Responsible gold mining and exploration: positioned for growth

Exploring the true potential of the Karelian Gold Line

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Nasdaq OMX Stockholm (ticker ENDO ); Helsinki (ticker: ENDOM)

Statements in this presentation which are not purely historical facts, including

without limitation statements regarding future estimates, plans, objectives,

assumptions or expectations of future performance are “forward-looking

statements”. Investors are advised that by their nature as visual aids,

presentations provide information in a summary form and are prepared as a

presenter’s aid and support - not a standalone document. Please note 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

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 Finland, and lack of appropriate

funding, all of which could among other things, prevent any of the forward looking

statements in this presentation from coming to fruition or lead to a delay in the

commencement of mining operations.

Disclaimer


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The Karelian Gold Line is a 40 km long gold

critical belt, where Endomines controls all

currently known gold deposits - mineral rights for

132 km2 claims and reservations

Current Life-of-Operations (management view)

expected to be 4-5 years, but Endomines is

convinced that the on-going exploration program

will prolong the lifetime

Focus on gold production in Pampalo Gold Mine

and exploration along the Karelian Gold Line

Extensive exploration program along the Karelian

Gold Line (~€2 million in 2013)

Significant discovery 2011– the new Korvilansuo

gold deposit. 2012-13 drillings returned promising

results

Korvilansuo is the main focus for exploration in

2013

Rämepuro satellite mine 2013 – test mining has

commenced

Hosko satellite mine 2014 – test mining scheduled

for 2014

The Karelian Gold Line – great exploration potential


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Pampalo Gold Mine project completed in

December 2010 in line with the budget of

€20 million

Commercial production commenced in

February 2011 on schedule

The processing plant in Pampalo centrally

located to process ore from all the satellites

in the area

Processing capacity increased recently

from 270,000 to 380,000 tonnes/annum to

process ore from other deposits along the

Karelian Gold Line

Currently employing approximately 80 own

and 30 - 50 contractors – 70 percent locals

Pampalo Gold Mine

Pampalo mining principle

Backfilling

Rai

se

Drifting

Charging RC loading

Long hole drilling

Ore

20 m

Diamond drill holes with assays

Cross section

Blasting rings

Horisontal pillar

Unconsolidated backfill

Cable bolt holes for ground support

CRF

Longitudinal projection

Pampalo processing

Feeder

Crusher ore stockpile

Trucking

Grinding mill

Classification

Gravimetric

circuit

Gravimetric concentrate

20-50 % Au Flotation concentrate

~4-6 000 t/a; 100-200 g/t

Au

Coarse fraction

Fines

Tailings Storage Facility

Mine

Drainage

Water

Classification Crusher

• No cyanide or acid used • No harmful material in tailings • No Acid Mine Drainage (AMD) • 100 % water recirculation

4th Sept 2012

Flotation

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28-Nov-13

Mucking Ventilation raise drifting 14 Apr 2010

http://eijairenehiltunen.kuvat.fi/kuvat/endomines/Pampalo22.jpg

Tonnes mined (incl. open pit) 176 745 61 134 57 718 61 988 69 950 250 790 90 386 103 579 74 635 308 550

Tonnes processed 210 547 61 596 64 730 64 177 59 446 249 949 58 856 80 939 93 460 292 701

Head grade (Au g/t) 3,40 3,2 4,4 3,2 5,4 4,0 3,5 2,3 3,0 3,4

Gold recovery (%) 87,0 85,6 86,6 85,5 87,2 86,1 88,4 86,7 82,6 86,2

Hourly utilization (%) 85,3 86,5 94,2 95,0 88,1 91,0 88,8 92,7 92,7 90,6

Gold produced kg 615,9 168,8 244,5 175,8 277,4 866,5 180,4 168,1 228,5 854,4

Gold produced oz 19 802 5 427 7 862 5 652 8 920 27 860 5 800 5 405 7 346 27 471

LTIFR (12 month rolling) 35 16 11 10 9 9 0 8 4 4

Cash Cost Rolling 12 months (USD/oz) *)864 831 771 811 753 753 745 954 954

Q2/2012Q1/2012 FY

2011

Rolling

12monthsQ2/2013Q1/2013

FY

2012Q4/2012Q3/2012 Q3/2013


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Pampalo key production figures

• “Hourly utilization” is calculated for all available hours for the period

• “LTIFR” = The Lost Time Injury Frequency Rate – calculated as reported lost time injuries resulting in one day/shift or

more off work per 1,000,000 hours worked

• Endomines calculates ”Cash Cost” per ounce figures using the guidance issued by The Gold Institute Production Cost

Standard. Direct mining, ore processing and site administration, and off-site smelting and refining costs are included in

the ”Cash Cost” calculation, but amortization, stock change, reclamation, capital and exploration costs are excluded.

The ”Cash Cost” is calculated per payable ounces.


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Data from Mineral Titles Division of the

Western Australia Department of Mineral and

Petroleum Resources.

Gold exploration and production summary

Units Ilomantsi

(Karelian

Gold Line)

Central

Southern

Cross

Belt length km 90 110

Belt width km 0.5–10 0.5–15

Claims coverage % <20 100

Gold exploration since year 1986 1888

Gold produced total oz 100 000 >10 000 000

Gold produced in 2008 oz 0 157 147

Gold mines in production 1 4

Known reserves & resources oz 350 000 >2 000 000

Ilomantsi vs. Southern Cross greenstone belt

Data compiled by GSF / Dr P Eilu

Karelian Gold Line compared to Southern Cross belt

Exploration 2013

Mining

Korvilansuo area main target Bedrock samples indicate a large scale gold mineralization Possibilities for a large, open pittable deposit Main target for future exploration Mineral rights approved or under application Distance to Pampalo plant 15- 20 km along paved road Textbook example of orogenic gold deposits:

Kuittila tonalite

Archaen greenstone belt

Muurinsuo 1 Mt@1,7 g/t

Korvilansuo(Muurinsuo)-area 2013: - 12 000 m core drilling -

CONTINUES - Trenching - Metallurgical testwork -

COMPLETED - Geochemical sampling

Rämepuro 2013: - 2 000 m core

drilling - 20 000 t test

mining and processing - STARTED

Hosko: - 1 000 m core

drilling - 500 t test

mining and processing

- COMPLETED

Korvilansuo 0.25 Mt@2g/t

Kuittila 0.275 Mt@2,6g/t


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Several mines have had environmental challenges in

Finland during last years

But not Endomines or Pampalo!

- No cyanide or acid used

- No harmful material in tailings

- No Acid Mine Drainage (AMD) expected

- 100 % percent water recirculation

Endomines and the environment


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Reasonably small operator

Local operator - company founded 1996

in Hattuvaara

Local presence since that

Training and employing locals

Supporting local community

Regular open doors – lot of visitors

Zero Harm principle for nature and

employees

Excellent Safety records

No environmental problems

Social License to Operate

=> Strong Social Licence to operate


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Required by the lending bank in 2009

Hedge program between 2011 and 2015(6):

Fixed gold price (843 €/oz) for 84 400 oz (2 625

kg) gold

Remaining total 50 400 oz (1 560 kg)

In the beginning of 2012, the gold hedge was partly

reconstructed: 6 000 oz (187 kg) hedged volume

was moved from 2012 to 2016. The hedging price

for the volume moved to 2016 is 796 €/oz

The reason for the hedge roll-over was to release

cash for the capacity expansion investment

The hedge consists of a metal swap that adjusts

the quarter’s average price according to London

Bullion Market to a fixed price

Our gold hedge:


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Management

Markus Ekberg CEO since 2009 M.Sc. in Geology 30 years experience

in the mining

industry

Börje Linden CFO since 2008 M.Sc. Economics 30 years experience

of listed companies

Jaakko

Liikanen

CTO since 1996 M.Sc. in Geology 30 years experience

in the mining

industry

Janne

Muttonen

Resident Manager

since 2010

B.Sc. In

Engineering

15 years experience

in the construction

industry


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Board of Directors

Staffan Simberg Chairman 2013,

Member 2011

MBA, IMD, Geneva Consultant, industrial adviser, board

member in various Nordic companies

Timo Lindborg Since 2005 PhD (Tech), BSc

Geology

Managing Director in Sotkamo Silver

AB

Rauno Pitkänen Since 2010 M.Sc. In Mining Manager Projects and Sandvik

Mining and Construction Systems

Meg Tivéus Since 2012 M.Sc. in

Economics

Chairman, board member to various

Swedish companies

Stefan Månsson 2013 M.Sc. In Mining Consultant, board member Arctic

Gold AB, Northland Resources AB

2013->

Dannemora Mineral AB

Mati Sallert 2013 M.Sc. In Mining Consultant, previously several senior

manager positions in Boliden


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Key financial figures 2013 2012 2012 2011

(MSEK) 9 months 9 months

Revenues 151,5 190,7 284,0 181,8

Gold price hedge -28,9 -30,0 -48,9 -31,8

Total revenues 122,6 160,7 235,1 150,0

Operating expenses -134,7 -103,6 -146,4 -127,2

EBITDA before unrealised loss on derivatives -12,1 57,1 88,7 22,8

% of total revenues -0,1 0,3 0,4 0,2

Unrealised loss on derivatives 14,3 -32,2 -24,4 -2,3

Depriciation and amortization -27,1 -26,8 -36,3 -26,8

EBIT -24,9 -1,9 28,1 -6,3

% of total revenues -0,2 0,0 0,1 0,0

Net income -21,9 -7,2 18,9 -11,4

Cash funds end-of-period 83,1 69,0 69,0 46,3

Accrued gold revenues end-of-period 26,4 32,5 61,6 37,6

Net debt end-of-period -13,2 0,1 6,4 43,2


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Endomines ownership – largest owners Sept 30th

2013 Avanza Insurance Company Sweden 11,30 %

Svenska Handelsbanken Markets Sweden 10,50 %

Suomen Teollisuussijoitus -Finska Industriinvestingsfond Finland 7,30 %

Yggdrasil AB Sweden 7,20 %

Nordea Bank Finland AB Finland 5,10 %

Ilmarinen Mutual Pension Insurance Company Finland 3,90 %

Nordnet Pensionsförsäkring AB Sweden 3,30 %

Lindborg Timo*) Finland 2,70 %

Ålandsbanken AB, W8IMY Finland 2,00 %

Skandinaviska Enskilda Banken S.A., W8IMY Luxemburg 1,50 %

54,80 %

* Insiders, including indirect holdings:

Lindborg Timo*) Finland 2,7%

Liikanen, Jaakko Finland 1,3%

Simberg, Staffan Finland 0,6%

Other insiders Finland 0,1%

Total insider holdings 4,6%


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Future strategy for success

1. The Karelian

Gold Line is a

40 km long

gold critical belt

– all controlled

by Endomines

2. Plant capacity increase

project 270,000 t/a ->

380,000 t/a (expected

capacity utilization)

3. The capacity

increase will make

lower grade ores

economically viable

to produce

5.

Aggressive

exploration–

main target

2013

Korvilansuo

6.

Rämepuro

satellite

mine 2013

8. Organic

growth

possible with

projects in

different

development

stages

4. The higher

capacity enables

processing of ore

from all the

Karelian Gold

Line deposits

7. Hosko

satellite

mine

2014

Thank you!


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http://www.endomines.com/

Nasdaq OMX Stockholm (ticker ENDO ); Helsinki (ticker: ENDOM)



Responsible gold mining and exploration: positioned for growth

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