Mr. Benoit La Salle reports

AYA GOLD & SILVER ANNOUNCES FIRST DRAWDOWN OF ZGOUNDER MINE EXPANSION PROJECT LOAN

Aya Gold & Silver Inc. has completed the first drawdown on the $100-million (U.S.) project financing facility for the Zgounder silver mine expansion, in the Kingdom of Morocco. The facility, provided by the European Bank for Reconstruction and Development (EBRD) and by the Climate Investment Funds through its Clean Technology Fund (CTF), closed earlier this year (see news release dated Feb. 7, 2023). The conditions for the facility drawdown have been satisfied or waived and an initial drawdown of $35-million (U.S.) has been completed.

Key terms of the loan agreement remain unchanged and include:

• $92-million (U.S.) loan provided by EBRD;
• $8-million (U.S.) provided by CTF. Interest rate is equal to the all-in rate at the time of signing reduced to a 1-per-cent all-in rate following achievement of certain milestones;
• Six-year maturity with two-year principal grace period;
• Six-month secured overnight financing rate (0-per-cent floor) plus 5 per cent;
• No mandatory silver hedging, offtakes, production-linked payments or equity issuances as part of its structure.

First drawdown proceeds will be used to continue advancing the Zgounder mine expansion project.

"We are pleased to announce this key step with our funding partners, as we continue to advance the Zgounder mine expansion project. This milestone represents a significant step forward on our path to delivering stakeholder value, enhancing our commitment to sustainable mining practices, and executing on our strategic vision to foster economic growth, environmental responsibility and community engagement. We express our sincere gratitude to EBRD for their invaluable support in realizing this vision. Together, we look forward to setting new standards in responsible mining in Morocco, and positively impacting lives through promoting local development," said Benoit La Salle, president and chief executive officer. "The Aya team continues to work on the CTF ESG milestones, which we look forward to communicating later this year."

About Aya Gold & Silver Inc.

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

The only Toronto Stock Exchange-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.

We seek Safe Harbor.