Endeavour Silver Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 Endeavour Silver Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited - prepared by management)

(expressed in thousands of US dollars)

			June 30,			December 31,
	Notes		2022			2021

ASSETS

Current assets
Cash and cash equivalents		$	116,226		$	103,303
Other investments	4		8,293			11,200
Accounts and other receivable	5		13,486			14,462
Income tax receivable			1,219			177
Inventories	6		35,664			27,485
Prepaid expenses			11,566			5,135
Total current assets			186,454			161,762

Non-current deposits			595			599
Non-current income tax receivable			3,570			3,570
Non-current other investments	4		2,943			-
Non-current IVA receivable	5		7,528			4,256
Deferred income tax asset			-			936
Intangible assets			-			40
Right-of-use leased assets			614			664
Mineral properties, plant and equipment	8		141,806			122,197
Total assets		$	343,510		$	294,024

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued liabilities		$	26,383		$	31,991
Income taxes payable			4,995			4,228
Loans payable	9		5,179			4,128
Lease liabilities			176			207
Total current liabilities			36,733			40,554

Loans payable	9		7,392			6,366
Lease liabilities			755			794
Provision for reclamation and rehabilitation			7,576			7,397
Deferred income tax liability			8,545			1,506
Total liabilities			61,001			56,617

Shareholders' equity
Common shares, unlimited shares authorized, no par value, issued
and outstanding 181,051,354 shares (Dec 31, 2021 - 170,537,307 shares)	Page 4		631,751			585,406
Contributed surplus	Page 4		5,349			6,331
Retained earnings (deficit)	Page 4		(354,591	)		(354,330	)
Total shareholders' equity			282,509			237,407
Total liabilities and shareholders' equity		$	343,510		$	294,024

Commitments and contingencies (Notes 8, 9)

Subsequent events (Note 8(c), 10(d))

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

Approved on behalf of the Board:

/s/ Margaret Beck		/s/ Daniel Dickson
Director		Director

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 2

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)
(unaudited - prepared by management)

(expressed in thousands of US dollars, except for shares and per share amounts)

			Three months ended					Six months ended
			June 30,			June 30,		June 30,			June 30,
	Notes		2022			2021		2022			2021

Revenue	11	$	30,782		$	47,775	$	88,522		$	82,241

Cost of sales:
Direct production costs			19,828			26,223		46,549			44,951
Royalties			2,194			4,340		6,511			6,800
Share-based payments	10 (c)(d)		113			111		240			229
Depreciation, depletion and amortization			4,175			6,624		10,481			14,120
Write down of inventory to net realizable value	6		-			272		-			272
			26,310			37,570		63,781			66,372

Mine operating earnings			4,472			10,205		24,741			15,869

Expenses:
Exploration and evaluation	12		3,784			5,025		7,000			9,155
General and administrative	13		1,348			4,293		5,645			7,816
Care and maintenance costs			189			55		379			576
Impairment (reversal of impairment) of non- current assets, net	8		-			-		-			(16,791	)
Write off of exploration properties			500			-		500			-
			5,821			9,373		13,524			756

Operating earnings (loss)			(1,349	)		832		11,217			15,113

Finance costs			336			216		634			507

Other income (expense):
Foreign exchange			(289	)		659		522			(35	)
Gain on asset disposal			-			5,841		-			5,841
Investment and other			(6,872	)		1,802		(1,052	)		4,553
			(7,161	)		8,302		(530	)		10,359

Earnings (loss) before income taxes			(8,846	)		8,918		10,053			24,965

Income tax expense:
Current income tax expense			1,325			1,146		2,340			1,817
Deferred income tax expense			1,752			1,116		7,974			4,243
			3,077			2,262		10,314			6,060

Net earnings (loss) and comprehensive earnings (loss) for the period		$	(11,923	)	$	6,656	$	(261	)	$	18,905


Basic earnings (loss) per share based on net earnings		$	(0.07	)	$	0.04	$	(0.00	)	$	0.12
Diluted earnings (loss) per share based on net earnings	10(f)	$	(0.07	)	$	0.04	$	(0.00	)	$	0.11

Basic weighted average number of shares outstanding			180,974,609			168,383,755		176,291,929			164,051,368
Diluted weighted average number of shares outstanding	10(f)		184,569,970			172,195,942		179,018,499			167,743,113

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

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 3

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited - prepared by management)

(expressed in thousands of US dollars, except share amounts)

	Note	Number of shares		Share Capital		Contributed Surplus			Retained Earnings (Deficit)			Total Shareholders' Equity

Balance at December 31, 2020		157,924,708		517,711		9,662			(368,302	)		159,071

Public equity offerings, net of issuance costs	10 (a)	9,899,485		57,556		-			-			57,556
Exercise of options	10 (b)	2,096,861		8,550		(3,967	)		-			4,583
Share-based compensation	10 (b)(c)(d)	-		-		2,193			-			2,193
Settlement of performance share units	10(c)	379,340		561		(2,735	)		-			(2,174	)
Earnings for the period		-		-		-			18,905			18,905
Balance at June 30, 2021		170,300,394	$	584,378	$	5,153		$	(349,397	)	$	240,134

Public equity offerings, net of issuance costs	10 (a)	160,913		833		-			-			833
Exercise of options	10 (b)	76,000		195		(59	)		-			136
Share-based compensation	10 (b)(c)(d)	-		-		1,443			-			1,443
Expiry and forfeiture of options	10 (b)	-		-		(17	)		17			-
Settlement of performance share units	10 (c)	-		-		(189	)		-			(189	)
Loss for the period		-		-		-			(4,950	)		(4,950	)
Balance at December 31, 2021		170,537,307	$	585,406	$	6,331		$	(354,330	)	$	237,407

Public equity offerings, net of issuance costs	10 (a)	9,293,150		43,189		-			-			43,189
Exercise of options	10 (b)	553,200		2,333		(755	)		-			1,578
Issued for performance share units	10 (c)	664,170		806		(2,703	)		-			(1,897	)
Issued for deferred share units	10 (c)	3,527		17		(17	)		-			-
Share-based compensation	10 (b)(c)(d)	-		-		2,499			-			2,499
Settlement of deferred share units	10 (c)	-		-		(6	)		-			(6	)
Loss for the period		-		-		-			(261	)		(261	)
Balance at June 30, 2022		181,051,354	$	631,751	$	5,349		$	(354,591	)	$	282,509

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

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 4

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited - prepared by management)

(expressed in thousands of US dollars)

		Three months ended						Six months ended
			June 30,			June 30,			June 30,			June 30,
	Notes		2022			2021			2022			2021

Operating activities
Net earnings (loss) for the period		$	(11,923	)	$	6,656		$	(261	)	$	18,905

Items not affecting cash:
Share-based compensation	10(b)(c)(d)		972			1,028			2,499			2,193
Depreciation, depletion and amortization	8		4,324			6,723			10,786			14,347
Impairment (reversal of impairment) of non-current assets, net	8		-			-			-			(16,791	)
Write off of exploration properties			500			-			500			-
Deferred income tax expense			1,752			1,116			7,974			4,243
Unrealized foreign exchange loss (gain)			(84	)		(143	)		(220	)		(53	)
Finance costs			336			216			634			507
Write down of inventory to net realizable value			-			272			-			272
Loss (gain) on asset disposal			105			(5,841	)		46			(5,807	)
Loss (gain) on other investments	4		7,626			(1,366	)		2,269			(3,912	)
Net changes in non-cash working capital	14		(22,156	)		806			(21,042	)		(8,360	)
Cash from (used in) operating activities			(18,548	)		9,467			3,185			5,544

Investing activities
Proceeds on disposal of property, plant and equipment			48			6,985			82			7,541
Mineral property, plant and equipment	8		(15,451	)		(8,164	)		(28,448	)		(15,434	)
Purchase of investments			(748	)		-			(2,119	)		(832	)
Proceeds from disposal of marketable securities	4		-			4,905			-			9,288
Redemption of (investment in) non-current deposits			2			19			4			(1	)
Cash from (used) in investing activities			(16,149	)		3,745			(30,481	)		562

Financing activities
Repayment of loans payable	9		(1,214	)		(918	)		(2,297	)		(1,887	)
Repayment of lease liabilities			(54	)		(43	)		(106	)		(85	)
Interest paid	9		(204	)		(174	)		(381	)		(367	)
Public equity offerings	10(a)		-			29,034			46,001			59,134
Exercise of options	10(b)		1,448			785			1,578			4,583
Share issuance costs	10(a)		(15	)		(664	)		(2,812	)		(1,266	)
Deferred share unit redemption			(6	)		-			(6	)		-
Performance share unit redemption			-			(2,174	)		(1,897	)		(2,174	)
Cash from (used) financing activities			(45	)		25,846			40,080			57,938

Effect of exchange rate change on cash and cash equivalents			(46	)		144			139			64

Increase (decrease) in cash and cash equivalents			(34,742	)		39,058			12,784			64,044
Cash and cash equivalents, beginning of the period			151,014			85,989			103,303			61,083
Cash and cash equivalents, end of the period		$	116,226		$	125,191		$	116,226		$	125,191

Supplemental cash flow information (Note 14)

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

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 5

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2022 and 2021
(unaudited – prepared by management)
(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 and United States. The address of the registered office is #1130 - 609 Granville Street, Vancouver, B.C., V7Y 1G5.

2. BASIS OF PRESENTATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements and should be read in conjunction with the Company's consolidated financial statements as at and for the year ended December 31, 2021.

The Board of Directors approved the consolidated financial statements for issue on Aug 4, 2022.

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 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 Precious Metals S.A. de C.V, Endeavour USA Holdings and Endeavour USA Corp. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2021, except as described below.

The following new accounting standards has been adopted in the condensed consolidated financial statements:

On May 14, 2020, the International Accounting Standard Board (IASB) published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related costs in profit or loss. As of June 30, 2022, these amendments did not affect our condensed consolidated interim financial statements as no amounts have been received from selling items produced while preparing assets for their intended use.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual audited consolidated financial statements as at and for the year ended December 31, 2021 and accordingly should be read in conjunction with the Company's annual audited financial statements for the year ended December 31, 2021.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 6

4. OTHER INVESTMENTS

		June 30,			December 31,
		2022			2021
Balance at beginning of the year	$	11,200		$	4,767
Acquisition of marketable securities, at cost		2,305			3,753
FMV of investments received on asset disposal		-			9,851
Disposals		-			(9,288	)
Gain (loss) on marketable securities		(2,269	)		2,117
Balance at end of the period		11,236			11,200
Less: Current portion		8,293			11,200
Non-Current marketable securities	$	2,943		$	-

The Company holds $10,313 in marketable securities that are classified as Level 1 and $923 in marketable securities that are classified as Level 3 in the fair value hierarchy and are classified as financial assets measured at FVTPL. The fair values of 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, being the market with the greatest volume and level of activity for the assets. Marketable securities classified as Level 3 in the fair value hierarchy are share purchase warrants and the fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model.

During the six months ended June 30, 2022, the Company acquired 6,600,000 units of Max Resource Corp ("Max") through a private placement with each unit consisting of one common share and ½ share purchase warrant. At the same time, the Company entered into a collaboration agreement with Max under which acquired shares and warrants of Max have certain transfer restrictions and cannot be liquidated before March 28, 2024. Accordingly, those shares and warrants have been classified as non-current.

5. ACCOUNTS AND OTHER RECEIVABLES

			June 30,		December 31,
	Note		2022		2021

Trade receivables ⁽¹⁾		$	4,745	$	4,751
IVA receivables⁽²⁾			8,367		8,863
Other receivables			374		847
Due from related parties	7		-		1
		$	13,486	$	14,462

(1) The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted 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 17).

(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.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 7

These delays and denials have occurred within Compañia Minera del Cubo ("El Cubo") and Refinadora Plata Guanaceví S.A. de C.V. ("Guanaceví"). At June 30, 2022, El Cubo holds $512 and Guanaceví holds $8,851 in IVA receivables which the Company and its advisors have determined to be recoverable from tax authorities (December 31, 2021 - $302 and $8,067 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.

As at June 30, 2022, the total IVA receivable of $15,895 (December 31, 2021 - $13,119) has been allocated between the current portion of $8,367, which is included in accounts receivable, and a non-current portion of $7,528 (December 31, 2021 - $8,863 and $4,256 respectively). The non-current portion is composed of El Cubo and Guanacevi of $167 and $1,456 respectively, which are currently under appeal and are unlikely to be received in the next 12 months. The remaining $5,905 is IVA receivable for Terronera, which may not become recoverable until Terronera recognizes revenue for tax purposes.

6. INVENTORIES

		June 30,		December 31,
		2022		2021

Warehouse inventory	$	10,018	$	8,698
Stockpile inventory		3,469		2,335
Finished Goods inventory		20,777		15,550
Work in process inventory		1,400		902
	$	35,664	$	27,485

7. 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 $3 and $9 for the three and six months ended June 30, 2022 respectively (June 30, 2021 - $1 and $2 respectively). The Company has a $Nil net receivable related to these costs as of June 30, 2022 (December 31, 2021 - $1).

The Company was charged $72 and $342 for legal services for the three and six months ended June 30, 2022 respectively by a legal firm in which the Company's corporate secretary is a partner (June 30, 2021 - $51 and $192 respectively). The Company has $17 payable to the legal firm as at June 30, 2022 (December 31, 2021 - $5).

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 8

8. 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, 2020	$	552,878		$	106,445		$	81,003		$	13,314		$	12,777		$	766,417

Additions		40,261			2,838			15,435			1,623			2,113			62,270
Disposals		(81,740	)		(11,098	)		(9,298	)		(1,492	)		(2,845	)		(106,473	)

Balance at December 31, 2021	$	511,399		$	98,185		$	87,140		$	13,445		$	12,045		$	722,214

Additions		20,482			1,774			9,219			665			505			32,645
Disposals		(686	)		-			(272	)		-			(373	)		(1,331	)

Balance at June 30, 2022	$	531,195		$	99,959		$	96,087		$	14,110		$	12,177		$	753,528

Accumulated amortization and impairment

Balance at December 31, 2020	$	510,335		$	94,815		$	53,122		$	10,166		$	10,024		$	678,462

Amortization		15,614			3,393			4,947			352			1,202			25,508
Disposals		(81,180	)		(10,000	)		(8,624	)		(1,324	)		(2,825	)		(103,953	)

Balance at December 31, 2021	$	444,769		$	88,208		$	49,445		$	9,194		$	8,401		$	600,017

Amortization		7,872			1,164			2,593			164			366			12,159
Disposals		-			-			(191	)		-			(263	)		(454	)

Balance at June 30, 2022	$	452,641		$	89,372		$	51,847		$	9,358		$	8,504		$	611,722

Net book value
At December 31, 2021	$	66,630		$	9,977		$	37,695		$	4,251		$	3,644		$	122,197
At June 30, 2022	$	78,554		$	10,587		$	44,240		$	4,752		$	3,673		$	141,806

Included in Mineral properties is $20,162 in acquisition costs for exploration properties and $17,458 for development properties (December 31, 2021 - $19,063 and $10,311 respectively).

As of June 30, 2022, the Company has $24.6 million committed for capital equipment purchases.

(b) El Cubo, Mexico

On March 17, 2021, the Company signed a definitive agreement to sell its El Cubo mine and related assets to Guanajuato Silver Company Ltd. ("GSilver") (formerly known as VanGold Mining Corp.) for $15.0 million in consideration composed of cash and share payments plus additional contingency payments. On April 9, 2021, GSilver purchased the El Cubo assets for the following consideration:

Per the terms of the agreement, GSilver agreed to pay $15.0 million for the El Cubo assets. The Company has received total gross consideration of $19.7 million as follows:

$0.5 million cash down-payment
$7.0 million cash on closing
$9.8 million paid in shares with 21,331,058 shares of GSilver with fair value of CAN$0.58 per share on April 9, 2021. Total fair value of the shares at the time of agreement was $5.0 million priced at CAN$0.30
$2.4 million paid by unsecured promissory note with face value $2.5 million (settled in November 2021).

GSilver has also agreed to pay the Company up to an additional $3.0 million in contingent payments, for which the Company has not recorded any consideration, based on the following events:

$1.0 million upon GSilver producing 3.0 million silver equivalent ounces from the El Cubo mill
$1.0 million if the price of gold closes at or above $2,000 dollars per ounce for 20 consecutive days within two years after closing
$1.0 million if the price of gold closes at or above $2,200 dollars per ounce for 20 consecutive days prior to April 9, 2023.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 9

During the period ended March 31, 2021, the El Cubo mine project, consisting of the land rights, plant, buildings and the related reclamation liability were re-classified to current assets and liabilities as "assets held for sale" and "liabilities held for sale" . Immediately prior to the classification to assets and liabilities held for sale, the carrying amounts of the land rights, plant and building were remeasured and the historical gross impairments of $216.9 million net of depletion and depreciation of $200.1 million, were reversed resulting in a $16.8 million impairment reversal. The reclamation provision for the El Cubo mine of $4.6 million was transferred to GSilver upon acquisition of the related mining concessions. The Company has recognized a $5.8 million gain on the disposal of the El Cubo mine and related assets in the year ended December 31, 2021.

On November 16, 2021 the Company arranged for early payment of the $2.5 million promissory note. In consideration for the early payment, the Company has agreed to reduce the principal amount of the note by $25,000 and settle the Mexican value added tax payable on the purchase price for El Cubo represented by the note for 901,224 common shares of GSilver.

(c) Acquisition of the Pitarrilla Project

On January 17, 2022, the Company entered into a definitive agreement to purchase the Pitarrilla project in Durango State, Mexico, by acquiring all of the issued and outstanding shares of SSR Durango, S.A. de C.V. from SSR Mining Inc. ("SSR") for total consideration of $70 million (consisting of $35 million in Company's shares and a further $35 million in cash or in the Company's shares at the election of SSR and as agreed to by the Company) and a 1.25% net smelter returns royalty. SSR retains a 1.25% NSR Royalty in Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR proposes to sell it.

The acquisition was completed on July 6, 2022. Total consideration paid included 8,577,380 shares of the Company issued on July 6, 2022 with deemed value of $34.9 million and $35,1 million cash payment. The shares are subject to a hold period of four months and one day following the date of closing.

9. LOANS PAYABLE

		June 30,			December 31,
		2022			2021

Balance at the beginning of the year	$	10,494		$	9,672
Net proceeds from software and equipment financing		4,374			4,399
Finance cost		347			650
Repayments of principal		(2,297	)		(3,563	)
Repayments of finance costs		(347	)		(611	)
Effects of movements in exchange rates		-			(53	)
Balance at the end of the period	$	12,571		$	10,494

Statements of Financial Position Presentation
Current loans payable	$	5,179		$	4,128
Non-Current loans payable		7,392			6,366
Total	$	12,571		$	10,494

The Company has financing arrangements for equipment totaling $21,915, with terms ranging from 1 year to 4 years. The agreements require either monthly or quarterly payments of principal and interest with a weighted-average interest rate of 6.0%.

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants and as at June 30, 2022 the Company was in compliance with these covenants. As at June 30, 2022, the net book value of equipment includes $20,137 (December 31, 2021 - $16,090) of equipment pledged as security for the equipment financing.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 10

10. SHARE CAPITAL

(a) Public Offerings

In April 2020 the Company filed a short form base shelf prospectus that qualifies for the distribution of up to CAN$150,000 of common shares, debt securities, warrants or units of the Company comprising any combination of common shares and warrants (the "Securities") over a 25 month period. 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 "At-The-Market (ATM) distributions.

On October 1, 2020, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC Capital Markets, H.C. Wainwright & Co. LLC, TD Securities Inc., Roth Capital Partners, LLC, B. Riley Securities Inc. and A.G.P./Alliance Global Partners (together, the "Agents"). Under the terms of this ATM facility, the Company can, from time to time, sell common stock having an aggregate offering value of up to $60,000 on the New York Stock Exchange. The Company determined, at its sole discretion, the timing and number of shares sold under the ATM facility.

In the period from January 1, 2021 to July 20, 2021, when this ATM facility was completed, the Company issued 10,060,398 common shares under the ATM facility at an average price of $5.96 per share for gross proceeds of $59,998, less commission of $1,230 and recognized $379 of other transaction costs related to the ATM financing as share issuance costs, which have been presented net within share capital.

On March 22, 2022, the Company completed a prospectus equity financing with the offering co-led by BMO Capital Markets and PI Financial Corp., together with a syndicate of underwriters consisting of CIBC World Markets Inc., B. Riley Securities Inc., and H.C. Wainwright & Co., LLC. The Company issued a total of 9,293,150 common shares at a price of $4.95 per share for aggregate gross proceeds of $46,001, less commission of $2,524 and recognized $288 of other transaction costs related to the financing as share issuance costs, which have been presented net within share capital.

(b) Stock 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 amended and re-ratified in 2021, 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 5.0% of the issued and outstanding shares at any time. Prior to the 2021 amendment, the plan allowed for the granting of 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 period:

Expressed in Canadian dollars	Six months ended				Year ended
	June 30, 2022				December 31, 2021
	Number of options			Weighted average exercise price	Number of options			Weighted average exercise price
	Number of options			Weighted average exercise price	Number of options			Weighted average exercise price

Outstanding, beginning of the year	3,848,200		$	3.68	5,978,300		$	3.29
Granted	736,986		$	6.24	818,500		$	6.90
Exercised	(553,200	)	$	3.60	(2,801,600	)	$	3.76
Expired and forfeited	-			-	(147,000	)	$	4.29
Outstanding, end of the period	4,031,986		$	4.16	3,848,200		$	3.68

Options exercisable at the end of the period	3,126,399		$	3.50	2,973,100		$	3.40

During the six months ended June 30, 2022, the weighted-average share price at the date of exercise was CAN$6.84 (December 31, 2021 - CAN$7.51).

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 11

The following table summarizes the information about stock options outstanding at June 30, 2022:

Expressed in Canadian dollars
	Options Outstanding			Options exercisable

	Number	Weighted Average	Weighted Average	Number Exercisable	Weighted Average
	Outstanding	Remaining	Weighted Average	Number Exercisable	Weighted Average
Price	as at	Contractual Life	Exercise	as at	Exercise
Intervals	June 30, 2022	(Number of Years)	Price	June 30, 2022	Price

$2.00 - $2.99	1,382,600	2.7	$2.14	1,382,600	$2.14
$3.00 - $3.99	1,131,900	1.4	$3.45	1,129,900	$3.45
$4.00 - $4.99	-	-	-	-	-
$5.00 - $5.99	60,000	3.2	$5.60	48,000	$5.60
$6.00 - $6.99	1,457,486	4.2	$6.57	565,899	$6.74
	4,031,986	2.9	$4.16	3,126,399	$3.50

During the three and six months ended June 30, 2022, the Company recognized share-based compensation expense of $495 and $1,105 respectively (June 30, 2021 - $554 and $1,294 respectively) based on the fair value of the vested portion of options granted in the current and prior periods.

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:

	Six months ended	Year ended
	June 30, 2022	December 31, 2021
Weighted-average fair value of options in CAN$	$3.17	$3.37
Risk-free interest rate	2.19%	0.66%
Expected dividend yield	0%	0%
Expected stock price volatility	67%	66%
Expected options life in years	3.80	3.85

(c) Share Units Plan

On March 23, 2021 the Company adopted an equity-based Share Unit Plan ("SUP"), which was approved by the Company's shareholders on May 12, 2021. The SUP allows for, with approval by the Board, granting of Performance Share Units ("PSU"s) and Deferred Share Units ("DSU"s), to its directors, officers, employees to acquire up to 1.5% of the issued and outstanding shares. The SUP incorporates any new PSUs and DSUs granted and are to be subject to share settlement, cash settlement or a combination of cash and share procedures at the discretion of the Board of Directors.

Performance Share Units

The PSUs granted are subject to a performance payout multiplier between 0% and 200% based on the Company's total shareholder return at the end of a three-year period, relative to the total shareholder return of the Company's peer group.

	Six months ended		Year ended
	June 30, 2022		December 31, 2021
	Number of units		Number of units

Outstanding, beginning of year	1,639,000		1,805,000
Granted	316,000		322,000
Cancelled	-		(100,000	)
Settled for shares	(535,000	)	(388,000	)
Outstanding, end of period	1,420,000		1,639,000

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 12

There were 316,000 PSUs granted during the six months ended June 30, 2022 (June 30, 2021 - 322,000). The PSUs vest over a two to three-year period if certain pre-determined performance and vesting criteria are achieved. Performance criteria are based on the Company's share price performance relative to a representative group of other mining companies and specific achievements related to Terronera development. 806,000 PSUs vest on March 1, 2023, 298,000 PSUs vest on March 4, 2024, 256,000 PSUs vest on March 23, 2025 and 60,000 PSUs vest on or before June 30, 2025.

On March 3, 2022, PSUs granted in 2019 vested with a payout multiplier of 200% based on the Company's shareholder return, relative to the total shareholder return of the Company's peer group over the three year period and 535,000 PSUs were settled, on a net of tax basis, through the issuance of 664,170 common shares.

During the three and six months ended June 30, 2022, the Company recognized share-based compensation expense of $466 and $893 respectively related to the PSUs (June 30, 2021 - $484 and $899 respectively).

Deferred Share Units

The DSUs granted are vested immediately and are redeemable for shares at the time of a Director's retirement.

	Six months ended		Year ended
	June 30, 2022		December 31, 2021
	Number of units		Number of units

Outstanding, beginning of year	-		-
Granted	101,862		-
Settled for shares	(5,038	)	-
Outstanding, end of period	96,824		-

There were 101,862 DSUs granted during the six months ended June 30, 2022 (June 30, 2021 - Nil) under the SUP. During the six months 5,038 DSUs were settled, on a net of tax basis, through the issuance of 3,527 common shares. During the three and six months ended June 30, 2022, the Company recognized share-based compensation expense of $488 and $12 related to the DSUs (June 30, 2021 - $Nil and $Nil).

(d) Deferred Share Units - Cash settled

The Company previously had a Deferred Share Unit ("DSU") plan whereby deferred share units were granted to independent directors of the Company in lieu of compensation in cash or share stock options. These DSUs vested immediately and are redeemable for cash, based on the market value of the units at the time of a director's retirement. Upon adoption of the SUP plan in March 2021, no new DSUs will be granted under this cash settled plan.

Expressed in Canadian dollars	Six months ended		Year ended
	June 30, 2022		December 31, 2021
	Number of units	Weighted Average Grant Price	Number of units	Weighted Average Grant Price

Outstanding, beginning of year	1,348,765	$3.24	1,266,199	$3.00
Granted	-	-	82,566	$6.90
Redeemed	-	-	-	$0.00
Outstanding, end of period	1,348,765	$3.24	1,348,765	$3.24

Fair value at period end	1,348,765	$4.49	1,348,765	$5.35

During the three and six months ended June 30, 2022, the Company recognized a mark to market recovery on director's compensation related to these DSUs, which is included in general and administrative salaries, wages and benefits, of $1,614 and $ 989 respectively (June 30, 2021 - expense of $1,596 and $1,869 respectively) based on the change in the fair value of the DSUs granted in the prior years. As at June 30, 2022, there are 1,044,204 cash settled deferred share units outstanding with a fair market value of $3,272 and 304,561 cash settled deferred share units outstanding with a redemption value of $1,421 (December 31, 2021 - 1,348,765 cash settled deferred share units outstanding with a fair market value of $5,682) recognized in accounts payable and accrued liabilities.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 13

Subsequent to June 30, 2022, 304,561 DSUs were settled through cash with a fair market value of $ 1,421.

(e) Share Appreciation Rights

As part of the Company's bonus program, the Company may grant 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.

	Six months ended			Year ended
	June 30, 2022			December 31, 2021
	Number of Units		Weighted Average Grant Price	Number of Units		Weighted Average Grant Price

Outstanding, beginning of year	113,670		$5.40	-		-
Granted	119,403		$4.97	115,930		$5.40
Exercised	-		-	(2,260	)	$5.34
Cancelled	(26,248	)	$5.51	-		-
Outstanding, end of period	206,825		$5.14	113,670		$5.40

Exercisable at the end of the period	81,581		$5.26	40,912		$5.39

During the six months ended June 30, 2022, the Company recognized an expense related to SARs, which is included in operation cost of sales and exploration salaries, wages and benefits, of $4 (June 30, 2021 - expense $67) based on the change in the fair value of the SARs granted in prior years. As of June 30, 2022, there are 206,825 SARs outstanding (December 31, 2021 - 113,670) with a fair market value of $108 (December 31, 2021 - $113).

The SARs were 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 SARs grant. Changes in the subjective input assumptions can materially affect the estimated fair value of the SARs. The Company amortized the fair value of SARs on a graded basis over the respective vesting period of each tranche of SARs awarded.

(f) Diluted Earnings per Share

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 14

		Three months ended					Six months ended
		June 30, 2022			June 30, 2021		June 30, 2022			June 30, 2021

Net earnings (loss)	$	(11,923	)	$	6,656	$	(261	)	$	18,905
Basic weighted average number of shares outstanding		180,9974,609			168,383,755		176,291,929			164,051,368
Effect of dilutive securities:
Stock options		-			2,073,187		-			1,952,745
Equity settled deferred share units		-			-		-			-
Performance share units		-			1,739,000		-			1,739,000
Diluted weighted average number of share outstanding		180,974,609			172,195,942		176,291,929			167,743,113

Diluted earnings (loss) per share	$	(0.07	)	$	0.04	$	(0.00	)	$	0.11

As of June 30, 2022, there are 2,822,240 anti-dilutive stock options (June 30, 2021 - 2,048,255 stock options).

11. REVENUE


		Three months ended						Six months ended
		June 30,			June 30,			June 30,			June 30,
		2022			2021			2022			2021

Silver Sales ⁽¹⁾	$	13,698		$	30,052		$	55,582		$	46,987
Gold Sales ⁽¹⁾		18,021			18,305			34,531			36,463
Less: smelting and refining costs		(937	)		(582	)		(1,591	)		(1,209	)
Revenue	$	30,782		$	47,775		$	88,522		$	82,241

(1) Changes in fair value from provisional pricing in the period are included in silver and gold sales.

			Three months ended					Six months ended
			June 30,			June 30,		June 30,		June 30,
Revenue by product			2022			2021		2022		2021

	Concentrate sales	$	16,117		$	16,270	$	30,578	$	34,198
	Provisional pricing adjustments		(587	)		641		43		(114	)
Total revenue from concentrate sales			15,530			16,911		30,621		34,084
Refined metal sales			15,252			30,864		57,901		48,157
Total revenue		$	30,782		$	47,775	$	88,522	$	82,241

Provisional pricing adjustments on sales of concentrate 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.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 15

12. EXPLORATION AND EVALUATION

		Three months ended				Six months ended
		June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021

Depreciation and depletion	$	98	$	72	$	205	$	151
Share-based compensation		117		145		211		306
Exploration salaries, wages and benefits		401		734		1,093		1,310
Direct exploration expenditures		1,021		2,099		1,812		3,658
Evaluation salaries, wages and benefits		524		361		1,145		643
Direct evaluation expenditures		1,623		1,614		2,534		3,087
	$	3,784	$	5,025	$	7,000	$	9,155

13. GENERAL AND ADMINISTRATIVE

		Three Months Ended					Six Months Ended
		June 30,			June 30,		June 30,			June 30,
		2022			2021		2022			2021

Depreciation and depletion	$	51		$	38	$	99		$	72
Share-based compensation		741			772		2,047			1,658
Salaries, wages and benefits		983			747		2,215			1,907
Directors' DSU mark to market expense (recovery)		(1,614	)		1,596		(989	)		1,896
Direct general and administrative		1,187			1,140		2,273			2,283
	$	1,348		$	4,293	$	5,645		$	7,816

14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

		Three months ended						Six months ended
		June 30,			June 30,			June 30,			June 30,
		2022			2021			2022			2021

Net changes in non-cash working capital:
Accounts receivable	$	2,087		$	3,081		$	2,296		$	6,270
Income tax receivable		1,042			(33	)		1,042			(3,578	)
Inventories		8,718			(2,180	)		6,424			(7,267	)
Prepaid expenses		6,024			(4,222	)		6,431			(5,015	)
Accounts payable and accrued liabilities		6,379			3,484			5,616			1,587
Income taxes payable		(2,094	)		676			(767	)		(357	)
	$	22,156		$	806		$	21,042		$	(8,360	)

Non-cash financing and investing activities:
Fair value of exercised options allocated to share capital	$	(706	)	$	(348	)	$	(755	)	$	(3,967	)
Fair value of performance share units allocated to share capital	$	-		$	(561	)	$	(806	)	$	(561	)
Fair value of capital assets acquired under equipment loans	$	1,496		$	-		$	4,374		$	-

Other cash disbursements:
Income taxes paid	$	98		$	(162	)	$	451		$	4,326
Special mining duty paid	$	-		$	-		$	2,272		$	1,331

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 16

15. 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 two operating mining segments which are located in Mexico, Guanaceví and Bolañitos, the El Compas mine which is on care and maintenance, one development project in Mexico, Terronera, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico, Chile and the USA. Exploration projects that are in the local district surrounding a mine are included in the mine's segments. Comparative period figures related to Terronera, previously reported as part of the exploration segment have been reclassified to conform with current period's presentation. Comparative period figures related to the El Cubo mine, which was on care and maintenance from November 2019 until the sale of the mine and related assets in April 2021, previously reported as it own segment have been reclassified to the Corporate segment.

June 30, 2022
		Corporate		Exploration		Guanaceví		Bolanitos		El Compas		Terronera			Total

Cash and cash equivalents	$	80,760	$	3,686	$	18,808	$	9,845	$	2,399	$	728		$	116,226
Other Investments		11,236		-		-		-		-		-		$	11,236
Accounts and other receivables		364		139		7,013		6,539		268		(837	)	$	13,486
Income tax receivable		27		1		1,121		68		2		-		$	1,219
Inventories		116		-		29,963		5,341		196		48		$	35,664
Prepaid expenses		1,322		181		1,372		596		4		8,091		$	11,566
Non-current deposits		150		-		318		127		-		-		$	595
Non-current IVA receivable		168		-		1,456		-		-		5,904		$	7,528
Non-currrent income tax receivable		3,570		-		-		-		-		-		$	3,570
Right-of-use leased assets		564		-		-		50		-		-		$	614
Mineral property, plant and equipment		503		19,896		59,999		27,282		1,091		33,035		$	141,806
Total assets	$	98,780	$	23,903	$	120,050	$	49,848	$	3,960	$	46,969		$	343,510

Accounts payable and accrued liabilities	$	8,003	$	319	$	12,058	$	4,503	$	67	$	1,433		$	26,383
Income taxes payable		-		-		4,215		780		-		-		$	4,995
Loans payable		-		-		1,515		3,070		-		7,986		$	12,571
Lease obligations		877		-		-		54		-		-		$	931
Provision for reclamation and rehabilitation		-		-		4,093		3,329		154		-		$	7,576
Deferred income tax liability		-		-		8,310		235		-		-		$	8,545
Total liabilities	$	8,880	$	319	$	30,191	$	11,971	$	221	$	9,419		$	61,001

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 17

December 31, 2021
		Corporate		Exploration		Guanaceví		Bolanitos		El Compas		Terronera		Total

Cash and cash equivalents	$	68,149	$	144	$	27,060	$	4,234	$	3,349	$	367	$	103,303
Other Investments		11,200		-		-		-		-		-	$	11,200
Accounts and other receivables		812		-		6,706		6,633		308		3	$	14,462
Income tax receivable		169		1		3		2		2		-	$	177
Inventories		351		-		19,852		7,057		195		30	$	27,485
Prepaid expenses		1,327		118		844		349		20		2,477	$	5,135
Non-current deposits		150		-		321		128		-		-	$	599
Non-current IVA receivable		164		-		1,434		-		-		2,658	$	4,256
Deferred income tax asset		-		-		-		936		-		-	$	936
Non-current Income tax receivable		3,570		-		-		-		-		-	$	3,570
Intangible assets		2		1		15		17		2		3	$	40
Right-of-use leased assets		564		-		100		-		-		-	$	664
Mineral property, plant and equipment		373		18,963		54,234		27,371		2,005		19,251		122,197
Total assets	$	86,831	$	19,227	$	110,569	$	46,727	$	5,881	$	24,789	$	294,024

Accounts payable and accrued liabilities	$	10,121	$	238		15,247	$	4,667	$	141	$	1,577	$	31,991
Income taxes payable		29		-		3,563		636		-		-	$	4,228
Loans payable		43		-		2,005		4,048		-		4,398	$	10,494
Lease obligations		896		-				105		-		-	$	1,001
Provision for reclamation and rehabilitation		-		-		3,997		3,237		163		-	$	7,397
Deferred income tax liability		-		-		1,271		235		-		-		1,506
Total liabilities	$	11,089	$	238	$	26,083	$	12,928	$	304	$	5,975	$	56,617

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 18

Three months ended June 30, 2022
		Corporate			Exploration			Guanaceví			Bolanitos			El Compas			Terronera			Total
Silver revenue	$	-		$	-		$	9,533		$	4,165		$	-		$	-		$	13,698
Gold revenue		-			-			5,719			12,302			-			-			18,021
Less: smelting and refining costs		-			-			-			(937	)		-			-			(937	)
Total revenue	$	-		$	-		$	15,252		$	15,530		$	-		$	-		$	30,782

Salaries, wages and benefits:
mining	$	-		$	-		$	1,745		$	2,140		$	-		$	-		$	3,885
processing		-			-			793			642			-			-			1,435
administrative		-			-			1,386			1,127			-			-			2,513
stock based compensation		-			-			57			56			-			-			113
change in inventory		-			-			(2,371	)		688			-			-			(1,683	)
Total salaries, wages and benefits		-			-			1,610			4,653			-			-			6,263

Direct costs:
mining		-			-			8,049			3,237			-			-			11,286
processing		-			-			3,749			1,542			-			-			5,291
administrative		-			-			1,905			1,202			-			-			3,107
change in inventory		-			-			(7,459	)		1,453			-			-			(6,006	)
Total direct production costs		-			-			6,244			7,434			-			-			13,678

Depreciation and depletion:
depreciation and depletion		-			-			3,507			2,603			-			-			6,110
change in inventory		-			-			(2,567	)		632			-			-			(1,935	)
Total depreciation and depletion		-			-			940			3,235			-			-			4,175

Royalties		-			-			2,128			66			-			-			2,194

Total cost of sales	$	-		$	-		$	10,922		$	15,388		$	-		$	-		$	26,310

Care and maintenance costs		-			-			-			-			189			-			189
Write off of exploration properties		-			-			-			-			-			500			500

Earnings (loss) before taxes	$	(8,845	)	$	(1,636	)	$	4,330		$	142		$	(189	)	$	(2,648	)	$	(8,846	)

Current income tax expense		-			-			1,181			144			-			-			1,325
Deferred income tax expense		-			-			1,752			-			-			-			1,752
Total income tax expense		-			-			2,933			144			-			-			3,077

Net earnings (loss)	$	(8,845	)	$	(1,636	)	$	1,397		$	(2	)	$	(189	)	$	(2,648	)	$	(11,923	)

The Exploration segment included $353 of costs incurred in Chile for the three months ended June 30, 2022 (June 30, 2021 - $175).

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 19

Three months ended June 30, 2021
		Corporate		Exploration			Guanaceví			Bolanitos			El Compas			Terronera			Total
Silver revenue	$	-	$	-		$	26,655		$	3,053		$	344		$	-		$	30,052
Gold revenue		-		-			4,209			11,909			2,187			-			18,305
Less: smelting and refining costs		-		-			-			(514	)		(68	)		-			(582	)
Total revenue	$	-	$	-		$	30,864		$	14,448		$	2,463		$	-		$	47,775

Salaries, wages and benefits:
mining	$	-	$	-		$	2,086		$	1,342		$	498		$	-		$	3,926
processing		-		-			809			483			230			-			1,522
administrative		-		-			1,381			915			333			-			2,629
stock based compensation		-		-			54			51			6			-			111
change in inventory		-		-			(355	)		(20	)		(208	)		-			(583	)
Total salaries, wages and benefits		-		-			3,975			2,771			859			-			7,605

Direct costs:
mining		-		-			7,451			2,889			1,266			-			11,606
processing		-		-			3,575			1,383			527			-			5,485
administrative		-		-			1,535			1,004			503			-			3,042
change in inventory		-		-			(769	)		(226	)		(409	)		-			(1,404	)
Total direct production costs		-		-			11,792			5,050			1,887			-			18,729

Depreciation and depletion:
depreciation and depletion		-		-			2,725			3,906			233			-			6,864
change in inventory		-		-			(238	)		(106	)		104			-			(240	)
Total depreciation and depletion		-		-			2,487			3,800			337			-			6,624

Royalties		-		-			4,158			70			112			-			4,340
Write down of inventory to NRV		-		-			-			-			272			-			272

Total cost of sales	$	-	$	-		$	22,412		$	11,691		$	3,467		$	-		$	37,570

Care and maintenance costs		-		-			-			-			-			55			521
Impairment (impairment reversal)		-		-			-			-			-			-			(16,791	)

Earnings (loss) before taxes	$	3,793	$	(5,025	)	$	8,452		$	2,757		$	(1,004	)	$	(55	)	$	8,918

Current income tax expense (recovery)		-		-			792			369			(15	)		-			1,146
Deferred income tax expense (recovery)		-		-			1,668			(552	)		-			-			1,116
Total income tax expense (recovery)		-		-			2,460			(183	)		(15	)		-			2,262

Net earnings (loss)	$	3,793	$	(5,025	)	$	5,992		$	2,940		$	(989	)	$	(55	)	$	6,656

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 20

Six months ended June 30, 2022
		Corporate			Exploration			Guanaceví			Bolanitos			El Compas			Terronera			Total
Silver revenue	$	-		$	-		$	47,160		$	8,422		$	-		$	-		$	55,582
Gold revenue		-			-			10,741			23,790			-			-			34,531
Less: smelting and refining costs		-			-			-			(1,591	)		-			-			(1,591	)
Total revenue	$	-		$	-		$	57,901		$	30,621		$	-		$	-		$	88,522

Salaries, wages and benefits:
mining	$	-		$	-			3,792		$	4,091		$	-		$	-		$	7,883
processing		-			-			1,701			1,197			-			-			2,898
administrative		-			-			2,792			2,028			-			-			4,820
stock based compensation		-			-			120			120			-			-			240
change in inventory		-			-			(1,052	)		650			-			-			(402	)
Total salaries, wages and benefits		-			-			7,353			8,086			-			-			15,439

Direct costs:
mining		-			-		$	14,149			6,367			-			-			20,516
processing		-			-			6,926			3,038			-			-			9,964
administrative		-			-			3,350			2,221			-			-			5,571
change in inventory		-			-			(5,977	)		1,276			-			-			(4,701	)
Total direct production costs		-			-			18,448			12,902			-			-			31,350

Depreciation and depletion:
depreciation and depletion		-			-			6,936			5,300			-			-			12,236
change in inventory		-			-			(2,086	)		331			-			-			(1,755	)
Total depreciation and depletion		-			-			4,850			5,631			-			-			10,481

Royalties		-			-			6,362			149			-			-			6,511

Total cost of sales	$	-		$	-		$	37,013		$	26,768		$	-		$	-		$	63,781

Care and maintenance costs		-			-			-			-			379			-			379
Write of of exploration properties		-			-			-			-			-			500			500

Earnings (loss) before taxes	$	(6,808	)	$	(3,321	)	$	20,888		$	3,853		$	(379	)	$	(4,180	)	$	10,053

Current income tax expense		-			-			1,931			409			-			-			2,340
Deferred income tax expense		-			-			7,038			936			-			-			7,974
Total income tax expense		-			-			8,969			1,345			-			-			10,314

Net earnings (loss)	$	(6,808	)	$	(3,321	)	$	11,919		$	2,508		$	(379	)	$	(4,180	)	$	(261	)

The Exploration segment included $721 of costs incurred in Chile for the six months ended June 30, 2022 (June 30, 2021 - $1,015).

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 21

Six months ended June 30, 2021
		Corporate			Exploration			Guanaceví			Bolanitos			El Compas			Terronera			Total
Silver revenue	$	-		$	-		$	40,484		$	5,540		$	963		$	-		$	46,987
Gold revenue		-			-			7,673			22,438			6,352			-			36,463
Less: smelting and refining costs		-			-			-			(1,003	)		(206	)		-			(1,209	)
Total revenue	$	-		$	-		$	48,157		$	26,975		$	7,109		$	-		$	82,241

Salaries, wages and benefits:
mining	$	-		$	-		$	3,960		$	2,507		$	1,035		$	-		$	7,502
processing		-			-			1,420			855			464			-			2,739
administrative		-			-			2,372			1,585			632			-			4,589
stock based compensation		-			-			93			91			45			-			229
change in inventory		-			-			(2,030	)		73			(48	)		-			(2,005	)
Total salaries, wages and benefits		-			-			5,815			5,111			2,128			-			13,054

Direct costs:
mining		-			-			13,680			5,417			2,373			-			21,470
processing		-			-			6,143			2,548			979			-			9,670
administrative		-			-			3,033			1,853			1,165			-			6,051
change in inventory		-			-			(4,805	)		37			(297	)		-			(5,065	)
Total direct production costs		-			-			18,051			9,855			4,220			-			32,126

Depreciation and depletion:
depreciation and depletion		-			-			5,428			7,609			1,370			-			14,407
change in inventory		-			-			(1,348	)		(16	)		1,077			-			(287	)
Total depreciation and depletion		-			-			4,080			7,593			2,447			-			14,120

Royalties		-			-			6,371			138			291			-			6,800
Write down of inventory to NRV		-			-			-			-			272			-			272

Total cost of sales	$	-		$	-		$	34,317		$	22,697		$	9,358		$	-		$	66,372

Care and maintenance costs		-			-			-			-			-			576			576
Impairment (impairment reversal)		(16,791	)		-			-			-			-			-			(16,791	)

Earnings (loss) before taxes	$	2,036		$	(9,155	)	$	13,840		$	4,278		$	(2,249	)	$	(576	)	$	8,174

Current income tax expense		-			-			1,150			622			45			-			1,817
Deferred income tax expense		-			-			3,809			434			-			-			4,243
Total income tax expense		-			-			4,959			1,056			45			-			6,060

Net earnings (loss)	$	2,036		$	(9,155	)	$	8,881		$	3,222		$	(2,294	)	$	(576	)	$	2,114

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 22

16. 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 an MXN 122.9 million ($6,100) tax assessment based on the June 2015 ruling. The 2016 tax assessment comprised of MXN 41.8 million owed ($2,100) in taxes, MXN 17.7 million ($900) in inflationary charges, MXN 40.4 million ($2,000) in interest and MXN 23.0 million ($1,100) 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. The MXN 122.9 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, and a number of deficiencies exist within the assessment. Since issuance of the assessment interest charges of MXN 14.9 million ($740) and inflationary charges of MXN 22.3 million ($1,100) have accumulated.

Included in the Company's consolidated financial statements are net assets of $964 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 June 30, 2022, the Company's income tax payable includes an allowance for transferring the shares and assets of MSCG amounting to $964. The Company is currently assessing MSCG's settlement options based on ongoing court proceedings and discussion with the tax authorities. The Company has been advised that the appeal filed with the Federal Tax Court and Supreme Court of Justice, against the June 2016 tax assessment has been rejected. The Company continues to assess MSCG's settlement options.

Compania Minera Del Cubo SA de CV ("Cubo"), a subsidiary of the Company, received a MXN 58.5 million ($2,900) assessment in 2019 by Mexican fiscal authorities for alleged failure to provide the appropriate support for depreciation deductions taken in the Cubo 2016 tax return and denied eligibility of deductions of certain suppliers. The tax assessment consists of MXN 24.1 million ($1,200) for taxes, MXN 21.0 million ($1,100) for penalties, MXN 10.4 million ($500) for interest and MXN 3.0 million ($100) for inflation. At the time of the tax assessment the Cubo entity had and continues to have sufficient loss carry forwards which would be applied against the assessed difference of taxable income. The Mexican tax authorities did not consider these losses in the assessment.

Due to the denial of certain suppliers for income tax purposes in the Cubo assessment, the invoices from these suppliers have been assessed as ineligible for refunds of IVA paid on the invoices. The assessment includes MXN 14.7 million ($600) for re-payment of IVA (value added taxes) refunded on these supplier payments. In the Company's judgement the suppliers and invoices meet the necessary requirements to be deductible for income tax purposes and the recovery of IVA.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 23

The Company has filed an administrative appeal related to the 2016 Cubo Tax assessment. The Company had previously provided a lien on certain El Cubo mining concessions during the appeal process. To facilitate the sale of the El Cubo mine and related assets, the Company elected to pay the assessed amount of $3.5 million during Q1, 2021. During the appeal process the amount paid has been classified as a non-current income tax recoverable. Since issuance of the assessment interest charges of MXN 9.9 million ($500) and inflationary charges of MXN 1.6 million ($100) had accumulated. The Company continues to assess that it is probable that its appeal will prevail, and no provision is recognized in respect of the Cubo tax assessment.

The Company has recognized $3.1 million and $10.3 million in income tax expense for the three and six months ended June 30, 2022 respectively. The income tax expense is derived from current and deferred income tax due to profitable mining operations at both the Guanacevi and Bolañitos mines and changes in temporary tax differences.

17. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

(a) Financial assets and liabilities

As at June 30, 2022, the carrying and fair values of the Company's financial instruments by category are as follows:

	Fair value through profit or loss	Amortized cost	Carrying value	Fair value
	$	$	$	$

Financial assets:
Cash and cash equivalents	-	116,226	116,226	116,226
Other Investments	11,236	-	11,236	11,236
Trade and other receivables	4,745	8,741	13,486	13,486
Total financial assets	15,981	124,967	140,948	140,948

Financial liabilities:
Accounts payable and accrued liabilities	4,801	21,582	26,383	26,383
Loans payable	-	12,571	12,571	12,571
Total financial liabilities	4,801	34,153	38,954	38,954

(b) 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:

Other investments are comprised of marketable securities. When there is an active market 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, $10,313 of these financial assets have been included in Level 1 of the fair value hierarchy.

Cash settled deferred share units are determined based on a market approach reflecting the Company's closing share price or share price at redemption date for pending settlements.

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 24

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 and the fair value of the SARs liability is determined by using an option pricing model.

Level 3:

Included in other investments are share purchase warrants. Fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model. As a result, $923 of these financial assets have been included in Level 3 of the fair value hierarchy.

Assets and liabilities as at Jun 30, 2022 measured at fair value on a recurring basis include:

	Total	Level 1	Level 2	Level 3
	$	$	$	$

Financial assets:
Investments	11,236	10,313	-	923
Trade receivables	4,745	-	4,745	-
Total financial assets	15,981	10,313	4,745	923

Financial liabilities:
Deferred share units	4,693	4,693	-	-
Share appreciation rights	108	-	108	-
Total financial liabilities	4,801	4,693	108	-

ENDEAVOUR SILVER CORP. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 25

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	Margaret Beck Ricardo Campoy Bradford Cooke Daniel Dickson Amy Jacobsen Rex McLennan Kenneth Pickering Mario Szotlender

OFFICERS	Daniel Dickson - Chief Executive Officer Donald Gray - Chief Operating Officer Christine West - Chief Financial Officer Nicholas Shakesby - Vice President, Operations Luis Castro - Vice-President, Exploration Dale Mah - Vice-President, Corporate Development Galina Meleger - Vice-President, Investor Relations Bernard Poznanski - Corporate Secretary

REGISTRAR AND	Computershare Trust Company of Canada
TRANSFER AGENT	3^rd Floor - 510 Burrard Street Vancouver, BC, V6C 3B9

AUDITORS	KPMG LLP 777 Dunsmuir Street Vancouver, BC, V7Y 1K3

SOLICITORS	Koffman Kalef LLP 19^th 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. | CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PAGE 26