Sustainability Priorities //

Board of Directors

Endeavour’s Board of Directors oversees the company’s business conduct and strategic planning and ensures that appropriate governance mechanisms are in place, including the integrity of our internal controls and management information systems. The board appoints the CEO and provides direction, support and oversight of senior management, with a focus on enterprise risk management, strategic planning and resource management; providing assurance that the Company has in place effective policies, processes, systems and controls in these key areas. The Board regularly receives reports concerning the development of the company’s business and operations, including its progress and continual improvement efforts with respect to its economic, environmental, and social performance.

Our policies and Code guide the Board’s oversight, including accountability to stakeholders through policies and communications with shareholders and others, and the Board’s relationship with management—who are responsible for setting long-term goals and objectives for the company, formulating plans and strategies necessary to achieve those objectives, as well as the day-to-day management of the company.

The company has a Diversity Policy in place, which recognizes the benefits arising from board, management and employee diversity, including broadening skill-sets and experience, accessing different outlooks and perspectives, and benefiting from all available talent.

The Board is accountable to, and considers the interests of our wide array of stakeholders, including but not limited to: shareholders, employees, contractors, community members, government authorities, and customers.

The Endeavour Board is composed of seven male members; five of whom are independent, non-executive Directors, including the Chairman of the Board. Members of our Board achieve their responsibilities both directly and through Board committees. The Endeavour Board has four standing committees including the (1) Audit Committee, (2) Compensation Committee, (3) Corporate Governance and Nomination Committee and (4) Sustainability Committee. Committee mandates and charters are reviewed and updated regularly to maintain continued relevancy and to provide an effective framework for a high standard of governance.

Two of these Board committees have oversight for our sustainability strategy and decision-making regarding the economic, environmental, and social impacts of our company: the Sustainability Committee and to a lesser extent, the Corporate Governance and Nominating Committee. Guided by our Sustainability Policy and the Sustainability Committee Charter, the Sustainability Committee is comprised of three members and meets at least three times per year – informed by quarterly reports from key departments of our operations. The Committee promotes sustainability as a core company value, encourages a corporate culture that takes responsibility for sustainable development, and approves policies, standards, systems, and responsible work practices that guide the performance and expectations of our employees, contractors, and other key stakeholders.

In addition to a review by the Sustainability Committee, the senior executives who formally review and approve the Sustainability Report and who also ensure that all topics identified by our stakeholders as material aspects receive report coverage include the Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer, and our Director of Investor Relations.

Management of Sustainability Priorities

Endeavour Silver has adopted the Dow Jones Sustainability Index definition of corporate sustainability which states that “Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments”. Our Sustainability Policy outlines our commitments in each of these categories and also specifies that the company will provide the necessary resources to meet these ongoing commitments.

For Endeavour, corporate sustainability is essential to our business strategy and means more than conducting our business in an ethical manner. In the workplace, it means rigorous safety standards, procedures and training to ensure that our people work in a safe and healthy manner. In the environment, it means taking extra measures to maintain and improve local ecosystems. In the communities that surround our operations, it means supporting our local communities to build capacity and enhance their standard of living.

Endeavour meets or exceeds applicable laws and regulations in all of the jurisdictions where we operate, and we seek to continually improve our sustainability performance. We strive to ensure that the company meets its sustainability priorities and targets, management monitors and reviews performance, and we publicly communicate our sustainability performance annually through the reporting process.

Since 2014, Endeavour has been in the process of educating the site-level leadership teams about our sustainability commitment, as well integrating it into our corporate objectives, including topics pertaining to governance, economic, health and safety, labour relations, natural resources (land, water, biodiversity), waste, energy, and social (community) metrics, which track very closely with our material issues for reporting purposes.

This process, which continues to be incorporated into Endeavour’s management systems, has helped employees align themselves with the company’s corporate goals and sustainability priorities, and has helped the company evaluate individual performance in a more objective manner.

Risk Assessment and Management

Endeavour is committed to reducing and managing exposure to certain inherent risks in the achievement of our business objectives and sustainability priorities by adopting an ongoing and systematic approach to identify, analyze, evaluate, and manage material business risks. Our risk management methodology and resulting matrix includes scales of assessing and ranking risk severity and probability. In 2016 there were no topics ranked within the highest level of concern, however the most salient enterprise risks included commodity pricing and volatility and increasing nationalism. Those which are more within the control of the company and require ongoing attention include health and safety (a culture of safety awareness and self-care), permitting, and tailings management.

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