Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) announced first quarter financial and operational results for the three-month period ended March 31, 2025. All amounts are in US dollars, unless otherwise stated.

Q1-2025 Highlights

• Silver production of 1,068,652 ounces  in Q1-2025 compared to 366,362 oz in Q1-2024, a 192% increase. 
• Ore processed increased to 249,743 tonnes reaching record throughput levels, compared with 81,331t in Q1-2024, a 207% increase.
• Mine production increased to 194,661t, achieving an average mining rate of 2,163 tonnes per day, compared with 106,880t in Q1-2024, an 82% increase.
• Record revenues of $33.8 million up 566% year-over-year, with an average net realized silver price of $31.87/oz.
• Operating cash flow of $7.9M, compared to a negative cash flow of $3.7M in Q1-2024.
• Cash cost per silver ounce sold decreased to $18.93/oz in Q1-2025 from $20.31/oz in Q1-2024.
• Net income of $6.9M, compared to a net loss of $2.6M in Q1-2024; diluted EPS of $0.05.
• Robust financial position with $37M in cash and restricted cash, compared to $49M as at December 31, 2024.ⁱ
• Accounts receivable of $11.6M as at March 31, 2025 compared to $1.8M as at December 31, 2024. Funds received in early Q2-2025 from sales that occurred in the last days of Q1-2025.

Ramp Up, Exploration and Development

• Successful ramp up of the new plant at the Zgounder Mine following the declaration of commercial production on December 29, 2024.
• Drilling activity included 2,916 (diamond drill hole (“DDH”)) meters (“m”) at Zgounder and 1,059m at Zgounder Regional.
• Boumadine drilling totaled 46,207m of combined DDH and reverse circulation (“RC”) drilling.
• Updated mineral resource estimate for Boumadine in February 2025.

Environmental, Social and Governance

• Launched the 2024 data collection campaign with the aim of publishing Aya’s 2024 sustainability report in May 2025.
• Strengthened health and safety (“H&S”) processes through preventative measures, with 100% of incidents analyzed and 2,364 hours of training completed.
• Expanded tutoring programs at the high school in Talouine and the secondary school in Taouyalte.
• Began new community engagement inviting project proposals from local communities, entrepreneurs and cooperatives, which was developed in partnership with National Institute for Human Development.

Recent Developments

• Appointment of Mr. John Burzynski, a seasoned mine builder with deep technical expertise, to Aya’s Board of Directors.
• Completed strategic spinout of the Amizmiz gold project to Mx2 Mining Inc. on April 16, 2025.
• Received final approval for a $25M credit facility from EBRD, continuing the parities’ long-standing relationship, to support the development of Boumadine and to enhance financial flexibility as part of Aya’s growth strategy in Morocco.

“Aya delivered a standout quarter, achieving record silver production of over one million ounces, record revenues of $33.8 million, and operating cash flow of nearly $8 million — all while reducing cash costs and successfully ramping up operations inline with plans and only three months after commissioning the plant,” said Benoit La Salle, President and CEO of Aya Gold & Silver. “Our open-pit ramp up continues as planned, contributing to record plant throughput and supporting an increase in revenue and cash flow year-over-year.

“Operationally, we continue to see steady improvements, with a clear path to higher throughput and recovery rates aligned with long-term expectations. Backed by strong cash flow generation, improving cost performance, growing production, and a solid liquidity position, Aya is well-positioned to drive sustainable growth, maximize profitability, and deliver strong returns to shareholders.

“Importantly, we ended the quarter with $36.6 million in cash and restricted cash, excluding $11.6 million from silver sales made in Q1 and collected in early Q2—further strengthening our liquidity position. We also secured a $25 million credit facility from our long-standing partner EBRD — a clear vote of confidence in Aya’s long-term growth trajectory. This added liquidity allows us to accelerate development at Boumadine, while maintaining a strong balance sheet and funding future growth.”

Q1-2025 Highlights

Table 1 – Q1-2025 Operational Highlights

Table 2 – Q1-2025 Financial Highlights

Operational Review

The first quarter 2025 was highlighted by the continuous ramp of the new mill, producing over one million ounces of silver during the quarter.

Throughput and mill availability were at or above target. Milling throughput averaged 2,775 tonnes per day with over 90% availability. Mill feed grade was at 163gpt and recovery was 82.4%, below the 89% target established in the feasibility study. Lower recovery was caused by low dissolved oxygen in the leaching tanks due to poor performance of the oxygen plant. The oxygen plant is currently being repaired. It is expected that recovery will improve once the oxygen plant is repaired and producing at the designed capacity.

The total mining rate for the quarter averaged 2,163 tpd, for a total of 194,661t of ore mined at a grade of 151 g/t Ag. The mill feed included stockpiled, underground, and open pit ore. Production at both mines is accelerating according to our ramp up plan. Stockpiles levels were at 281,290t at the end of the quarter. Mining rate will continue to increase during the year to reach 3,000tpd of ore, from both underground and open pit mines, by the end of 2025.

More specifically, 133,848t of ore was mined during the quarter from the open pit at an average grade of 155 g/t Ag. This included ore from transitional and oxide zones. The open-pit mine had a strip ratio of 13 during Q1-2025, which was lower than planned, as ore zones were preferentially mined. The open-pit mining rate was 20,891tpd of total material moved, compared with 15,360 tpd in Q4-2024 as per ramp up. In April 2025, additional mining equipment was added to the open-pit mining contractor’s fleet, increasing mining rate near 30,000 tpd of total material mined. With increasing mining capacity, the strip ratio will increase to continue developing the open pit, ensuring sustainable future production. By year end, the open-pit mining rate is planned to reach over 40,000 tpd of total material moved, reaching comfortably over 2,000tpd of ore from the open pit.

Exploration

Zgounder Near Mine and Regional

In Q1-2025, the Corporation drilled 2,916m of DDH on near-mine targets with the aim of defining at-depth and lateral mineralization. Initial results from the at-depth program outlined significant down-plunge extensions of the deposit with thick high-grade interceptions. Underground holes ZG-SF-24-203 and ZG-SF-24-259 intersected 911 g/t Ag over 10.0m and 1,082 g/t Ag over 8.5m, respectively, confirming mineralization at depth at the granite contact outside of the current resource boundary. Two underground rigs were mobilized with the aim of expanding mineral resources at depth.

In the quarter, drilling focused on targets west, near the major fault, and at depth towards the granite contact. Infill drilling, underground and surface, on the high-grade mineralization at the main ore body confirmed the mineralization and extended underground production zones.

In Q1-2025, a total of 1,059m of DDH were drilled on Zgounder Regional permits, part of the 10,000m budgeted for the 2025 regional drill program. In addition, detailed mapping and prospecting are being carried out on both Tourchkal and Zgounder Far East permits. Several high impact drill targets have been identified on these permits.

Boumadine

During the quarter, the Corporation drilled 39,600m DDH and 6,607m RC at Boumadine confirming continuity of the Boumadine deposit and extending the strike length of the Tizi Zone from 2.0 km to 2.2 km. New targets identified by the 2024 mapping and geophysical program were also drill tested. These results are pending.

An update to the mineral resources, based on 2024 drilling at Boumadine, was released on February 24, 2025, consisting of an Inferred Mineral Resource of 29.2Mt at 82g/t Ag, 2.63 g/t Au, 2.11% Zn and 0.82% Pb containing an estimated 76.8Moz of Ag, 2.4Moz of Au, 615 kt of Zn and 237 kt of Pb, representing 378Moz AgEq, an increase of 19%, and an Indicated Mineral Resource of 5.2Mt at 91 g/t Ag, 2.78 g/t Au, 2.8% Zn and 0.85% Pb containing an estimated 15.1Moz of Ag, 449koz of Au, 145 kt of Zn and 44 kt of Pb, representing 74.4Moz Silver equivalent, an increase of 120%.

Table 3 – Boumadine Updated Mineral Resource Estimate (February 24, 2025)

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that Mineral Resources will be converted to Mineral Reserves.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral Resources and Mineral Reserves Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council, as may be amended from time to time.
4. A silver price of US$24/oz with a process recovery of 89%, a gold price of US$2,200/oz with a process recovery of 85%, a zinc price of US$1.20/lb with a process recovery of 72%, a lead price of US$1.00/lb with a process recovery of 85%, and a copper price of US$4.00/lb with a process recovery of 75% were used in establishing the MRE.
5. AgEq = Ag(g/t) + (Au(g/t) *Au price/oz*Au recovery)/(Ag price/oz*Ag recovery) + Zn(%)*Zn price/lb* Zn recovery/(Ag price/oz*Ag recovery)*685.7147973 + Pb(%)*Pb price/lb* Pb recovery/(Ag price/oz*Ag recovery)*685.7147973 + Cu(%)*Cu price/lb* Cu recovery/(Ag price/oz*Ag recovery)*685.7147973
6. AuEq = Au(g/t) + (Ag(g/t) *Ag price/oz*Ag recovery)/(Au price/oz*Au recovery) + Zn(%)*Zn price/lb* Zn recovery/(Au price/oz*Au recovery)*685.7147973 + Pb(%)*Pb price/lb* Pb recovery/(Au price/oz*Au recovery)*685.7147973 + Cu(%)*Cu price/lb* Cu recovery/(Au price/oz*Au recovery)*685.7147973.
7. The constraining pit optimization parameters were US$3.5/t for mineralized material mining. US$2/t for waste mining US$89/t for processing and US$6/t for G&A totalling US$95/t for a cut-off and 50-degree pit slopes.
8. The out-of-pit parameters used a US$30/t mining cost, US$89/t processing cost and US$6/t G&A totalling US$125/t for a cut-off The out-of-pit Mineral Resource grade blocks were quantified above the US$125 NSR cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out–of-pit Mineral Resources exhibit continuity and reasonable potential for extraction by the long hole underground mining method.
9. Individual calculations in tables and totals may not sum due to rounding of original numbers.
10. Grade capping of 800 g/t Ag, 30 g/t Au, 28% Zn, 10% Pb and 1.4% Cu was applied to composites before grade estimation.
11. Bulk density was evaluated separately for each individual vein with values ranging from 3.20 to 4.00 t/m3 determined from drill core samples and used for the MRE. For oxidized and transitional material, a bulk density of 2.65 t/m3 was used.
12. 1.0 m composites were used during grade estimation.

In Q1-2025, Aya continued to increase its Boumadine land holdings through the acquisition of four mining licenses, extending its land package to 272km². In addition, the Corporation was granted a 600km² authorization of exploration. Several high impact drill targets have been identified within these licenses and to the south within the exploration authorization area.

Figure 1 – Boumadine Permits Overlaying the Apparent Conductivity Airborne Regional Survey

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 Raphael Beaudoin, P. Eng, Vice-President, Operations, both of whom are 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.