ANNUAL INFORMATION FORM for the Financial Year Ended December 31, 2020
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ANNUAL INFORMATION FORM For the financial year ended December 31, 2020 March 31, 2021 1 TABLE OF CONTENTS PRELIMINARY NOTES AND CAUTIONARY PRIOR SALES ............................................. 110 STATEMENT .................................................................. 3 DIRECTORS AND OFFICERS ................................ 111 DATE OF INFORMATION ............................... 3 CORPORATE CEASE TRADE ORDERS OR CURRENCY AND EXCHANGE RATES .............. 3 BANKRUPTCIES .................................................. 113 CONVERSION TABLE AND TECHNICAL PERSONAL BANKRUPTCIES ....................... 113 ABBREVIATIONS ..................................................... 3 PENALTIES OR SANCTIONS ....................... 114 CAUTION ON FORWARD-LOOKING CONFLICTS OF INTEREST........................... 114 STATEMENTS ......................................................... 4 AUDIT COMMITTEE ........................................... 114 CORPORATE STRUCTURE ....................................... 5 AUDIT COMMITTEE CHARTER .................. 114 GENERAL DEVELOPMENT OF THE BUSINESS OF THE CORPORATION ....................................................... 7 COMPOSITION OF THE AUDIT COMMITTEE ...................................................... 114 OVERVIEW OF THE BUSINESS ....................... 7 RELEVANT EDUCATION AND THREE-YEAR CORPORATE HISTORY .............. 8 EXPERIENCE ....................................................... 114 DESCRIPTION OF THE BUSINESS ................... 9 NON-AUDIT SERVICES ............................... 115 MINERAL PROPERTIES OF THE CORPORATION .... 14 EXTERNAL AUDITOR SERVICE FEES ........... 115 MINERAL RESERVES AND RESOURCES ........ 14 LEGAL PROCEEDINGS AND REGULATORY BOUNGOU MINE, BURKINA FASO .............. 19 ACTIONS ................................................................... 115 HOUNDÉ MINE, BURKINA FASO ................. 27 INTEREST OF MANAGEMENT AND OTHERS IN ITY MINE, CÔTE D'IVOIRE ............................ 35 MATERIAL TRANSACTIONS ....................................... 116 KARMA MINE, BURKINA FASO .................... 44 TRANSFER AGENT AND REGISTRAR ................... 116 MANA MINE, BURKINA FASO ..................... 51 MATERIAL CONTRACTS ...................................... 116 SABODALA MASSAWA MINE, SENEGAL ..... 59 INTERESTS OF EXPERTS ..................................... 116 WAHGNION MINE, BURKINA FASO ............ 66 AUDITORS ................................................. 116 FETEKRO PROJECT, CÔTE D'IVOIRE ............. 74 OTHER EXPERTS ........................................ 116 KALANA PROJECT, MALI ............................. 79 ADDITIONAL INFORMATION.............................. 117 GOLDEN HILL PROJECT, BURKINA FASO ..... 83 APPENDIX "A" – AUDIT COMMITTEE CHARTER ............ 1 OTHER PROPERTIES .................................... 84 RISK FACTORS ...................................................... 85 OPERATIONAL RISKS ................................... 85 FINANCIAL RISKS ....................................... 106 DIVIDENDS AND DISTRIBUTIONS ....................... 109 DESCRIPTION OF CAPITAL STRUCTURE OF ISSUER 109 GENERAL DESCRIPTION OF CAPITAL STRUCTURE ........................................................ 109 ENDEAVOUR SHARES ................................ 109 MARKET FOR SECURITIES .................................. 109 PRICE RANGE AND TRADING VOLUMES OF ENDEAVOUR SHARES ................................... 109 2 PRELIMINARY NOTES AND CAUTIONARY STATEMENT DATE OF INFORMATION In this Annual Information Form ("AIF"), information is given as at December 31, 2020, unless stated otherwise. Except as otherwise required by the context, reference to "Endeavour" or the "Corporation" in this AIF means, collectively, Endeavour Mining Corporation and its subsidiaries. All references in this AIF to mine-level all-in sustaining cost ("AISC") exclude depreciation, amortization, corporate general administrative costs and other non-cash related adjustments, unless otherwise indicated. CURRENCY AND EXCHANGE RATES All currency references in this AIF are in United States dollars, unless otherwise indicated. Reference to "Canadian dollars" or the use of the symbol "C$" refers to Canadian dollars. The daily average rate of exchange reported by the Bank of Canada for the conversion of Canadian dollars into United States dollars on March 29, 2021 was C$1.00 = $0.7940 (US$1.00 = C$1.2594). CONVERSION TABLE AND TECHNICAL ABBREVIATIONS Amounts in this AIF are generally in metric units. Conversion rates from Imperial measure to metric and from metric to Imperial are provided below. All ounces are troy ounces and 14.58 troy ounces equal one pound (containing 16 imperial ounces). Table 1: Conversion from Imperial measure to Metric and from Metric to Imperial Imperial Measure Metric Unit Metric Measure Imperial Unit 2.47 acres 1 hectare 0.4047 hectares 1 acre 3.28 feet 1 metre 0.3048 metres 1 foot 0.62 miles 1 kilometre 1.609 kilometres 1 mile 35.315 cubic feet 1 cubic metre 0.0283 cubic metres 1 cubic foot 0.032 ounces (troy) 1 gram 31.103 grams 1 ounce (troy) 1.102 tons (short) 1 tonne 0.907 tonnes 1 ton 0.029 ounces (troy/ton) 1 gram/tonne 34.28 grams/tonne 1 ounce (troy/ton) Unless otherwise defined, abbreviations used in this AIF have the following meanings: Table 2: Abbreviation Definitions Abbreviation Definition Au gold CFA French West African currency (CFA franc) DD diamond drilling g gram ha hectare kg kilogram km kilometre koz thousands of ounces (troy) kV kilovolt LOM Life of Mine 3 Abbreviation Definition m metre M million Moz million ounces (troy) Mt million metric tonnes Mtpa million metric tonnes per annum MW megawatt Mwh megawatt hour oz(s) ounce or ounces (troy) RAB rotary air blast RC reverse circulation ROM run of mine t metric tonne CAUTION ON FORWARD-LOOKING STATEMENTS This AIF contains "forward-looking statements". Forward-looking statements include, but are not limited to, statements with respect to Endeavour's plans or future financial or operating performance, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, commodity prices, conclusions of economic assessments of projects, the timing and amount of estimated future production, costs of future production, future capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, requirements for additional capital, sources and timing of additional financing, economic, political and regulatory conditions, realization of unused tax benefits and the future outcome of legal and tax matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "have potential" or "will be taken", "occur" or "be achieved". The material factors or assumptions used to develop material forward- looking statements are disclosed throughout this document and other publicly available filings of Endeavour. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward looking statements include the ability to deliver gold production growth coupled with a further decline in total cash cost per ounce produced and a reduction in capital expenditures in 2021, attaining 2021 production guidance, the ability to fund all of Endeavour's cash requirements for 2021 with existing sources of liquidity and forecasted cash flow from operations, the ability to carry out the planned 2021 exploration program and obtain results within anticipated schedules, political and social stability in West Africa (including Endeavour's ability to maintain or renew licenses and permits) and other risks described in this AIF and in other documents filed from time to time with Canadian securities regulatory authorities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to joint venture operations; risks related to general economic conditions and credit availability; actual results of current exploration activities; unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; changes in national and local government regulation of mining operations, tax rules and regulations, and 4 political and economic developments