Endeavour reports net income of US$56.5 million for year ended June 30, 2008 and increases dividend by 100%



    GEORGE TOWN, Grand Cayman, Sept. 3 /CNW/ - Endeavour Financial
Corporation (TSX:EDV) ("Endeavour" or the "Corporation") today reported net
income of US$56.5 million or US$1.90 per share, on revenues of US$108 million,
for the year ended June 30, 2008. This compares with net income of
US$85.6 million or US$3.67 per share, on revenues of US$109 million, for the
year ended June 30, 2007.

    
    Highlights year ended June 30, 2008:

    -   Revenue of $108 million (including US$60 million investment income
        and US$48 million financial advisory fees)

    -   Adjusted EBITDA of US$72.9 million

    -   Net Income of US$56.5 million, or US$1.90 per share

    -   Paid US$4.1 million in dividends

    -   Re-purchased 520,200 common shares at an average price of CDN$7.39
        (CDN$3.8 million)

    -   Shareholders' Equity increased from US$255 million (CDN$11.57 per
        share) to US$370 million (CDN$12.38 per share)

    -   Completed acquisition of Endeavour Financial Advisory Services Ltd.
    

    Neil Woodyer, President and Chief Executive Officer commented "we are
delighted with our financial results during a transition year in which we
completed the acquisition of Endeavour Financial Advisory Services. The
financial advisory revenue of US$48 million is a significant increase compared
to previous years, reflecting a greater number of completed assignments which
were generally larger in scale. Further, we experienced a high level of
merchant banking investment activity and despite much more challenging market
conditions, we generated US$60 million of investment income. Our strong
financial performance is confirmation that our newly combined business,
coupled with a focused merchant banking approach is an effective model which
will clearly benefit all shareholders."
    The Board of Directors has declared a cash dividend of CDN$0.03 per
share, payable on September 30, 2008 to shareholders of record on
September 23, 2008. On a go-forward basis the monthly dividend payments to
shareholders will be CDN$0.03 per share. This annualized dividend rate of
CDN$0.36 per share represents a current dividend yield of 6.2%, based on the
closing price of Endeavour's shares on September 2, 2008. Chairman, Frank
Holmes, stated "The Board fully endorses the long-term earnings outlook of the
Company and is pleased to announce the increase in the monthly dividend
payment by 100%."
    As of June 30, 2008 the book value per issued and outstanding share
(31,123,077) was US$11.41 (or approximately CDN$12.38), compared to US$10.86
(or approximately CDN$11.57) as of June 30, 2007.
    During the year ended June 30, 2008 the Corporation re-purchased 520,200
of its Common Shares in the market at a weighted average price of CDN$7.39 per
share. All of these common shares have been returned to treasury.

    Resource Transactions

    During the year ended June 30, 2008 Endeavour Financial advised on
numerous noteworthy resource transactions, including:

    
    -   The acquisition of Pacific Stratus Energy by Petro Rubiales Energy in
        a transaction valued at US$2.5 billion

    -   Rusoro Mining's US$523 million acquisition of Gold Fields' Venezuelan
        gold assets including the Choco 10 mine

    -   The sale of a 30% interest of Baja Mining's Boleo Copper Project to a
        consortium of Korean companies for a financing package totaling US
        $294 million

    -   Northern Orion's business combination with Yamana Gold and Meridian
        Gold to create a US$9.8 billion gold company

    -   Participation in the creation and launch of Gold Wheaton, a newly
        created gold-stream company (current market capitalization,
        approximately CDN$750 million)

    -   The business combination of European Minerals and Lero Gold Corp. to
        form Orsu Metals (transaction valued at approximately US$130 million)

    -   Arrangement of US$100 million corporate loan facility for Uranium One
    

    Commenting further, President and Chief Executive Officer Neil Woodyer
stated "as a merchant bank, Endeavour supports its specialist financial
advisory services with strategic capital investments. We frequently invest in
our client companies and have invested in each of our resource clients noted
above. Our approach is to work as a trusted advisor to senior corporate
officers and directors, helping them to devise and implement growth strategies
in order to create shareholder value. We believe this long-term,
relationship-based approach is core to the success and sustainability of our
business".
    Endeavour will host a conference call on Thursday September 4, 2008 at
10:00 AM Eastern Standard Time. The meeting will be webcast by V-Call and can
be accessed from the Corporation's website at www.endeavourfinancial.com or by
calling the operator at 201-689-8031 or toll free 877-407-8031 prior to the
scheduled start time. The conference call will be archived for later playback
on Endeavour's website until September 3, 2009.

    About Endeavour Financial Corporation

    Endeavour is an independent merchant banking company focused on the
global natural resources sector. The Corporation offers advisory services in
project, corporate and debt capital markets; equity financings; mergers and
acquisitions; and strategic business development. Endeavour also provides
equity and bridge loans in support of clients, transactions, and other market
opportunities. Accessing its global industry networks, Endeavour creates and
launches new growth companies as both an advisor and investor.
    For additional informational please visit our corporate website at
www.endeavourfinancial.com. In order to access the Corporation's financial
statements directly, please click the following URL:
http://files.newswire.ca/509/Endeavour_Financial.pdf.

    
    On behalf of Endeavour Financial Corporation

    "Neil Woodyer"

    Neil Woodyer
    President and Chief Executive Officer

    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 Financial Corporation. 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.



    ENDEAVOUR FINANCIAL CORPORATION
    (Formerly Endeavour Mining Capital Corp.)
    Consolidated Balance Sheet
    (Expressed in United States Dollars, except per share amounts)
    -------------------------------------------------------------------------

                                                       June 30,      June 30,
                                                          2008          2007
                                                  ------------- -------------
    ASSETS

    Cash                                          $     14,784  $     43,980
    Investments, at fair value                         308,410       229,750
    Accounts receivable and other assets                 7,239           154
    -------------------------------------------------------------------------
                                                       330,433       273,884

    Capital assets                                         509             -
    Intangible assets                                   29,477             -
    Goodwill                                            23,940             -
    -------------------------------------------------------------------------
                                                  $    384,359  $    273,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Investment advisor fees payable               $      2,951  $     18,444
    Accounts payable and accrued liabilities             6,317           112
    Income taxes payable                                 3,824             -
    Future income taxes                                  1,116             -
    -------------------------------------------------------------------------
                                                        14,208        18,556
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY

    Share capital                                      111,031        53,180
    Contributed surplus                                  5,052           492
    Retained earnings                                  254,068       201,656
    -------------------------------------------------------------------------
                                                       370,151       255,328
    -------------------------------------------------------------------------
                                                  $    384,359  $    273,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ENDEAVOUR FINANCIAL CORPORATION
    (Formerly Endeavour Mining Capital Corp.)
    Consolidated Statements of Operations, Comprehensive Income
    and Retained Earnings
    (Expressed in United States Dollars, except per share amounts)
    -------------------------------------------------------------------------

                                                    Year Ended,   Year Ended,
                                                       June 30,      June 30,
                                                          2008          2007
                                                  ------------- -------------

    REVENUE
      Investment income                           $     60,230  $    109,031
      Advisory fees                                     47,855             -
    -------------------------------------------------------------------------

                                                       108,085       109,031
    -------------------------------------------------------------------------

    EXPENSES
      Investment advisor fees                            5,531        22,082
      Employee salaries                                  4,291             -
      Performance related bonuses                       15,235             -
      Consulting fees                                    1,747             -
      General and administrative                         7,119         1,576
      Foreign exchange loss (gain)                       1,237          (253)
      Stock-based compensation                           4,714             -
      Amortization                                       6,849             -
    -------------------------------------------------------------------------

                                                        46,723        23,405
    -------------------------------------------------------------------------

    INCOME BEFORE INCOME TAXES                          61,362        85,626
    -------------------------------------------------------------------------

    Current income taxes                                (3,840)            -
    Future income taxes                                   (999)            -
    -------------------------------------------------------------------------

    NET INCOME AND COMPREHENSIVE INCOME                 56,523        85,626
    RETAINED EARNINGS, BEGINNING OF PERIOD             201,656       119,183
    DIVIDENDS PAID                                      (4,111)       (3,153)
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF PERIOD              $    254,068  $    201,656
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    BASIC EARNINGS PER SHARE                      $       1.90  $       3.67
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    DILUTED EARNINGS PER SHARE                    $       1.82  $       3.47
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    WEIGHTED-AVERAGE COMMON SHARES
     OUTSTANDING, BASIC                             29,821,333    23,353,634
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    WEIGHTED-AVERAGE COMMON SHARES
     OUTSTANDING, DILUTED                           31,123,077    24,670,963
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ENDEAVOUR FINANCIAL CORPORATION
    (Formerly Endeavour Mining Capital Corp.)
    Consolidated Statements of Cash Flows
    (Expressed in United States Dollars, except per share amounts)
    -------------------------------------------------------------------------

                                                    Year Ended,   Year Ended,
                                                       June 30,      June 30,
                                                          2008          2007
                                                  ------------- -------------

    OPERATING ACTIVITIES
      Net income                                  $     56,523  $     85,626
      Adjustments to reconcile net income to
       net cash used in operating activities:
        Net realized gain on investments               (62,216)      (49,813)
        Change in net unrealized appreciation
         of investments                                  3,109       (57,624)
        Unrealized advisory fees                        (3,516)            -
        Amortization                                     6,849             -
        Stock-based compensation                         4,714             -
        Increase in future income tax expense              999             -
      Changes in non-cash working capital              (39,761)        2,705
      Purchase of investments                         (156,988)     (105,540)
      Proceeds from the sale of investments            140,416       111,418
    -------------------------------------------------------------------------
                                                       (49,871)      (13,228)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
      Received from the issue of common shares             793         1,303
      Repurchase of common shares                       (3,846)         (480)
      Dividends paid                                    (4,111)       (3,153)
    -------------------------------------------------------------------------
                                                        (7,164)       (2,330)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Net cash received on purchase of Endeavour
       Financial Advisory Services Ltd.                 27,063             -
      Purchase of capital assets                          (112)            -
    -------------------------------------------------------------------------
                                                        26,951             -
    -------------------------------------------------------------------------

    Effect of exchange rate changes on cash and
     cash equivalents                                      888          (253)
    -------------------------------------------------------------------------

    DECREASE IN CASH                                   (29,196)      (15,811)
    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD      43,980        59,791
    -------------------------------------------------------------------------
    CASH END OF PERIOD                            $     14,784  $     43,980
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





For further information:

For further information: Dr. Sally Eyre, Director Marketing & Business
Development, (604) 609-6129; Or Mr. Bill Koutsouras, Executive Vice President
and Chief Financial Officer, (345) 815-0601; Or Vanguard Shareholder
Solutions, 1-866-341-1111 or (604) 608-0824, email:
investor@endeavourfinancial.com

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ENDEAVOUR FINANCIAL CORPORATION

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