,376	$	39,277	$	39,277
Other investments		88		88		168		168
Trade receivables		5,627		5,627		8,114		8,114
Other receivables		380		380		360		360
Total financial assets	$	39,471	$	39,471	$	47,919	$	47,919
Financial liabilities:
Accounts payable and accrued liabilities	$	19,470	$	19,470	$	19,068	$	19,068
Total financial liabilities	$	19,470	$	19,470	$	19,068	$	19,068

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

Fair value measurements

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 measured at fair value on a recurring basis include:

As at December 31, 2018
Expressed in thousands US dollars		Total		Level 1		Level 2		Level 3
Assets:
Other investments	$	88	$	88	$	-	$	-
Trade receivables		5,627		-		5,627		-
Total financial assets	$	5,715	$	88	$	5,627	$	-
Liabilities:
Deferred share units	$	1,407	$	1,407	$	-	$	-
Share appreciation rights		72		-		72		-
Total financial liabilities	$	1,479	$	1,407	$	72	$	-

Other investments
The Company holds marketable securities classified as Level 1 in the fair value hierarchy. The fair values of these other 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. Changes in fair value on available for sale marketable securities are recognized in income or loss.

Trade receivables
The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos, El Cubo and El Compas 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 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 salaries, wages and benefits.

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.

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

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, investments and accounts receivable. Credit risk exposure on bank accounts and short-term investments 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.

Liquidity Risk
The Company ensures that there is sufficient capital in order to meet short-term business requirements. The Company’s policy is to invest cash at floating rates of interest, while cash reserves are to be maintained in cash equivalents in order to maintain liquidity after taking into account the Company’s holdings of cash equivalents, money market investments, marketable securities and receivables. The Company believes that these sources, operating cash flow and its policies will be sufficient to cover expected short-term cash requirements and commitments.

The Company’s Mexican subsidiaries pay value added tax, 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.

Management believes that delays and denials with respect to IVA refunds for El Cubo and Guanaceví are improper. At December 31, 2018, El Cubo holds $4.9 million (2017 - $10.4 million) and Guanaceví holds $7.0 million (2017 - $8.8 million) in IVA receivables which the Company and its advisors deem to be recoverable from tax authorities. 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.

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

Interest Rate Risk – 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.

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 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, 2018, there are 274,033 oz of silver and 3,770 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, 2018, with other variables unchanged, a 10% decrease in the market value of silver and gold would result in a reduction of revenue of $0.9 million.

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

Outstanding Share Data

As of February 22, 2019 the Company had the following securities issued and outstanding:

• 131,416,223 common shares
• 5,987,800 common shares issuable under stock options with a weighted average exercise price of CAD$3.96 per share expiring between May 13, 2019 and August 31, 2023.

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.

Changes in Accounting Policies and Critical Accounting Estimates

Accounting standards adopted during the year:

Amendments to IFRS 2, Share-based Payment (“IFRS 2”)
On June 20, 2016, the IASB issued amendments to IFRS 2 clarifying how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a share-based payment that changes the classification of a transaction from cash-settled to equity settled.

The amendments apply for annual periods beginning on or after January 1, 2018. As a practical simplification, the amendments can be applied prospectively. Retrospective, or early, application is permitted if information is available without the use of hindsight. The Company has adopted the amendments to IFRS 2 in its financial statements for the annual period beginning on January 1, 2018 on a prospective basis with no material impact on the consolidated financial statements.

The Company has Performance Share Units (“PSU”) outstanding with a net settlement feature, which permits cash settlement for withholding tax obligations. The expense for the PSUs has previously been bifurcated with the cash settlement portion of the expense recognized as a liability until settlement, and the remaining expense allocated to Contributed Surplus. Upon adoption of the amendments to IFRS 2, the PSU liability at January 1, 2018 for the liability classified portion of $38,000 was reallocated to Contributed Surplus.

IFRS 9 Financial Instruments (“IFRS 9”)
In November 2009, the IASB issued IFRS 9 as the first step in its project to replace IAS 39, Financial Instruments: Recognition and Measurement. On July 24, 2014 the IASB issued the complete IFRS 9. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flows of the financial asset.

Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument.

IFRS 9 amends some of the requirements of IFRS 7, Financial Instruments: Disclosures, including added disclosures about investments in equity instruments measured at fair value in other comprehensive income, and guidance on the measurement of financial liabilities and de-recognition of financial instruments. The mandatory effective date of IFRS 9 is for annual periods beginning on or after January 1, 2018 with early adoption permitted, and must be applied retrospectively with some exemptions permitted.

As a result of the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments retrospectively. The change did not result in a change in carrying value of any of the Company’s financial instruments on transition date. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The adoption of the expected credit loss impairment model did not have a significant impact on the Company’s financial statements.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 38

The Company’s financial instruments are accounted for as follows under IFRS 9 as compared to the Company’s previous policy in accordance with IAS 39.

	January 1, 2018
	IAS 39	IFRS 9
Assets
Cash and cash equivalents	Amortized cost	Amortized cost
Restricted cash	Amortized cost	Amortized cost
Trade and other receivables (other than derivatives)	Amortized cost	Amortized cost
Trade receivables (derivative component)	Fair value through profit or loss	Fair value through profit or loss
Marketable securities	Fair value through other comprehensive income	Fair value through profit or loss
Liabilities
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Performance share units and Deferred share units	Fair value through profit or loss	Fair value through profit or loss

Under IFRS 9, the Company’s equity marketable securities are designated as financial assets at fair value through profit or loss. For equity instruments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Company did not make any such election.

IFRS 9 does not require restatement of comparative periods. Accordingly, the Company has reflected the retrospective impact of the adoption of IFRS 9 due to the change in accounting policy for marketable securities as an adjustment to opening components of equity as at January 1, 2018.

The fair value of marketable securities is $168,000 under both IAS 39 and IFRS 9 as at January 1, 2018, the date of initial application of IFRS 9, and is presented in Other Investments in the consolidated balance sheet. On adoption, the unrealized gain in fair value of $127,000, previously recognized in accumulated other comprehensive income has been reallocated to retained earnings.

As a result of the adoption of IFRS 9, the Company’s accounting policy for financial instruments has been updated as follows:

Financial Instruments

The Company recognizes financial assets and financial liabilities on the date the Company becomes party to the contractual provisions of the instruments. 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.

The Company classify and measure financial assets (excluding derivatives) on initial recognition as described below:

• Cash and equivalents and restricted cash include cash and term deposits with original maturities of less than 90 days are classified as financial assets at fair value through profit and loss and are measured at fair value. Unrealized gains and losses related to changes in fair value are reported in income;
• Trade and other receivables are classified as and measured at amortized cost using the effective interest method, less impairment allowance, in any;
• Investments in equity instruments are designated at financial assets through profit or loss and are recorded at fair value on settlement date, net of transaction costs. Subsequent to initial recognition, changes in fair value are recognized in income.

Derivative financial instruments, including embedded derivatives in trade receivables measured at amortized cost, are recorded in the consolidated balance sheets at fair value. Subsequent to initial recognition, changes in estimated fair value at each reporting date are recognized through profit or loss.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company did not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 39

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”)

On May 28, 2014, the IASB issued IFRS 15. The new standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. IFRS 15 will replace IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have also been introduced, which may affect the amount and/or timing of revenue recognized.

On April 12, 2016 the IASB issued Clarifications to IFRS 15, Revenue from Contracts with Customers, which is effective at the same time as IFRS 15. The clarifications to IFRS 15 provide additional guidance with respect to the five-step analysis, transition, and the application of the standard to licenses of intellectual property.

The Company adopted IFRS 15 and the clarifications effective January 1, 2018 with no impact on measurement of revenue in the consolidated financial statements.

Dore sales

IFRS 15 requires that revenue from contracts with customers be recognized upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the Company’s revenue recognition policy as set out in Note 3(j) of the 2017 Annual Financial Statements, as the condition is generally satisfied when title transfers to the customer. As such, upon adoption, this requirement under IFRS 15 resulted in no impact to the Company’s financial statements as the timing of revenue recognition on dore sales is unchanged.

Concentrate sales
The Company assessed all of its existing concentrate sales agreements and determined that there is no change in the timing of revenue recognition, as control transfers to the smelting companies at the time of delivery, consistent with the Company’s current accounting policy as set out in Note 3(j) of the 2017 Annual Financial Statements.

Changes in IFRS not yet adopted:
New standards and amendments have been proposed; however, they do not impact the condensed consolidated interim financial statements and are not anticipated to impact the Company’s annual consolidated financial statements. The nature and impact of each new standard and amendment applicable to the Company are described below:

IFRS 16, Leases (“IFRS 16”)
On January 13, 2016, the IASB published a new standard, IFRS 16, Leases, which replaces IAS 17 – Leases and its associated interpretive guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract based on whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 effective January 1, 2019 and has selected the modified retrospective transition approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied.

Upon the adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and/or corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 40

The Company is currently quantifying the effect of this standard on our financial statements. During the fourth quarter, management has continued the scoping of contracts across our operations, has continued a detailed review of contracts and commenced quantification of the qualifying leases. At this time, the quantitative estimate of the effects of the new standard range between $2,000 and $3,000. The Company expects the time frame to complete the implementation of the accounting policies, estimates and processes will continue into the early part of 2019.

IFRIC 23, Uncertainty over Income Tax Treatments (“IFRIC 23”)
On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019.

The Interpretation requires an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution and if it is probable that the tax authorities will accept the uncertain tax treatment. If estimated that it is not probable that the uncertain tax treatment will be accepted by authorities, the tax uncertainty would be measured based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty.

The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The Company does not expect the adoption of the Interpretation to have a material impact on the financial statements.

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 judgment relate to the determination of mineralized reserves, 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 the Canadian Securities Administrator’s National Instrument 43-101) to compile this data.

Changes in the judgments surrounding proven and probable reserves 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.

Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s properties. Estimating the quantity and /or grade of reserves 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 actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineral reserves

Impairment of Non-Current Assets
Management periodically reviews the carrying value of its mineral properties 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, anticipated future prices, anticipated future costs of exploring, developing and operating a producing mine, expiration term and ongoing expense of maintaining leased mineral properties and the 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 appropriate.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 41

The recoverable amounts of the Company’s CGUs, which include mining properties, plant and equipment and allocated goodwill, if any, are determined on an annual basis and circumstances result in impairment indicators. As at December 31, 2015, the Company determined there were several indicators of potential impairment of its producing mineral properties which included the sustained decline in precious metal prices and updates of the estimated reserves and resources. 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 fair value in use. The cash flows were determined based on the life-of-mine after tax cash flow estimate which incorporate management’s best estimates of future metal prices, production based on estimates of recoverable reserves and resources, exploration potential, future operating costs and non-expansionary capital expenditures.

As a result of the operational challenges during the past two years and a revised mine plan, the Company tested the recoverability of the Guanaceví CGU as at December 31, 2018, determining that no additional impairment was required. For previously impaired CGU’s any modest decrease in any one key assumption in isolation could cause the estimated recoverable amount to be less than or equal to the net carrying value. Other than timing of production based on the revised mine plans and associated increase in per-unit costs, Management’s long- term estimates have not significantly changed from the previous years.

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 his 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 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. 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.

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.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 42

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 grants share appreciation rights (“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.

The Company has a Performance Share Unit (“PSU”) plan whereby performance share units may be granted to employees of the Company. Once performance conditions (as determined by the board of directors of the Company) for a grant of PSUs have been met within the specified performance period, a PSU is then vested and redeemable into one common share for no additional consideration. The Company estimates the probability of attainment of the PSU performance conditions, which may vary for each grant of PSUs in the board of directors’ sole discretion.

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 the income statement. 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).

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 43

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 the consolidated statement of comprehensive income.

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.

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 re-agents 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.

Operating Hazards and Risks
Mining operations generally involve a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration, development and production of precious and base metals, any of which could result in work stoppages, delayed production and resultant losses, increased production costs, asset write downs, damage to or destruction of mines and other producing facilities, damage to life and property, environmental damage and possible legal liability for any or all damages. The Company may become subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. Any compensation for such liabilities may have a material, adverse effect on the Company’s financial position. The Company’s property, business interruption and liability insurance may not provide sufficient coverage for losses related to these or other hazards. Insurance against certain risks, including certain liabilities for environmental pollution, may not be available to us or to other companies within the industry at reasonable terms or at all. In addition, the Company’s insurance coverage may not continue to be available at economically feasible premiums, or at all. Any such event could have a material adverse effect on the Company’s business.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 44

Mining Operations
The capital costs required by the Company’s projects may be significantly higher than anticipated. Capital and operating costs, production and economic returns, and other estimates contained in the Company’s current technical reports, may differ significantly from those provided for in future studies and estimates and from management guidance, and there can be no assurance that the Company’s actual capital and operating costs will not be higher than currently anticipated. In addition, delays to construction and exploration schedules may negatively impact the net present value and internal rates of return of the Company’s mineral properties as set forth in the applicable technical report. Similarly, there can be no assurance that historical rates of production, grades of ore processed, rates of recoveries or mining cash costs will not experience fluctuations or differ significantly from current levels over the course of the mining operations conducted by the Company. In addition, there can be no assurance that the Company will be able to continue to extend the production from its current operations through exploration and drilling programs.

Infrastructure
Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploitation or development of the Company’s projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploitation or development of the Company’s projects will be commenced or completed on a timely basis, if at all; the resulting operations will achieve the anticipated production volume, or the construction costs and ongoing operating costs associated with the exploitation and/or development of the Company’s advanced projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company’s operations and profitability.

Exploration and Development
There is no assurance that the Company’s exploration and development programs and properties will result in the discovery, development or production of a commercially viable ore body or yield new reserves to replace or expand current reserves. The economics of developing silver, gold and other mineral properties are affected by many factors, including capital and operating costs, variations of the tonnage and grade of ore mined, fluctuating mineral markets, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. Depending on the prices of silver, gold or other minerals produced, the Company may determine that it is impractical to commence or continue commercial production.

The marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond the Company’s control and which cannot be accurately foreseen or predicted, such as market fluctuations, conditions for precious and base metals, the proximity and capacity of milling and smelting facilities, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting minerals and environmental protection. In order to commence exploitation of certain properties presently held under exploration concessions, it is necessary for the Company to apply for an exploitation concession.

There can be no guarantee that such a concession will be granted. Unsuccessful exploration or development programs could have a material adverse impact on the Company’s operations and profitability.

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.

Replacement of Reserves and Resources
The Guanaceví, Bolañitos and El Cubo mines are the Company’s current sources of production. Current life-of-mine plans provide for a defined production life for mining at the Company’s mines. The mines have expected lives of one to four years based on current proven and probable reserves and production levels. If the Company’s mineral reserves and resources are not replaced either by the development or discovery of additional reserves and/or extension of the life-of-mine at its current operating mines or through the acquisition or development of an additional producing mine, this could have an adverse impact on the Company’s future cash flows, earnings, financial performance and financial condition, including as a result of requirements to expend funds for reclamation and decommissioning.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 45

Economic Conditions for Mining
A decline in the market price for precious metal commodities has been experienced since 2013. These macro-economic events negatively affected the mining and minerals sectors in general, and the Company’s market capitalization has been significantly reduced over this period. Any sudden or rapid destabilization of global economic conditions could impact the Company's ability to obtain equity or debt financing in the future on terms favorable to the Company or at all. In such an event, the Company's operations and financial condition could be adversely impacted.

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.

Integration of New Acquisitions
The positive effect on the Company’s results arising from past and future acquisitions depends on a variety of factors, including, but not limited to: assimilating the operations of an acquired business or property in a timely and efficient manner including the existing work force, union arrangements and existing contracts; maintaining the Company’s financial and strategic focus while integrating the acquired business or property; implementing uniform standards, controls, procedures and policies at the acquired business, as appropriate; and to the extent that the Company makes an acquisition outside of markets in which it has previously operated, conducting and managing operations in a new operating environment and under a new regulatory regime where it has no direct experience.

Past and future business or property acquisitions could place increased pressure on the Company’s cash flow if such acquisitions involve cash consideration or the assumption of obligations requiring cash payments. The integration of the Company’s existing operations with any acquired business will require significant expenditures of time, attention and funds. Achievement of the benefits expected from consolidation would require the Company to incur significant costs in connection with, among other things, implementing financial and planning systems.

The Company may not be able to integrate the operations of a recently acquired business or restructure the Company’s previously existing business operations without encountering difficulties and delays. In addition, this integration may require significant attention from the Company’s management team, which may detract attention from the Company’s day-to-day operations. Over the short-term, difficulties associated with integration could have a material adverse effect on the Company’s business, operating results, financial condition and the price of the Company’s common shares. In addition, the acquisition of mineral properties may subject the Company to unforeseen liabilities, including environmental liabilities.

Foreign Operations
The Company’s operations are currently conducted through subsidiaries principally in Mexico and secondarily in Chile and, as such, its operations are exposed to various levels of political, economic and other risks and uncertainties which could result in work stoppages, blockades of the Company’s mining operations and appropriation of assets. Some of the Company’s operations are located in areas where Mexican drug cartels operate. These risks and uncertainties vary from region to region and include, but are not limited to, terrorism; hostage taking; local drug gang activities; military repression; expropriation; extreme fluctuations in currency exchange rates; high rates of inflation; labour unrest; the risks of war or civil unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions arising from changes in government and otherwise, currency controls and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

Local opposition to mine development projects could arise in Mexico, and such opposition could be violent. There can be no assurance that such local opposition will not arise with respect to the Company’s Mexican operations. If the Company were to experience resistance or unrest in connection with its Mexican operations, it could have a material adverse effect on its operations and profitability. To the extent the Company acquires mineral properties in other jurisdictions; it may be subject to similar and additional risks with respect to its operations in those jurisdictions.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 46

Government Regulation
The Company’s operations, exploration and development activities are subject to extensive foreign federal, state and local laws and regulations governing such matters as environmental protection, management and use of toxic substances and explosives, management of natural resources, health, exploration and development of mines, production and post-closure reclamation, safety and labour, mining law reform, price controls import and export laws, taxation, maintenance of claims, tenure, government royalties and expropriation of property. The activities of the Company require licenses and permits from various governmental authorities. The costs associated with compliance with these laws and regulations are substantial and possible future laws and regulations, changes to existing laws and regulations and more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expenses, capital expenditures, restrictions on or suspensions of the Company’s operations and delays in the development of its properties. Moreover, these laws and regulations may allow governmental authorities and private parties to bring lawsuits based upon damages to property and injury to persons resulting from the environmental, health and safety practices of the Company’s past and current operations, or possibly even those actions of parties from whom the Company acquired its mines or properties, and could lead to the imposition of substantial fines, penalties or other civil or criminal sanctions. The Company retains competent and well trained individuals and consultants in jurisdictions in which it does business, however, even with the application of considerable skill the Company may inadvertently fail to comply with certain laws. Such events can lead to financial restatements, fines, penalties, and other material negative impacts on the Company.

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.

Included in the Company’s consolidated financial statements, are net assets of $595,000, 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. As of December 31, 2017, the Company recognized an allowance for transferring the shares and assets of MSCG amounting to $595,000. The Company is currently assessing MSCG’s settlement options based on on-going court proceedings and discussion with the tax authorities.

Obtaining and Renewing of Government Permits
In the ordinary course of business, the Company is required to obtain and renew government permits for the operation and expansion of existing operations or for the development, construction and commencement of new operations. Obtaining or renewing the necessary governmental permits is a complex and time-consuming process involving numerous jurisdictions and possibly involving public hearings and costly undertakings on the Company’s part. Any unexpected delays or costs associated with the permitting process could delay the development or impede the operation of a mine, which could adversely impact the Company’s operations and profitability.

Environmental Factors
All phases of the Company’s operations are subject to environmental regulation in the various jurisdictions in which it operates. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. The costs of compliance with changes in government regulations have the potential to reduce the profitability of future operations. Environmental hazards that may have been caused by previous or existing owners or operators may exist on the Company’s mineral properties, but are unknown to the Company at present.

Title to Assets
Although the Company obtains title opinions for material properties in which it has a material interest, there is no guarantee that title to such properties will not be challenged or impugned. If title to the Company’s properties is disputed, it may result in the Company paying substantial costs to settle the dispute or clear title and could result in the loss of the property, which events may affect the economic viability of the Company.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 47

Employee Recruitment and Retention
Recruiting and retaining qualified personnel is critical to the Company’s success. As the Company’s business activity grows, the Company will require additional key financial, administrative and mining personnel as well as additional operations staff. The Company could experience increases in recruiting and training costs and decreases in operating efficiency, productivity and profit margins. If the Company is not able to attract, hire and retain qualified personnel, the efficiency of the operations could be impaired, which could have an adverse impact on the Company’s future cash flows, earnings, financial performance and financial condition.

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, 2018. 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.

Changes in Climate Conditions
A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is becoming more stringent. If the current regulatory trend continues, this may result in increased costs at some or all of the Company’s operations. In addition, the physical risks of climate change may also have an adverse effect on the Company’s operations. Extreme weather events have the potential to disrupt operations at the Company’s mines and may require the Company to make additional expenditures to mitigate the impact of such events. Extended disruptions to supply lines could result in interruption to production.

Anti-Corruption and Anti-Bribery Laws
The Company’s operations are governed by, and involve interactions with, various levels of government in foreign countries. The Company is required to comply with anti-corruption and anti-bribery laws, including the Corruption of Foreign Public Officials Act (Canada) and the Foreign Corrupt Practices Act (US) and similar laws in México. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti-corruption and anti-bribery laws. A company may be found liable for violations by not only its employees, but also by its contractors and third party agents. The Company’s internal procedures and programs may not always be effective in ensuring that it, its employees, contractors or third party agents will comply strictly with all such applicable laws. If the Company becomes subject to an enforcement action or is found to be in violation of such laws, this may have a material adverse effect on the Company’s reputation, result in significant penalties or sanctions, and have a material adverse effect on the Company’s operations.

Compliance with Canada’s Extractive Sector Transparency Measures Act
The Extractive Sector Transparency Measures Act (Canada) (“ESTMA”) requires public disclosure of certain payments to governments by companies engaged in the commercial development of minerals which are publicly listed in Canada . Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA requires reporting on the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends, infrastructure reporting or structuring payments to avoid reporting. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant penalties or sanctions which may also have a material adverse effect on the Company’s reputation.

Claims under U.S. Securities Laws
The enforcement by investors of civil liabilities under the federal securities laws of the United States may be affected adversely by the fact that the Company is incorporated under the laws of British Columbia, Canada, that the independent registered chartered professional accountants who have audited the Company’s financial statements and some or all of the Company’s directors and officers may be residents of Canada or elsewhere, and that all or a substantial portion of the Company’s assets and said persons are located outside the United States. As a result, it may be difficult for holders of the Company’s common shares to effect service of process within the United States upon people who are not residents of the United States or to realize in the United States upon judgments of courts of the United States predicated upon civil liabilities under the federal securities laws of the United States.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 48

Information Systems and Cyber Security
The Company’s operations depend, in part, upon information technology systems. The Company’s information technology systems are subject to disruption, damage or failure from a number of sources, including, but not limited to, hacking, computer viruses, security breaches, natural disasters, power loss, vandalism, theft and defects in design. Any of these and other events could result in information technology systems failures, operational delays, production downtimes, destruction or corruption of data, security breaches or other manipulation or improper use of our data, systems and networks, any of which could have adverse effects on the Company’s reputation, business, results of operations, financial condition and share price.

The Company’s risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect the Company’s systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

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.

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(b) 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.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 49

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, 2018. 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, 2018, 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, 2018.

Changes in Internal Control over Financial Reporting
Management, including the CEO and CFO, have 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, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ENDEAVOUR SILVER CORP.   |   MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 50

EX-99.5

Exhibit 99.5

CERTIFICATION

I, Bradford Cooke, certify that:

1	I have reviewed this annual report on Form 40-F of Endeavour Silver Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4.	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-5(f) for the issuer and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting 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 generally accepted accounting principles;
(c)	Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5. The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: February 25, 2019	By: /s/ Bradford Cooke
	Bradford Cooke
	Chief Executive Officer
	(Principal Executive Officer)

EX-99.6

Exhibit 99.6

CERTIFICATION

I, Dan Dickson, certify that:

1	I have reviewed this annual report on Form 40-F of Endeavour Silver Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4.	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-5(f) for the issuer and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting 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 generally accepted accounting principles;
(c)	Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5. The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: February 25, 2019	By:  /s/ Dan Dickson
	Dan Dickson
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-99.7

Exhibit 99.7

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Endeavour Silver Corp. (the “Company”) on Form 40-F for the period ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bradford Cooke, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)             The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)             The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 25, 2019	/s/ Bradford Cooke
	Bradford Cooke
	Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Endeavour Silver Corp. and will be retained by Endeavour Silver Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.8

Exhibit 99.8

CERTIFICATION PURSUANT TO
18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of Endeavour Silver Corp. (the “Company”) on Form 40-F for the period ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dan Dickson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

February 25, 2019	/s/ Dan Dickson
	Dan Dickson
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Endeavour Silver Corp. and will be retained by Endeavour Silver Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.9

2

2

EX-99.10

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” effective August 7, 2018 and dated September 17, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of those portions of the Technical Report that I am responsible for preparing, contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of those portions of the Technical Report that I am responsible for preparing in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i) the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;

(ii)

the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from those portions of the Technical Report that I am responsible for preparing, or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii)

the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

Dated this 22^nd day of February, 2019

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 1, 2019 and dated February 22, 2019 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of those portions of the Technical Report that I am responsible for preparing, contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of those portions of the Technical Report that I am responsible for preparing in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)

the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;

(ii)

the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from those portions of the Technical Report that I am responsible for preparing, or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

Dated this 22^nd day of February, 2019

2

EX-99.11

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 4 3 -101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” effective March 27, 2017 and dated the May 22, 2017 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein; and
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report.
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

EX-99.12

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 4 3 -101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” effective March 27, 2017 and dated the May 22, 2017 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein; and
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report.
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” effective August 7, 2018 and dated September 17, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 1, 2019 and dated February 22, 2019 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

EX-99.13

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 4 3 -101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” effective March 27, 2017 and dated the May 22, 2017 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein; and
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report.
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” effective August 7, 2018 and dated September 17, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 1, 2019 and dated February 22, 2019 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

EX-99.14

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 4 3 -101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” effective March 27, 2017 and dated the May 22, 2017 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein; and
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report.
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

EX-99.15

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 4 3 -101 Technical Report Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico” effective March 27, 2017 and dated the May 22, 2017 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein; and
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report.
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” effective August 7, 2018 and dated September 17, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “Updated Mineral Resource Estimate Technical Report for the Terronera Project, Jalisco State, Mexico” effective February 1, 2019 and dated February 22, 2019 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and
(iii)	the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible.

EX-99.16

EX-99.17

TRANSMITTAL

Feasibility Study Geomechanical Design Input

Date:	February 22, 2019	File No.:	NB201-00542/03-A.01
		Cont. No.:	NB19-00146
To:	Endeavour Silver Corp. 1130-609 Granville Street Vancouver, British Columbia Canada, V7Y 1G5
Attention:	Mr. Dan Dickson

Document Items

Item No.	Description
1.	One (1) signed and sealed copy of “Consent of Author” form for the Technical Report entitled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico”

Remarks

As requested.

Copy To:              Christine West, Endeavour Silver

/cd

Knight Piésold Ltd. | 1650 Main Street West | North Bay, Ontario | Canada, P1B 8G5
T +1 705 476 2165 | E northbay@knightpiesold.com | www.knightpiesold.com

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is made to the Technical Report titled “NI 43-101 and NI 43-101F1 Technical Report Updated Mineral Resource Estimate and Updated Preliminary Feasibility Study for the Terronera Project, Jalisco State, Mexico” effective August 7, 2018 and dated September 17, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in, the Company’s Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i) the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;

 

EX-99.18

EX-99.19

EX-99.20

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

I consent to the Updated Internal Mineral Reserve and Resource Estimates of the Guanacevi Mine, the Bolanitos Mine the El Cubo Mine and the El Compas Mine and related information contained in, or incorporated by reference in, the Annual Information Form dated February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018, the Registration Statement on Form F-10 (File No. 333-223560) of Endeavour Silver Corp. (collectively the “Disclosure Documents”).

The undersigned hereby consents to:

(a) being named directly or indirectly in the Disclosure Documents; and

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including Updated Internal Mineral Reserve and Resource Estimate of the Guanacevi Mine, the Bolanitos Mine and the El Cubo Mine in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents.;

Dated this 22^nd day of February, 2019

“signature” {signed}
_________________
Godfrey Walton, M.Sc, P.Geo,
President and COO
Endeavour Silver Corp.

EX-99.21

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolanitos Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2018

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanacevi Project, Durango State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

EX-99.22

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolanitos Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanacevi Project, Durango State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February 2019

“signature” {signed and sealed}

2

EX-99.23

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolanitos Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February 2019

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the El Cubo Project, Guanajuato State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

CONSENT of AUTHOR

TO:	British Columbia Securities Commission
	Alberta Securities Commission
	Financial and Consumer Affairs Authority of Saskatchewan
	The Manitoba Securities Commission
	Ontario Securities Commission
	Autorité des marchés financiers (Quebec)
	Financial and Consumer Services Commission (New Brunswick)
	Nova Scotia Securities Commission
	The Office of the Superintendent of Securities (Prince Edward Island)
	Office of the Superintendent of Securities (Newfoundland & Labrador)
	U.S. Securities and Exchange Commission

Dears Sirs/Mesdames:

Reference is to the Technical Report titled “Amended National Instrument 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanacevi Project, Durango State, Mexico” effective December 31, 2016, dated March 3, 2017 and amended March 27, 2018 (the “Technical Report”) prepared for Endeavour Silver Corp. (the “Company”).

I consent to any extracts from or a summary of the Technical Report contained in, or incorporated by reference in the Company’s Annual Information Form dated as of February 22, 2019, the Company’s Short Form Base Shelf Prospectus dated April 10, 2018 and the Prospectus Supplement dated June 13, 2018 thereto, the Annual Report of the Company on Form 40-F for the fiscal year ended December 31, 2018 and the Registration Statement on Form F-10 (File No. 333-223560) of the Company (collectively, the “Disclosure Documents”).

The undersigned hereby consents to:

(a)	being named directly or indirectly in the Disclosure Documents; and
(b)	the use of the Technical Report and to extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein.

The undersigned hereby confirms that:

(i)	the undersigned has read the Disclosure Documents, including the extracts from or a summary of the Technical Report in the Disclosure Documents or incorporated by reference therein;
(ii)	the undersigned has no reason to believe that there are any misrepresentations in the information contained in the Disclosure Documents or incorporated by reference therein that is derived from the Technical Report or that is within the undersigned’s knowledge as a result of the services performed by the undersigned in connection with the Technical Report; and

(iii) the Disclosure Documents fairly and accurately represent the information in the sections of the Technical Report for which I am responsible .

Dated the 22^nd day of February, 2019

“signature” {signed and sealed}

2

EX-99.24

 

	KPMG LLP	Telephone	(604) 691-3000
	Chartered Professional Accountants	Fax	(604) 691-3031
	PO Box 10426 777 Dunsmuir Street	Internet	www.kpmg.ca
	Vancouver BC V7Y 1K3
	Canada

Consent of Independent Registered Public Accounting Firm

The Board of Directors
Endeavour Silver Corp.

We consent to the use of our reports, each dated February 22, 2019, with respect to the consolidated financial statements and the effectiveness of internal control over financial reporting included in this annual report on Form 40-F. Our report on the consolidated financial statements refers to changes in accounting policies for revenue recognition and financial instruments in 2018 due to the adoption of IFRS 15 – Revenue from Contracts with Customers (IFRS 15) and IFRS 9 – Financial Instruments (IFRS 9).

We also consent to the incorporation by reference of such reports in the Registration Statement (No. 333-223560) on Form F-10 of Endeavour Silver Corp.

//s// KPMG LLP

February 25, 2019
Vancouver, Canada

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to

KPMG LLP.

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2018 shares
Statements Line Items
Document Type	40-F
Amendment Flag	false
Entity Registrant Name	ENDEAVOUR SILVER CORP
Trading Symbol	exk
Entity Central Index Key	0001277866
Document Period End Date	Dec. 31, 2018
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	130,781,052
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Emerging Growth Company	false

XML

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 33,376	$ 38,277
Restricted cash		1,000
Other investments	88	168
Accounts receivable	26,947	34,012
Inventories	14,894	13,131
Prepaid expenses	2,704	1,911
Total current assets	78,009	88,499
Non-current deposits	1,114	610
Deferred income tax asset	9,147	655
Mineral properties, plant and equipment	88,777	88,816
Total assets	177,047	178,580
Current liabilities
Accounts payable and accrued liabilities	19,470	19,068
Income taxes payable	4,050	3,185
Total current liabilities	23,520	22,253
Deferred lease inducement	217	236
Provision for reclamation and rehabilitation	8,195	7,982
Deferred income tax liability	335	1,592
Total liabilities	32,267	32,063
Shareholders' equity
Common shares, unlimited shares authorized, no par value, issued and outstanding 130,781,052 shares (Dec 31, 2017 - 127,488,410 shares)	459,109	450,740
Contributed surplus	9,676	8,747
Accumulated other comprehensive income (loss)		127
Retained earnings (deficit)	(324,005)	(313,097)
Total shareholders' equity	144,780	146,517
Total liabilities and shareholders' equity	$ 177,047	$ 178,580

XML

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parentheticals) - shares	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Number of shares issued	130,781,052	127,488,410
Number of shares outstanding	130,781,052	127,488,410

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Revenue	$ 150,509	$ 150,499
Cost of sales:
Direct production costs	105,003	103,330
Royalties	1,653	1,740
Share-based payments	(93)	202
Depreciation and depletion	38,412	16,582
Write down of inventory to net realizable value	2,026	166
Cost of sales	147,001	122,020
Mine operating earnings (loss)	3,508	28,479
Expenses:
Exploration	12,383	12,898
General and administrative	8,626	7,914
Operating expenses	21,009	20,812
Operating earnings (loss)	(17,501)	7,667
Finance costs	211	715
Other income (expense):
Write down of inventory to net realizable value	(650)
Write off of IVA receivable	(194)
Foreign exchange	(81)	433
Investment and other	926	502
Total other income (expense)	1	935
Earnings (loss) before income taxes	(17,711)	7,887
Income tax expense (recovery):
Current income tax expense	4,477	4,650
Deferred income tax expense (recovery)	(9,749)	(6,447)
Total income tax expense (recovery)	(5,272)	(1,797)
Net earnings (loss) for the year	(12,439)	9,684
Other comprehensive income (loss), net of tax
Reclassification for realized (gain) loss on other investments		(72)
Unrealized gain (loss) on other investments		155
Total other comprehensive income (loss) for the year		83
Comprehensive income (loss) for the year	$ (12,439)	$ 9,767
Basic earnings (loss) per share based on net earnings (in dollars per share)	$ (0.10)	$ 0.08
Diluted earnings (loss) per share based on net earnings (in dollars per share)	$ (0.10)	$ 0.08
Basic weighted average number of shares outstanding (in shares)	128,600,421	127,340,834
Diluted weighted average number of shares outstanding (in shares)	128,600,421	127,957,573

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) $ in Thousands	Share Capital [Member]	Contributed Surplus [Member]	Accumulated Comprehensive Income (Loss) [Member]	Retained Earnings (Deficit) [Member]	Total
Beginning Balance at Dec. 31, 2016	$ 449,594	$ 6,689	$ 44	$ (323,068)	$ 133,259
Beginning Balance (shares) at Dec. 31, 2016	127,080,264
Statements Line Items
Exercise of options	$ 207	(65)			142
Exercise of options (shares)	60,000
Issued for performance share units	$ 439	(439)
Issued for performance share units (shares)	193,825
Issued on acquistion of mineral properties, net	$ 500				500
Issued on acquistion of mineral properties, net (shares)	154,321
Share based compensation		2,849			2,849
Unrealized gain (loss) on other investments			155		155
Realized (gain) loss on other investments			(72)		(72)
Expiry and forfeiture of options		(287)		287
Earnings (loss) for the year				9,684	9,684
Ending Balance at Dec. 31, 2017	$ 450,740	8,747	127	(313,097)	$ 146,517
Ending Balance (shares) at Dec. 31, 2017	127,488,410				127,488,410
Statements Line Items
Public equity offerings, net of issuance costs	$ 7,982				$ 7,982
Public equity offerings, net of issuance costs (shares)	3,165,642
Exercise of options	$ 387	(131)			256
Exercise of options (shares)	127,000
Share based compensation		2,426			2,426
Unrealized gain (loss) on other investments tranferred to retained earnings			$ (127)	127
Expiry and forfeiture of options		(1,404)		1,404
Realloction of performance share unit liability		38			38
Earnings (loss) for the year				(12,439)	(12,439)
Ending Balance at Dec. 31, 2018	$ 459,109	$ 9,676		$ (324,005)	$ 144,780
Ending Balance (shares) at Dec. 31, 2018	130,781,052				130,781,052

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net earnings (loss) for the year	$ (12,439)	$ 9,684
Items not affecting cash:
Share-based compensation	2,426	2,861
Depreciation and depletion	38,777	16,990
Deferred income tax expense (recovery)	(9,749)	(6,425)
Unrealized foreign exchange loss (gain)	41	(403)
Finance costs	150	715
Write off of IVA receivable	194
Write off of mineral properties	0	233
Write down of inventory to net realizable value	2,676
(Gain) loss on available for sale assets		(72)
Unrealized loss (gain) on other investments	80
Net changes in non-cash working capital	4,492	(7,993)
Cash from operating activities	26,648	15,590
Investing activites
Property, plant and equipment expenditures	(40,398)	(39,835)
Proceeds from disposition of other investments		72
Redemption of (investment in) non-current deposits	1	49
Cash used in investing activities	(40,397)	(39,714)
Financing activities
Repayment of credit facility		(9,000)
Restricted cash	1,000	(1,000)
Interest paid		(461)
Public equity offerings	8,273
Exercise of options	256	142
Share issuance costs	(640)
Cash from (used in) financing activites	8,889	(10,319)
Effect of exchange rate change on cash and cash equivalents	(41)	403
Increase (decrease) in cash and cash equivalents	(4,860)	(34,443)
Cash and cash equivalents, beginning of the year	38,277	72,317
Cash and cash equivalents, end of the year	$ 33,376	$ 38,277

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CORPORATE INFORMATION

12 Months Ended

Dec. 31, 2018

Statements Line Items

CORPORATE INFORMATION [Text Block]

1. CORPORATE INFORMATION    Endeavour Silver Corp. (the “Company” or “Endeavour Silver”) is a corporation governed by the Business Corporations Act (British Columbia). 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. The address of the registered office is #1130 – 609 Granville Street, Vancouver, B.C., V7Y 1G5.

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BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2018

Statements Line Items

BASIS OF PRESENTATION [Text Block]

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 reporting period for the year ended December 31, 2018.   The Board of Directors approved the consolidated financial statements for issue on February 22, 2019.   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.   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 Zilver SARL, 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., Terronera Mining Company and Terronera Precious Metals S.A. de C.V. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

Statements Line Items

SIGNIFICANT ACCOUNTING POLICIES [Text Block]

3.	SIGNIFICANT ACCOUNTING POLICIES
	The accounting policies below have been applied consistently to all years presented and by all subsidiaries in the group except for new accounting standards adopted during the year, which were adopted either on a prospective basis or on a retrospective basis, without restatement of comparative periods as described in Note 3(o).
	(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 profit or loss.
	(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, plant and equipment useful lives, estimating the fair values of financial instruments and derivatives, impairment of non-current assets, reclamation and rehabilitation provisions, recognition of deferred tax assets, valuations in business combinations and assumptions used in determining the fair value of share-based compensation.

Significant areas requiring the use of management estimates relate to the valuation of accounts receivable, inventory, mineral property, plant and equipment, impairment of non-current assets, provision for reclamation and rehabilitation, share capital 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 proven and probable reserves may impact the carrying value of mineral properties, plant and equipment (Note 9), reclamation and rehabilitation provisions (Note 12), recognition of deferred income tax amounts (Note 20), and depreciation and depletion (Note 9).

Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s properties. Estimating the quantity and /or grade of reserves 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 actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineral reserves.

Assessment of impairment factors (accounting policy Note 3g) 
Management applies significant judgment in assessing each cash-generating unit and assets for the existence of indicators of impairment at the reporting date. Internal and external factors are considered in assessing whether indicators of impairment 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.

Achievement of commercial production (accounting policy Note 3f) 
Once a mine reaches the operating levels intended by management, depreciation of capitalized costs begins. Significant judgment 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 predetermined level of design capacity and indications exist that his 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 policy Note 3i) 
Accounting for restoration requires management to make estimates of the future costs the Company will occur 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. Also, future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation on 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 20)

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.

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. Deferred income tax assets are disclosed in Note 20.

Inventory (Note 7)
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.

(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 ninety days, or that are readily convertible into cash.

(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 profit or loss.

(e)    Inventories 
Production inventories are valued at the lower of production cost and net realizable value. 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 dore 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.

(f)    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 or 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 once management determines 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 and proceeds received during the development phase ceases when the property is capable of operating at levels intended by management.

Exploration and evaluation costs are those costs required to find 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 or 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. Technical feasibility and commercial viability generally coincide with the establishment of proven and probable reserves; however, this determination may be impacted by management’s assessment of certain modifying factors.

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 is recorded at cost and amortized using the straight-line method at rates varying from 5% to 30% annually. The accumulated costs of mineral properties that are developed to the stage of commercial production 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.

(g)    Impairment of Non-Current Assets 
The Company’s tangible assets are reviewed for indications of impairment at each financial statement date. If an indicator of impairment 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 profit and loss for the period.

The recoverable amount is the greater of fair value less costs to sell 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. 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.

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 the statement of comprehensive income 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.

(h)    Deferred Lease Inducement 
Lease inducements received in the form of reimbursed leasehold improvement costs are amortized over the term of the lease as a reduction of rent expense.

(i)    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 profit or loss for the period.

(j)    Revenue recognition 
Revenue relating to the sale of metals 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 those products. In determining whether the Company has satisfied a 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 has significant risks and rewards of ownership of the asset. Revenue from the sale of concentrates is based on prevailing market prices and estimated mineral content which is subject to adjustment upon final settlement based on metal prices, weights and assays. For each reporting period until final settlement, estimates of metal prices are used to record sales. 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 balance. 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. Revenue is recorded in the consolidated statement of comprehensive income, gross of treatment and refining costs paid to counterparties under the terms of the sales agreements.

(k)    Share-based payments 
The Company has a share option plan and performance share unit plan which are described in Note 13(c) and Note 13(f) respectively. The Company records all share-based compensation for options using the fair value method with graded vesting. Under the fair value method, share-based payments are measured at the fair value of the consideration received or the fair value of the equity instruments issued or liabilities incurred, whichever is more reliably measurable, and are charged over the vesting period. 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. 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(d) and Note 13(e), 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.

(l)    Income taxes 
The Company follows the asset and liability method of accounting for 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 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 deferred tax assets and liabilities of a change in tax rates is recognized in the statement of comprehensive income 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. 

(m)    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.

(n)    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) 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. 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 the statement of comprehensive income profit or loss statement. Incremental costs related to acquisitions are expensed as incurred.

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. When the fair value of contingent consideration as at the date of acquisition is finalized and before the end of the twelve 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 the consolidated statement of comprehensive income.

(o)    Accounting standards adopted during the year

Amendments to IFRS 2, Share-based Payment (“IFRS 2”) 
On June 20, 2016, the IASB issued amendments to IFRS 2 clarifying how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a share-based payment that changes the classification of a transaction from cash-settled to equity settled.

The amendments apply for annual periods beginning on or after January 1, 2018. As a practical simplification, the amendments can be applied prospectively. Retrospective or early application is permitted if information is available without the use of hindsight. The Company has adopted the amendments to IFRS 2 in its financial statements for the annual period beginning on January 1, 2018 on a prospective basis.

The Company has Performance Share Units (“PSU”) with a net settlement feature, which permits cash settlement for withholding tax obligations. The expense for the PSUs has previously been bifurcated with the cash settlement portion of the expense recognized as a liability until settlement, and the remaining expense allocated to Contributed Surplus. Upon adoption of the amendments to IFRS 2, the PSU liability at January 1, 2018 of $38 was reallocated to Contributed Surplus.

IFRS 9 Financial Instruments (“IFRS 9”) 
In November 2009, the IASB issued IFRS 9 as the first step in its project to replace IAS 39, Financial Instruments: Recognition and Measurement. On July 24, 2014 the IASB issued the complete IFRS 9. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flows of the financial asset. Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument.

IFRS 9 amends some of the requirements of IFRS 7, Financial Instruments: Disclosures, including added disclosures about investments in equity instruments measured at fair value in other comprehensive income, and guidance on the measurement of financial liabilities and de-recognition of financial instruments. The mandatory effective date of IFRS 9 is for annual periods beginning on or after January 1, 2018 with early adoption permitted, and must be applied retrospectively with some exemptions permitted.

As a result of the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments retrospectively. The change did not result in a change in carrying value of any of the Company’s financial instruments on transition date. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The adoption of the expected credit loss impairment model did not have a significant impact on the Company’s financial statements.

The Company’s financial instruments are accounted for as follows under IFRS 9 as compared to the Company’s previous policy in accordance with IAS 39.

	January 1, 2018
	IAS 39	IFRS 9
Assets
Cash and cash equivalents	Amortized cost	Amortized cost
Restricted cash	Amortized cost	Amortized cost
Trade and other receivables (other than derivatives)	Amortized cost	Amortized cost
Trade receivables (derivative component)	Fair value through profit or loss	Fair value through profit or loss
Marketable securities	Fair value through other comprehensive income	Fair value through profit or loss
Liabilities
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Performan share units and Deferred share units	Fair value through profit or loss	Fair value through profit or loss

Under IFRS 9, the Company’s equity marketable securities are designated as financial assets at fair value through profit or loss. For equity instruments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Company did not make any such election upon adoption of IFRS 9.

IFRS 9 does not require restatement of comparative periods. Accordingly, the Company has reflected the retrospective impact of the adoption of IFRS 9 due to the change in accounting policy for marketable securities as an adjustment to opening components of equity as at January 1, 2018.

The fair value of marketable securities is $168 under both IAS 39 and IFRS 9 as at January 1, 2018, the date of initial application of IFRS 9, and is presented in Other Investments in the consolidated balance sheet. On adoption, the unrealized gain in fair value of $127, previously recognized in accumulated other comprehensive income has been reallocated to retained earnings.

As a result of the adoption of IFRS 9, the Company’s accounting policy for financial instruments has been updated as follows: Financial Instruments The Company recognizes financial assets and financial liabilities on the date the Company becomes party to the contractual provisions of the instruments. 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.

The Company classifies and measures financial assets (excluding derivatives) on initial recognition as described below:

• Cash and equivalents and restricted cash include cash and term deposits with original maturities of less than 90 days are classified as financial assets at fair value through profit and loss and are measured at fair value. Unrealized gains and losses related to changes in fair value are reported in income;

• Trade and other receivables are classified as and measured at amortized cost using the effective interest method, less impairment allowance, in any;

• Investments in equity instruments are designated as financial assets through profit or loss and are recorded at fair value on settlement date, net of transaction costs. Subsequent to initial recognition, changes in fair value are recognized in income.

Derivative financial instruments, including embedded derivatives in trade receivables measured at amortized cost, are recorded in the consolidated balance sheets at fair value. Subsequent to initial recognition, changes in estimated fair value at each reporting date are recognized through profit or loss.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company did not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities.

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) 
On May 28, 2014, the IASB issued IFRS 15. The new standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. IFRS 15 replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have also been introduced, which may affect the amount and/or timing of revenue recognized.

On April 12, 2016 the IASB issued Clarifications to IFRS 15, Revenue from Contracts with Customers, which is effective at the same time as IFRS 15. The clarifications to IFRS 15 provide additional guidance with respect to the five-step analysis, transition, and the application of the standard to licenses of intellectual property.

The Company adopted IFRS 15 and the clarifications effective January 1, 2018 with no impact on the measurement of revenue in the consolidated financial statements.

Dore sales 
IFRS 15 requires that revenue from contracts with customers be recognized upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the Company’s revenue recognition policy as set out in Note 3(j) of the 2017 Annual Financial Statements, as the condition is generally satisfied when title transfers to the customer. As such, upon adoption, this requirement under IFRS 15 resulted in no impact to the Company’s financial statements as the timing of revenue recognition on dore sales is unchanged.

Concentrate sales 
The Company assessed all of its existing concentrate sales agreements and determined that there is no change in the timing of revenue recognition, as control transfers to the smelting companies at the time of delivery, consistent with the Company’s current accounting policy as set out in Note 3(j) of the 2017 Annual Financial Statements.

(p)    Changes in IFRS not yet adopted

IFRS 16, Leases (“IFRS 16”) 
On January 13, 2016, the IASB published a new standard, IFRS 16, Leases, which replaces IAS 17 – Leases and its associated interpretive guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract based on whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 effective January 1, 2019 and has selected the modified retrospective transition approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied.

Upon the adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and/or corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

The Company is currently quantifying the effect of this standard on our financial statements. During the fourth quarter, management has continued the scoping of contracts across our operations, has continued a detailed review of contracts and commenced quantification of the qualifying leases. At this time, the quantitative estimate of the effects of the new standard range between $2,000 and $3,000. The Company expects the time frame to complete the implemenation of the accounting policies, estimates and processes will continue into the early part of 2019.

IFRIC 23, Uncertainty over Income Tax Treatments (“IFRIC 23”)

On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019.

The Interpretation requires an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution and if it is probable that the tax authorities will accept the uncertain tax treatment. If estimated that it is not probable that the uncertain tax treatment will be accepted by authorities, the tax uncertainty would be measured based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty.

The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The Company does not expect the adoption of the Interpretation to have a material impact on the financial statements.

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH

12 Months Ended

Dec. 31, 2018

Statements Line Items

CASH AND CASH EQUIVALENTS [Text Block]

4.              CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents of the Company are comprised of bank balances and highly liquid investments that are readily convertible to cash with an original maturity of 90 days or less at the date of purchase.

		December 31		December 31
		2018		2017
Bank balances	$	33,376	$	38,782
Short-term deposits		-		495
	$	33,376	$	39,277

The Company issued a letter of credit which was guaranteed by cash deposits, classified as restricted cash on the balance sheet at December 31, 2017 of $1.0 million. Under the terms of the Las Torres processing facility lease, which was acquired with the El Cubo mine, the Company was required to provide financial guarantees to the owner of the Las Torres Facility as security against any damages. In March 2018 a payment was made to the owner of the Las Torres Facility for $0.5 million and the letter of credit was removed.

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OTHER INVESTMENTS

12 Months Ended

Dec. 31, 2018

Statements Line Items

INVESTMENTS [Text Block]

5. OTHER INVESTMENTS

		December 31		December 31
		2018		2017
Investment in marketable securities, at cost	$	41	$	41
Unrealized gain (loss) on marketable securities		47		127
	$	88	$	168

Marketable securities are classified as Level 1 in the fair value hierarchy (Note 21) and as available-for-sale financial assets. The fair values of available-for-sale 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 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. Changes in fair value on marketable securities are recognized in profit or loss.

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ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2018

Statements Line Items

ACCOUNTS RECEIVABLE [Text Block]

6. ACCOUNTS RECEIVABLE

			December 31		December 31
	Note		2018		2017
Trade receivables (1)		$	5,627	$	8,114
IVA receivables (2)			15,353		19,989
Income taxes recoverable			5,587		5,549
Due from related parties	8		1		2
Other receivables			379		358
		$	26,947	$	34,012

(1)       (2)   The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos, El Cubo and El Compas mines. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted one-month forward 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 (Note 21). 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 improper delays and denials have occurred within Compania Minera del Cubo (“El Cubo”) and Refinadora Plata Guanacevi S.A. de C.V. (“Guanaceví,”). At December 31, 2018, El Cubo holds $4,888 and Guanaceví holds $6,957 in IVA receivables which the Company and its advisors deem to be recoverable from tax authorities (December 31, 2017 – $10,392 and $8,812 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.

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INVENTORIES

12 Months Ended

Dec. 31, 2018

Statements Line Items

INVENTORIES [Text Block]

7. INVENTORIES

		December 31		December 31
		2018		2017
Warehouse inventory	$	8,638	$	7,809
Stockpile inventory(4)		1,564		-
Work in process inventory(3)		322		496
Finished goods inventory (1)(2)		4,370		4,826
	$	14,894	$	13,131

(1)	The Company held 199,897 silver ounces and 1,956 gold ounces as of December 31, 2018 (December 31, 2017 – 241,321 and 1,226, respectively). These ounces are carried at the lower of cost and net realizable value. As at December 31, 2018, the quoted market value of the silver ounces was $3,091 (December 31, 2017 - $4,070) and the quoted market value of the gold ounces was $2,507 (December 31, 2017 - $1,590).
(2)	The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $1,635 for finished goods inventory held at the Guanaceví mine. Of this amount $1,106 is comprised of cash costs and $529 relates to depreciation and depletion and was expensed in the period. The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $189 for finished goods inventory held at the El Compas mine. Of this amount $139 is comprised of cash costs and $50 relates to depreciation and depletion and was expensed to Other income (expenses)..
(3)	The work in process inventory balance at December 31, 2018 is net of a write down to net realizable value of $390 for work in process inventory held at the Guanaceví mine. Of this amount $252 is comprised of cash costs and $139 relates to depreciation and depletion and was expensed in the period.
(4)	The stockpile inventory balance at December 31, 2018 is net of a write down to net realizable value of $461 for stockpile inventory held at the El Compas mine. Of this amount $320 is comprised of cash costs and $141 relates to depreciation and depletion and was expensed to Other income (expenses)..

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2018

Statements Line Items

RELATED PARTY TRANSACTIONS [Text Block]

8. RELATED PARTY TRANSACTIONS   The Company shares common administrative services and office space with a company related by virtue of a common director and from time to time will incur third party costs on behalf of related parties on a full cost recovery basis. The charges for these costs totaled $16 for the year ended December 31, 2018 (December 31, 2017 - $24). The Company has a $1 net receivable related to these costs as of December 31, 2018 (December 31, 2017 – $2). The Company was charged $189 for legal services for the year ended December 31, 2018 by a legal firm in which the Company’s corporate secretary is a partner (December 31, 2017 - $60). The Company has $5 payable to the legal firm as at December 31, 2018 (December 31, 2017 - $Nil). 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
		2018		2017
Salaries and short-term employee benefits	$	2,754	$	2,793
Non-executive director's fees		194		204
Non-executive director's deferred share units		87		(484	)
Share-based payments		2,108		2,588
	$	5,143	$	5,101

The non-executive directors’ deferred share units are cash settled. The recognized expense (recovery) includes the fair value of new issuances of deferred share units during the period and the change in fair value of all outstanding deferred share units during the reporting period. During the year ended December 31, 2018, the Company granted 103,884 (December 31, 2017 – 37,832) deferred share units with a fair value of $297 (December 31, 2017 - $115) at the date of grant. At December 31, 2018, there were 652,276 cash settled deferred share units outstanding with a fair value of $1,407 (December 31, 2017 – 548,392 outstanding with a market value of $1,320).

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 and performance share units (Notes 13(c) and (f)). 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.

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MINERAL PROPERTIES, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Statements Line Items

MINERAL PROPERTY, PLANT AND EQUIPMENT [Text Block]

9. MINERAL PROPERTIES, PLANT AND EQUIPMENT

(a)    Mineral properties, plant and equipment comprise:

		Mineral						Machinery &					Transport &
		properties			Plant			equipment			Building		office equipment			Total
Cost
Balance at December 31, 2016	$	457,401		$	94,871		$	61,812		$	10,671	$	9,595		$	634,350
Additions		28,682			3,177			5,386			1,191		2,038			40,474
Disposals		(233	)		(27	)		(4,354	)		-		(1,100	)		(5,714	)
Balance at December 31, 2017		485,850			98,021			62,844			11,862		10,533			669,110
Additions		30,377			4,480			3,411			482		1,701			40,451
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	516,227		$	102,501		$	66,255		$	12,344	$	12,234		$	709,561
Accumulated amortization and impairment
Balance at December 31, 2016	$	419,320		$	85,563		$	46,196		$	9,214	$	7,819		$	568,112
Amortization		12,161			1,672			2,682			188		947			17,650
Disposals		-			(26	)		(4,353	)		-		(1,089	)		(5,468	)
Balance at December 31, 2017		431,481			87,209			44,525			9,402		7,677			580,294
Amortization		34,420			1,289			3,288			272		1,221			40,490
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	465,901		$	88,498		$	47,813		$	9,674	$	8,898		$	620,784
Net book value
At December 31, 2017	$	54,369		$	10,812		$	18,319		$	2,460	$	2,856		$	88,816
At December 31, 2018	$	50,326		$	14,003		$	18,442		$	2,670	$	3,336		$	88,777

Included in Mineral properties is $11,246 in acquisition costs for exploration and evaluation properties (December 31, 2017 – $11,334).

As of December 31, 2018, the Company has $140 committed to capital equipment purchases.

(b)    Guanaceví, Mexico 
In 2005, the Company acquired mining properties and related assets to the Guanacevi silver-gold mines located in the state of Durango, Mexico. Certain concessions in the district retained a 3% net proceeds royalty on future production. In 2018, the Company expensed $926 in royalties on these properties (2017 - $1,022).

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

(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

(d)    El Cubo, Mexico 
In 2012, the Company acquired the exploitation contracts, mining properties and related assets to the El Cubo silver-gold mine 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.

(e)    El Compas, Mexico 
In 2016, the Company issued 2,147,239 common shares to Canarc Resource Corp. (“Canarc”), a related party company, and assumed Canarc’s obligation to pay an aggregate of 165 troy ounces of gold to Marlin Gold Mining Ltd to acquire a 100% interest in Canarc’s wholly owned subsidiary, Oro Silver Resources Ltd., which owns the El Compas project through its wholly owned Mexican subsidiary, Minera Oro Silver de Mexico SA de CV (“Minera Oro Silver”).

The 3,990 hectare El Compas project located in Zacatecas, Mexico consists of 28 concessions fully permitted for mining with 22 concessions subject to a 1.5% net smelter return royalty and six concessions subject to a 3.0% net smelter return royalty. In 2018, the Company expensed $29 in royalties on these properties (2017 - $Nil).

Minera Oro Silver also holds a five-year operating lease, renewable for an additional five years, on a 500 tonne per day ore processing plant located in Zacatecas, Mexico for a total annual lease cost of 1,632,000 Mexican Pesos (approximately $90), adjusted annually for inflation. At acquisition, the plant was not operational and required significant capital investment to restore to an operational state. During 2018, the Company refurbished and commenced commissioning of the processing plant.

Acquisition of Veta Grande Properties

On April 24, 2017, the Company entered into a definitive agreement with Impact Silver Corp. (“Impact Silver”) to acquire a 100% interest in Impact Silver’s Veta Grande properties, located in the Zacatecas state, Mexico (“the agreement”). On June 5, 2017, Endeavour paid $500 in Endeavour common shares, being 154,321 common shares at $3.24 per share, representing the 10-day volume weighted average closing price of Endeavour’s shares on the New York Stock Exchange (“NYSE”) prior to the date of the agreement.

Acquisition of Calicanto Properties

On July 21, 2016, the Company entered into a definitive agreement with Compania Minera Estrella de Plata SA de CV. (“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

(f)    Terronera, Mexico 
In February 2013, the Company acquired a 100% interest in the Terronera project, located in Jalisco, Mexico. The Company is required to pay a 2% NSR royalty on any production from the Terronera properties.

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

(g)    Acquisition of Parral Properties 
On September 13, 2016, the Company entered into a definitive agreement with Silver Standard Resources Inc. (“Silver Standard”) to acquire a 100% interest in Silver Standard’s Parral properties, located in the historic silver mining district of Hidalgo de Parral in southern Chihuahua state, Mexico (“the agreement”).

On October 31, 2016, Endeavour paid $5,300 in Endeavour common shares, being 1,198,083 common shares at $4.39 per share, representing the closing price of Endeavour’s shares on the New York Stock Exchange (“NYSE”) prior to the date of closing the acquisition.

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. Upon completing this exploration expenditure, Endeavour has one year to deliver a National Instrument 43-101 (“NI 43-101”) technical report, including a resource estimate, and issue an additional $200 in common shares to Silver Standard for each one million ounces of silver delineated in measured and indicated resources on the San Patricio and La Palmilla properties, based on the 10-day average closing price of Endeavour’s common shares on the NYSE prior to the earlier of delivery of the NI 43-101 report and the third anniversary of the initial closing date under the Agreement. Silver Standard will also retain a 1% net smelter returns royalty on production from the San Patricio and La Palmilla properties. As of December 31, 2018, the Company has reported an insignificant amount of measured and indicated resources on the San Patricio and La Palmilla properties.

(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 Company’s Guadalupe y Calvo exploration property in Chihuahua, Mexico. The property is subject to a 2% net smelter return (“NSR”) royalty on mineral production.

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

(i)    Mineral property contingencies

The Company has entered into other non-material option agreements on exploration properties in Mexico and Chile.

Management believes the Company has diligently investigated rights of ownership of all its mineral properties to a level which is acceptable by prevailing industry standards with respect to the current stage of development of each property in which it has an interest and, to the best of its knowledge, all agreements relating to such ownership rights are in good standing. However, all properties may be subject to prior claims, agreements or transfers, and rights of ownership may be affected by undetected defects. 

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IMPAIRMENT OF NON-CURRENT ASSETS

12 Months Ended

Dec. 31, 2018

Statements Line Items

IMPAIRMENT OF NON-CURRENT ASSETS [Text Block]

10.

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. In previous years, 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. In previous years, the carrying values of the Guanaceví, El Cubo and Bolañitos CGUs, including associated deferred income tax estimates, were greater than their estimated recoverable amounts calculated on a discounted cash flow basis and impairments charges were recorded. For the previously impaired CGU's any modest decrease in any one key assumption in isolation could cause the estimated recoverable amount to be less than or equal to the net carrying value. Other than timing of production based on the revised mine plans and associated changes in per-unit costs, Management’s long-term estimates have not significantly changed from the previous years. As at December 31, 2018, the Company tested the recoverability of the Guanacevi CGU due to 2018 operational challenges and determined that no additional impairment was required. As at December 31, 2018, the Company tested the recoverability of the El Compas mine CGU due to changes in resource estimates and determined that no impairment was required.

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CREDIT FACILITY

12 Months Ended

Dec. 31, 2018

Statements Line Items

CREDIT FACILITY [Text Block]

11. CREDIT FACILITY   In 2016, the Company signed an amended and restated credit facility (“the Amended Facility”) which became effective April 1, 2016 to convert the remaining outstanding balance under an existing revolving credit facility into a two year term loan amortized quarterly maturing on December 31, 2017. The interest rate margin on the Amended Facility was 4.5% over LIBOR and the Company paid a fee of $300 upon signing. The Amended Facility was subject to various qualitative and quantitative covenants, including a debt to EBITDA leverage ratio, an interest service coverage ratio, a tangible net worth calculation, capital and exploration expenditure limits. At December 31, 2017, the Amended Facility was fully repaid.   The Company recognized $629 of interest expense and deferred commitment fees and legal costs during 2017 in finance costs.

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PROVISON FOR RECLAMATION AND REHABILITATION

12 Months Ended

Dec. 31, 2018

Statements Line Items

PROVISON FOR RECLAMATION AND REHABILITATION [Text Block]

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 $2,280 for the Guanaceví mine, $1,921 for the Bolañitos mine, $4,326 for the El Cubo mine and $162 for the El Compas development project.  The timing of cash flows has been estimated based on the 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 2.6% for Guanaceví, 2.5% for Bolañitos and El Cubo and 8.5% for El Compas and with an inflation rate of 2.0% for all sites except El Compas which estimates an inflation rate of 4.3%.  Changes to the reclamation and rehabilitation provision balance during the year are as follows:

		Guanaceví		Bolañitos		El Cubo		El Compas		Total
Balance at December 31, 2016		2,058		1,755		4,033		-		7,846
Accretion		28		17		41		-		86
Disturbance incurred during the year		-		-		-		50		50
Balance at December 31, 2017	$	2,086	$	1,772	$	4,074	$	50	$	7,982
Accretion		43		32		74		1		150
Disturbance incurred during the year		-		-		-		63		63
Balance at December 31, 2018	$	2,129	$	1,804	$	4,148	$	114	$	8,195

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SHARE CAPITAL

12 Months Ended

Dec. 31, 2018

Statements Line Items

SHARE CAPITAL [Text Block]

13.	SHARE CAPITAL
	(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, 2018, the Company is not subject to externally imposed capital requirements.
	(b)    Public Offerings
	In April 2018, the Company filed a short form base shelf prospectus that qualifies 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”). The Company filed a corresponding registration statement in the United States registering the Securities under United States federal securities laws. The distribution of Securities may be effected from time to time in one or more transactions at a fixed price or prices, which may 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 deemed to be “At- The-Market” (“ATM”) distributions.
	On June 13, 2018, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co., HSBC and TD Securities (together, the “Agents”). Under the terms of this ATM facility, the Company may, from time to time, sell common stock having an aggregate offering value of up to $35.7 million on the New York Stock Exchange. The Company determines, at its sole discretion, the timing and number of shares to be sold under the ATM facility. During the year ended December 31, 2018, the Company issued 3,165,642 common shares under the ATM facility at an average price of $2.61 per share for gross proceeds of $8,273, less commission of $186.
	During the year ended December 31, 2018, the Company also recognized $105 of additional deferred transaction costs, related to the ATM financing as share issuance costs, which have been presented net of share capital.
	Subsequent to December 31, 2018, the Company issued 635,171 common shares under the ATM facility at an average price of $2.23 per share for gross proceeds of $1,419, less commission of $32.
	(c)    Purchase 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 re-ratified in 2018, 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 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 year:

Expressed in Canadian dollars	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
						Weighted
	Number		Weighted average	Number		average
	of shares		exercise price	of shares		exercise price
Outstanding, beginning of year	5,792,800		$4.00	4,458,050		$3.93
Granted	1,262,500		$3.80	1,572,000		$4.32
Exercised	(127,000	)	$2.65	(60,000	)	$3.03
Cancelled	(940,500	)	$4.15	(177,250	)	$5.49
Outstanding, end of the period	5,987,800		$3.96	5,792,800		$4.00
Options exercisable at the end of the period	4,946,300		$3.96	4,509,600		$3.91

The following table summarizes the information about stock options outstanding at December 31, 2018:

Expressed in Canadian dollars
	Options Outstanding			Options exercisable
	Number	Weighted Average	Weighted	Number	Weighted
	Outstanding	Remaining	Average	Exercisable	Average
Price	as at	Contractual Life	Exercise	as at	Exercise
Intervals	December 31, 2018	(Number of Years)	Price	December 31, 2018	Price
$2.00 - $2.99	1,009,500	1.4	$2.65	1,009,500	$2.65
$3.00 - $3.99	1,250,500	4.4	$3.80	478,400	$3.80
$4.00 - $4.99	3,727,800	2.4	$4.37	3,458,400	$4.37
	5,987,800	2.6	$3.96	4,946,300	$3.96

During the year ended December 31, 2018, the Company recognized share-based compensation expense of $1,976 (December 31, 2017 - $2,759) 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:

	Year Ended	Year Ended
	December 31, 2018	December 31, 2017
Weighted-average fair value of option in CAN$	$1.96	$2.30
Risk-free interest rate	2.05%	0.85%
Expected dividend yield	0%	0%
Expected stock price volatility	69%	73%
Expected option life in years	3.79	3.86

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, 2018, the unvested share option expense not yet recognized was $643 (December 31, 2017 - $841) which is expected to be recognized over the next 20 months

(d)    Deferred Share Units

The Company has a 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 share purchase 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.

Expressed in Canadian dollars	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
		Weighted		Weighted
	Number	Average Grant	Number	Average Grant
	of units	Price	of units	Price
Outstanding, beginning of year	548,392	$3.44	510,560	$3.39
Granted	103,884	$3.68	37,832	$4.11
Redeemed	-	-	-	-
Outstanding, end of period	652,276	$3.48	548,392	$3.44
Fair value at period end	652,276	$2.94	548,392	$3.02

During the year ended December 31, 2018, the Company recognized an expense on director’s compensation related to DSUs, which is included in general and administrative salaries, wages and benefits, of $88 (December 31, 2017 – recovery of $484 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, 2018, there are 652,276 deferred share units outstanding (December 31, 2017 – 548,392) with a fair market value of $1,407 (December 31, 2017 - $1,319) recognized in accounts payable and accrued liabilities.

(e)    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.

	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
			Weighted			Weighted
	Number		Average Grant	Number		Average Grant
	of units		Price	of units		Price
Outstanding, beginning of year	911,993		$3.80	579,660		$4.20
Granted	-		-	489,000		$3.30
Exercised	(96,661	)	$2.21	(46,668	)	$2.21
Cancelled	(121,332	)	$3.96	(109,999	)	$4.38
Outstanding, end of period	694,000		$3.99	911,993		$3.80
Exercisable at the end of the period	553,679		$4.16	212,672		$3.69

During the year ended December 31, 2018, the Company recognized a recovery related to SARs, which is included in operation and exploration salaries, wages and benefits, of $245 (December 31, 2017 – recovery of $139) based on the fair value of new grants and the change in the fair value of the SARs granted in the current and prior years. As of December 31, 2018, there are 694,000 SARs outstanding (December 31, 2017 – 911,993) with a fair market value of $72 (December 31, 2017 - $341) recognized in accounts payable and accrued liabilities.

The SARs are 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 amortizes the fair value of SARs on a graded basis over the respective vesting period of each tranche of SARs awarded.

(f)    Performance Share Units Plan

The Company has a Performance Share Unit (“PSU”) plan whereby performance share units may be granted to employees of the Company. Once performance conditions have been met, a PSU is redeemable into one common share entitling the holder to receive the common share for no additional consideration. The maximum number of common shares authorized for issuance from treasury under the PSU plan is 1,000,000.

	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
	Number of units		Number of units
Outstanding, beginning of year	200,000		325,000
Granted	446,000		200,000
Cancelled	(30,000	)	-
Settled for shares	-		(193,825	)
Settled for cash	-		(131,175	)
Outstanding, end of period	616,000		200,000

There were 446,000 PSUs granted during the year ended December 31, 2018 (December 31, 2017 – 200,000). The PSUs vest at the end of a three-year period if certain pre-determined performance and vesting criteria are achieved. Performance criteria is based on the Company’s share price performance relative to a representative group of other mining companies. 170,000 PSUs vest on May 3, 2020 and 446,000 PSUs vest on May 3, 2021.

During the year ended December 31, 2018, the Company recognized share-based compensation expense of $450 related to the PSUs (December 31, 2017 –$101).

On April 12, 2017, 193,825 common shares were issued and $449 was paid in cash in settlement of 325,000 vested PSUs granted in 2016.

(g)    Diluted Earnings per Share

		Year Ended
		December 31,			December 31,
		2018			2017
Net earnings (loss)	$	(12,439	)	$	9,684
Basic weighted average number of shares outstanding		128,600,421			127,340,834
Effect of dilutive securities:
Stock options		-			416,739
Performance share units		-			200,000
Diluted weighted average number of share outstanding		128,600,421			127,957,573
Diluted earnings (loss) per share	$	(0.10	)	$	0.08

As of December 31, 2018, there are 4,978,300 anti-dilutive stock options (December 31, 2017 – 3,905,800 stock options).

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REVENUE

12 Months Ended

Dec. 31, 2018

Revenue [abstract]

REVENUE [text block]

14. REVENUE

		Year Ended
		December 31,		December 31,
Revenue by product		2018		2017
Concentrate sales	$	111,052	$	105,203
Provisional pricing adjustments		228		1,925
Total revenue from concentrate sales		111,280		107,128
Dore sales		39,229		43,371
Total revenue	$	150,509	$	150,499

Provisional pricing adjustments on sales of concentrates 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, 2018, a 10% change to the underlying metals prices would result in a change in revenue and accounts receivable of $904 based on the total quantities of metals in sales contracts for which the provisional pricing periods were not yet closed.

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EXPLORATION

12 Months Ended

Dec. 31, 2018

Statements Line Items

EXPLORATION [Text Block]

15.  EXPLORATION

		December 31		December 31
		2018		2017
Depreciation and depletion	$	111	$	126
Share-based compensation		340		252
Salaries, wages and benefits		2,690		2,568
Direct exploration expenditures		9,242		9,952
	$	12,383	$	12,898

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GENERAL AND ADMINISTRATIVE

12 Months Ended

Dec. 31, 2018

Statements Line Items

GENERAL AND ADMINISTRATIVE [Text Block]

16. GENERAL AND ADMINISTRATIVE

		December 31		December 31
		2018		2017
Depreciation and depletion	$	254	$	282
Share-based compensation		2,179		2,407
Salaries, wages and benefits		3,038		2,240
Direct general and administrative		3,155		2,985
	$	8,626	$	7,914

Included in salaries, wages and benefits is an $88 expense of directors’ deferred share units for the year ended December 31, 2018 (December 31, 2017 – recovery of $484).

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FINANCE COSTS

12 Months Ended

Dec. 31, 2018

Statements Line Items

FINANCE COSTS [Text Block]

17. FINANCE COSTS

		December 31		December 31
		2018		2017
Accretion on provision for reclamation and rehabilitation	$	150	$	86
Credit facility finance costs		-		629
Other financing costs		61		-
	$	211	$	715

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SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

12 Months Ended

Dec. 31, 2018

Statements Line Items

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS [Text Block]

18. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

		Year ended
		December 31,			December 31,
		2018			2017
Net changes in non-cash working capital:
Accounts receivable	$	7,303		$	(8,520	)
Inventories		(3,304	)		884
Prepaid expenses		(793	)		126
Accounts payable and accrued liabilities		421			963
Income taxes payable		865			(1,446	)
	$	4,492		$	(7,993	)
Non-cash financing and investing activities:
Reclamation included in mineral property, plant and equipment		63			50
Fair value of exercised options allocated to share capital		131			65
Fair value of performance share units allocated to share capital		-			439
Fair value of shares issued on property acquisition		-			500
Other cash disbursements:
Income taxes paid		3,449			8,015
Special mining duty paid		1,012			2,020

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SEGMENT DISCLOSURES

12 Months Ended

Dec. 31, 2018

Statements Line Items

SEGMENT DISCLOSURES [Text Block]

19.

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 four operating mining segments, Guanaceví, Bolañitos, El Cubo and El Compas, which are located in Mexico, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

December 31, 2018
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	14,477	$	765	$	3,947	$	4,776	$	8,863	$	548	$	33,376
Other Investments		88		-		-		-		-		-		88
Accounts receivables		176		1,924		9,386		2,760		8,996		3,705		26,947
Inventories		-		-		6,310		3,736		2,939		1,909		14,894
Prepaid expenses		1,666		75		706		26		129		102		2,704
Non-current deposits		76		-		308		151		74		505		1,114
Deferred income tax asset		-		-		6,782		1,549		816		-		9,147
Mineral property, plant and equipment		573		11,791		34,933		9,348		11,323		20,809		88,777
Total assets	$	17,056	$	14,555	$	62,372	$	22,346	$	33,140	$	27,578	$	177,047
Accounts payable and accrued liabilities	$	6,045	$	287	$	5,528	$	1,872	$	4,347	$	1,391	$	19,470
Income taxes payable		1,028		-		926		878		1,218		-		4,050
Deferred lease inducement		217		-		-		-		-		-		217
Provision for reclamation and rehabilitation		-		-		2,128		1,805		4,148		114		8,195
Deferred income tax liability		-		-		-		36		-		299		335
Total liabilities	$	7,290	$	287	$	8,582	$	4,591	$	9,713	$	1,804	$	32,267

December 31, 2017
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	20,884	$	1,034	$	6,212	$	2,360	$	7,594	$	193	$	38,277
Restricted cash		1,000		-		-		-		-		-		1,000
Other Investments		168		-		-		-		-		-		168
Accounts receivables		341		893		12,115		4,100		15,602		961		34,012
Inventories		-		-		8,476		2,178		2,477		-		13,131
Prepaid expenses		1,090		128		125		77		176		315		1,911
Non-current deposits		76		-		316		144		74		-		610
Deferred income tax asset		-		-		-		655		-		-		655
Mineral property, plant and equipment		691		11,285		42,264		6,766		15,929		11,881		88,816
Total assets	$	24,250	$	13,340	$	69,508	$	16,280	$	41,852	$	13,350	$	178,580
Accounts payable and accrued liabilities	$	5,965	$	225	$	4,484	$	1,774	$	5,721	$	899	$	19,068
Income taxes payable		727		-		1,499		940		19		-		3,185
Deferred lease inducement		236		-		-		-		-		-		236
Provision for reclamation and rehabilitation		-		-		2,086		1,772		4,074		50		7,982
Deferred income tax liability		-		200		528		637		227		-		1,592
Total liabilities	$	6,928	$	425	$	8,597	$	5,123	$	10,041	$	949	$	32,063

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2018
Silver revenue	$	-		$	-		$	32,267		$	14,310		$	38,903		$	-		$	85,480
Gold revenue		-			-			6,962			25,495			32,572			-			65,029
Total revenue	$	-		$	-		$	39,229		$	39,805		$	71,475		$	-		$	150,509
Salaries, wages and benefits:
mining	$	-		$	-		$	5,382		$	5,102		$	9,309		$	-		$	19,793
processing		-			-			1,644			1,065			2,201			-			4,910
administrative		-			-			2,580			2,360			3,116			-			8,056
stock based compensation		-			-			(31	)		(31	)		(31	)		-			(93	)
change in inventory		-			-			662			(383	)		(42	)		-			237
Total salaries, wages and benefits		-			-			10,237			8,113			14,553			-			32,903
Direct costs:
mining		-			-			20,332			10,716			13,197			-			44,245
processing		-			-			6,783			6,590			8,211			-			21,584
administrative		-			-			1,886			1,670			2,336			-			5,892
change in inventory		-			-			1,021			(815	)		80			-			286
Total direct production costs		-			-			30,022			18,161			23,824			-			72,007
Depreciation and depletion:
depreciation and depletion		-			-			22,352			931			14,609			-			37,892
change in inventory		-			-			765			(70	)		(175	)		-			520
Total depreciation and depletion		-			-			23,117			861			14,434			-			38,412
Royalties		-			-			1,123			190			340			-			1,653
Write down of inventory to NRV		-			-			2,026			-			-			-			2,026
Total cost of sales	$	-		$	-		$	66,525		$	27,325		$	53,151		$	-		$	147,001
Earnings (loss) before taxes	$	(8,079	)	$	(12,258	)	$	(27,296	)	$	12,480		$	18,324		$	(882	)	$	(17,711	)
Current income tax expense (recovery)		-			-			642			2,507			1,328			-			4,477
Deferred income tax expense (recovery)		-			-			(7,475	)		(1,530	)		(1,043	)		299			(9,749	)
Total income tax expense (recovery)		-			-			(6,833	)		977			285			299			(5,272	)
Net earnings (loss)	$	(8,079	)	$	(12,258	)	$	(20,463	)	$	11,503		$	18,039		$	(1,181	)	$	(12,439	)

The Exploration segment included $777 of costs incurred in Chile for the year ended December 31, 2018 (December 31, 2017 - $448).

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2017
Silver revenue	$	-		$	-		$	37,161		$	15,265		$	31,934		$	-		$	84,360
Gold revenue		-			-			6,210			33,154			26,775			-			66,139
Total revenue	$	-		$	-		$	43,371		$	48,419		$	58,709		$	-		$	150,499
Salaries, wages and benefits:
mining	$	-		$	-		$	6,027		$	5,023		$	8,798		$	-		$	19,848
processing		-			-			1,951			978			1,765			-			4,694
administrative		-			-			2,948			2,419			3,023			-			8,390
stock based compensation		-			-			68			67			67			-			202
change in inventory		-			-			209			(91	)		36			-			154
Total salaries, wages and benefits		-			-			11,203			8,396			13,689			-			33,288
Direct costs:
mining		-			-			12,567			11,777			15,900			-			40,244
processing		-			-			6,709			6,921			8,742			-			22,372
administrative		-			-			2,164			1,893			2,906			-			6,963
change in inventory		-			-			833			(227	)		59			-			665
Total direct production costs		-			-			22,273			20,364			27,607			-			70,244
Depreciation and depletion:
depreciation and depletion		-			-			13,934			1,900			1,332			-			17,166
change in inventory		-			-			(569	)		(6	)		(9	)		-			(584	)
Total depreciation and depletion		-			-			13,365			1,894			1,323			-			16,582
Royalties		-			-			1,239			228			273			-			1,740
Write down of inventory to NRV		-			-			166			-			-			-			166
Total cost of sales	$	-		$	-		$	48,246		$	30,882		$	42,892		$	-		$	122,020
Earnings (loss) before taxes	$	(7,694	)	$	(10,564	)	$	(4,875	)	$	17,537		$	15,817		$	(2,334	)	$	7,887
Current income tax expense (recovery)		(10	)		-			676			3,981			3			-			4,650
Deferred income tax expense (recovery)		-			200			(5,589	)		(1,473	)		415			-			(6,447	)
Total income tax expense (recovery)		(10	)		200			(4,913	)		2,508			418			-			(1,797	)
Net earnings (loss)	$	(7,684	)	$	(10,764	)	$	38		$	15,029		$	15,399		$	(2,334	)	$	9,684

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INCOME TAXES

12 Months Ended

Dec. 31, 2018

Statements Line Items

INCOME TAXES [Text Block]

20.	INCOME TAXES
	(a)    Tax Assessments
	Minera Santa Cruz y Garibaldi SA de CV (“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 a MXN 122.9 million ($6,200) tax assessment based on the June 2015 ruling. The 2016 tax assessment comprised of MXN 41.8 million in taxes owed ($2,100), MXN 17.7 million ($900) in inflationary charges, MXN 40.4 million ($2,000) 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, failure to provide appropriate support for loans made to MSCG from affiliated companies. The MXN 123 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, while a number of deficiencies exist within the assessment. Since issuance of the assessment interest charges of MXN 6.3 million ($500) and inflationary charges of MXN 9.5 million ($500) has accumulated.
	Included in the Company’s consolidated financial statements, are net assets of $595, including $42 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. As of December 31, 2018, the Company has recognized an allowance for transferring the shares and assets of MSCG amounting to $595. The Company is currently assessing MSCG’s settlement options based on on-going court proceedings and discussion with the tax authorities.
	(b)    Deferred Income Tax

		December 31,			December 31,
Mexico operations		2018			2017
Deferred income tax assets:
Tax loss carryforwards	$	13,709		$	9,326
Provision for reclamation and rehabilitation		2,823			2,754
Other		3,774			1,959
Deferred income tax liabilities:
Inventories		(1,838	)		(1,816	)
Mineral properties, plant and equipment		(9,621	)		(12,523	)
Other		(35	)		(637	)
Deferred income tax assets (liabilities), net	$	8,812		$	(937	)

As at December 31, 2018, the Company had available for deduction against future taxable income in Mexico non-capital losses of approximately $149,924 (2017 – $142,494). These losses, if unutilized, expire between 2019 to 2028.

As at December 31, 2018, the Company had $1,962 non-capital losses in Canada (2017 –$6,175), which expire between 2025 to 2027, and capital losses of $12,002 (2017 – $15,570), which do not expire.

When circumstances cause a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change will be reflected in current income.

(c)    Income Tax Expense

		December 31,			December 31,
		2018			2017
Current income tax expense (recovery):
Current income tax expense in respect of current year	$	2,559		$	3,779
Special mining duty		1,850			844
Adjustments recognized in the current year in relation to prior years		68			27
Deferred income tax expense (recovery):
Deferred tax expense recognized in the current year		(10,745	)		(4,375	)
Special mining duty		1,315			586
Adjustments recognized in the current year in relation to prior years		(319	)		(2,658	)
Total income tax expense (recovery)	$	(5,272	)	$	(1,797	)

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,
		2018			2017
Canadian statutory tax rates		27.00%			26.00%
Income tax expense computed at Canadian statutory rates	$	(4,782	)	$	2,050
Foreign tax rates different from statutory rate		(5,018	)		(3,412	)
Change in tax rates		291			-
Withholding taxes, net of tax credits		665			678
Stock-based compensation		541			743
Foreign exchange		3,738			(2,381	)
Inflationary adjustment		3,710			2,539
Other items		1,259			956
Adjustments recognized in the current year in relation to prior years		(319	)		(61	)
Current year losses not recognized		4,212			2,612
Special mining duty Mexican tax		535			1,430
Recognition of previously unrecognized losses		(10,104	)		(6,951	)
Income tax expense	$	(5,272	)	$	(1,797	)

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2018

Statements Line Items

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Text Block]

21.	FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (a)    Financial assets and liabilities
	As at December 31, 2018, the carrying and fair values of the Company’s financial instruments by category are as follows:

	Fair value
	through profit or	Amortized	Carrying
	loss	cost	value	Fair value
	$	$	$	$
Financial assets:
Cash and cash equivalents	-	33,376	33,376	33,376
Investments	88	-	88	88
Trade and other receivables	6,007	-	6,007	6,007
Total financial assets	6,095	33,376	39,471	39,471
Financial liabilities:
Accounts payable and accrued liabilites	1,479	17,991	19,470	19,470
Total financial liabilities	1,479	17,991	19,470	19,470

Fair value measurements

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:
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. As a result, these financial assets have been included in Level 1 of the fair value hierarchy.

Deferred share units are determined based on a market approach reflecting the Company’s closing share price.

Level 2:
The Company determines the fair value of the embedded derivatives related to its trade receivables based on the quoted closing price obtained from the silver and gold metal exchanges.

The Company determines the fair value of the SARs liability using an option-pricing model.

Level 3:
The Company has no assets or liabilities included in Level 3 of the fair value hierarchy

There were no transfers between levels 1, 2 and 3 during the year ended December 31, 2018.

Assets and liabilities as at December 31, 2018 measured at fair value on a recurring basis include:

	Total	Level 1	Level 2	Level 3
	$	$	$	$
Financial assets:
Investments	88	88	-	-
Trade receivables	5,627	-	5,627	-
Total financial assets	5,715	88	5,627	-
Financial liabilities:
Deferred share units	1,407	1,407	-	-
Share appreciation rights	72	-	72	-
Total financial liabilities	1,479	1,407	72	-

(b)    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, investments, and accounts receivable. Credit risk exposure on bank accounts and short-term investments 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 (“IVA”) receivables are generated on the purchase of supplies and services to produce silver and gold, which are refundable from the Mexican government. Trade receivables are generated on the sale of concentrate inventory to reputable metal traders.

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

Below is an aged analysis of the Company’s receivables:

		Carrying		Gross		Carrying		Gross
		amount		impairment		amount		impairment
		December 31, 2018				December 31, 2017
Less than 1 month	$	9,211	$	-	$	13,799	$	-
1 to 3 months		4,284		-		3,943		-
4 to 6 months		1,039		-		3,282		-
Over 6 months		12,413		194		12,988		2,212
Total accounts receivable	$	26,947		194	$	34,012	$	2,212

At December 31, 2018, 99% of the receivables that were outstanding greater than one month were comprised of IVA and tax receivables in Mexico (December 31, 2017 – 98%) and 1% of the receivables outstanding greater than one month are pending finalizations of concentrate sales.

At December 31, 2018, an impairment loss of $194 relates to IVA receivable claims from prior years (December 31, 2017 - $2,212).

Liquidity Risk

The Company ensures that there is sufficient capital in order to meet short term business requirements. The Company’s policy is to invest cash at floating rates of interest, while cash reserves are maintained in cash equivalents in order to maintain liquidity after taking into account the Company’s holdings of cash equivalents, money market investments, marketable securities and receivables. The Company believes that these sources, operating cash flows and its policies will be sufficient to cover the likely short-term cash requirements and commitments.

In the normal course of business, the Company enters into contracts that give rise to future minimum payments. The following table summarizes the remaining contractual maturities of the Company’s financial liabilities and operating and capital commitments at December 31, 2018:

	Less than	1 to 3	4 to 5	Over 5
	1 year	years	years	years	Total
	$	$	$	$	$
Accounts payable and accrued liabilities	19,470	-	-	-	19,470
Income taxes payable	4,050	-	-	-	4,050
Provision for reclamation and rehabilitation	-	6,066	2,129	-	8,195
Capital expenditure commitments	140	-	-	-	140
Operating leases	394	720	542	1,184	2,840
Total contractual obligations	24,054	6,786	2,671	1,184	34,695

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 are as follows:

		December 31, 2018						December 31, 2017
		Canadian Dollar			Mexican Peso			Canadian Dollar			Mexican Peso
Financial assets	$	721		$	26,969		$	1,484		$	29,502
Financial liabilities		(2,767	)		(15,438	)		(2,984	)		(17,586	)
Net financial assets (liabilities)	$	(2,046	)	$	11,531		$	(1,500	)	$	11,916

Of the financial assets listed above, $26 (2017 – $441) represents cash and cash equivalents held in Canadian dollars and $4,522 (2017 - $3,192) represents cash held in Mexican Pesos. The remaining cash balance is held in US dollars.

As at December 31, 2018, with other variables unchanged, a 5% strengthening of the US dollar against the Canadian dollar would increase net earnings by $97 due to these financial assets and liabilities.

As at December 31, 2018, with other variables unchanged, a 5% strengthening of the US dollar against the Mexican peso would decrease net earnings by $547 due to these financial assets and liabilities.

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, 2018 there are 274,033 ounces of silver and 3,770 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, 2018, with other variables unchanged, a 10% decrease in the market value of silver and gold would result in a reduction of revenue of $0.9 million.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Currency Translation [Policy Text Block]

(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 profit or loss.

Use of estimates and judgments [Policy Text Block]

(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, plant and equipment useful lives, estimating the fair values of financial instruments and derivatives, impairment of non-current assets, reclamation and rehabilitation provisions, recognition of deferred tax assets, valuations in business combinations and assumptions used in determining the fair value of share-based compensation.

 Significant areas requiring the use of management estimates relate to the valuation of accounts receivable, inventory, mineral property, plant and equipment, impairment of non-current assets, provision for reclamation and rehabilitation, share capital 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 proven and probable reserves may impact the carrying value of mineral properties, plant and equipment (Note 9), reclamation and rehabilitation provisions (Note 12), recognition of deferred income tax amounts (Note 20), and depreciation and depletion (Note 9).

Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s properties. Estimating the quantity and /or grade of reserves 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 actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual costs of mining and differences in the commodity price used in the estimation of mineral reserves.

Assessment of impairment factors (accounting policy Note 3g) 

Management applies significant judgment in assessing each cash-generating unit and assets for the existence of indicators of impairment at the reporting date. Internal and external factors are considered in assessing whether indicators of impairment 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.

Achievement of commercial production (accounting policy Note 3f)

Once a mine reaches the operating levels intended by management, depreciation of capitalized costs begins. Significant judgment 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 predetermined level of design capacity and indications exist that his 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 policy Note 3i) 

Accounting for restoration requires management to make estimates of the future costs the Company will occur 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. Also, future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation on 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 20)

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.

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. Deferred income tax assets are disclosed in Note 20.

Inventory (Note 7)

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.

Cash and cash equivalents [Policy Text Block]

(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 ninety days, or that are readily convertible into cash.

Marketable securities [Policy Text Block]

(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 profit or loss.

Inventories [Policy Text Block]

(e)    Inventories 

Production inventories are valued at the lower of production cost and net realizable value. 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 dore 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.

Mineral properties, plant and equipment [Policy Text Block]

(f)    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 or 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 once management determines 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 and proceeds received during the development phase ceases when the property is capable of operating at levels intended by management.

Exploration and evaluation costs are those costs required to find 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 or 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. Technical feasibility and commercial viability generally coincide with the establishment of proven and probable reserves; however, this determination may be impacted by management’s assessment of certain modifying factors.

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 is recorded at cost and amortized using the straight-line method at rates varying from 5% to 30% annually. The accumulated costs of mineral properties that are developed to the stage of commercial production 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.

Impairment of Non-Current Assets [Policy Text Block]

(g)    Impairment of Non-Current Assets 
The Company’s tangible assets are reviewed for indications of impairment at each financial statement date. If an indicator of impairment 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 profit and loss for the period.

The recoverable amount is the greater of fair value less costs to sell 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. 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.

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 the statement of comprehensive income 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.

Deferred Lease Inducement [Policy Text Block]

(h)    Deferred Lease Inducement 
Lease inducements received in the form of reimbursed leasehold improvement costs are amortized over the term of the lease as a reduction of rent expense.

Provision for Reclamation and Rehabilitation [Policy Text Block]

(i)    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 profit or loss for the period.

Revenue recognition [Policy Text Block]

(j)    Revenue recognition 
Revenue relating to the sale of metals 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 those products. In determining whether the Company has satisfied a 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 has significant risks and rewards of ownership of the asset. Revenue from the sale of concentrates is based on prevailing market prices and estimated mineral content which is subject to adjustment upon final settlement based on metal prices, weights and assays. For each reporting period until final settlement, estimates of metal prices are used to record sales. 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 balance. 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. Revenue is recorded in the consolidated statement of comprehensive income, gross of treatment and refining costs paid to counterparties under the terms of the sales agreements.

Share-based payments [Policy Text Block]

(k)    Share-based payments 
The Company has a share option plan and performance share unit plan which are described in Note 13(c) and Note 13(f) respectively. The Company records all share-based compensation for options using the fair value method with graded vesting. Under the fair value method, share-based payments are measured at the fair value of the consideration received or the fair value of the equity instruments issued or liabilities incurred, whichever is more reliably measurable, and are charged over the vesting period. 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. 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(d) and Note 13(e), 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.

Income taxes [Policy Text Block]

(l)    Income taxes 
The Company follows the asset and liability method of accounting for 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 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 deferred tax assets and liabilities of a change in tax rates is recognized in the statement of comprehensive income 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.

Earnings per share [Policy Text Block]

(m)    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.

Business combinations [Policy Text Block]

(n)    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) 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. 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 the statement of comprehensive income profit or loss statement. Incremental costs related to acquisitions are expensed as incurred.

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. When the fair value of contingent consideration as at the date of acquisition is finalized and before the end of the twelve 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 the consolidated statement of comprehensive income.

Accounting standards adopted during the year [Policy Text Block]

(o)    Accounting standards adopted during the year

Amendments to IFRS 2, Share-based Payment (“IFRS 2”) 
On June 20, 2016, the IASB issued amendments to IFRS 2 clarifying how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a share-based payment that changes the classification of a transaction from cash-settled to equity settled.

The amendments apply for annual periods beginning on or after January 1, 2018. As a practical simplification, the amendments can be applied prospectively. Retrospective or early application is permitted if information is available without the use of hindsight. The Company has adopted the amendments to IFRS 2 in its financial statements for the annual period beginning on January 1, 2018 on a prospective basis.

The Company has Performance Share Units (“PSU”) with a net settlement feature, which permits cash settlement for withholding tax obligations. The expense for the PSUs has previously been bifurcated with the cash settlement portion of the expense recognized as a liability until settlement, and the remaining expense allocated to Contributed Surplus. Upon adoption of the amendments to IFRS 2, the PSU liability at January 1, 2018 of $38 was reallocated to Contributed Surplus.

IFRS 9 Financial Instruments (“IFRS 9”) 
In November 2009, the IASB issued IFRS 9 as the first step in its project to replace IAS 39, Financial Instruments: Recognition and Measurement. On July 24, 2014 the IASB issued the complete IFRS 9. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flows of the financial asset. Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument.

IFRS 9 amends some of the requirements of IFRS 7, Financial Instruments: Disclosures, including added disclosures about investments in equity instruments measured at fair value in other comprehensive income, and guidance on the measurement of financial liabilities and de-recognition of financial instruments. The mandatory effective date of IFRS 9 is for annual periods beginning on or after January 1, 2018 with early adoption permitted, and must be applied retrospectively with some exemptions permitted.

As a result of the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments retrospectively. The change did not result in a change in carrying value of any of the Company’s financial instruments on transition date. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The adoption of the expected credit loss impairment model did not have a significant impact on the Company’s financial statements.

The Company’s financial instruments are accounted for as follows under IFRS 9 as compared to the Company’s previous policy in accordance with IAS 39.

	January 1, 2018
	IAS 39	IFRS 9
Assets
Cash and cash equivalents	Amortized cost	Amortized cost
Restricted cash	Amortized cost	Amortized cost
Trade and other receivables (other than derivatives)	Amortized cost	Amortized cost
Trade receivables (derivative component)	Fair value through profit or loss	Fair value through profit or loss
Marketable securities	Fair value through other comprehensive income	Fair value through profit or loss
Liabilities
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Performan share units and Deferred share units	Fair value through profit or loss	Fair value through profit or loss

Under IFRS 9, the Company’s equity marketable securities are designated as financial assets at fair value through profit or loss. For equity instruments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income rather than profit or loss. The Company did not make any such election upon adoption of IFRS 9.

IFRS 9 does not require restatement of comparative periods. Accordingly, the Company has reflected the retrospective impact of the adoption of IFRS 9 due to the change in accounting policy for marketable securities as an adjustment to opening components of equity as at January 1, 2018.

The fair value of marketable securities is $168 under both IAS 39 and IFRS 9 as at January 1, 2018, the date of initial application of IFRS 9, and is presented in Other Investments in the consolidated balance sheet. On adoption, the unrealized gain in fair value of $127, previously recognized in accumulated other comprehensive income has been reallocated to retained earnings.

As a result of the adoption of IFRS 9, the Company’s accounting policy for financial instruments has been updated as follows: Financial Instruments The Company recognizes financial assets and financial liabilities on the date the Company becomes party to the contractual provisions of the instruments. 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.

The Company classifies and measures financial assets (excluding derivatives) on initial recognition as described below: 

• Cash and equivalents and restricted cash include cash and term deposits with original maturities of less than 90 days are classified as financial assets at fair value through profit and loss and are measured at fair value. Unrealized gains and losses related to changes in fair value are reported in income;

• Trade and other receivables are classified as and measured at amortized cost using the effective interest method, less impairment allowance, in any;

• Investments in equity instruments are designated as financial assets through profit or loss and are recorded at fair value on settlement date, net of transaction costs. Subsequent to initial recognition, changes in fair value are recognized in income.

Derivative financial instruments, including embedded derivatives in trade receivables measured at amortized cost, are recorded in the consolidated balance sheets at fair value. Subsequent to initial recognition, changes in estimated fair value at each reporting date are recognized through profit or loss.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company did not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact our accounting policies for financial liabilities.

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) 
On May 28, 2014, the IASB issued IFRS 15. The new standard is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. IFRS 15 replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have also been introduced, which may affect the amount and/or timing of revenue recognized.

On April 12, 2016 the IASB issued Clarifications to IFRS 15, Revenue from Contracts with Customers, which is effective at the same time as IFRS 15. The clarifications to IFRS 15 provide additional guidance with respect to the five-step analysis, transition, and the application of the standard to licenses of intellectual property.

The Company adopted IFRS 15 and the clarifications effective January 1, 2018 with no impact on the measurement of revenue in the consolidated financial statements.

Dore sales 
IFRS 15 requires that revenue from contracts with customers be recognized upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the Company’s revenue recognition policy as set out in Note 3(j) of the 2017 Annual Financial Statements, as the condition is generally satisfied when title transfers to the customer. As such, upon adoption, this requirement under IFRS 15 resulted in no impact to the Company’s financial statements as the timing of revenue recognition on dore sales is unchanged.

Concentrate sales 
The Company assessed all of its existing concentrate sales agreements and determined that there is no change in the timing of revenue recognition, as control transfers to the smelting companies at the time of delivery, consistent with the Company’s current accounting policy as set out in Note 3(j) of the 2017 Annual Financial Statements.

Changes in IFRS not yet adopted [Policy Text Block]

(p)    Changes in IFRS not yet adopted

IFRS 16, Leases (“IFRS 16”) 
On January 13, 2016, the IASB published a new standard, IFRS 16, Leases, which replaces IAS 17 – Leases and its associated interpretive guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract based on whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 effective January 1, 2019 and has selected the modified retrospective transition approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied.

Upon the adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and/or corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

The Company is currently quantifying the effect of this standard on our financial statements. During the fourth quarter, management has continued the scoping of contracts across our operations, has continued a detailed review of contracts and commenced quantification of the qualifying leases. At this time, the quantitative estimate of the effects of the new standard range between $2,000 and $3,000. The Company expects the time frame to complete the implemenation of the accounting policies, estimates and processes will continue into the early part of 2019.

IFRIC 23, Uncertainty over Income Tax Treatments (“IFRIC 23”)

On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments. The Interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019.

The Interpretation requires an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution and if it is probable that the tax authorities will accept the uncertain tax treatment. If estimated that it is not probable that the uncertain tax treatment will be accepted by authorities, the tax uncertainty would be measured based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty.

The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The Company does not expect the adoption of the Interpretation to have a material impact on the financial statements.

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about cash and cash equivalents [Table Text Block]

		December 31		December 31
		2018		2017
Bank balances	$	33,376	$	38,782
Short-term deposits		-		495
	$	33,376	$	39,277

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OTHER INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about investments [Table Text Block]

		December 31		December 31
		2018		2017
Investment in marketable securities, at cost	$	41	$	41
Unrealized gain (loss) on marketable securities		47		127
	$	88	$	168

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ACCOUNTS RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about trade and other receivables [Table Text Block]

			December 31		December 31
	Note		2018		2017
Trade receivables (1)		$	5,627	$	8,114
IVA receivables (2)			15,353		19,989
Income taxes recoverable			5,587		5,549
Due from related parties	8		1		2
Other receivables			379		358
		$	26,947	$	34,012

(1)    The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos, El Cubo and El Compas mines. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted one-month forward 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 (Note 21).

(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.

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about inventories [Table Text Block]

		December 31		December 31
		2018		2017
Warehouse inventory	$	8,638	$	7,809
Stockpile inventory(4)		1,564		-
Work in process inventory(3)		322		496
Finished goods inventory (1)(2)		4,370		4,826
	$	14,894	$	13,131

(1)	The Company held 199,897 silver ounces and 1,956 gold ounces as of December 31, 2018 (December 31, 2017 – 241,321 and 1,226, respectively). These ounces are carried at the lower of cost and net realizable value. As at December 31, 2018, the quoted market value of the silver ounces was $3,091 (December 31, 2017 - $4,070) and the quoted market value of the gold ounces was $2,507 (December 31, 2017 - $1,590).
(2)	The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $1,635 for finished goods inventory held at the Guanaceví mine. Of this amount $1,106 is comprised of cash costs and $529 relates to depreciation and depletion and was expensed in the period. The finished goods inventory balance at December 31, 2018 is net of a write down to net realizable value of $189 for finished goods inventory held at the El Compas mine. Of this amount $139 is comprised of cash costs and $50 relates to depreciation and depletion and was expensed to Other income (expenses)..
(3)	The work in process inventory balance at December 31, 2018 is net of a write down to net realizable value of $390 for work in process inventory held at the Guanaceví mine. Of this amount $252 is comprised of cash costs and $139 relates to depreciation and depletion and was expensed in the period.
(4)	The stockpile inventory balance at December 31, 2018 is net of a write down to net realizable value of $461 for stockpile inventory held at the El Compas mine. Of this amount $320 is comprised of cash costs and $141 relates to depreciation and depletion and was expensed to Other income (expenses)..

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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of information about key management personnel [text block] [Table Text Block]

		December 31		December 31
		2018		2017
Salaries and short-term employee benefits	$	2,754	$	2,793
Non-executive director's fees		194		204
Non-executive director's deferred share units		87		(484	)
Share-based payments		2,108		2,588
	$	5,143	$	5,101

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about property, plant and equipment [Table Text Block]

		Mineral						Machinery &					Transport &
		properties			Plant			equipment			Building		office equipment			Total
Cost
Balance at December 31, 2016	$	457,401		$	94,871		$	61,812		$	10,671	$	9,595		$	634,350
Additions		28,682			3,177			5,386			1,191		2,038			40,474
Disposals		(233	)		(27	)		(4,354	)		-		(1,100	)		(5,714	)
Balance at December 31, 2017		485,850			98,021			62,844			11,862		10,533			669,110
Additions		30,377			4,480			3,411			482		1,701			40,451
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	516,227		$	102,501		$	66,255		$	12,344	$	12,234		$	709,561
Accumulated amortization and impairment
Balance at December 31, 2016	$	419,320		$	85,563		$	46,196		$	9,214	$	7,819		$	568,112
Amortization		12,161			1,672			2,682			188		947			17,650
Disposals		-			(26	)		(4,353	)		-		(1,089	)		(5,468	)
Balance at December 31, 2017		431,481			87,209			44,525			9,402		7,677			580,294
Amortization		34,420			1,289			3,288			272		1,221			40,490
Disposals		-			-			-			-		-			-
Balance at December 31, 2018	$	465,901		$	88,498		$	47,813		$	9,674	$	8,898		$	620,784
Net book value
At December 31, 2017	$	54,369		$	10,812		$	18,319		$	2,460	$	2,856		$	88,816
At December 31, 2018	$	50,326		$	14,003		$	18,442		$	2,670	$	3,336		$	88,777

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PROVISON FOR RECLAMATION AND REHABILITATION (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about provision for reclamation and rehabilitation [Table Text Block]

		Guanaceví		Bolañitos		El Cubo		El Compas		Total
Balance at December 31, 2016		2,058		1,755		4,033		-		7,846
Accretion		28		17		41		-		86
Disturbance incurred during the year		-		-		-		50		50
Balance at December 31, 2017	$	2,086	$	1,772	$	4,074	$	50	$	7,982
Accretion		43		32		74		1		150
Disturbance incurred during the year		-		-		-		63		63
Balance at December 31, 2018	$	2,129	$	1,804	$	4,148	$	114	$	8,195

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SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of number and weighted average exercise prices of share options [Table Text Block]

Expressed in Canadian dollars	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
						Weighted
	Number		Weighted average	Number		average
	of shares		exercise price	of shares		exercise price
Outstanding, beginning of year	5,792,800		$4.00	4,458,050		$3.93
Granted	1,262,500		$3.80	1,572,000		$4.32
Exercised	(127,000	)	$2.65	(60,000	)	$3.03
Cancelled	(940,500	)	$4.15	(177,250	)	$5.49
Outstanding, end of the period	5,987,800		$3.96	5,792,800		$4.00
Options exercisable at the end of the period	4,946,300		$3.96	4,509,600		$3.91

Disclosure of range of exercise prices of outstanding share options [Table Text Block]

Expressed in Canadian dollars
	Options Outstanding			Options exercisable
	Number	Weighted Average	Weighted	Number	Weighted
	Outstanding	Remaining	Average	Exercisable	Average
Price	as at	Contractual Life	Exercise	as at	Exercise
Intervals	December 31, 2018	(Number of Years)	Price	December 31, 2018	Price
$2.00 - $2.99	1,009,500	1.4	$2.65	1,009,500	$2.65
$3.00 - $3.99	1,250,500	4.4	$3.80	478,400	$3.80
$4.00 - $4.99	3,727,800	2.4	$4.37	3,458,400	$4.37
	5,987,800	2.6	$3.96	4,946,300	$3.96

Disclosure of detailed information about options, valuation assumptions [Table Text Block]

	Year Ended	Year Ended
	December 31, 2018	December 31, 2017
Weighted-average fair value of option in CAN$	$1.96	$2.30
Risk-free interest rate	2.05%	0.85%
Expected dividend yield	0%	0%
Expected stock price volatility	69%	73%
Expected option life in years	3.79	3.86

Disclosure of deferred share units [Table Text Block]

Expressed in Canadian dollars	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
		Weighted		Weighted
	Number	Average Grant	Number	Average Grant
	of units	Price	of units	Price
Outstanding, beginning of year	548,392	$3.44	510,560	$3.39
Granted	103,884	$3.68	37,832	$4.11
Redeemed	-	-	-	-
Outstanding, end of period	652,276	$3.48	548,392	$3.44
Fair value at period end	652,276	$2.94	548,392	$3.02

Disclosure of share appreciation rights [Table Text Block]

	Year Ended			Year Ended
	December 31, 2018			December 31, 2017
			Weighted			Weighted
	Number		Average Grant	Number		Average Grant
	of units		Price	of units		Price
Outstanding, beginning of year	911,993		$3.80	579,660		$4.20
Granted	-		-	489,000		$3.30
Exercised	(96,661	)	$2.21	(46,668	)	$2.21
Cancelled	(121,332	)	$3.96	(109,999	)	$4.38
Outstanding, end of period	694,000		$3.99	911,993		$3.80
Exercisable at the end of the period	553,679		$4.16	212,672		$3.69

Disclosure of performance share units plan [Table Text Block]

	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
	Number of units		Number of units
Outstanding, beginning of year	200,000		325,000
Granted	446,000		200,000
Cancelled	(30,000	)	-
Settled for shares	-		(193,825	)
Settled for cash	-		(131,175	)
Outstanding, end of period	616,000		200,000

Disclosure of detailed information about diluted earnings per share [Table Text Block]

		Year Ended
		December 31,			December 31,
		2018			2017
Net earnings (loss)	$	(12,439	)	$	9,684
Basic weighted average number of shares outstanding		128,600,421			127,340,834
Effect of dilutive securities:
Stock options		-			416,739
Performance share units		-			200,000
Diluted weighted average number of share outstanding		128,600,421			127,957,573
Diluted earnings (loss) per share	$	(0.10	)	$	0.08

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REVENUE (Tables)

12 Months Ended

Dec. 31, 2018

Revenue [abstract]

Disclosure of disaggregation of revenue from contracts with customers [Table text block]

		Year Ended
		December 31,		December 31,
Revenue by product		2018		2017
Concentrate sales	$	111,052	$	105,203
Provisional pricing adjustments		228		1,925
Total revenue from concentrate sales		111,280		107,128
Dore sales		39,229		43,371
Total revenue	$	150,509	$	150,499

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EXPLORATION (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about exploration expenditures [Table Text Block]

		December 31		December 31
		2018		2017
Depreciation and depletion	$	111	$	126
Share-based compensation		340		252
Salaries, wages and benefits		2,690		2,568
Direct exploration expenditures		9,242		9,952
	$	12,383	$	12,898

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GENERAL AND ADMINISTRATIVE (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about general and administrative expenses [Table Text Block]

		December 31		December 31
		2018		2017
Depreciation and depletion	$	254	$	282
Share-based compensation		2,179		2,407
Salaries, wages and benefits		3,038		2,240
Direct general and administrative		3,155		2,985
	$	8,626	$	7,914

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FINANCE COSTS (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of finance income (cost) [Table Text Block]

		December 31		December 31
		2018		2017
Accretion on provision for reclamation and rehabilitation	$	150	$	86
Credit facility finance costs		-		629
Other financing costs		61		-
	$	211	$	715

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SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about cash flows [Table Text Block]

		Year ended
		December 31,			December 31,
		2018			2017
Net changes in non-cash working capital:
Accounts receivable	$	7,303		$	(8,520	)
Inventories		(3,304	)		884
Prepaid expenses		(793	)		126
Accounts payable and accrued liabilities		421			963
Income taxes payable		865			(1,446	)
	$	4,492		$	(7,993	)
Non-cash financing and investing activities:
Reclamation included in mineral property, plant and equipment		63			50
Fair value of exercised options allocated to share capital		131			65
Fair value of performance share units allocated to share capital		-			439
Fair value of shares issued on property acquisition		-			500
Other cash disbursements:
Income taxes paid		3,449			8,015
Special mining duty paid		1,012			2,020

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SEGMENT DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of detailed information about entity reportable segments, assets and liabilities [Table Text Block]

December 31, 2018
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	14,477	$	765	$	3,947	$	4,776	$	8,863	$	548	$	33,376
Other Investments		88		-		-		-		-		-		88
Accounts receivables		176		1,924		9,386		2,760		8,996		3,705		26,947
Inventories		-		-		6,310		3,736		2,939		1,909		14,894
Prepaid expenses		1,666		75		706		26		129		102		2,704
Non-current deposits		76		-		308		151		74		505		1,114
Deferred income tax asset		-		-		6,782		1,549		816		-		9,147
Mineral property, plant and equipment		573		11,791		34,933		9,348		11,323		20,809		88,777
Total assets	$	17,056	$	14,555	$	62,372	$	22,346	$	33,140	$	27,578	$	177,047
Accounts payable and accrued liabilities	$	6,045	$	287	$	5,528	$	1,872	$	4,347	$	1,391	$	19,470
Income taxes payable		1,028		-		926		878		1,218		-		4,050
Deferred lease inducement		217		-		-		-		-		-		217
Provision for reclamation and rehabilitation		-		-		2,128		1,805		4,148		114		8,195
Deferred income tax liability		-		-		-		36		-		299		335
Total liabilities	$	7,290	$	287	$	8,582	$	4,591	$	9,713	$	1,804	$	32,267

December 31, 2017
		Corporate		Exploration		Guanaceví		Bolanitos		El Cubo		El Compas		Total
Cash and cash equivalents	$	20,884	$	1,034	$	6,212	$	2,360	$	7,594	$	193	$	38,277
Restricted cash		1,000		-		-		-		-		-		1,000
Other Investments		168		-		-		-		-		-		168
Accounts receivables		341		893		12,115		4,100		15,602		961		34,012
Inventories		-		-		8,476		2,178		2,477		-		13,131
Prepaid expenses		1,090		128		125		77		176		315		1,911
Non-current deposits		76		-		316		144		74		-		610
Deferred income tax asset		-		-		-		655		-		-		655
Mineral property, plant and equipment		691		11,285		42,264		6,766		15,929		11,881		88,816
Total assets	$	24,250	$	13,340	$	69,508	$	16,280	$	41,852	$	13,350	$	178,580
Accounts payable and accrued liabilities	$	5,965	$	225	$	4,484	$	1,774	$	5,721	$	899	$	19,068
Income taxes payable		727		-		1,499		940		19		-		3,185
Deferred lease inducement		236		-		-		-		-		-		236
Provision for reclamation and rehabilitation		-		-		2,086		1,772		4,074		50		7,982
Deferred income tax liability		-		200		528		637		227		-		1,592
Total liabilities	$	6,928	$	425	$	8,597	$	5,123	$	10,041	$	949	$	32,063

Disclosure of detailed information about entity reportable segments, income and expenditures [Table Text Block]

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2018
Silver revenue	$	-		$	-		$	32,267		$	14,310		$	38,903		$	-		$	85,480
Gold revenue		-			-			6,962			25,495			32,572			-			65,029
Total revenue	$	-		$	-		$	39,229		$	39,805		$	71,475		$	-		$	150,509
Salaries, wages and benefits:
mining	$	-		$	-		$	5,382		$	5,102		$	9,309		$	-		$	19,793
processing		-			-			1,644			1,065			2,201			-			4,910
administrative		-			-			2,580			2,360			3,116			-			8,056
stock based compensation		-			-			(31	)		(31	)		(31	)		-			(93	)
change in inventory		-			-			662			(383	)		(42	)		-			237
Total salaries, wages and benefits		-			-			10,237			8,113			14,553			-			32,903
Direct costs:
mining		-			-			20,332			10,716			13,197			-			44,245
processing		-			-			6,783			6,590			8,211			-			21,584
administrative		-			-			1,886			1,670			2,336			-			5,892
change in inventory		-			-			1,021			(815	)		80			-			286
Total direct production costs		-			-			30,022			18,161			23,824			-			72,007
Depreciation and depletion:
depreciation and depletion		-			-			22,352			931			14,609			-			37,892
change in inventory		-			-			765			(70	)		(175	)		-			520
Total depreciation and depletion		-			-			23,117			861			14,434			-			38,412
Royalties		-			-			1,123			190			340			-			1,653
Write down of inventory to NRV		-			-			2,026			-			-			-			2,026
Total cost of sales	$	-		$	-		$	66,525		$	27,325		$	53,151		$	-		$	147,001
Earnings (loss) before taxes	$	(8,079	)	$	(12,258	)	$	(27,296	)	$	12,480		$	18,324		$	(882	)	$	(17,711	)
Current income tax expense (recovery)		-			-			642			2,507			1,328			-			4,477
Deferred income tax expense (recovery)		-			-			(7,475	)		(1,530	)		(1,043	)		299			(9,749	)
Total income tax expense (recovery)		-			-			(6,833	)		977			285			299			(5,272	)
Net earnings (loss)	$	(8,079	)	$	(12,258	)	$	(20,463	)	$	11,503		$	18,039		$	(1,181	)	$	(12,439	)

		Corporate			Exploration			Guanaceví			Bolanitos			El Cubo			El Compas			Total
		Year ended December 31, 2017
Silver revenue	$	-		$	-		$	37,161		$	15,265		$	31,934		$	-		$	84,360
Gold revenue		-			-			6,210			33,154			26,775			-			66,139
Total revenue	$	-		$	-		$	43,371		$	48,419		$	58,709		$	-		$	150,499
Salaries, wages and benefits:
mining	$	-		$	-		$	6,027		$	5,023		$	8,798		$	-		$	19,848
processing		-			-			1,951			978			1,765			-			4,694
administrative		-			-			2,948			2,419			3,023			-			8,390
stock based compensation		-			-			68			67			67			-			202
change in inventory		-			-			209			(91	)		36			-			154
Total salaries, wages and benefits		-			-			11,203			8,396			13,689			-			33,288
Direct costs:
mining		-			-			12,567			11,777			15,900			-			40,244
processing		-			-			6,709			6,921			8,742			-			22,372
administrative		-			-			2,164			1,893			2,906			-			6,963
change in inventory		-			-			833			(227	)		59			-			665
Total direct production costs		-			-			22,273			20,364			27,607			-			70,244
Depreciation and depletion:
depreciation and depletion		-			-			13,934			1,900			1,332			-			17,166
change in inventory		-			-			(569	)		(6	)		(9	)		-			(584	)
Total depreciation and depletion		-			-			13,365			1,894			1,323			-			16,582
Royalties		-			-			1,239			228			273			-			1,740
Write down of inventory to NRV		-			-			166			-			-			-			166
Total cost of sales	$	-		$	-		$	48,246		$	30,882		$	42,892		$	-		$	122,020
Earnings (loss) before taxes	$	(7,694	)	$	(10,564	)	$	(4,875	)	$	17,537		$	15,817		$	(2,334	)	$	7,887
Current income tax expense (recovery)		(10	)		-			676			3,981			3			-			4,650
Deferred income tax expense (recovery)		-			200			(5,589	)		(1,473	)		415			-			(6,447	)
Total income tax expense (recovery)		(10	)		200			(4,913	)		2,508			418			-			(1,797	)
Net earnings (loss)	$	(7,684	)	$	(10,764	)	$	38		$	15,029		$	15,399		$	(2,334	)	$	9,684

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of deferred taxes [Table Text Block]

		December 31,			December 31,
Mexico operations		2018			2017
Deferred income tax assets:
Tax loss carryforwards	$	13,709		$	9,326
Provision for reclamation and rehabilitation		2,823			2,754
Other		3,774			1,959
Deferred income tax liabilities:
Inventories		(1,838	)		(1,816	)
Mineral properties, plant and equipment		(9,621	)		(12,523	)
Other		(35	)		(637	)
Deferred income tax assets (liabilities), net	$	8,812		$	(937	)

Disclosure of detailed information about effective income tax expense [Table Text Block]

		December 31,			December 31,
		2018			2017
Current income tax expense (recovery):
Current income tax expense in respect of current year	$	2,559		$	3,779
Special mining duty		1,850			844
Adjustments recognized in the current year in relation to prior years		68			27
Deferred income tax expense (recovery):
Deferred tax expense recognized in the current year		(10,745	)		(4,375	)
Special mining duty		1,315			586
Adjustments recognized in the current year in relation to prior years		(319	)		(2,658	)
Total income tax expense (recovery)	$	(5,272	)	$	(1,797	)

Disclosure of detailed information about reconciliation of income tax computed at statutory tax rates [Table Text Block]

		December 31,			December 31,
		2018			2017
Canadian statutory tax rates		27.00%			26.00%
Income tax expense computed at Canadian statutory rates	$	(4,782	)	$	2,050
Foreign tax rates different from statutory rate		(5,018	)		(3,412	)
Change in tax rates		291			-
Withholding taxes, net of tax credits		665			678
Stock-based compensation		541			743
Foreign exchange		3,738			(2,381	)
Inflationary adjustment		3,710			2,539
Other items		1,259			956
Adjustments recognized in the current year in relation to prior years		(319	)		(61	)
Current year losses not recognized		4,212			2,612
Special mining duty Mexican tax		535			1,430
Recognition of previously unrecognized losses		(10,104	)		(6,951	)
Income tax expense	$	(5,272	)	$	(1,797	)

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Statements Line Items

Disclosure of financial assets [Table Text Block]

	Fair value
	through profit or	Amortized	Carrying
	loss	cost	value	Fair value
	$	$	$	$
Financial assets:
Cash and cash equivalents	-	33,376	33,376	33,376
Investments	88	-	88	88
Trade and other receivables	6,007	-	6,007	6,007
Total financial assets	6,095	33,376	39,471	39,471
Financial liabilities:
Accounts payable and accrued liabilites	1,479	17,991	19,470	19,470
Total financial liabilities	1,479	17,991	19,470	19,470

Disclosure of detailed information about financial assets, by fair value hierarchy [Table Text Block]

	Total	Level 1	Level 2	Level 3
	$	$	$	$
Financial assets:
Investments	88	88	-	-
Trade receivables	5,627	-	5,627	-
Total financial assets	5,715	88	5,627	-
Financial liabilities:
Deferred share units	1,407	1,407	-	-
Share appreciation rights	72	-	72	-
Total financial liabilities	1,479	1,407	72	-

Disclosure of credit risk exposure [Table Text Block]

		Carrying		Gross		Carrying		Gross
		amount		impairment		amount		impairment
		December 31, 2018				December 31, 2017
Less than 1 month	$	9,211	$	-	$	13,799	$	-
1 to 3 months		4,284		-		3,943		-
4 to 6 months		1,039		-		3,282		-
Over 6 months		12,413		194		12,988		2,212
Total accounts receivable	$	26,947		194	$	34,012	$	2,212

Disclosure of liquidity risk [Table Text Block]

	Less than	1 to 3	4 to 5	Over 5
	1 year	years	years	years	Total
	$	$	$	$	$
Accounts payable and accrued liabilities	19,470	-	-	-	19,470
Income taxes payable	4,050	-	-	-	4,050
Provision for reclamation and rehabilitation	-	6,066	2,129	-	8,195
Capital expenditure commitments	140	-	-	-	140
Operating leases	394	720	542	1,184	2,840
Total contractual obligations	24,054	6,786	2,671	1,184	34,695

Disclosure of market risk [Table Text Block]

		December 31, 2018						December 31, 2017
		Canadian Dollar			Mexican Peso			Canadian Dollar			Mexican Peso
Financial assets	$	721		$	26,969		$	1,484		$	29,502
Financial liabilities		(2,767	)		(15,438	)		(2,984	)		(17,586	)
Net financial assets (liabilities)	$	(2,046	)	$	11,531		$	(1,500	)	$	11,916

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SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Statements Line Items
Useful lives or depreciation rates, property, plant and equipment	Plant and equipment is recorded at cost and amortized using the straight-line method at rates varying from 5% to 30% annually.
Performance Share Units (PSU) liability reallocated to Contributed Surplus	$ 38
Fair value of marketable securities	168
Unrealized gain in fair value	127
Bottom of range [member]
Statements Line Items
Lease	2,000
Top of range [member]
Statements Line Items
Lease	$ 3,000

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CASH AND CASH EQUIVALENTS (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statements Line Items
Restricted cash		$ 1,000
Payment of letter of credit to owner of Las Torres Facility	$ 500

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ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
IVA receivables	$ 15,353	$ 19,989
El Cubo [Member]
Statements Line Items
IVA receivables	4,888	10,392
Guanacevi [Member]
Statements Line Items
IVA receivables	$ 6,957	$ 8,812

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INVENTORIES (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) oz	Dec. 31, 2017 USD ($) oz
Statements Line Items
Inventory, ounces of silver | oz	199,897	241,321
Inventory, ounces of gold | oz	1,956	1,226
Inventory, quoted market value of silver	$ 3,091	$ 4,070
Inventory, quoted market value of gold	2,507	$ 1,590
Guanacevi, Mexico [Member]
Statements Line Items
Inventory write-down	1,635
Inventory cash costs	1,106
Inventory depreciation and depletion	529
Work in process inventory write-down	390
Work in process cash costs	252
Work in process depreciation and depletion	139
El Compas, Mexico [Member]
Statements Line Items
Inventory write-down	189
Inventory cash costs	139
Inventory depreciation and depletion	50
Stockpile inventory write-down	461
Stockpile inventory cash cost	320
Stockpile inventory depreciation and depletion	$ 141

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RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Share	Dec. 31, 2017 USD ($) Share
Statements Line Items
Number of units granted in share-based payment arrangement | Share	103,884	37,832
Value of units granted in share-based payment arrangement	$ 297	$ 115
Number of units outstanding | Share	652,276	548,392
Value of units outstanding	$ 1,407	$ 1,320
Shared common administrative services and office space [Member]
Statements Line Items
Expenses from related party transactions	16	24
Amounts receivable, related party transactions	1	2
Legal services [Member]
Statements Line Items
Expenses from related party transactions	189	60
Amounts payable, related party transactions	$ 5	$ 0

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Narrative) (Details)			1 Months Ended	12 Months Ended
	Jun. 05, 2017 USD ($) shares	Feb. 01, 2017 USD ($)	Oct. 31, 2016 USD ($) shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 ha oz shares	Dec. 31, 2018 MXN ($)	Apr. 24, 2017	Sep. 13, 2016	Jul. 21, 2016	Dec. 31, 2014	Feb. 28, 2013
Statements Line Items
Acquisition costs for exploration and evaluation properties				$ 11,246,000	$ 11,334,000
Capital expenditure commitments				140,000
Royalty expense				1,653,000	1,740,000
Issued on acquistion of mineral properties, net					500,000
Share issuance costs				$ 640,000
Parral Properties [Member]
Statements Line Items
Issued on acquistion of mineral properties, net			$ 5,300,000
Issued on acquistion of mineral properties, net (shares) | shares			1,198,083
Share price			$ 4.39
Percentage of interests acquired									100.00%
Net smelter royalty				1.00%			1.00%
Exploration commitments				$ 2,000,000
Commitment, value of shares to be issued per million ounces of silver delineated				$ 200,000
Guanacevi, Mexico [Member]
Statements Line Items
Net proceeds royalty				3.00%			3.00%
Royalty expense				$ 926,000	1,022,000
El Cubo, Mexico [Member] | Oro Silver Resources Ltd [Member]
Statements Line Items
Issued on acquistion of mineral properties, net (shares) | shares						2,147,239
Percentage of interests acquired						100.00%
El Compas, Mexico [Member]
Statements Line Items
Assumed obligation, troy ounces of gold | oz						165
Lease liabilities				$ 90,000			$ 1,632,000
El Compas, Mexico [Member] | Veta Grande Properties [Member]
Statements Line Items
Issued on acquistion of mineral properties, net	$ 500,000
Issued on acquistion of mineral properties, net (shares) | shares	154,321
Share price	$ 3.24
Percentage of interests acquired								100.00%
El Compas, Mexico [Member] | Calicanto Properties [Member]
Statements Line Items
Percentage of interests acquired										100.00%
Net smelter royalty				3.00%			3.00%			3.00%
Payments for exploration and evaluation		$ 400,000		$ 45,000
El Compas, Mexico - 22 concessions [Member]
Statements Line Items
Net smelter royalty				1.50%			1.50%
El Compas, Mexico - six concessions [Member]
Statements Line Items
Net smelter royalty				3.00%			3.00%
Terronera (formerly San Sebastian), Mexico [Member]
Statements Line Items
Percentage of interests acquired												100.00%
Net smelter royalty												2.00%
Guadalupe Y Calvo, Mexico [Member]
Statements Line Items
Net smelter royalty											2.00%
El Compas - Zacatecas Mexico [Member]
Statements Line Items
Royalty expense				$ 29,000
Area of El compas project | ha						3,990

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CREDIT FACILITY (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 19, 2016	Dec. 31, 2017	Apr. 01, 2016
Statements Line Items
Revolving credit facity, interest rate margin over LIBOR			4.50%
Payments for revolving credit facility	$ 300
Revolving credit facility, interest expense		$ 629

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PROVISON FOR RECLAMATION AND REHABILITATION (Narrative) (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Guanacevi, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, undiscounted amount	$ 2,280
Present value of the probability weighted future cash flows, risk free rate	2.60%
Inflation rate	2.00%
Bolanitos, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, undiscounted amount	$ 1,921
Present value of the probability weighted future cash flows, risk free rate	2.50%
Inflation rate	2.00%
El Cubo, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, undiscounted amount	$ 4,326
Present value of the probability weighted future cash flows, risk free rate	2.50%
Inflation rate	2.00%
El Compas, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, undiscounted amount	$ 162
Present value of the probability weighted future cash flows, risk free rate	8.50%
Inflation rate	4.30%

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SHARE CAPITAL (Narrative) (Details)			1 Months Ended	12 Months Ended
	Jun. 13, 2018 USD ($) shares	Apr. 12, 2017 USD ($) shares	Feb. 15, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares	Apr. 30, 2018 CAD ($)	Dec. 31, 2016 shares
Statements Line Items
Short form base shelf prospectus						$ 150,000,000
Public equity offerings, net of issuance costs	$ 35,700,000			$ 7,982,000
Increase (decrease) in number of shares outstanding | shares	3,165,642
Equity issuance, price per share	$ 2.61
Proceeds from issuing shares	8,273,000
Commission	$ 186,000
Additional transaction costs				$ 105,000
Maximum percentage of ownership of issued and outstanding shares				7.00%
Share-based compensation expense				$ 1,976,000	$ 2,759,000
Unvested share option expense not yet recognized				643,000	841,000
Expense (recovery) on directors compensation related to deferred share units				$ (88,000)	$ 484,000
Deferred share units outstanding | shares				652,276	548,392		510,560
Deferred share units outstanding, fair market value				$ 1,407,000	$ 1,319,000
Expense (recovery) related to share appreciation rights				$ (245,000)	$ 139,000
Share appreciation rights, outstanding | shares				694,000	911,993		579,660
Share appreciation rights outstanding, fair market value				$ 72,000	$ 341,000
Preferred share units, authorized | shares				1,000,000
Preferred share units granted | shares				446,000	200,000
Preferred Share Units Vested | shares		325,000
Performance share units, outstanding | shares				616,000	200,000		325,000
Share based compensation expense related to performance share units				$ 450,000	$ 101,000
Increase in number of shares outstanding, settlement of preferred share units | shares		193,825
Payments for settlement of performance share units		$ 449,000
Description of instruments with potential future dilutive effect not included in calculation of diluted earnings per share				As of December 31, 2018, there are 4,978,300 anti-dilutive stock options (December 31, 2017 3,905,800 stock options).
May 3, 2020 [Member]
Statements Line Items
Preferred Share Units Vested | shares				170,000
May 3, 2021 [Member]
Statements Line Items
Preferred Share Units Vested | shares				446,000
Events After Reporting Period [Member]
Statements Line Items
Increase (decrease) in number of shares outstanding | shares			635,171
Equity issuance, price per share			$ 2.23
Proceeds from issuing shares			1,419,000
Commission			$ 32,000

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REVENUE (Narrative) (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Revenue [abstract]
Confidence level used to determine risk adjustment	10.00%
Value at risk	$ 904

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GENERAL AND ADMINISTRATIVE (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Expense (recovery) on directors compensation related to deferred share units	$ 88	$ (484)

XML

SEGMENT DISCLOSURES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Exploration [Member]
Statements Line Items
Costs incurred in Chile	$ 777	$ 448

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INCOME TAXES (Narrative) (Details) $ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 MXN ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2016 MXN ($)	Oct. 12, 2010 MXN ($)
Minera Santa Cruz y Garibaldi SA de CV [Member]
Statements Line Items
Tax Assessments				$ 6,200	$ 122.9	$ 238.0
Tax Assessments, taxes owed				2,100	41.8
Tax Assessments , inflationary charges				900	17.7
Tax Assessments , interest				2,000	40.4
Tax Assessments , penalties				$ 1,200	23.0
Tax Assessments interest and penalties					$ 123.0
Tax Assessment forgiveness percentage of penalties				100.00%	100.00%
Tax Assessment forgiveness percentage of interest				50.00%	50.00%
Tax Assessments , increase in interest charges	$ 500	$ 6.3
Tax Assessments , increase in inflationary charges	500	$ 9.5
Net assets	595
Cash	42
Allowance for transferring the shares and assets	595
Mexico operations [Member] | Non-capital losses [Member]
Statements Line Items
Unused tax losses for which no deferred tax asset recognised	149,924		$ 142,494
Canada operations [Member] | Non-capital losses [Member]
Statements Line Items
Unused tax losses for which no deferred tax asset recognised	1,962		6,175
Canada operations [Member] | Capital losses [Member]
Statements Line Items
Unused tax losses for which no deferred tax asset recognised	$ 12,002		$ 15,570

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) oz	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Statements Line Items
Percentage of receivables comprised of IVA and tax receivables in Mexico	99.00%	98.00%
Percentage of receivables pending finalizations of concentrate sales	1.00%
Impairment loss recognised in profit or loss, trade receivables	$ 194	$ 2,212
Cash and cash equivalents	$ 33,376	38,277	$ 72,317
Confidence level used to determine risk adjustment	10.00%
Value at risk	$ 904
Foreign Currency Risk [Member] | Canadian Dollar [Member]
Statements Line Items
Cash and cash equivalents	$ 26	441
Confidence level used to determine risk adjustment	5.00%
Value at risk	$ 97
Foreign Currency Risk [Member] | Mexican Peso [Member]
Statements Line Items
Cash and cash equivalents	$ 4,522	$ 3,192
Confidence level used to determine risk adjustment	5.00%
Value at risk	$ 547
Commodity Price Risk [Member]
Statements Line Items
Confidence level used to determine risk adjustment	10.00%
Value at risk	$ 900
Ounces of silver without a final settlement price | oz	274,033
Ounces of gold without a final settlement price | oz	3,770

XML

Disclosure of detailed information about cash and cash equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Bank balances	$ 33,376	$ 38,782
Short-term deposits	0	495
Cash, cash equivalents and restricted cash	$ 33,376	$ 39,277

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Disclosure of detailed information about other investments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Other Investments	$ 88	$ 168
At Cost [Member]
Statements Line Items
Other Investments	41	41
Unrealized gain (loss) [Member]
Statements Line Items
Other Investments	$ 47	$ 127

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Disclosure of detailed information about trade and other receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Trade receivables	$ 5,627	$ 8,114
IVA receivables	15,353	19,989
Income taxes recoverable	5,587	5,549
Due from related parties	1	2
Other receivables	379	358
Accounts receivable	$ 26,947	$ 34,012

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Disclosure of detailed information about inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Warehouse inventory	$ 8,638	$ 7,809
Stockpile inventory	1,564	0
Work in process inventory	322	496
Finished goods inventory	4,370	4,826
Inventories	$ 14,894	$ 13,131

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Disclosure of information about key management personnel (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Salaries and short-term employee benefits	$ 2,754	$ 2,793
Non-executive directors' fees	194	204
Non-executive directors' deferred share units	87	(484)
Share-based payments	2,108	2,588
Key management personnel compensation	$ 5,143	$ 5,101

XML

Disclosure of detailed information about property, plant and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Mineral properties, plant and equipment at beginning of period	$ 88,816
Mineral properties, plant and equipment at end of period	88,777	$ 88,816
Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	669,110	634,350
Additions	40,451	40,474
Disposals	0	(5,714)
Mineral properties, plant and equipment at end of period	709,561	669,110
Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	580,294	568,112
Amortization	40,490	17,650
Disposals	0	(5,468)
Mineral properties, plant and equipment at end of period	620,784	580,294
Mineral properties [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	54,369
Mineral properties, plant and equipment at end of period	50,326	54,369
Mineral properties [Member] | Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	485,850	457,401
Additions	30,377	28,682
Disposals	0	(233)
Mineral properties, plant and equipment at end of period	516,227	485,850
Mineral properties [Member] | Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	431,481	419,320
Amortization	34,420	12,161
Disposals	0	0
Mineral properties, plant and equipment at end of period	465,901	431,481
Plant [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	10,812
Mineral properties, plant and equipment at end of period	14,003	10,812
Plant [Member] | Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	98,021	94,871
Additions	4,480	3,177
Disposals	0	(27)
Mineral properties, plant and equipment at end of period	102,501	98,021
Plant [Member] | Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	87,209	85,563
Amortization	1,289	1,672
Disposals	0	(26)
Mineral properties, plant and equipment at end of period	88,498	87,209
Machinery & equipment and assets under finance lease [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	18,319
Mineral properties, plant and equipment at end of period	18,442	18,319
Machinery & equipment and assets under finance lease [Member] | Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	62,844	61,812
Additions	3,411	5,386
Disposals	0	(4,354)
Mineral properties, plant and equipment at end of period	66,255	62,844
Machinery & equipment and assets under finance lease [Member] | Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	44,525	46,196
Amortization	3,288	2,682
Disposals	0	(4,353)
Mineral properties, plant and equipment at end of period	47,813	44,525
Building [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	2,460
Mineral properties, plant and equipment at end of period	2,670	2,460
Building [Member] | Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	11,862	10,671
Additions	482	1,191
Disposals	0	0
Mineral properties, plant and equipment at end of period	12,344	11,862
Building [Member] | Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	9,402	9,214
Amortization	272	188
Disposals	0	0
Mineral properties, plant and equipment at end of period	9,674	9,402
Transport & office equipment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	2,856
Mineral properties, plant and equipment at end of period	3,336	2,856
Transport & office equipment [Member] | Gross carrying amount [member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	10,533	9,595
Additions	1,701	2,038
Disposals	0	(1,100)
Mineral properties, plant and equipment at end of period	12,234	10,533
Transport & office equipment [Member] | Accumulated amortization and impairment [Member]
Statements Line Items
Mineral properties, plant and equipment at beginning of period	7,677	7,819
Amortization	1,221	947
Disposals	0	(1,089)
Mineral properties, plant and equipment at end of period	$ 8,898	$ 7,677

XML

Disclosure of detailed information about provision for reclamation and rehabilitation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Provision for reclamation and rehabilitation, beginning balance	$ 7,982	$ 7,846
Accretion	150	86
Disturbance incurred during the year	63	50
Provision for reclamation and rehabilitation, ending balance	8,195	7,982
Guanacevi, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, beginning balance	2,086	2,058
Accretion	43	28
Disturbance incurred during the year	0	0
Provision for reclamation and rehabilitation, ending balance	2,129	2,086
Bolanitos, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, beginning balance	1,772	1,755
Accretion	32	17
Disturbance incurred during the year	0	0
Provision for reclamation and rehabilitation, ending balance	1,804	1,772
El Cubo, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, beginning balance	4,074	4,033
Accretion	74	41
Disturbance incurred during the year	0	0
Provision for reclamation and rehabilitation, ending balance	4,148	4,074
El Compas, Mexico [Member]
Statements Line Items
Provision for reclamation and rehabilitation, beginning balance	50	0
Accretion	1	0
Disturbance incurred during the year	63	50
Provision for reclamation and rehabilitation, ending balance	$ 114	$ 50

XML

Disclosure of number and weighted average exercise prices of share options (Details)	12 Months Ended
	Dec. 31, 2018 CAD ($) Share	Dec. 31, 2017 CAD ($) Share
Statements Line Items
Number of share options outstanding in share-based payment arrangement at beginning of period | Share	5,792,800	4,458,050
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $	$ 4.00	$ 3.93
Number of share options granted in share-based payment arrangement | Share	1,262,500	1,572,000
Weighted average exercise price of share options granted in share-based payment arrangement | $	$ 3.80	$ 4.32
Number of share options exercised in share-based payment arrangement | Share	(127,000)	(60,000)
Weighted average exercise price of share options exercised in share-based payment arrangement | $	$ 2.65	$ 3.03
Number of share options forfeited in share-based payment arrangement | Share	(940,500)	(177,250)
Weighted average exercise price of share options forfeited in share-based payment arrangement | $	$ 4.15	$ 5.49
Number of share options outstanding in share-based payment arrangement at end of period | Share	5,987,800	5,792,800
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $	$ 3.96	$ 4.00
Number of share options exercisable in share-based payment arrangement | Share	4,946,300	4,509,600
Weighted average exercise price of share options exercisable in share-based payment arrangement | $	$ 3.96	$ 3.91

XML

Disclosure of range of exercise prices of outstanding share options (Details)	Dec. 31, 2018 CAD ($) Share Year	Dec. 31, 2017 CAD ($) Share	Dec. 31, 2016 CAD ($) Share
Statements Line Items
Number of share options outstanding in share-based payment arrangement | Share	5,987,800	5,792,800	4,458,050
Weighted average remaining contractual life of outstanding share options | Year	2.6
Weighted average exercise price of share options outstanding in share-based payment arrangement	$ 3.96	$ 4.00	$ 3.93
Number of share options exercisable in share-based payment arrangement | Share	4,946,300	4,509,600
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 3.96	$ 3.91
Options exercise price range 1 [Member]
Statements Line Items
Number of share options outstanding in share-based payment arrangement | Share	1,009,500
Weighted average remaining contractual life of outstanding share options | Year	1.4
Weighted average exercise price of share options outstanding in share-based payment arrangement	$ 2.65
Number of share options exercisable in share-based payment arrangement | Share	1,009,500
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 2.65
Options exercise price range 1 [Member] | Minimum [Member]
Statements Line Items
Exercise price of outstanding share options	2.00
Options exercise price range 1 [Member] | Maximum [Member]
Statements Line Items
Exercise price of outstanding share options	$ 2.99
Options exercise price range 2 [Member]
Statements Line Items
Number of share options outstanding in share-based payment arrangement | Share	1,250,500
Weighted average remaining contractual life of outstanding share options | Year	4.4
Weighted average exercise price of share options outstanding in share-based payment arrangement	$ 3.80
Number of share options exercisable in share-based payment arrangement | Share	478,400
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 3.80
Options exercise price range 2 [Member] | Minimum [Member]
Statements Line Items
Exercise price of outstanding share options	3.00
Options exercise price range 2 [Member] | Maximum [Member]
Statements Line Items
Exercise price of outstanding share options	$ 3.99
Options Exercise Price Range 3 [Member]
Statements Line Items
Number of share options outstanding in share-based payment arrangement | Share	3,727,800
Weighted average remaining contractual life of outstanding share options | Year	2.4
Weighted average exercise price of share options outstanding in share-based payment arrangement	$ 4.37
Number of share options exercisable in share-based payment arrangement | Share	3,458,400
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 4.37
Options Exercise Price Range 3 [Member] | Minimum [Member]
Statements Line Items
Exercise price of outstanding share options	4.00
Options Exercise Price Range 3 [Member] | Maximum [Member]
Statements Line Items
Exercise price of outstanding share options	$ 4.99

XML

Disclosure of detailed information about options, valuation assumptions (Details)	12 Months Ended
	Dec. 31, 2018 CAD ($) Year	Dec. 31, 2017 CAD ($) Year
Statements Line Items
Weighted average fair value of options granted during the year | $	$ 1.96	$ 2.30
Risk-free interest rate	2.05%	0.85%
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	69.00%	73.00%
Expected option life in years | Year	3.79	3.86

XML

Disclosure of deferred share units (Details) - CAD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Deferred share units outstanding, beginning of period	548,392	510,560
Deferred share units outstanding, weighted average grant price, beginning of period	$ 3.44	$ 3.39
Deferred share units, granted	103,884	37,832
Deferred share units, granted, weighted average grant price	$ 3.68	$ 4.11
Deferred share units, redeemed	0	0
Deferred share units, redeemed, weighted average grant price	$ 0	$ 0
Deferred share units outstanding, end of period	652,276	548,392
Deferred share units outstanding, weighted average grant price, end of period	$ 3.48	$ 3.44
Deferred share units, fair value	652,276	548,392
Deferred share units, fair value, weighted average grant price	$ 2.94	$ 3.02

XML

Disclosure of share appreciation rights (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Share appreciation rights, outstanding, beginning of period	911,993	579,660
Share appreciation rights, weighted average grant price, beginning of period	$ 3.80	$ 4.20
Share appreciation rights, granted	0	489,000
Share appreciation rights, granted, weighted average grant price	$ 0.00	$ 3.30
Share appreciation rights, exercised	(96,661)	(46,668)
Share appreciation rights, exercised, weighted average grant price	$ 2.21	$ 2.21
Share appreciation rights, cancelled	(121,332)	(109,999)
Share appreciation rights, cancelled, weighted average grant price	$ 3.96	$ 4.38
Share appreciation rights, outstanding, end of period	694,000	911,993
Share appreciation rights, weighted average grant price, end of period	$ 3.99	$ 3.80
Share appreciation rights, exercisable	553,679	212,672
Share appreciation rights, exercisable, weighted average grant price	$ 4.16	$ 3.69

XML

Disclosure of performance share units plan (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Performance share units, outstanding, beginning of period	200,000	325,000
Granted	446,000	200,000
Cancelled	(30,000)	0
Settled for shares	0	(193,825)
Settled for cash	0	(131,175)
Performance share units, outstanding, end of period	616,000	200,000

XML

Disclosure of detailed information about diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Net earnings	$ (12,439)	$ 9,684
Basic weighted average number of shares outstanding	128,600,421	127,340,834
Effect of dilutive securities - Stock options	0	416,739
Effect of dilutive securities - Performance share units	0	200,000
Diluted weighted average number of shares outstanding	128,600,421	127,957,573
Diluted earnings (loss) per share	$ (0.10)	$ 0.08

XML

Disclosure of disaggregation of revenue from contracts with customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of products and services [line items]
Total revenue from concentrate sales	$ 111,280	$ 107,128
Total revenue	150,509	150,499
Concentrate Sales [Member]
Disclosure of products and services [line items]
Total revenue from concentrate sales	111,052	105,203
Provisional Pricing Adjustments [Member]
Disclosure of products and services [line items]
Total revenue from concentrate sales	228	1,925
Dore Sales [Member]
Disclosure of products and services [line items]
Total revenue	$ 39,229	$ 43,371

XML

Disclosure of detailed information about exploration expenditures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Exploration	$ 12,383	$ 12,898
Depreciation and depletion [Member]
Statements Line Items
Exploration	111	126
Share-based compensation [Member]
Statements Line Items
Exploration	340	252
Salaries, wages and benefits [Member]
Statements Line Items
Exploration	2,690	2,568
Direct exploration expenditures [Member]
Statements Line Items
Exploration	$ 9,242	$ 9,952

XML

Disclosure of detailed information about general and administrative expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
General and administrative	$ 8,626	$ 7,914
Depreciation and depletion [Member]
Statements Line Items
General and administrative	254	282
Share-based compensation [Member]
Statements Line Items
General and administrative	2,179	2,407
Salaries, wages and benefits [Member]
Statements Line Items
General and administrative	3,038	2,240
Direct general and administrative [Member]
Statements Line Items
General and administrative	$ 3,155	$ 2,985

XML

Disclosure of finance income (cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Finance costs	$ 211	$ 715
Accretion on provision for reclamation and rehabilitation [Member]
Statements Line Items
Finance costs	150	86
Credit facility finance costs [Member]
Statements Line Items
Finance costs	0	629
Other Financing Costs [Member]
Statements Line Items
Finance costs	$ 61	$ 0

XML

Disclosure of detailed information about cash flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Accounts receivable	$ 7,303	$ (8,520)
Inventories	(3,304)	884
Prepaid expenses	(793)	126
Accounts payable and accrued liabilities	421	963
Income taxes payable	865	(1,446)
Net changes in non-cash working capital	4,492	(7,993)
Reclamation included in mineral property, plant and equipment	63	50
Fair value of exercised options allocated to share capital	131	65
Fair value of performance share units allocated to share capital	0	439
Fair value of shares issued on property acquisition	0	500
Income taxes paid	3,449	8,015
Special mining duty paid	$ 1,012	$ 2,020

XML

Disclosure of detailed information about entity reportable segments, assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statements Line Items
Cash and cash equivalents	$ 33,376	$ 38,277	$ 72,317
Restricted cash		1,000
Other Investments	88	168
Accounts receivable	26,947	34,012
Inventories	14,894	13,131
Prepaid expenses	2,704	1,911
Non-current deposits	1,114	610
Deferred income tax asset	9,147	655
Mineral property, plant and equipment	88,777	88,816
Total assets	177,047	178,580
Accounts payable and accrued liabilities	19,470	19,068
Income taxes payable	4,050	3,185
Deferred lease inducement	217	236
Provision for reclamation and rehabilitation	8,195	7,982
Deferred income tax liability	335	1,592
Total liabilities	32,267	32,063
Corporate [Member]
Statements Line Items
Cash and cash equivalents	14,477	20,884
Restricted cash		1,000
Other Investments	88	168
Accounts receivable	176	341
Inventories	0	0
Prepaid expenses	1,666	1,090
Non-current deposits	76	76
Deferred income tax asset	0	0
Mineral property, plant and equipment	573	691
Total assets	17,056	24,250
Accounts payable and accrued liabilities	6,045	5,965
Income taxes payable	1,028	727
Deferred lease inducement	217	236
Provision for reclamation and rehabilitation	0	0
Deferred income tax liability	0	0
Total liabilities	7,290	6,928
Exploration [Member]
Statements Line Items
Cash and cash equivalents	765	1,034
Restricted cash		0
Other Investments	0	0
Accounts receivable	1,924	893
Inventories	0	0
Prepaid expenses	75	128
Non-current deposits	0	0
Deferred income tax asset	0	0
Mineral property, plant and equipment	11,791	11,285
Total assets	14,555	13,340
Accounts payable and accrued liabilities	287	225
Income taxes payable	0	0
Deferred lease inducement	0	0
Provision for reclamation and rehabilitation	0	0
Deferred income tax liability	0	200
Total liabilities	287	425
Guanacevi [Member]
Statements Line Items
Cash and cash equivalents	3,947	6,212
Restricted cash		0
Other Investments	0	0
Accounts receivable	9,386	12,115
Inventories	6,310	8,476
Prepaid expenses	706	125
Non-current deposits	308	316
Deferred income tax asset	6,782	0
Mineral property, plant and equipment	34,933	42,264
Total assets	62,372	69,508
Accounts payable and accrued liabilities	5,528	4,484
Income taxes payable	926	1,499
Deferred lease inducement	0	0
Provision for reclamation and rehabilitation	2,128	2,086
Deferred income tax liability	0	528
Total liabilities	8,582	8,597
Bolanitos [Member]
Statements Line Items
Cash and cash equivalents	4,776	2,360
Restricted cash		0
Other Investments	0	0
Accounts receivable	2,760	4,100
Inventories	3,736	2,178
Prepaid expenses	26	77
Non-current deposits	151	144
Deferred income tax asset	1,549	655
Mineral property, plant and equipment	9,348	6,766
Total assets	22,346	16,280
Accounts payable and accrued liabilities	1,872	1,774
Income taxes payable	878	940
Deferred lease inducement	0	0
Provision for reclamation and rehabilitation	1,805	1,772
Deferred income tax liability	36	637
Total liabilities	4,591	5,123
El Cubo [Member]
Statements Line Items
Cash and cash equivalents	8,863	7,594
Restricted cash		0
Other Investments	0	0
Accounts receivable	8,996	15,602
Inventories	2,939	2,477
Prepaid expenses	129	176
Non-current deposits	74	74
Deferred income tax asset	816	0
Mineral property, plant and equipment	11,323	15,929
Total assets	33,140	41,852
Accounts payable and accrued liabilities	4,347	5,721
Income taxes payable	1,218	19
Deferred lease inducement	0	0
Provision for reclamation and rehabilitation	4,148	4,074
Deferred income tax liability	0	227
Total liabilities	9,713	10,041
El Compas [Member]
Statements Line Items
Cash and cash equivalents	548	193
Restricted cash		0
Other Investments	0	0
Accounts receivable	3,705	961
Inventories	1,909	0
Prepaid expenses	102	315
Non-current deposits	505	0
Deferred income tax asset	0	0
Mineral property, plant and equipment	20,809	11,881
Total assets	27,578	13,350
Accounts payable and accrued liabilities	1,391	899
Income taxes payable	0	0
Deferred lease inducement	0	0
Provision for reclamation and rehabilitation	114	50
Deferred income tax liability	299	0
Total liabilities	$ 1,804	$ 949

XML

Disclosure of detailed information about entity reportable segments, income and expenditures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Revenue	$ 150,509	$ 150,499
Salaries, wages and benefits	32,903	33,288
Direct costs	72,007	70,244
Depreciation and depletion	38,412	16,582
Royalties	1,653	1,740
Write down of inventory to NRV	2,026	166
Total cost of sales	147,001	122,020
Earnings (loss) before taxes	(17,711)	7,887
Current income tax expense (recovery)	4,477	4,650
Deferred income tax expense (recovery)	(9,749)	(6,447)
Total income tax expense (recovery)	(5,272)	(1,797)
Net earnings (loss)	(12,439)	9,684
Silver revenue [Member]
Statements Line Items
Revenue	85,480	84,360
Gold revenue [Member]
Statements Line Items
Revenue	65,029	66,139
mining [Member]
Statements Line Items
Salaries, wages and benefits	19,793	19,848
Direct costs	44,245	40,244
processing [Member]
Statements Line Items
Salaries, wages and benefits	4,910	4,694
Direct costs	21,584	22,372
administrative [Member]
Statements Line Items
Salaries, wages and benefits	8,056	8,390
Direct costs	5,892	6,963
stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	(93)	202
depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	37,892	17,166
change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	237	154
Direct costs	286	665
Depreciation and depletion	520	(584)
Corporate [Member]
Statements Line Items
Revenue	0	0
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	0	0
Royalties	0	0
Write down of inventory to NRV	0	0
Total cost of sales	0	0
Earnings (loss) before taxes	(8,079)	(7,694)
Current income tax expense (recovery)	0	(10)
Deferred income tax expense (recovery)	0	0
Total income tax expense (recovery)	0	(10)
Net earnings (loss)	(8,079)	(7,684)
Corporate [Member] | Silver revenue [Member]
Statements Line Items
Revenue	0	0
Corporate [Member] | Gold revenue [Member]
Statements Line Items
Revenue	0	0
Corporate [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Corporate [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Corporate [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Corporate [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Corporate [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	0	0
Corporate [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	0	0
Exploration [Member]
Statements Line Items
Revenue	0	0
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	0	0
Royalties	0	0
Write down of inventory to NRV	0	0
Total cost of sales	0	0
Earnings (loss) before taxes	(12,258)	(10,564)
Current income tax expense (recovery)	0	0
Deferred income tax expense (recovery)	0	200
Total income tax expense (recovery)	0	200
Net earnings (loss)	(12,258)	(10,764)
Exploration [Member] | Silver revenue [Member]
Statements Line Items
Revenue	0	0
Exploration [Member] | Gold revenue [Member]
Statements Line Items
Revenue	0	0
Exploration [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Exploration [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Exploration [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Exploration [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Exploration [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	0	0
Exploration [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	0	0
Guanacevi [Member]
Statements Line Items
Revenue	39,229	43,371
Salaries, wages and benefits	10,237	11,203
Direct costs	30,022	22,273
Depreciation and depletion	23,117	13,365
Royalties	1,123	1,239
Write down of inventory to NRV	2,026	166
Total cost of sales	66,525	48,246
Earnings (loss) before taxes	(27,296)	(4,875)
Current income tax expense (recovery)	642	676
Deferred income tax expense (recovery)	(7,475)	(5,589)
Total income tax expense (recovery)	(6,833)	(4,913)
Net earnings (loss)	(20,463)	38
Guanacevi [Member] | Silver revenue [Member]
Statements Line Items
Revenue	32,267	37,161
Guanacevi [Member] | Gold revenue [Member]
Statements Line Items
Revenue	6,962	6,210
Guanacevi [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	5,382	6,027
Direct costs	20,332	12,567
Guanacevi [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	1,644	1,951
Direct costs	6,783	6,709
Guanacevi [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	2,580	2,948
Direct costs	1,886	2,164
Guanacevi [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	(31)	68
Guanacevi [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	22,352	13,934
Guanacevi [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	662	209
Direct costs	1,021	833
Depreciation and depletion	765	(569)
Bolanitos [Member]
Statements Line Items
Revenue	39,805	48,419
Salaries, wages and benefits	8,113	8,396
Direct costs	18,161	20,364
Depreciation and depletion	861	1,894
Royalties	190	228
Write down of inventory to NRV	0	0
Total cost of sales	27,325	30,882
Earnings (loss) before taxes	12,480	17,537
Current income tax expense (recovery)	2,507	3,981
Deferred income tax expense (recovery)	(1,530)	(1,473)
Total income tax expense (recovery)	977	2,508
Net earnings (loss)	11,503	15,029
Bolanitos [Member] | Silver revenue [Member]
Statements Line Items
Revenue	14,310	15,265
Bolanitos [Member] | Gold revenue [Member]
Statements Line Items
Revenue	25,495	33,154
Bolanitos [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	5,102	5,023
Direct costs	10,716	11,777
Bolanitos [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	1,065	978
Direct costs	6,590	6,921
Bolanitos [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	2,360	2,419
Direct costs	1,670	1,893
Bolanitos [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	(31)	67
Bolanitos [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	931	1,900
Bolanitos [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	(383)	(91)
Direct costs	(815)	(227)
Depreciation and depletion	(70)	(6)
El Cubo [Member]
Statements Line Items
Revenue	71,475	58,709
Salaries, wages and benefits	14,553	13,689
Direct costs	23,824	27,607
Depreciation and depletion	14,434	1,323
Royalties	340	273
Write down of inventory to NRV	0	0
Total cost of sales	53,151	42,892
Earnings (loss) before taxes	18,324	15,817
Current income tax expense (recovery)	1,328	3
Deferred income tax expense (recovery)	(1,043)	415
Total income tax expense (recovery)	285	418
Net earnings (loss)	18,039	15,399
El Cubo [Member] | Silver revenue [Member]
Statements Line Items
Revenue	38,903	31,934
El Cubo [Member] | Gold revenue [Member]
Statements Line Items
Revenue	32,572	26,775
El Cubo [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	9,309	8,798
Direct costs	13,197	15,900
El Cubo [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	2,201	1,765
Direct costs	8,211	8,742
El Cubo [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	3,116	3,023
Direct costs	2,336	2,906
El Cubo [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	(31)	67
El Cubo [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	14,609	1,332
El Cubo [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	(42)	36
Direct costs	80	59
Depreciation and depletion	(175)	(9)
El Compas [Member]
Statements Line Items
Revenue	0	0
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	0	0
Royalties	0	0
Write down of inventory to NRV	0	0
Total cost of sales	0	0
Earnings (loss) before taxes	(882)	(2,334)
Current income tax expense (recovery)	0	0
Deferred income tax expense (recovery)	299	0
Total income tax expense (recovery)	299	0
Net earnings (loss)	(1,181)	(2,334)
El Compas [Member] | Silver revenue [Member]
Statements Line Items
Revenue	0	0
El Compas [Member] | Gold revenue [Member]
Statements Line Items
Revenue	0	0
El Compas [Member] | mining [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
El Compas [Member] | processing [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
El Compas [Member] | administrative [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
El Compas [Member] | stock based compensation [Member]
Statements Line Items
Salaries, wages and benefits	0	0
El Compas [Member] | depreciation and depletion [Member]
Statements Line Items
Depreciation and depletion	0	0
El Compas [Member] | change in inventory [Member]
Statements Line Items
Salaries, wages and benefits	0	0
Direct costs	0	0
Depreciation and depletion	$ 0	$ 0

XML

Disclosure of deferred taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Deferred income tax asset	$ 9,147	$ 655
Deferred income tax liabilities	(335)	(1,592)
Mexico operations [Member]
Statements Line Items
Deferred income tax assets (liabilities), net	8,812	(937)
Tax loss carryforwards [Member] | Mexico operations [Member]
Statements Line Items
Deferred income tax asset	13,709	9,326
Provision for reclamation and rehabilitation [Member] | Mexico operations [Member]
Statements Line Items
Deferred income tax asset	2,823	2,754
Inventory Member | Mexico operations [Member]
Statements Line Items
Deferred income tax liabilities	(1,838)	(1,816)
Mineral properties, plant and equipment [Member] | Mexico operations [Member]
Statements Line Items
Deferred income tax liabilities	(9,621)	(12,523)
Other [Member] | Mexico operations [Member]
Statements Line Items
Deferred income tax asset	3,774	1,959
Deferred income tax liabilities	$ (35)	$ (637)

XML

Disclosure of detailed information about effective income tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Current income tax expense (recovery)	$ 4,477	$ 4,650
Deferred income tax expense (recovery)	(9,749)	(6,447)
Total income tax expense (recovery)	(5,272)	(1,797)
Current year [Member]
Statements Line Items
Current income tax expense (recovery)	2,559	3,779
Deferred income tax expense (recovery)	(10,745)	(4,375)
Special mining duty [Member]
Statements Line Items
Current income tax expense (recovery)	1,850	844
Deferred income tax expense (recovery)	1,315	586
Adjustments recognized in the current year in relation to prior years [Member]
Statements Line Items
Current income tax expense (recovery)	68	27
Deferred income tax expense (recovery)	$ (319)	$ (2,658)

XML

Disclosure of detailed information about reconciliation of income tax computed at statutory tax rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Canadian statutory tax rates	27.00%	26.00%
Income tax expense computed at Canadian statutory rates	$ (4,782)	$ 2,050
Foreign tax rates different from statutory rate	(5,018)	(3,412)
Change in tax rates	291	0
Withholding taxes, net of tax credits	665	678
Stock-based compensation	541	743
Foreign exchange	3,738	(2,381)
Inflationary adjustment	3,710	2,539
Other items	1,259	956
Adjustments recognized in the current year in relation to prior years	(319)	(61)
Current year losses not recognized	4,212	2,612
Special mining duty Mexican tax	535	1,430
Recognition of previously unrecognized losses	(10,104)	(6,951)
Total income tax expense (recovery)	$ (5,272)	$ (1,797)

XML

Disclosure of financial assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statements Line Items
Cash and cash equivalents	$ 33,376	$ 38,277	$ 72,317
Investments	88	168
Trade and other receivables	26,947	34,012
Total financial assets	5,715
Accounts payable and accrued liabilities	19,470	$ 19,068
Total financial liabilities	1,479
Gross carrying amount [member]
Statements Line Items
Cash and cash equivalents	33,376
Investments	88
Trade and other receivables	6,007
Total financial assets	39,471
Accounts payable and accrued liabilities	19,470
Total financial liabilities	19,470
At fair value [member]
Statements Line Items
Cash and cash equivalents	33,376
Investments	88
Trade and other receivables	6,007
Total financial assets	39,471
Accounts payable and accrued liabilities	19,470
Total financial liabilities	19,470
Financial liabilities at fair value through profit or loss, category [member]
Statements Line Items
Accounts payable and accrued liabilities	1,479
Total financial liabilities	1,479
Financial liabilities at amortised cost, category [member]
Statements Line Items
Accounts payable and accrued liabilities	17,991
Total financial liabilities	17,991
Financial assets at fair value through profit or loss, category [member]
Statements Line Items
Cash and cash equivalents	0
Investments	88
Trade and other receivables	6,007
Total financial assets	6,095
Financial assets at amortised cost, category [member]
Statements Line Items
Cash and cash equivalents	33,376
Investments	0
Trade and other receivables	0
Total financial assets	$ 33,376

XML

Disclosure of detailed information about financial assets, by fair value hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Investments	$ 88	$ 168
Trade receivables	5,627	8,114
Total financial assets	5,715
Deferred share units	1,407	1,319
Share appreciation rights	72	$ 341
Total financial liabilities	1,479
Level 1 [Member]
Statements Line Items
Investments	88
Trade receivables	0
Total financial assets	88
Deferred share units	1,407
Share appreciation rights	0
Total financial liabilities	1,407
Level 2 [Member]
Statements Line Items
Investments	0
Trade receivables	5,627
Total financial assets	5,627
Deferred share units	0
Share appreciation rights	72
Total financial liabilities	72
Level 3 [Member]
Statements Line Items
Investments	0
Trade receivables	0
Total financial assets	0
Deferred share units	0
Share appreciation rights	0
Total financial liabilities	$ 0

XML

Disclosure of credit risk exposure (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Accounts receivable	$ 26,947	$ 34,012
Carrying amount [Member]
Statements Line Items
Accounts receivable	6,007
Carrying amount [Member] | Less than 1 month [Member]
Statements Line Items
Accounts receivable	9,211	13,799
Carrying amount [Member] | 1 to 3 months [Member]
Statements Line Items
Accounts receivable	4,284	3,943
Carrying amount [Member] | 4 to 6 months [Member]
Statements Line Items
Accounts receivable	1,039	3,282
Carrying amount [Member] | Over 6 months [Member]
Statements Line Items
Accounts receivable	12,413	12,988
Gross impairment [Member]
Statements Line Items
Accounts receivable	194	2,212
Gross impairment [Member] | Less than 1 month [Member]
Statements Line Items
Accounts receivable	0	0
Gross impairment [Member] | 1 to 3 months [Member]
Statements Line Items
Accounts receivable	0	0
Gross impairment [Member] | 4 to 6 months [Member]
Statements Line Items
Accounts receivable	0	0
Gross impairment [Member] | Over 6 months [Member]
Statements Line Items
Accounts receivable	$ 194	$ 2,212

XML

Disclosure of liquidity risk (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Accounts payable and accrued liabilities	$ 19,470	$ 19,068
Income taxes payable	4,050	3,185
Provision for reclamation and rehabilitation	8,195	$ 7,982
Capital expenditure commitments	140
Operating leases	2,840
Total contractual obligations	34,695
Less than 1 year [Member]
Statements Line Items
Accounts payable and accrued liabilities	19,470
Income taxes payable	4,050
Provision for reclamation and rehabilitation	0
Capital expenditure commitments	140
Operating leases	394
Total contractual obligations	24,054
1 to 3 years [Member]
Statements Line Items
Accounts payable and accrued liabilities	0
Income taxes payable	0
Provision for reclamation and rehabilitation	6,066
Capital expenditure commitments	0
Operating leases	720
Total contractual obligations	6,786
4 to 5 years [Member]
Statements Line Items
Accounts payable and accrued liabilities	0
Income taxes payable	0
Provision for reclamation and rehabilitation	2,129
Capital expenditure commitments	0
Operating leases	542
Total contractual obligations	2,671
Over 5 years [Member]
Statements Line Items
Accounts payable and accrued liabilities	0
Income taxes payable	0
Provision for reclamation and rehabilitation	0
Capital expenditure commitments	0
Operating leases	1,184
Total contractual obligations	$ 1,184

XML

Disclosure of market risk (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statements Line Items
Financial assets	$ 5,715
Financial liabilities	(1,479)
Canadian Dollar [Member]
Statements Line Items
Financial assets	721	$ 1,484
Financial liabilities	(2,767)	(2,984)
Net financial assets (liabilities)	(2,046)	(1,500)
Mexican Peso [Member]
Statements Line Items
Financial assets	26,969	29,502
Financial liabilities	(15,438)	(17,586)
Net financial assets (liabilities)	$ 11,531	$ 11,916