Communicators

Endeavour Silver Reports Record Financial Results for Third Quarter 2008; Revenues Up 38% and Production Up 9% from Q3, 2007; Teleconference Scheduled for Monday, November 17, 10 AM PST

Vancouver, Canada – November 17, 2008 - Endeavour Silver Corp. (EDR: TSX, EJD: DBFrankfurt and EXK: AMEX) announced today its financial and operating results for the Third Quarter 2008. The financial results are expressed in US dollars (US$) and are based on Canadian generally accepted accounting practices. For a more detailed review, shareholders can view the complete financial statements and management discussion and analysis at the Company's website, www.edrsilver.com and on the SEDAR website, www.sedar.com.

Highlights Q3, 2008

• Silver production was 626,990 oz, up 9% over Q3, 2007 and up 21% from Q2, 2008, and totals 1,648,736 oz for the first 9 months of 2008.
• Mineral sales were $10.6 million, up 38% over Q3, 2007 and up 5% from Q2, 2008, and total $31.4 million for the first 9 months of 2008.
• Cost of sales was $7.6 million, up 11% over Q3, 2007 and up 5% from Q2, 2008, and total $20.1 million for the first 9 months of 2008.
• Mine operating earnings were $0.4 million, up from the $0.8 million loss in Q3, 2007 but down from the $1.9 million gain in Q2, 2008 and total $5.0 million for the first 9 months of 2008.
• Cash costs were $9.52 per oz, down 11% from Q3, 2007 and down incrementally from Q2, 2008 in spite of the strengthening Mexican peso and sharply higher smelting charges.
• Working capital at the end of Q3, 2008 was $10.9 million including $5.6 million in cash, cash equivalents, and marketable securities - and no debt.
• Consolidated mine output, plant throughput, silver production, grade and recovery were all higher compared to Q2, 2008 and Q3, 2007, excepting a minor drop in silver grade compared to 2007.
• Mine output at the Guanajuato Mines in Guanajuato continued to ramp up during the 3rd quarter, averaging 396 tonnes per day in Q3, 2008, up 24% from Q3, 2007 and up 55% over Q2, 2008.
• Exploration drilling extended three new high grade silver discoveries in the San Pedro area near the Guanacevi Mines in Durango and identified four new mineralized zones at Guanajuato.

Bradford Cooke, Chairman and CEO, commented, "Endeavour enjoyed another quarter of strong production growth and our third consecutive quarter of reduced cash costs at our two operating mines in Mexico thanks to the completion of our 2008 capital upgrade programs and ongoing operational improvements under the guidance of David Howe, Endeavour's Vice President of Mexico Operations. Guanajuato Mines production in particular has outperformed our expectations so far this year and Guanacevi has also improved its performance."

"However, the dominant theme in the Fourth Quarter, 2008 will be the ongoing global financial crisis, which has negatively impacted not only the silver price near-term but every company, commodity and market world-wide. Management therefore decided to rein in the scheduled production growth in Q4, 2008 and for the foreseeable future because the spot silver price should rebound in 2009 so there is no sense in pushing production growth at this time. Endeavour will be in a good position to capitalize on the next upward move in the silver price by resuming its silver production growth at that time."

"In every crisis there lies risk and opportunity. In Q4, 2008, management turned its attention to cutting costs while silver prices are temporarily depressed. Executives have taken a 10% pay cut, a 10% labour reduction is now under-way, and all non-essential exploration and capital programs have been deferred. Management is also evaluating new merger and acquisition opportunities that have come up recently with a view to building a stronger company in advance of the next leg up in the commodity cycle."

Financials

The Company recorded mineral sales of $10.6 million and mine operating earnings of $0.4 million from its mining and milling operations in the Third Quarter, 2008. Endeavour's average realized silver price was $14.56 per oz sold in Q3, 2008, 28% higher than Q3, 2007, which combined with the increased silver production helps explain the jump in mineral sales. Cost of sales was $7.6 million, reflecting the higher mine outputs and plant throughputs, and depreciation and depletion amounted to $2.6 million.

The Operating Loss for the three months ended September 30, 2008 was $4.5 million after exploration costs of $3.1 million, general and administrative costs of $1.2 million and stock based compensation costs of $0.6 million. The Loss Before Taxes for the three month period was $6.9 million after a foreign exchange loss of $0.1 million, a loss on marketable securities of $0.8 million and investment and other income of $0.1 million. The Company incurred a Net Loss for the Third Quarter, 2008 of $7.4 million after Income Tax Provision of $0.5 million.

Consolidated cash costs fell for the third consecutive quarter to $9.52 per oz produced in Q3, 2008, down incrementally compared to Q2, 2008 and down 12% compared to Q3, 2007, notwithstanding the strengthening of the Mexican peso and sharply higher smelting charges. Guanajuato cash costs fell once again to $9.22 per oz, down 38% compared to the 2nd quarter, 2008 and down 36% compared to the 3rd quarter, 2007 thanks to the sharp rise in silver production after the main production shafts came back into operation in June 2008. Guanacevi cash costs rose slightly to $9.62 in the 3rd quarter, 2008 compared to the 2nd quarter, 2008 but fell slightly compared to the 3rd quarter, 2007 due in part to higher labour costs.

Endeavour invested $2.5 million on capital projects in Q3, 2008, including $1.4 million on underground mine development, rehabilitation and safety upgrades, $0.7 million on expanding and improving various plant and tailings circuits, and $0.4 million on buildings and vehicles. Most of these investments were made at Guanacevi to expand the mine output, enhance the plant capacity and improve metal recoveries.

Operations

Consolidated silver production in Q3, 2008 was 626,990 oz, up 9% compared to Q3, 2007 and up 21% compared to Q2, 2008, thanks to increased mine outputs, plant throughputs, grades and recoveries. Guanajuato silver production jumped to 159,433 oz for the quarter, up 86% compared to the 3rd quarter, 2007 and up 63% compared to the 2nd quarter, 2008 due mainly to the continued ramp-up of mine output after completion of mine rehabilitation and shaft safety upgrade programs in June, 2008. Guanacevi silver production was 467,557 oz in the 3rd quarter, 2008, up 12% compared to the 2nd quarter, 2008 as a result of higher silver grades but down 5% compared to the, 2007 due to lower throughputs and grades.

The consolidated plant throughputs increased to 1014 tonnes per day in Q2, 2008, up 21% compared to Q2, 2008, mainly as a result of the ramp up at Guanajuato, and about the same as Q3, 2007. Consolidated silver ore grades rose 5% to 270 gpt silver in Q3, 2008 compared to Q2, 2008 but fell 4% compared to Q2, 2007 due to the difference in grades of the reserve blocks mined each quarter. Consolidated silver recoveries increased 3% to 75.2% in Q3, 2008 compared to Q2, 2008, and rose 11% compared to Q3, 2007 mainly due to the higher throughputs at Guanajuato, which has better recoveries than Guanacevi.

Exploration

Endeavour made significant progress in its exploration drilling programs during the 3rd quarter, 2008. Several new zones of high grade silver-gold mineralization were discovered at both Guanacevi and Guanajuato, and the central zone at the Porvenir mine was extended further to depth.

In the San Pedro area near Guanacevi, economically interesting silver mineralization was intercepted by drilling in the Noche Buena, Desengano and Veronica veins. Highlights included 1,295 grams per tonne silver, 0.45 gpt gold, 1.46% lead and 2.95% zinc over 0.35 m (37.8 oz per ton silver over 1.1 feet) within a larger interval of 3.95 m grading 325 gpt silver and 0.16 gpt gold (9.5 opt silver over 13.0 feet) in drill hole NB2-1.

In the Bolanitos area of Guanajuato, new discoveries were made in the Bolanitos, Santa Maria, Perquitas and San Jose FW veins. Highlights included drill hole SJS-1, which intersected 374 grams per tonne silver and 3.14 gpt gold over 9.50 m (15.9 oz per ton silver equivalent over 31.2 feet), including 1147 gpt silver and 0.84 gpt gold over 1.90 m (34.8 opt silver equivalent over 6.2 ft).

Exploration drilling programs have now wrapped up for the year but drill core assaying is still in process. Final drill results will be released within the next month, and an updated NI 43-101 reserve and resource report has been commissioned for the 2008 year-end.

Outlook

The dominant business theme in recent months has been the ongoing global financial crisis, which has negatively impacted not only the silver price near-term but every company, commodity and market world-wide. The global financial crisis led to such a liquidation event in global markets that it has created a strongly deflationary environment as a result of the rush to the US dollar.

However, the numerous financial system bail-outs and economic stimulus packages announced by American, European and Chinese governments should not only help to reflate failing economies, they will likely be quite inflationary in the near and longer terms. Gold and silver have traditionally played key roles as hedges against inflation. Hence the $US prices of gold and silver should once again start to rise after the nadir of the financial crisis passes.

In Q4, 2008, management turned its attention to reducing production and cutting costs while silver prices are temporarily depressed.

Executives have taken a 10% pay cut, a 10% labour reduction is now under-way, and all non-essential exploration and capital programs have been deferred. With the substantial jump in smelting costs for the Guanajuato silver-gold concentrates in Q3, 2008, management is actively pursuing alternative processing arrangements to further reduce the cash costs at Guanajuato.

Endeavour management also reined in the scheduled production growth for the Fourth Quarter, 2008. Instead of the planned 800,000 oz of silver production, the Company elected to continue producing at the Third Quarter rate of around 600,000 oz, and the 2008 production forecast was revised from 2.5 million oz to approximately 2.3 million oz silver.

The mine operations will benefit in Q4, 2008 from one aspect of the global financial crisis. Even though the exchange rate of the Mexican peso against the US dollar rose steadily from around 11:1 in January to 10:1 in September, it rapidly depreciated in October to the current 13:1 rate. Since approximately 80% of the Company's operating costs are in Mexican pesos but all of the Company's revenues are based on the US dollar prices for silver and gold, it is reasonable to conclude that US dollar cash costs should decline even further in the Fourth Quarter, 2008 simply as a function of the Mexican peso exchange rate.

In every crisis there lies risk and opportunity. Management is of the opinion that the spot silver price will rebound in 2009 so there is no sense in pushing production growth at this time. Endeavour should be in a good position to capitalize on the next upward move in the silver price by accelerating its silver production growth at that time. Management is also evaluating new merger and acquisition opportunities that have come up recently, with a view to building a stronger company in advance of the next leg up in the commodity cycle.

Conference Call

A conference call to discuss the Q3, 2008 financial results will be held at 10:00 AM Pacific Standard Time (1:00 PM Eastern Standard Time) on Monday, November 17, 2008.

To participate in the conference call, please dial the following:
• 1-800-396-7098 Canada & USA (Toll-Free)
• 416-620-3447 Toronto area callers
• No pass code necessary

A replay of the conference call will be available until November 28, 2008 by dialing 1-800-408-3053 in Canada & USA (Toll-free) or 416-695-5800 in the Toronto area. The required pass code is 3274608.

A simultaneous webcast of the conference call will be posted on the home page of the company's website, www.edrsilver.com and the teleconference podcast will also be posted to our website.

Endeavour Silver Corp. (TSX: EDR)(NYSE-A: EXK)(DBFrankfurt:EJD) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango State and Guanajuato in Guanajuato state, coupled with the Company's acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of top primary silver producers worldwide.

ENDEAVOUR SILVER CORP.
Per:

/s/ "Bradford J. Cooke"

Bradford J. Cooke
Chairman and CEO


For financial results, please view the original news release on Endeavour´s website: http://www.edrsilver.com/s/NewsReleases.asp?ReportID=328464


For more information, please contact Hugh Clarke Toll free: 877-685-9775, tel: (604) 685-9775, fax: (604) 685-9744, email investorrelations@edrsilver.com or visit our website, www.edrsilver.com.


The TSX Exchange has neither approved nor disapproved the contents of this news release.


CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.





NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA29258Y1034

Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.