Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) announced second quarter financial and operational results for the three-month period ended June 30, 2025. All amounts are in US dollars, unless otherwise stated.

Q2-2025 Highlights

Operational

• Silver production of 1.04 million ounces up 141% vs. the prior year driven by the ramp-up of the new Zgounder plant, which began large-scale commercial production at the end of 2024
• Ore processed averaged 3,005 tonnes per day (tpd), with mill availability of 98%
• Silver recovery averaged 86.5% in Q2-2025; June averaged 92%, above feasibility study rate
• Ore mined totaled 241,288 tonnes up 24% QoQ, consistent with ramp-up plans

Financial

• Record revenue of $38.6M, up 182% YoY, reflecting the increase in ounces sold driven by ramp-up and a higher average net realized silver price of $33.86/oz; revenue rose 14% vs. QoQ, supported by increased silver sales and stronger pricing
• Cash cost⁽¹⁾ per silver ounce sold of $21.26, reflecting early-stage open-pit and underground development; normalization anticipated in H2-2025
• Operating cash flow of $7.8M ($15.7M year-to-date)
• Net income of $8.6M; diluted EPS of $0.06, including a one-time gain and impairment recovery from the Mx2 transaction
• Closed a C$144M bought deal financing in Q2-2025, ending the quarter with $114M in cash providing the flexibility to advance our development-stage asset Boumadine, a cornerstone of our long-term growth strategy

Development and Exploration

• Drilled 33,510 metres at Boumadine and 5,915 m at Zgounder near mine and Regional
• Identified a new prospective target – Asirem Gold-Copper zone – that highlights Boumadine’s potential to become a large-scale high-grade deposit with mineralization open in all directions
• Acquired new permits, expanding regional footprints at both Zgounder and Boumadine

“We’re very pleased with the progress this quarter as Zgounder continues to ramp-up steadily. We delivered record revenues and strong operating performance,” said Benoit La Salle, President & CEO.

“Throughput and recoveries are on-track to exceed first-half performance. While we acknowledge elevated cash costs directly related to mining grade dilution, we expect a reduction in cost per ounce in the second half as we implement targeted measures to improve our mining processes. We remain fully committed to achieving our 2025 objectives.

“We’re also excited about upcoming catalysts, particularly the release of the Boumadine PEA later this year, a milestone that will highlight the project’s scale and potential to become Aya’s next major production hub. We continue to deliver across all pillars of our strategy — development, exploration, and production – while expanding our resource base through newly secured permits. Together, these achievements are strengthening the foundation to unlock the full potential of our portfolio and create long-term value for our shareholders.”

Operational Review

Q2-2025 was marked by a steady increase in mill recovery and sustained throughput of 3,005 tpd, resulting in production of 1.04M oz of Ag for the quarter. Mill availability averaged 98%, supporting total ore processing of 273,471t — up 10% QoQ from Q1-2025 — with an average grade of 140 g/t Ag. Recovery improved steadily, averaging 86.5% for the quarter and 92% in June—exceeding the feasibility study rate. These gains were largely driven by the repair of the oxygen plant, now operating near design capacity.

Total ore mined during the quarter was 241,288t — up 24% sequentially from Q1-2025 — reflecting continued progress in mining ramp-up activities. Approximately two-thirds of the ore was mined from the open pit, with a strip ratio of 14, and the remaining one-third was mined from underground operations. Mining grades have been impacted by increased dilution associated with accelerated mining rates in the first half. As operations stabilize and blast movement monitoring improves in the open pit, dilution is expected to decrease in the second half of the year.

The stockpile totaled 249,106t at the end of the quarter.

Operational Highlights

Financial Review

Revenue from silver sales totaled $38.6M in Q2-2025, up 182% YoY, reflecting the start of commercial production of the new Zgounder plant on December 29, 2024 and a higher average net realized silver price per oz of $33.86, up 29% vs. the prior year period. Sales rose 14% QoQ driven by higher volume and net realized silver price.

Cash cost⁽¹⁾ per ounce sold increased 19% YoY and 12% QoQ, primarily reflecting the impact of lower grades and the early stages of stope development and open-pit sequencing.

Net income of $8.6M, or diluted EPS of $0.06, was recorded in Q2-2025 compared to net income of $6.8M or diluted EPS of $0.05 in Q2-2024. Net income for the quarter includes a one-time gain of $1.8M and a net impairment recovery of $4.0M related to the asset sale to Mx2 Mining.

The Corporation generated $7.8M in cash flow from operating activities in Q2-2025. Capital expenditures during the quarter included $8.3M at the Zgounder plant to advance surface infrastructure and underground development, including the opening of deeper levels, and $3.5M directed toward exploration and evaluation assets.

We also completed an equity financing, issuing 10,767,795 common shares at C$13.35 per share for gross proceeds of C$144 ($105) million. Proceeds will be primarily used to fund the Boumadine project development and for general corporate purposes. As at August 13, 2025, the Company had common shares issued and outstanding of 141,900,422. We ended the quarter in a strong financial position, with $114 million in cash.

Financial Highlights (in thousands of US$, except per share amounts)

Recent Developments

On August 5, 2025, Aya received a $8 million payment under bank guarantees from EPC contractor Duro Felguera, in compensation for contractual breaches, reinforcing Aya’s strong project oversight and disciplined contract enforcement at the Zgounder Expansion Project.

Exploration Review

Zgounder Near Mine and Regional

During Q2-2025, Aya continued to advance its regional exploration program around Zgounder with drilling, target generation, and land acquisition initiatives. A total of 5,915 m of drilling was completed on Zgounder near-mine and regional permits (9,889 m year-to-date), including the commencement of drilling on the Zgounder Far East permits. The drill program remains on track to complete 20,000 to 25,000 m across near-mine and regional targets this year. Geological mapping and prospecting on the Tourchkal and Far East permits led to the identification of multiple targets to support future phases of the 2025 program. Additionally, six new exploration permits were secured north of the Zgounder mine, increasing the regional land package by 12% to 452.7 km². Mapping and target generation on these new permits will begin in the second half of 2025.

Boumadine

Exploration activities at Boumadine continued at a strong pace in Q2-2025, with 33,510 m of drilling completed in the quarter (79,716 m year-to-date), confirming mineralization continuity across multiple zone. We remain well on track toward the full-year target of 100,000 to 140,000 m, supporting our 2025 exploration and resource development objectives.

In addition, surface work identified a new prospective Gold-copper zone, Asirem, within the recently acquired western permits. Drill testing of this new greenfield target is planned for the second half of the year. Further, the acquisition of four new licenses has increased the Boumadine land package to 314.5 km². Several new targets have been identified, including mineralized structures returning up to 3.34 g/t gold and 4.0% copper from surface sampling.

Environmental, Social and Governance

Aya continued to focus on health and safety preventative measures, with 100% of incidents analyzed and 4,121 hours of training completed during the quarter. In addition, Aya participated in a number of ESG-focused reporting initiatives, which included the publication of the 2024 Sustainability Report, participation in the 2025 S&P Corporate Sustainability Assessment survey, improving the Corporation’s rating, and submission of Aya’s first annual report to the UN Global Compact.

Community engagement was also strengthened in the quarter by finalizing the Corporation’s inaugural project proposal for local communities, entrepreneurs and cooperatives.

Outlook

We have delivered strong operational execution since we declared commercial production of the new Zgounder plant. Looking ahead, we expect milling throughput to remain strong with recoveries continuing to exceed feasibility study rate. We remain fully committed to achieving our 2025 goals and have implemented targeted initiatives to strengthen mined grades as operations maintain a steady state. Further, key catalysts in the second half include the Boumadine PEA and continued drill results from both our core assets, which will further demonstrate Aya’s growth potential. With Zgounder ramping up, Boumadine advancing, and district-scale exploration underway, Aya is executing on its strategy to grow production, expand resources, and deliver long-term value. Leveraging a strong balance sheet, positive cash flow, and a significant portfolio, we are well positioned to strengthen Aya’s position as a leading high-grade silver producer.

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 Anti-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.