EDR Endeavour Silver Corp

Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK)(FRANKFURT:EJD) announces that it has
signed a memorandum of understanding for an option and joint venture agreement
with La Sociedad Quimica Minera de Chile SA ("SQM") to earn a 75% interest in
the El Inca silver-gold properties located about 250 kilometers (km) northeast
of Antofagasta and 27 km northwest of Calama in northern Chile. 


The properties cover 447 hectares and are readily accessible by road only 14 to
22 km west of Codelco's huge Chuquicamata copper mine. Elevations range from
2,200 meters (m) to 2,900 m, vegetation is sparse and the climate is dry,
typical of the Atacama desert. Bedrock at El Inca is relatively well exposed but
covered in places by talus on the mountain slopes and outwash gravels in the
valleys. Click here to view map:
http://www.edrsilver.com/s/el-inca.asp?ReportID=540085


El Inca is believed to lie within the southern extension of the Bolivian
silver-tin belt. This belt hosts the very large Cerro Rico deposit, the San
Bartolome mine (Couer D'Alene) as well as the San Cristobal mine (Sumitomo) in
Bolivia and the Pirquitas mine (Silver Standard) in Argentina. The belt has been
a world renowned source of silver production since the 16th century. 


Barry Devlin, Vice President of Exploration for Endeavour commented, "The El
Inca properties have excellent exploration potential for both bulk tonnage, open
pit silver-lead-zinc mines like San Cristobal and high grade, underground
silver-gold mines like El Penon (south of El Inca in Chile) so we are pleased to
strike this deal with SQM. El Inca represents another district scale, silver
exploration opportunity to add to Endeavour's portfolio of exciting exploration
properties."


Bolivian-type silver-tin deposits generally consist of large alteration zones
encompassing zinc-lead sulphide and quartz vein swarms typically containing
silver in sulphide and sulphosalt minerals. The vein systems are spatially and
genetically associated with sub-volcanic dacite dome intrusions one to two
kilometres in diameter although the mineralization is often also hosted by the
surrounding country rocks.


El Inca covers a large argillic alteration zone containing abundant
iron-manganese oxides and sulphates measuring 2.5 km by 1.5 km. Mineralization
consists of silver-lead-zinc sulfides associated with quartz-calcite-barite
disseminations, stock-works and veins. Four main veins are hosted in dacite dome
intrusions and volcaniclastic rocks of the Eocene Cerro Los Picos Intrusive
Complex, they outcrop for up to 1.6 km along strike, range up to 4 m wide and
are surrounded by altered and mineralized low grade envelopes up to 100 m thick.


The properties were originally exploited as small, high grade, underground mines
in the late 1880's. El Inca was last explored and mined until 1982 by Codelco
who mined underground and heap-leached 128,000 tonnes grading 227 grams per
tonne (gpt). At closure, Codelco reported a resource totalling 1.49 million
tonnes grading 158 gpt silver (7.6 million oz Ag). This resource estimate is now
considered to be historic, it is not 43-101 compliant, has not been verified by
Endeavour and should not be relied upon.


A total of 64 check samples were collected by Endeavour from El Inca. Sixteen
(25%) assayed more than 10 gpt Ag and six (9%) assayed more than 100 gpt Ag.
Individual samples ran up to 1,255 gpt Ag and 0.375 gpt Au with highly anomalous
lead, zinc and copper. 


In addition to the main El Inca property, the transaction also includes the San
Julian and San Marcos properties situated 8 km east of El Inca. They were
explored and mined on a small scale by Codelco until 1978. At closure, Codelco
reported a resource totaling 335,000 tonnes grading 523 gpt silver and 1.2 gpt
gold (5.6 million oz Ag and 13,300 oz Au). This resource estimate is now
considered to be historic, it is not 43-101 compliant, has not been verified by
Endeavour and should not be relied upon.


A total of 5 check samples were collected by Endeavour from San Julian and San
Marcos. Individual samples ran up to 706 gpt Ag and 1.12 gpt Au with highly
anomalous lead, zinc and copper. 


Pursuant to the memorandum of understanding, Endeavour has an option to acquire
a 75% interest in the El Inca properties by making staged cash payments totaling
US$2 million and staged exploration expenditures totaling US$5 million over a 4
year period. Endeavour must also complete an NI 43-101 resource estimate and
prefeasibility study. A joint venture will then be formed with Endeavour as the
operator, SQM will retain a 3.5% NSR royalty on mineral production and Endeavour
has the right to purchase 1% of the NSR for US$1 million at any time.


ENDEAVOUR SILVER CORP.

BRADFORD COOKE, Chief Executive Officer

Qualified Person - Barry Devlin, M.Sc., P.Geo. Vice President, Exploration is
the Qualified Person who reviewed this news release and supervised the sampling
programs at El Inca. A Quality Control sampling program of reference standards,
blanks and duplicates was used to ensure the integrity of all assay results. All
samples were shipped to ALS-Chemex Labs, where they were dried, crushed, split
and 50 gram pulp samples were prepared for analysis. Gold and silver were
determined by fire assay with an atomic absorption (AA) finish and other
elements are determined by AA.


About Endeavour Silver Corp. - Endeavour Silver is a premier mid-tier silver
mining company focused on the growth of its silver production, reserves and
resources in Mexico. Since start-up in 2004, Endeavour has posted seven
consecutive years of growing silver production, reserves and resources. The
organic expansion programs now underway at Endeavour's three operating silver
mines in Mexico combined with its strategic acquisition and exploration programs
should facilitate Endeavour's goal to become the next premier senior silver
mining company. 


Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of
the United States private securities litigation reform act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation. Such forward-looking statements and information herein
include, but are not limited to, statements regarding Endeavour's anticipated
performance in 2012, including revenue, cash cost and capital cost forecasts,
silver and gold production, the option of the Lourdes property, timing and
expenditures to explore and develop new silver mines and mineralized zones,
silver and gold grades and recoveries, cash costs per ounce, capital
expenditures and sustaining capital and the use of the Company's working
capital. The Company does not intend to, and does not assume any obligation to
update such forward-looking statements or information, other than as required by
applicable law.


Forward-looking statements or information involve known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Endeavour and its operations to be
materially different from those expressed or implied by such statements. Such
factors include, among others: fluctuations in the prices of silver and gold,
fluctuations in the currency markets (particularly the Mexican peso, Canadian
dollar and U.S. dollar); fluctuations in the price of consumed commodities,
changes in national and local governments, legislation, taxation, controls,
regulations and political or economic developments in Canada and Mexico;
operating or technical difficulties in mineral exploration, development and
mining activities; risks and hazards of mineral exploration, development and
mining (including environmental hazards, industrial accidents, unusual or
unexpected geological conditions, pressures, cave-ins and flooding); inadequate
insurance, or inability to obtain insurance; availability of and costs
associated with mining inputs and labour; the speculative nature of mineral
exploration and development, reliability of calculation of mineral reserves and
resources and precious metal recoveries, diminishing quantities or grades of
mineral reserves as properties are mined; risks in obtaining necessary licenses
and permits, global market events and conditions and challenges to the Company's
title to properties; as well as those factors described in the section "risk
factors" contained in the Company's most recent form 40F/Annual Information Form
filed with the S.E.C. and Canadian securities regulatory authorities.


Forward-looking statements are based on assumptions management believes to be
reasonable, including but not limited to: the continued operation of the
Company's mining operations, no material adverse change in the market price of
commodities, mining operations will operate and the mining products will be
completed in accordance with management's expectations and achieve their stated
production outcomes, and such other assumptions and factors as set out herein.


Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements or information, there may be other factors that cause
results to be materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any forward-looking
statements or information will prove to be accurate as actual results and future
events could differ materially from those anticipated in such statements or
information. Accordingly, readers should not place undue reliance on
forward-looking statements or information.

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