Endeavour Mining Capital announces record earnings of CDN$3.91 per share for 2007



    Toronto Stock Exchange: EDV

    GEORGE TOWN, Grand Cayman, Aug. 9 /CNW/ - Endeavour Mining Capital Corp.
("Endeavour" or "Corporation") recorded net income of US$85.6 million or
US$3.67 per share (or approximately CDN$3.91 per share) for the year ended
June 30, 2007. This compares with net income of US$73.6 million or US$3.18 per
share (or approximately CDN$3.55 per share) reported for the ten months ended
June 30, 2006. The comparative results for the previous year are for a ten
month period as a result of the change in the Corporation's year end to June
30.
    As of June 30, 2007, the book value per share reached a record month-end
high of CDN$11.57 for a 40% increase during the year. The book value per share
growth of 40% compares with a 9% decrease in the S&P/TSX Global Gold Index and
a 25% increase in the S&P/TSX Metals and Mining Index over the same period.
The Corporation's superior investment performance relative to the major
resource equity indices was driven, in part, by the strong performance of the
Corporation's investments in the uranium, oil and gas and cobalt sectors along
with the long-term value creation from our access to transactions at their
early formative stages.
    Fiscal 2007 is the sixth consecutive fiscal year of strong, profitable
performance since the Corporation implemented its merchant banking investment
strategy in 2001. The annualized, compound return on equity from the start of
fiscal 2002 to June 30, 2007 has been 57%, a key indicator of the superior
long-term performance of our merchant banking business strategy.
    As a result of the acquisition of Endeavour Financial on July 30, 2007,
Endeavour is now an integrated natural resource merchant bank offering both
capital investment and investment banking advisory services. Given the active
operating nature of the integrated business, on a go-forward basis, the
Corporation will be providing regular quarterly earnings reports and will no
longer be continuing the practise of posting monthly updates of its book value
per share on its corporate website. Commenting, Bill Koutsouras, Chief
Financial Officer stated "With the expansion of our business into investment
banking advisory services, the monthly NAV per share value may provide a
misleading indication of the Corporation's financial performance. Rather, the
book value will be better assessed within a review of a complete set of
financial results."
    During the year ended June 30, 2007 the Corporation re-purchased 71,400
of its Common Shares in the market at a weighted average price of CDN$7.71 per
share. All of these shares have been returned to treasury.
    Commenting on the results, Frank Holmes, Chairman said "By combining
investment discipline and a focus on return on capital, we have achieved
record earnings and book value per share. The current results build on our
past performance and demonstrate our ability to generate superior earnings
using our creative venture capital process. We look forward to continued
growth and creating additional value for our shareholders in the future as an
integrated natural resource merchant bank."
    Frank Holmes and Bill Koutsouras will host a conference call to discuss
this earnings announcement on Friday August 10, 2007 at 11:00 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 focused on the global natural resources sector. As a
venture-capitalist for resource-based companies, the Corporation combines
financial and intellectual capital to help build companies and create
shareholder value. The Corporation has a demonstrated track-record of success
and our shares are listed on the Toronto Stock Exchange under the symbol EDV.
    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)
                                               ------------------------------
                                                          June 30,
                                                   2007             2006
                                               -------------    -------------

    ASSETS

    Cash and cash equivalents                  $     43,980     $     59,791
    Investments
     (cost: $116,146; 2006 $71,957)                 229,750          127,938
    Receivables and other assets                        154               29
    -------------------------------------------------------------------------
                                               $    273,884     $    187,758
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Performance fees payable                   $     17,988     $     15,313
    Investment advisor fees payable                     456              219
    Accrued expenses and other liabilities              112              194
    -------------------------------------------------------------------------
                                                     18,556           15,726
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY

    Share capital                                    53,180           52,169
    Contributed surplus                                 492              680
    Retained earnings                               201,656          119,183
    -------------------------------------------------------------------------
                                                    255,328          172,032
    -------------------------------------------------------------------------
                                               $    273,884    $     187,758
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

                                                Year Ended, Ten Months Ended,
                                              June 30, 2007    June 30, 2006
                                              -------------------------------

    INVESTMENT INCOME
      Net realized gain on investments        $     49,813      $     70,389
      Change in net unrealized appreciation
       of investments and foreign currencies        57,877            20,840
      Interest                                       1,192               685
      Dividends, net of withholding taxes              402                78
      Loan facility fees                                 -                46
    -------------------------------------------------------------------------
                                                   109,284            92,038
    -------------------------------------------------------------------------

    EXPENSES
      Performance fee                               17,988            15,313
      Investment advisory fee                        4,094             1,885
      General office and administrative              1,236               813
      Professional fees                                340               445
    -------------------------------------------------------------------------
                                                    23,658            18,456
    -------------------------------------------------------------------------
    NET INCOME                                      85,626            73,582
    RETAINED EARNINGS, BEGINNING OF PERIOD         119,183            46,308
    DIVIDENDS                                       (3,153)             (707)
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF PERIOD          $    201,656      $    119,183
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    BASIC EARNINGS PER SHARE                  $       3.67      $       3.18
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    DILUTED EARNINGS PER SHARE                $       3.47      $       3.11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    WEIGHTED-AVERAGE COMMON SHARES
     OUTSTANDING                                23,353,634        23,160,426
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    DILUTED WEIGHTED-AVERAGE COMMON
     SHARES OUTSTANDING                         24,670,963        23,638,383
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ENDEAVOUR MINING CAPITAL CORP.
    Consolidated Statements of Cash Flows
    (Expressed in Thousands of United States Dollars)
    (Unaudited)
                                                Year Ended, Ten Months Ended,
                                              June 30, 2007    June 30, 2006
                                              -------------------------------

    OPERATING ACTIVITIES
      Net income                               $    85,626      $     73,582
      Adjustments to reconcile net income
       to net cash provided by (used in)
       operating activities:
        Net realized gain on investments           (49,813)          (70,389)
        Change in net unrealized appreciation
         of investments and foreign
         currencies                                (57,877)          (20,840)
        (Increase) decrease in receivables
         and other assets                             (125)              857
        Increase in investment advisor fees
         payable                                       237                73
        Increase in performance fees payable         2,675            11,396
        (Decrease) Increase in accrued
         expenses and other liabilities                (82)              103
      Restricted cash                                    -             3,500
      Purchase of investments                     (105,540)          (57,975)
      Proceeds from the sale of investments        111,418           114,161
    -------------------------------------------------------------------------
                                                   (13,481)           54,468
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
      Received from the issue of common
       shares                                        1,303               328
      Repurchase of common shares                     (480)                -
      Dividends paid to shareholders                (3,153)             (707)
    -------------------------------------------------------------------------
                                                    (2,330)             (379)
    -------------------------------------------------------------------------

    NET DECREASE/INCREASE  IN CASH
     AND CASH EQUIVALENTS                          (15,811)           54,089
    CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD                            59,791             5,702
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS,
     END OF PERIOD                             $    43,980      $     59,791
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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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