Endeavour Mining Capital announces first quarter results



    Toronto Stock Exchange: EDV

    GEORGE TOWN, Grand Cayman, Nov. 8 /CNW/ - Endeavour Mining Capital Corp.
("Endeavour" or "Corporation") recorded a net loss of US$0.2 million or
US$0.01 per share (or approximately CDN$0.01 per share) for the quarter ended
September 30, 2007. This compares with a net loss of US$15.9 million or
US$0.68 per share (or approximately CDN$0.76 per share) reported for the
quarter ended September 30, 2006. The Corporation recorded $18.0 million of
revenue from realised gains, interest, dividends, merchant and investment
banking fees during the quarter. The revenue of $18.0 million was offset by an
unrealised mark to market loss on the investment portfolio of $15.1 million.
    The Corporation completed its acquisition of Endeavour Financial on
July 30, 2007. Therefore the results of operations include the operating
results of Endeavour Financial for the months of August and September 2007.
Commenting, Neil Woodyer, Chief Executive Officer stated "We are pleased with
the inaugural results of the integrated merchant bank. In this quarter, we saw
the revenue diversification benefits of advisory fees contributing to an
earnings period where the merchant banking investment performance was soft. We
see opportunities to further optimize the integration of the businesses and
will be focusing on this over the coming months. Subsequent to the end of Q1,
the advisory business has completed a sizeable M&A mandate that will
contribute to Q2 results. Beyond that, our deal pipeline continues to grow."
    Commenting on the results, Frank Holmes, Chairman said "The resource
markets experienced a sharp sell off in August as the world scrambled for
liquidity due to the subprime debt crisis. This created an opportunity to
repurchase Endeavour shares. The rebound in the resource stocks was led by
senior resource companies in September, and mid-cap and small-cap stocks
lagged until October. Since the quarter end, we have witnessed a new surge and
confidence in mid-cap stocks with several corporate takeover transactions,
including one of our merchant banking positions Northern Orion being acquired
by Yamana, and gold marched to $800 per ounce."
    During the quarter ended September 30, 2007 the Corporation re-purchased
25,000 of its Common Shares in the market at a weighted average price of
CDN$8.73 per share. All of these shares have been returned to treasury.
    Frank Holmes and Bill Koutsouras will host a conference call to discuss
this earnings announcement on Tuesday November 13, 2007 at 9:00 AM Eastern
Standard Time. The meeting will be webcast by V-Call and can be accessed from
the Corporation's website at www.endeavourminingcapital.com or by calling the
operator at 201-689-8031 or toll free 1-877-407-8031 prior to the scheduled
start time.
    The conference call will be archived for later playback on the
Corporation's website.

    Endeavour Mining Capital Corp. is a publicly-traded merchant banking
company offering integrated capital investment and financial advisory services
to the global natural resources sector. The Corporation offers a unique
combination of financial and intellectual capital to help build companies and
create shareholder value. Our shares are listed on the Toronto Stock Exchange
under the symbol EDV and offer a distinctly different way to invest in the
natural resources sector.
    For additional information, please visit our corporate website,
www.endeavourminingcapital.com.

    On behalf of Endeavour Mining Capital Corp.

    "Bill Koutsouras"
    Chief Financial Officer, Director & Secretary



    
    ENDEAVOUR MINING CAPITAL CORP.
    Consolidated Balance Sheets
    (Expressed in Thousands of United States Dollars)
    (Unaudited)

                                                  September 30,      June 30,
                                                          2007          2007
                                                  ------------- -------------

    ASSETS

    Cash and cash equivalents                     $     42,189  $     43,980
    Investments, at market                             213,405       229,750
    Accounts receivable and other assets                 2,411           154
    -------------------------------------------------------------------------
                                                       258,005       273,884

    Capital assets                                         623             -
    Future income taxes                                      5             -
    Intangible assets                                   35,402             -
    Goodwill                                            15,452             -
    -------------------------------------------------------------------------
                                                  $    309,487  $    273,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Performance fees payable                      $          -  $     17,988
    Accounts payable and accrued liabilities             1,509           568
    -------------------------------------------------------------------------
                                                         1,509        18,556
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY

    Share capital                                      106,183        53,180
    Contributed surplus                                    338           492
    Retained earnings                                  201,457       201,656
    -------------------------------------------------------------------------
                                                       307,978       255,328
    -------------------------------------------------------------------------
                                                  $    309,487  $    273,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ENDEAVOUR MINING CAPITAL CORP.
    Consolidated Statements of Operations & Retained Earnings
    (Expressed in Thousands of United States Dollars, except per share
     amounts)
    (Unaudited)

                                                       Three months ended
                                                          September 30,
                                                       2007          2006
                                                  ------------- -------------
    REVENUE
      Net realized gain (loss) on
       investments sold                           $     15,609  $     (1,485)
      Change in net unrealized appreciation/
       depreciation of investments                     (15,122)      (13,143)
      Interest and dividends                               415           305
      Merchant and investment banking fees               1,979             -
    -------------------------------------------------------------------------
                                                         2,881       (14,323)
    -------------------------------------------------------------------------

    EXPENSES
      Investment advisory fees                             837           838
      Employee compensation and benefits                 1,080             -
      General and administrative                         1,046           399
      Foreign exchange (gain) loss                        (653)          314
      Amortization                                         775             -
    -------------------------------------------------------------------------
                                                         3,085         1,551
    -------------------------------------------------------------------------
    LOSS BEFORE INCOME TAXES                              (204)      (15,874)
    -------------------------------------------------------------------------

    Income tax recovery                                      5             -
    -------------------------------------------------------------------------
    NET LOSS                                              (199)      (15,874)
    RETAINED EARNINGS, BEGINNING OF PERIOD             201,656       119,183
    DIVIDENDS PAID                                           -        (1,051)
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF PERIOD              $    201,457  $    102,258
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    BASIC AND DILUTED EARNINGS PER SHARE          $      (0.01) $      (0.68)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING -
     BASIC AND DILUTED                              27,855,844    23,304,956
    -------------------------------------------------------------------------



    ENDEAVOUR MINING CAPITAL CORP.
    Consolidated Statements of Cash Flows
    (Expressed in Thousands of United States Dollars)
    (Unaudited)

                                                      Three months ended
                                                         September 30,
                                                      2007          2006
                                                  ------------- -------------
    OPERATING ACTIVITIES
      Net loss                                    $       (199) $    (15,874)
      Adjustments to reconcile net income
       to net cash provided by (used in)
       operating activities:
          Net realized gain on investments             (15,609)        1,485
          Change in net unrealized appreciation
           of investments                               15,122        13,143
          Amortization                                     775             -
        Changes in non-cash working capital:
          Increase in receivables and other assets      (1,093)         (182)
          Decrease in performance fees payable          (8,994)      (15,313)
          Increase (decrease) in accounts payable
           and accrued liabilities                     (36,548)          (53)
          Increase in future income taxes                   (5)            -
      Purchase of investments                          (23,298)      (20,652)
      Proceeds from the sale of investments             41,198         4,291
    -------------------------------------------------------------------------
                                                       (28,651)      (33,154)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
      Received from the issue of common shares             794           380
      Repurchase of common shares                         (206)            -
      Dividends paid                                         -        (1,051)
    -------------------------------------------------------------------------
                                                           588          (672)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Net cash received on purchase of Endeavour
       Financial                                        27,063             -
      Purchase of capital assets                           (78)            -
    -------------------------------------------------------------------------
                                                        26,985             -
    -------------------------------------------------------------------------

    Effect of exchange rate changes on cash
     and cash equivalents                                 (713)          314
    -------------------------------------------------------------------------

    DECREASE IN CASH AND CASH EQUIVALENTS               (1,791)      (33,512)
    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD      43,980        59,791
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS, END OF PERIOD      $     42,189  $     26,279
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The foregoing
information may contain forward-looking statements relating to the future
performance of Endeavour Mining Capital Corp. Forward-looking statements,
specifically those concerning future performance, are subject to certain risks
and uncertainties, and actual results may differ materially. These risks and
uncertainties are detailed from time to time in the Corporation's filings with
the appropriate securities commissions.




For further information:

For further information: Phone: Vanguard Shareholder Solutions,
1-866-801-0779 or (604) 608-0824, email: investor@endeavourminingcapital.com

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ENDEAVOUR FINANCIAL CORPORATION

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