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Press release from CNW Group

Endeavour Mining reports record gold production and cash flow from mine operations of $15.3 million

Tuesday, November 08, 2011

Endeavour Mining reports record gold production and cash flow from mine operations of $15.3 million09:00 EST Tuesday, November 08, 2011Toronto Stock Exchange: EDV (All figures are in US dollars unless otherwise indicated)GEORGE TOWN, Grand Cayman, Nov. 8, 2011 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) today announces financial and operational results for the third quarter of 2011.The Corporation's Youga Mine in Burkina Faso set a production record with 24,047 ounces of gold produced during Q3 2011 at cash cost of $592 per ounce produced1.  During the quarter, 22,845 ounces of gold were sold at a cash cost of $623 per ounce sold1 and operating cash flow from mine operations was $15.3 million.  This strong performance is due to improved gold grades, an increase in the average realized gold price and effective cost controls.At September 30, 2011, the Corporation had cash & equivalents and marketable securities of $200.1 million and holds a 38.5% stake in Namibia Rare Earths Inc. (TSX:NRE) with a market value of $16.3 million as at September 30, 2011.Financial Highlights from Q3 2011Gold revenues of $38.0 million, which compares to $28.3 million in the same quarter of 2010Record gold production of 24,047 ounces, which compares to 23,173 ounces in the same quarter of 2010Gold sales of 22,845 ounces, which compares to 24,004 ounces in the same quarter of 2010Earnings from mine operations were $19.3 million, which compares to $9.9 million in the same quarter of 2010Operating cash flow from mine operations was $15.3 million, which compares to $10.6 million in the same quarter of 2010Net earnings attributable to shareholders of $9.6 million or $0.08 per share, which compares to $70.7 million or $0.70 per share in the same quarter of 2010.  The third quarter of 2010 included a $71.2 million gain from the disposal of the Corporation's investment in Crew Gold Corporation.Based on actual production results of 65,678 ounces at a cash cost of $602 per ounce produced1 for the nine month ended September 30, 2011 and the budgeted plan for the remainder of 2011, the Corporation anticipates achieving full year guidance of approximately 84,000 ounces at a cash cost of $610 to $650 per ounce1.For the nine months ended September 30, 2011, the Corporation has invested approximately $9 million of its full year $17 million budget for exploration & development programs.  The Corporation's activities have focused on extending the mine life at Youga to 2017 and beyond through resource delineation on six deposits.  Resource and reserve estimation has commenced and is anticipated to be reported by the end of the year.  Additional exploration drilling was conducted on five targets within the immediate mine permit area and also at the Ouaré deposit located 40 km from the Youga Mill.  In addition, the Corporation continues to advance the Agbaou Project in Côte d'Ivoire through an extensive infill and condemnation drilling program and an updated feasibility study.  Infill drilling was completed in preparation for an update resource estimate.  The condemnation drilling resulted in establishment of a total of 12 new targets for exploration and the program was expanded from 20,000m to 29,500m.   The updated feasibility study is being conducted by SENET, SRK, and Knight Piesold and is scheduled to be completed in Q1 2012.Conference Call DetailsManagement's discussion of the financial results will be webcast by V-Call on Tuesday, November 8, 2011 at 11:00 am Eastern Time or 8:00 am Pacific Time and can be accessed from the Corporation's website at www.endeavourmining.com or by calling the operator at 201-689-8565 or toll-free 1-877-407-0778 prior to the scheduled start time. The call will be archived for later playback on Endeavour's website until November 8, 2012.In order to access the Corporation's financial statements directly, please click the following URL: http://www.endeavourmining.com/i/pdf/Financials/2011Q3.pdfFinancial Statements and related Management Discussion and Analysis will also be available on SEDAR.Qualified PersonsWith respect to technical information relating to mineral projects contained in this news release, Adrian de Freitas, C. Eng., General Manager, Youga Mine and K. Kirk Woodman, P.Geo., Endeavour's Head of Exploration have approved such disclosure as "qualified persons" for the purposes of NI 43-101.About Endeavour Mining CorporationEndeavour is a gold producer.  Endeavour also holds an extensive exploration land position and various advanced-stage development gold projects in West Africa.  Endeavour has a global strategy, supported by financial resources and management's company building expertise, to grow into an intermediate gold producer through strategic acquisitions.On August 21, 2011, Endeavour and Adamus Resources Limited (ASX:ADU) announced they have entered into a definitive Merger Implementation Agreement to combine through an all-stock merger of equals transaction creating a new growth focused West African gold producer.  In connection with the merger, a special meeting of Endeavour's shareholders has been scheduled to be held on November 25, 2011 which, if approved, will result in the merger closing during December 2011.The common shares of Endeavour Mining Corporation are traded on the Toronto Stock Exchange under the symbol "EDV".On behalf of Endeavour Mining Corporation"Christian Milau"Christian MilauExecutive Vice President & Chief Financial OfficerCash Cost per Ounce is a non-GAAP financial performance measure with no standard meaning under IFRS.  The amount presented is calculated on the basis of operating costs excluding royalties, refining, freight, and non-cash adjustments.The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking information relating to the future performance of Endeavour Mining Corporation. Forward-looking information, specifically, that concerning future performance, is subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions.For further information: Stephen Roberts, Senior Vice President - Investor Relations (604) 609-6130, sroberts@endeavourmining.com or Vanguard Shareholder Solutions 1-866-341-4111 or (604) 608-0824, investor@endeavourmining.com