Endeavour Mining climbed on an exploration update for its Youga mine in Burkina Faso, West Africa. The updatefocused on two areas that are to be incorporated into an updated resource estimate for the Youga mine in early 2011: A2NE and
LeDuc. A2NE is located 3 km NE from the Youga plant. Drilling has been focused along a 350-m strike length and
management has indicated that all 52 holes drilled on the zone intersected mineralization, demonstrating continuity. Highlighted
results returned 1-22 m intervals grading 1.5-37.2 g/t gold. Higher grade intercepts include: 1 m at 107 g/t Au; 1 m at 104 g/t
Au, 3 m at 13.4 g/t Au; and 3 m at 12.1 g/t Au. LeDuc is located 3 km SW from the Youga plant. Highlighted results returned
11-22 m intervals grading 1.0-1.7 g/t Au. Given the results returned from Youga over the past 12 months, Endeavour recently
increased its exploration budget to US$10 million for 2011. An updated resource estimate is expected to be released in Q1/11.
Canaccord Genuity Mining Analyst Nicholas Campbell expects to see at least a one-year mine life extension to the Youga mine
justified by the updated resource. He notes that in 2010, the Youga gold mine underwent a significant transformation with
production increasing 29% and costs expected to drop by 15%. In 2011, he expects Endeavour to start to attract broader interest
as it extends the life of the Youga mine, optimizes the Agbaou gold project (10%, Cote D’Ivoire) and uses its substantial
financial resources to add new production. Endeavour is one of Campbell’s top picks as it is currently one of the cheapest gold
producers based on his CFPS estimates.