Endeavour Silver Corp. Follow Up #2

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March 28, 2006

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PROJECTS LOCATED WITHIN THE MEXICAN SILVER BELT

Business Summary

Endeavour Silver Corp. is a small-cap silver mining company focused on the growth of its silver production and resources in Mexico.

The expansion plan now underway at the high grade, producing Santa Cruz silver mine should propel Endeavour into the ranks of the top 5 primary silver producers in the world.

Endeavour stands out from other primary silver companies for its high silver grades (+15 oz. per ton), its high silver leverage (+90%), the substantial exploration upside of the Santa Cruz property (+30 million oz), the significant un-used capacity of the Guanaceví plant (up to 1400 tpd) and the organic growth potential of these core assets.

Santa Cruz Mine

·         Production - Forecast to produce 2.4 million oz. in 2006 and 3.6 million oz. in 2007.

·         Large Plant - Modern mill with 1400 tonne/day capacity.

·         High Grades - 500+ grams/tonne Silver = 14.6 oz/ton

·         Good Widths - 3 metre average width

·         Local Infrastructure
- Power and Water on property
- 5 km to paved highway and town of Guanacevi
- Trained work force on site

·         Low and Manageable Risks - Known geology, grades, metallurgy and mill operation

·         Outstanding Growth Potential

Recent News: High Grade Silver Mineralization Discovered On Porvenir Dos Property; Drilling Update on Guanacevi Project, Durango, Mexico

Endeavour Silver Corp. announced the discovery of high grade silver mineralization by drilling on the Porvenir Dos property, part of Endeavour's Guanacevi Project in Durango, Mexico. Porvenir Dos is located adjacent to and northwest of Endeavour's new North Porvenir silver mine, and covers more than 1 km of prospective strike length along the Santa Cruz vein system.

High silver grades were intersected over mineable vein widths in several drill holes over a 200 m length down to 200 m deep open in all directions. Results include 484 gpt silver over 5.60 m (15.5 opt silver equiv. over 18.4 ft) in hole PD 36-2 and 3489 gpt silver over 1.20 m (109.1 opt silver equiv. over 3.9 ft) in hole PD 36-3.

Porvenir Dos represents the fourth discovery of high-grade silver mineralization on Endeavour properties covering more than 4 km of prospective strike length on the Santa Cruz vein.

Four drills are currently working at the Guanacevi Project on the Porvenir Dos, North Porvenir , El Porvenir and Deep Santa Cruz mineralized zones. Drill holes are spaced at 50 m intervals along strike and down dip.

Additional drill intercepts of broad vein widths and good silver grades were intersected in several holes on the El Porvenir property, including 209 gpt silver over 7.40 m (6.8 opt silver equiv. over 24.3 ft) in hole NP10-B and 576 gpt silver over 3.35 m(18.4 opt silver equiv. over 11.0 ft) in hole NP16-B.

These holes successfully extend the high-grade silver mineralization from the North Porvenir mine up-dip onto El Porvenir.

Mine development of the El Porvenir portion of the North Porvenir mine is already underway and production should commence in Q2, 2006.

Deep drilling at the north end of the North Porvenir mine has successfully extended the high grade silver mineralization to depths of 250 m below surface and 50 m below the lowest mine level 400, still open at depth. New results include 423 gpt over 5.20 m (13.6 opt silver equiv. over 17.1 ft) in hole NP19-3.

Deep drilling at the Santa Cruz mine has also outlined the down-dip extension of high-grade mineralization below the lowest mine level #13. Additional results include seven intercepts grading up to 2101 gpt silver over 1.05 m (66.4 opt silver equiv. over 3.4 ft) in hole DSC1-8G.

The 300 m deep inclined Santa Cruz shaft has been refurbished and two cross-cuts were extended into the hanging wall rocks to act as drill platforms for the deep drilling. Once it is completed, Endeavour plans to assess the potential to bring the Deep Santa Cruz mineralization into production in Q4, 2006.

An updated N.I. 43-101 resource estimate is now being prepared for release in March. Endeavour anticipates a significant increase in resources and reserves will result from the aggressive drilling programs carried out over the past year.

Bradford Cooke, Chairman and C.E.O., stated "These latest drill results confirm our view that the Santa Cruz vein system is a prolific host for high grade silver ore bodies. The new Porvenir Dos discovery is simply further evidence that the entire Guanacevi district is prospective for exploration.

Fundamental Considerations 

Endeavour is investing US$10 million over 3 years at Guanacevi to expand resources to +30 million oz. silver and production to 3.6 million oz. silver per year, just to fill the existing capacity of the plant. The Company can capture future growth through acquiring and exploring additional properties in Guanacevi and further silver mine acquisitions in Mexico.

The top four primary silver mining companies each produce between 6.8 and 14.8 million oz silver per year, have market capitalizations of US$500 million to US$1 billion and are valued at around US$60 to US$90 per oz of annual silver production. If Endeavour grows to 3.6 million oz per year by 2007 and captures similar market valuations, the investment potential should be a multiple of the current market cap.

Endeavour remains undervalued in relation to other primary silver producers. This will of course change if the company continues to intersect “high silver grades over mineable vein widths in several drill holes”, as just reported.

The company furthermore needs to remain on track in its plan for a yearly silver production of 3.6 million ounces in 2007. 

Technical Considerations

Increasing production, excellent exploration potential, positive cash-flow justify a higher share price.

Peter Zihlmann

www.pzim.com  

www.timeless-gold.com

invest@pzim.ch

+41 44 268 51 10

THE TIMELESS PRECIOUS METAL FUND

is a shareholder in the company and will benefit from any increase in the company’s share price.

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Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.

Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.

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