Aya Gold & Silver Inc. (TSX: AYA) is pleased to report another solid quarter of operations, development and exploration performance for the quarter ended June 30, 2021. All amounts are in US dollars unless otherwise stated.

Q2-2021 Highlights

• Silver production of 439,149 ounces in Q2-2021, a 219% increase from Q2-2020
• Silver sales of 419,997 oz in Q2-2021, a 263% increase from Q2-2020
• Revenue of $9.9 million in Q2-2021, a 384% increase from Q2-2020
• Operating cash flow for the period of $5.5 million, compared with negative operating cash flow in Q2-2020
• Ore processed of 56,318 tonnes in Q2-2021, an 89% increase from Q2-2020
• Mill recovery of 82% in Q2-2021, a 24% increase from Q2-2020
• Tonnes mined averaged 700 tonnes per day in Q2-2021, representing full capacity
• Eight drill rigs turning on Zgounder with resource goal of 100 million oz of silver by end of 2021
• Completion of the Algold Resources Ltd. acquisition in June 2021 for $13.4 million
• Zgounder expansion feasibility study progressing well
• Grant of seven new exploration permits in Morocco
• Robust financial position with $36.9 million of cash, cash equivalents and restricted cash
• Finalisation of sustainability report for the year 2020 prepared in accordance with the Global Reporting Initiative Standards

“Our business operations went from strength to strength in the second quarter, achieving planned mining capacity and posting record quarterly production that contributed to record operating cash flow for a third consecutive quarter. Zgounder continued to deliver exceptional step-out drill results that extend the strike east and offer potential to grow the resource beyond its current resource envelope.  With the Algold acquisition closed, we have opportunistically broadened our portfolio of near-production development assets. We also published an inaugural corporate sustainability report, which establishes the baseline for future ESG reporting and highlights our commitment to building trust with stakeholders and achieving sustainable outcomes,” said Benoit La Salle, President & CEO.

Q2-2021 Operational and Financial Highlights

Q2-2021 Exploration Highlights

In the quarter, over 16,000 meters of drilling continued to define the previously established exploration target and the eastern extension of Zgounder.  To date, 26,000 meters of the 35,000-meter exploration program have been drilled on the Zgounder mine permit. Currently, eight drill rigs are operating at Zgounder, four from surface and four within the mine. The program is on track for completion on time and budget.

During the period, an on-site geological team initiated exploration field work on the Imiter bis property in Morocco.

Q2-2021 Optimisation of Operations

In the second quarter, ongoing calibration of mining operations resulted in planned mining capacity of 700 tpd for a total of 63.4kt of ore blasted. These improvements were primarily due to the successful transition of the mining method from shrinkage to cut-and-fill stoping and to the commissioning of new mining equipment.

Silver recovery for the flotation plant improved to 84.2% in Q2-2021 from 81.9% in Q1-2021. The slight decrease in Q2-2021 recoveries to 78.8% at the cyanidation plant compared to 83.7% in Q1-2021 was expected and has been budgeted for during the hot summer months.

Q2-2021 Operations Support

A number of capital investment projects are in progress. Following its upsizing, construction of the water storage basin is now expected by year-end 2021. In the meantime, new water wells have been commissioned to support operations. Refurbishment of the cyanidation plant continued in the quarter. As part of a plan to increase the crushing capacity, equipment has been ordered for 2021 delivery.

Zgounder Development

The feasibility study for the expansion of the Zgounder Silver Mine is progressing well: several trade-off studies have already been completed. The geo-technical fieldwork is nearing completion, and other major items remain on schedule.

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 Moroccan mining assets are complemented by its Tijirit Gold Project in Mauritania, which is being advanced to feasibility.

Since its appointment in mid-2020, Aya’s management team has been focused on maximising shareholder value by anchoring sustainability at the heart of its production, resource, governance, and financial growth plans.