Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) announced financial and operational results for the fourth quarter and full year ended December 31, 2024. All amounts are in US dollars, unless otherwise stated.

Full Year 2024 Highlights

• Silver produced totaled 1,646,265 ounces in 2024 compared to 1,970,646 oz in 2023, is in line with revised guidance of 1.6 to 1.8 million silver oz.
• Ore processed increased 27% to 358,919 tonnes in 2024 compared with 281,634t in 2023.
• Revenues reported from silver sales generated $39.1M (decreasing 9% over 2023), at an average realized silver price of $26.04/oz.
• Adjusted cash cost per silver ounce sold⁽ⁱ⁾totaled $19.62/oz in 2024, compared with $12.50/oz in 2023. The increase in year-over-year cash costs were related to expansion preparations.
• Robust financial position reported with $49.2M of cash and restricted cash⁽ⁱⁱ⁾ as at December 31, 2024.
• New plant completed and commercial production declared at year end. Mill ramp-up is ongoing with plant having reached nameplate capacity.
• Boumadine 2024 exploration program led to a new resource estimate consisting of an Indicated Mineral Resource of 5.2Mt at 448 g/t AgEq⁽ⁱⁱⁱ⁾ containing an estimated 74.4Moz of AgEq oz, and an Inferred Mineral Resource of 29.1Mt at 402 g/t AgEq containing an estimated 377.7Moz of AgEq oz published in 2025.
• Boumadine exploration footprint expanded with the addition of 15 permits, increasing the Boumadine land package by 117% in 2024.
• Total metres drilled totaled 153,875 metres (“m”) in 2024, representing a 138% increase in metres drilled over 2023.
• Health and safety (“H&S”) prioritized with continued emphasis on preventative measures, analyses and 12,907 hours of H&S training completed for the year.
• 90km powerline (60kV) commissioned and powered.
• Amizmiz gold project spinout announced creating a new North African gold focused exploration company, Mx2 Mining Inc.

Q4 2024 Highlights

• Silver produced totaled 491,310 oz in 2024 compared to 450,046 oz in 2023.
• Ore processed increased 17% to 113,674t (or 1,236 tonnes per day in Q4-2024 compared with 66,449t (or 722 tpd) in Q4-2023.
• Plant availabilities reached 91.5% and 96.5% for the flotation and cyanidation plants, respectively, during the quarter.
• Revenues reported from silver sales generated $9.3M in Q4-2024 (decreasing 16% year-over-year), at an average realized silver price of $27.65/oz.
• Cash flow generated from operating activities totaled $2.4M in Q4-2024, supported by working capital, compared to ($12.1M) used in Q4-2023.
• Adjusted cash cost per silver ounce sold^(iv) totaled $21.51/oz in Q4-2024, compared with $13.69/oz in Q4-2023. The increase in cash costs were related to expansion preparations.

“2024 was a pivotal year for Aya, highlighted by the successful on budget completion of the Zgounder Mine expansion — a rare achievement in this industry,” said Benoit La Salle, President and CEO. “This milestone was essential for the commissioning phase and the declaration of commercial production announced in Q4-2024. We are now focused on optimizing Zgounder’s operations, and we expect to complete an updated Technical Report in 2025, which will provide the foundation for future production and cost guidance.

“Moreover, within one month of our first silver pour, we declared commercial production, and production is now running above nameplate capacity, while balancing a shift from underground to an open-pit focused operation. As we enter 2025, our focus remains on maximizing profitability while pursuing growth opportunities at both Zgounder and Boumadine — with Boumadine poised to reveal its tremendous potential.”

Q4 and Full Year 2024 Operational and Financial Highlights

Operational Review

Aya completed the construction of the new processing plant at Zgounder in 2024, in addition to expanding underground and open-pit mining operations. Construction and development activities completed in 2024 included:

• Tailings and water storage facilities.
• Underground development, both lateral and vertical.
• Surface and underground mine infrastructures, including workshops, warehouses, backfill station and the electrical substation.
• New assay laboratory.

In 2024, 444,375t of ore was mined at an average grade of 162 g/t. Stripping ratio for the open pit was 16. As of December 31, 2024, 336,371t of ore was stockpiled at an estimated grade of 153g/t, allowing a comfortable buffer for the mine ramp up, which is expected to reach steady state 3,000tpd processing rate in 2025.

Commercial production was declared in December 2024 for the expanded operations. During the year, 358,919 tonnes of ore were processed at an average grade of 171 g/t. Combined mill recovery was 83.7% and is expected to reach the feasibility study recovery rate of 89% in 2025 as the new mill is optimized.

Figure 1: The mineral processing plant in operation at night

Figure 2: New Merrill Crowe and Refinery Building

 Exploration

Zgounder Near Mine and Regional

Drilling at Zgounder near the mine focused on targets west, near the major fault, at depth toward the granite contact and at east around the open-pit area in 2024. Infill drilling, underground and surface, on the high-grade mineralization at the main ore body confirmed the mineralization and extended underground production zones. A total of 35,931m were drilled in the year.

Regionally, a total of 10,257m of diamond drill holes were completed on Zgounder permits, mostly on targets inside a two-kilometre radius of the mine. Although many results of this campaign are still pending, preliminary results received show anomalous silver occurrences indicating the potential for discovery of satellite deposits to the Zgounder Mine. A high resolution airborne geophysical survey was completed over the Tirzzit area in addition to a stream sediment geochemistry campaign on both Tirzzit and Zgounder Far East permits. Results will be reviewed, which will inform the 2025 drilling program.

Boumadine

In 2024, Aya completed 107,687m of drilling compared to the initial 120,000m program planned, extending the strike length from 4.2 km to 5.4 km.

A new mineral resource estimate for Boumadine, was released on April 16 2024, consisting of an Inferred Mineral Resource of 23.6Mt at 85 g/t Ag, 2.62 g/t Au, 2.32% Zn and 0.84% Pb containing an estimated 64.7Moz of Ag, 1.98Moz of Au, 546kt of Zn and 198kt of Pb and an Indicated Mineral Resource of 2.0Mt at 113 g/t Ag, 2.51 g/t Au, 4.32% Zn and 1.07% Pb containing an estimated 7.4Moz of Ag, 165koz of Au, 88kt of Zn and 22kt of Pb. This mineral resource estimate was subsequently updated in early 2025, showing a 120% increase in Indicated resources and a 19% increase in Inferred resources (see mineral resource update news release dated February 24, 2025).

In the first half of 2024, Aya completed a satellite mapping and spectral study on Boumadine using WorldView-3 data over 674km². The study identified numerous clay alteration halos similar to Boumadine. In addition, an extensive regional airborne geophysical survey, covering an area of 1,266km² with 13,714-line km was completed. The survey identified multiple parallel, on-trend conductive anomalies similar to known conductors identified at Boumadine Main Trend. The continuation of the Boumadine south main trend anomaly and a series of new N340 and north–south oriented conductive anomalies; and a very large, apparent conductive anomalies occurring 5km west of Boumadine, of similar orientation and stronger intensity than the Boumadine Main Trend conductor. This very large system also includes strong potential conductors occurring in an east-west direction. Some of these anomalies were drill tested in Q4, but most will be drilled in 2025.

Also, during 2024, Aya continued to expand its Boumadine land holdings through the acquisition of 15 permits. The Boumadine land package increased by 117% to total 212 km² by year-end 2024.

2025 Guidance and Outlook

2025 Production and Cost Guidance

The Corporation’s primary focus for 2025 is ramping up the plant and mining to steady state of 3,000tpd while rationalizing costs.

The Corporation expects Zgounder production to range between 5.0 and 5.3 million silver ounces at a cash cost^(x) of between $15.00 – $17.50/oz. Costs are expected to be higher in the first part of the year and steadily improve as production ramps up to reach steady state. The following foreign currency assumptions were used in the guidance: US$/C$ 1.40; and US$/MAD 10.10.

Sales Mix and Product Strategy

In 2024, the Corporation’s silver sales were comprised of approximately 70% silver concentrate and 30% silver ingots. Sales of silver concentrate are typically payable at 85% once treatment charges and refining charges are considered. With the new Zgounder mill in operation, only silver ingots will be produced and sold starting in Q2-2025. This shift is expected to improve overall realized price for a given sales volume by increasing the payable of silver ingots compared to concentrate.

Cost of Sales and Production Strategy

In 2024, approximately 60% of ore mined originated from the underground mine, while the remaining 40% was sourced from the open pit. The underground mine operates at a higher cost per tonne of ore mined compared to the open pit, and recent history shows that open pit has performed better in terms of ore recovery and grade predictability. To enhance cost efficiency and improve margins, the Corporation is transitioning its production strategy to approximately 1/3 underground and 2/3 open pit mix. This shift is expected to significantly reduce overall mining costs in the coming quarters and contribute to improved cash costs in 2025. An updated mine plan is being completed this year to support this change in mining strategy.

2025 Exploration Program

Drilling at Zgounder (near-mine) will follow up on underground targets generated from the 2024 program. An additional 10,000m will be drilled on targets within the Zgounder Regional permits with the objective of finding satellite mineralization to Zgounder. Drilling data obtained from exploration in 2023, 2024 and 2025 will be used to publish an updated mineral resource estimate for Zgounder later in 2025.

At Boumadine, 50% of the drilling will focus along the Main Trend and Tizi to continue extending the known mineralization trend along strike and at depth and to infill known areas advancing the project towards a preliminary economic assessment, which is targeted for 2026. The remaining drilling budgeted will focus on greenfield exploration designed to test geological hypotheses and drill targets generated from the past three years of work.

Sustainability

In 2025, Aya will continue to focus on consolidating its management processes with the goal of minimizing the environmental and social impacts from current and expanded operations, while continuously enhancing its safety culture. The following activities will be prioritized:

• Conduct a comprehensive double materiality assessment to enhance the accuracy and relevance of our sustainability reporting.
• Migrate climate-related reporting from TCFD to IFRS S2 reporting standards.
• Further embed a zero-incident H&S culture and operationalize the mine response teams.
• Improve the waste management plan.
• Increase data gathering and environmental monitoring at Zgounder.
• Collaborate with local authorities to enhance local water access, strengthen livelihood projects particularly for women and build community resiliency:
  • Health – Mobile and weekly health clinics in partnership with Moroccan institutions and community organizations.
  • Education – Reinforce local capacity through school supplies, online support for middle-school children, and an adult literacy program.
  • Livelihood projects – Launch an inaugural “Call for Proposals” where community members are invited to submit their business projects on various livelihood projects, and those selected will earn support from the Corporation to develop their project and seek further funding opportunities.
  • Stakeholder engagement – Deepen communication and awareness of the revised Stakeholder Engagement Plan and grievance mechanism.

Qualified Person

The scientific and technical information contained in this press release have been reviewed and approved by David Lalonde, B. Sc, Vice-President of Exploration, and by Raphaël Beaudoin, P. Eng, Vice-President, Operations, both of whom a “Qualified Person” as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Aya Gold & Silver Inc.

Aya Gold & Silver Inc. is a rapidly growing, Canada-based silver producer with operations in the Kingdom of Morocco.

The only TSX-listed pure silver mining company, Aya operates the high-grade Zgounder Silver Mine and is exploring its properties along the prospective South-Atlas Fault, several of which have hosted past-producing mines and historical resources.

Aya’s management team has been focused on maximizing shareholder value by anchoring sustainability at the heart of its operations, governance, and financial growth plans.