Endeavour Silver Corp.

Condensed Consolidated Interim Financial Statements

Unaudited

Three Months Ended March 31, 2026 and 2025

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited)

(expressed in millions of US dollars)

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

Approved on behalf of the Board:

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(unaudited)

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

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

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(unaudited)

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

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

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(unaudited)

(expressed in millions of US dollars)

Supplemental cash flow information (Note 15)

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

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 Peru and related activities including acquisition, exploration, development, extraction, processing, refining and reclamation. The Company is also engaged in exploration activities in Chile and the United States. On January 15, 2026, the Company completed the sale of Mina Bolañitos, S.A. de C.V. ("Mina Bolañitos" or "Bolañitos") (Note 4). The Company is listed on the Toronto Stock Exchange (the "TSX") (TSX: EDR), and the New York Stock Exchange (the "NYSE") (NYSE: EXK). The address of the registered office is Suite 3500, 1133 Melville Street, Vancouver, BC, Canada V6E 4E5.

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 annual audited consolidated financial statements as at and for the year ended December 31, 2025.

The Board of Directors approved these condensed consolidated interim financial statements for issue on May 6, 2026.

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 condensed consolidated interim financial statements are presented in the Company's functional currency of US dollars and include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

3. MATERIAL 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, 2025, except as described below:

During the three months ended March 31, 2026, the Company adopted amendments to IFRS 9 Financial Instruments and related amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures related to the settlement of financial assets and financial liabilities through electronic payment systems. The amendments clarify the timing of recognition and derecognition of financial assets and financial liabilities settled electronically and introduce an optional exception for certain electronic payment arrangements. The adoption of these amendments did not have a material impact on the Company's consolidated financial statements.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the annual audited consolidated financial statements for the year ended December 31, 2025.

4. SALE OF BOLAÑITOS

On January 15, 2026, the Company completed the disposal of Mina Bolañitos, pursuant to a definitive agreement with Guanajuato Silver Company Ltd. dated November 24, 2025. The transaction includes upfront consideration of (i) cash of $30.0; (ii) 36.9 million common shares of Guanajuato Silver, measured at their fair value of $20.2 based on the quoted share price of C$0.76 per share at the close of the agreement date; (iii) an estimated working capital adjustment in the Company's favour of $5.7. As at March 31, 2026, the Company had received $30.0 in cash and a $3.0 preliminary working capital adjustment based on December 31, 2025 balances. The remaining estimated working capital adjustment of $2.7 million is recorded in accounts and other receivables.

The total upfront consideration for the sale of the Mina Bolañitos consisted of the following components:

As at March 31, 2026, the Company held 36.9 million common shares of Guanajuato Silver that are subject to transfer restrictions and carried at a fair value of $16.2 (December 31, 2025 - $nil). During the three months ended March 31, 2026, the shares were revalued with a revaluation loss of $4.0 (2025 - $nil) recorded in investment and other within earnings (loss) for the period. The shares are subject to transfer restrictions consisting of an initial 12-month prohibition on transfers followed by two successive 12-month periods during which transfers are permitted only up to specified thresholds. Based on the expected timing over which the restrictions lapse, $8.1 of the shares are classified within current assets and $8.1 within non-current assets as at March 31, 2026.

In addition to the upfront consideration, the Company is entitled to receive up to $10.0 of deferred consideration, payable in two installments of $5.0 each upon the Bolañitos mine achieving the cumulative production milestones of two million and four million silver-equivalent ounces. There is no requirement that such production be achieved within a specified period. The fair value of the deferred consideration at the disposal date was determined to be $7.6. The deferred consideration represents a financial asset measured at fair value through profit or loss and is re-measured at the end of each reporting period, with changes in fair value recognized in profit or loss. The fair value of the deferred consideration as at March 31, 2026, was determined to be $7.6, and the change in fair value during the period from January 15, 2026, to March 31, 2026, that rounds to $nil, was recorded in other income.

The Company recognized a gain on disposal of $35.6, calculated as follows:

At January 15, 2026, the carrying amounts of the assets and liabilities relating to Bolañitos were as follows:

5. ACCOUNTS AND OTHER RECEIVABLES

The trade receivables include receivables from concentrate sales. The fair value of receivables arising from concentrate sales that contain provisional pricing mechanisms is determined by using the appropriate forward metal prices quoted at period end from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of a derivative, are classified within Level 2 of the fair value hierarchy (Note 18).

6. IVA RECEIVABLES

As at March 31, 2026, the total receivable balance for the Company's Mexican subsidiaries value added tax, Impuesto al Valor Agregado ("IVA") of $65.9 (December 31, 2025 - $66.8) has been allocated between the current portion of $62.9, and the non-current portion of $3.0 (December 31, 2025 - $63.8 and $3.0, respectively). The non-current portion relates to the claim of Minera Pitarrilla, S.A. de C.V. that will be eligible for submission upon generation of revenue (December 31, 2025 - $1.9).

7. INVENTORIES

8. MINERAL PROPERTIES, PLANT AND EQUIPMENT AND OTHER NON-CURRENT ASSETS

Other non-current assets include $2.6 (December 31, 2025 - $3.2) of deposits related to items of property, plant and equipment at Terronera.

9. CONVERTIBLE SENIOR NOTES

On December 4, 2025, the Company completed an offering of $350.0 aggregate principal amount of unsecured convertible senior notes (the "Notes") due in 2031. The Notes bear interest at 0.25% per annum, payable semi-annually, and are convertible at the option of the holder into a fixed number of the Company's common shares at a conversion price defined in the offering agreement. The Company received net proceeds of $339.1 which were allocated between liability, equity and early redemption derivative components. The early redemption derivative asset embedded in the Notes is valued using FINCAD model with key assumptions including underlying stock volatility and the Company's credit spread, and is classified within Level 3 in the fair value hierarchy.

As at March 31, 2026, the carrying amount of the liability component of the instrument, net of allocated issuance costs, was $236.1 (December 31, 2025 - $231.2), reflecting interest accretion under the effective interest method of $4.9 during the three months ended March 31, 2026. The embedded derivative related to the early redemption option had a carrying amount of $10.8 as at March 31, 2026 (December 31, 2025 - $8.0), reflecting remeasurement to fair value during the period of $2.7 (Note 18).

10. LOANS PAYABLE

Debt Facility

The balance is repayable on June 30, 2026, and is secured by corporate guarantees from the Company and a first-ranking security interest over the Terronera mine. The Company was in compliance with all applicable covenants as at March 31, 2026.

Equipment Financing

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants, and as at March 31, 2026, the Company was in compliance with these covenants. As at March 31, 2026, the net book value of equipment included $13.4 (December 31, 2025 - $17.9) of equipment pledged as security for the equipment financing.

11.  SHARE CAPITAL

(a) Stock Options

Subsequent to March 31, 2026, an additional 40,890 common shares were issued on the exercise of 40,890 stock options, with a weighted average exercise price of CAN$3.98, and 12,000 stock options were cancelled.

During the three months ended March 31, 2026, the Company recognized share-based compensation expense of $0.2 (March 31, 2025 - $0.2) based on the fair value of the vested portion of options.

(b) Share Units Plan

Performance Share Units (PSUs)

Performance criteria are based on the Company's share price performance relative to a representative group of other mining companies. On March 6, 2026, 320,000 PSUs issued in 2023 vested with performance metric of 99%; the Company elected to pay employment taxes using cash and therefore, 176,251 shares were issued in settlement. Of the outstanding PSUs, 595,000 vest on March 12, 2027, 299,900 vest on April 1, 2028, and 101,800 vest on March 1, 2029 once certain performance criteria are met.

During the three months ended March 31, 2026, the Company recognized share-based compensation expense of $0.4 related to the PSUs (March 31, 2025 - $0.3).

Deferred share units (DSUs) - Equity Settled

During the three months ended March 31, 2026, under the Share Units Plan, the Company granted 39,627 DSUs (March 31, 2025 - $nil) and recognized a share-based compensation expense of $0.5 (March 31, 2025 - $nil).

Restricted Share Units (RSUs)

During the three months ended March 31, 2026, the Company recognized share-based compensation expense of $0.3 related to the RSUs (March 31, 2025 - $nil). Subsequent to March  31, 2026, a total of 24,124 RSUs were cancelled.

(c) Historical Cash Settled Deferred Share Units 

During the three months ended March 31, 2026, the Company recognized a mark to market recovery on cash-settled Deferred Share Units related to directors' compensation, which is included in general and administrative employee costs, of $0.1 (March 31, 2025 - a mark to market expense of $0.6) based on the change in the fair value of the cash-settled Deferred Share Units. As of March 31, 2026, deferred share units outstanding have a fair market liability value of $8.8 (December 31, 2025 - $8.9) recognized in accounts payable, accrued liabilities and other.

(d) Diluted loss per Share

As of March 31, 2026, there are no anti-dilutive stock options (March 31, 2025 - 925,291).

12. REVENUE

Changes in fair value from provisional pricing are included in silver, gold, lead, zinc and copper sales. Revenue per product type was as follows:

13. EXPLORATION, EVALUATION AND DEVELOPMENT

14. GENERAL AND ADMINISTRATIVE

15. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

16. 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 three operating mining segments: Guanaceví and Terronera in Mexico, and Kolpa in Peru. The Company also reports Exploration and Corporate segments. Bolañitos was sold on January 15, 2026, and accordingly is no longer included as an operating segment as of March 31, 2026 (Note 4).

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. Both mines located in Mexico produce silver and gold, while Kolpa produces silver, lead, zinc and copper. Refined metal sales come from Guanaceví while the other two mines sell metals in concentrate. The Corporate segment includes the gain on disposal of Bolañitos.

The Exploration segment included $0.3 of costs incurred in Chile for the three months ended March 31, 2026 (March 31, 2025 - $0.3).

17. COMMITMENTS & CONTINGENCIES

Commitments

As of March 31, 2026, the Company had $9.4 committed for capital equipment purchases.

Contingencies

Due to the nature of the Company's activities, various legal and tax matters are outstanding from time to time. The Company is routinely subject to audit by tax authorities in the countries in which it operates and has received a number of tax assessments in various locations, which are currently at various stages of progress with the relevant authorities. The outcomes of these audits and assessments are uncertain, however, the Company is confident of its position on the various matters under review.

18. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Contingent payment on acquisition of Kolpa

Consideration is valued using a discounted cash flow model and it is classified as Level 3 in the fair value hierarchy. The key unobservable inputs used in the valuation include a discount rate of 15.0%, as well as assumptions about future technical report's silver-equivalent ounces contained in Kolpa's reserves and resources.

The fair value of the contingent consideration payable as at March 31, 2026, was $9.1 (December 31, 2025 - $8.8).

Deferred consideration on sale of Bolañitos

The deferred consideration was measured at fair value using probability-weighted discounted cash flow models based on forecasted production from Bolañitos. Accordingly, it is classified within the Level 3 of the fair value hierarchy. The key unobservable inputs used in the valuation include a discount rate of 13.5%, as well as assumptions about forecasted production from Bolañitos. The fair value of the deferred consideration as at March 31, 2026, was $7.6 (December 31, 2025 - $nil).

Commodity contracts

In connection with the Terronera Debt Facility (Note 10), the Company entered into gold forward swap contracts on March 28, 2024, at a forward price of $2,311 per ounce of gold. As of March 31, 2026, 45,244 oz remain outstanding, with settlement scheduled through June 2027.

In September 2025, in relation to the amendment to the Terronera Debt Facility (Note 10), the Company implemented un-margined zero-cost collars for 968,000 ounces of silver with a price range of $31 to $42. As at March 31, 2026, the Company had 387,096 silver collar oz outstanding to be settled over the period from April 2026 to June 2026.

Concurrently with the acquisition of Minera Kolpa on May 1, 2025, the Company entered into a ten-year Copper Stream agreement on copper produced from Kolpa with Versamet Royalties Corporation. The copper stream liability is measured at fair value through profit or loss using a discounted cash flow model based on market and operational assumptions, including discount rates and forward copper price curves and classified within  Level 3 in the fair value hierarchy.

Foreign exchange contracts

The Company also hedged a portion of the estimated remaining capital and operating expenditures incurred in Mexican Pesos.  During the three months ended March 31, 2026, the Company settled $9.0 of MXN forward contracts and recognized realized gains of $1.1. As of March 31, 2026, the Company had $33.0 Mexican Peso forward contracts with a weighted average settlement exchange rate of 18.47 pesos for US dollar settling between April 2026 and June 2027.

Reconciliation of derivatives assets, liabilities and loss on derivative contracts

(a) Financial assets and liabilities

As at March 31, 2026, the carrying and fair values of the Company's financial instruments by category were as follows:

As at December 31, 2025, the carrying and fair values of the Company's financial instruments by category were as follows:

(b) Fair value hierarchy

Assets and liabilities as at March 31, 2026 that are measured at fair value on a recurring basis include:

Assets and liabilities as at December 31, 2025 that are measured at fair value on a recurring basis include: