Mr. Benoit La Salle reports

AYA GOLD & SILVER: RECORD 2023 PRODUCTION, REVENUE AND OPERATING CASH FLOW

Aya Gold & Silver Inc. has released financial and operational results for the fourth quarter and year ended Dec. 31, 2023. All amounts are in U.S. dollars, unless otherwise stated.

Annual highlights:

• Exceeded 2023 production guidance with silver production of 1.97-million ounces (oz), a 5-per-cent increase from 2022;
• Ore processed of 281,634 tonnes (t) in 2023, a 10-per-cent increase from 254,976 t in 2022;
• 493,340 t of ore mined in 2023 for an average of 1,352 tonnes per day (tpd), a 79-per-cent increase from ore mined in 2022;
• Revenue of $42.8-million in 2023, a 12-per-cent increase from 2022;
• Beat 2023 cash cost guidance by 13 per cent with cost per silver ounce sold of $12.50 in 2023;
• Cash flow generated by operating activities increased to $21.2-million in 2023, or a 120-per-cent increase from $9.6-million in operating cash flow generated in 2022;
• Robust financial position with $70.3-million of cash, cash equivalents and restricted cash as at Dec. 31, 2023, compared with $41.8-million as at Dec. 31, 2022;
• Advanced expansion of Zgounder mine on budget and on schedule for Q2 2024 commissioning;
• Conducted 17,752 metres (m) of diamond drill hole (DDH) drilling at Zgounder;
• Completed 10,900 m of DDH on Zgounder regional and acquired four new permits, one of which has a historical copper mine;
• Advanced development of Boumadine through 74,295 m of DDH drilling, initial metallurgical test work and acquisition of five permits;
• Signed a renewable-energy power purchase agreement for Zgounder expanded operations and advanced construction of its electrical infrastructure toward operationalization in Q2 2024;
• Published inaugural climate action report in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD), instituted new corporate policies, and reported performance to the 2023 S&P Global Corporate Sustainability Assessment;
• Ranked 14th on the 2023 TSX30 as a top-performing stock with a three-year appreciation of 498 per cent;
• Ranked 12th in the 2024 OTCQX Best 50, a list of top-performing stocks traded on the OTCQX Best Market in 2023.

2024 outlook and year so far:

• Successfully completed a $77.6-million (Canadian) ($57.3-million) bought-deal public financing;
• Drew down $25-million from $100-million project facility for Zgounder mine expansion, with $85-million disbursed to date;
• 2024 guidance of between 2.6 million and 3.2 million oz production at cash cost of between $13 and $14.50/oz;
• 2024 exploration budget of $36-million, prioritizing Boumadine (120,000 m), Zgounder (15,000 m) and Zgounder regional (10,000 m).

"Two thousand twenty-three was a year of strategic growth and investment in which we either delivered or exceeded our guidance, expansion, exploration, financing and sustainability objectives. Zgounder delivered record silver production and throughput at industry-low cash costs, generating record cash flow and positioning us for the final year of expansion," said Benoit La Salle, president and chief executive officer. "Our 2023 drill program was also very successful, especially at Boumadine and Zgounder at depth, which we will develop at an even faster pace going forward.

"While we remain focused on commissioning and ramping up Zgounder on time and on budget in this transition year, we have already doubled and started an ambitious exploration program at Boumadine. We believe that Boumadine's upcoming resource estimate, together with its 120,000 m drill program, will represent a first step in our vision of developing Boumadine into a cornerstone asset.

"We are proud to start the year with a net cash balance of $70-million, fully funded to deliver on our 2024 objectives. This does not include our recent oversubscribed equity financing, which allows us to accelerate our growth plan at Boumadine. Zgounder will shortly be connected to the clean-energy power line, clearing the way for achieving our 2025 decarbonization targets. We expect our dedicated teams to achieve full production at Zgounder before year-end and to further expand reserves and resources through exploration. 2024 will be another milestone year for Aya."

2023 annual financial and operational highlights (in thousands of dollars):

• Record silver production of 1,970,646 oz, of which 1,230,410 oz as silver concentrate and 740,236 oz as silver ingots, in 2023.
• Mill average processed grade of 250 grams per tonne Ag was recorded in 2023 compared with 265 g/t Ag in 2022, a decrease of 6 per cent.
• Milling operations averaged 772 tpd in 2023 compared with 699 tpd in 2022, an increase of 10 per cent.
• Average combined mill recovery of 86.9 per cent in 2023 compared with 86.6 per cent in 2022.
• Plant availability reached 91.6 per cent and 95.6 per cent for the flotation and cyanidation plants, respectively.
• Cost of sales of $27,042 (2022 -- $27,961) with an average cash cost per silver ounce sold of $12.50/oz in 2023 compared with $12.63/oz in 2022.
• Revenue from silver sales for 2023 totalled $42,849 (2022 -- $38,245), an increase of 12 per cent representing an average realized price of $21.29 per oz (2022 -- $19.76/oz).
• Operations generated a gross margin of $15,807 in 2023 compared with $10,284 in 2022, an increase of 54 per cent.
• Net income was $5,332 (diluted earnings per share of four cents) in 2023, compared with a net of $1,398 (diluted EPS of one cent) in 2022.

Fourth quarter 2023 financial and operational highlights (in thousands of dollars):

• Quarterly silver production of 450,046 oz, comprising 276,929 oz as silver concentrate and 173,117 oz as silver ingots.
• Mill average processed grade of 239 g/t Ag was recorded in Q4 2023 compared with 364 g/t Ag in Q4 2022, a decrease of 34 per cent.
• Milling operations reached 722 tpd, continuing to surpass design capacity of 700 tpd.
• Average combined mill recovery of 86.7 per cent in Q4 2023 compared with 89.9 per cent in Q4 2022, a decrease of 3.2 per cent.
• Plant availabilities reached 86.7 per cent and 96 per cent for the flotation and cyanidation plants, respectively.
• Cash flow generated by operating activities of $5,677 in Q4 2023, compared with $3,639-million generated in operating cash flow in Q4 2022.
• Revenue from silver sales totalled $11,070 (Q4 2022 -- $13,322) in Q4 2023, a decrease of 17 per cent representing an average realized price of $21.81 per oz (Q4 2022 -- $19.90/oz).
• Operations generated a gross margin of $4,794, in Q4 2023 compared with $4,719 in Q4 2022, an increase of 2 per cent.
• Net profit was $3,590 (diluted EPS of three cents) in Q4 2023, compared with net earnings of $1,964 (diluted EPS of two cents) in Q4 2022.

2023 operations review

In Q4 2023, the Zgounder operations team focused on stabilizing open-pit production and reached its objective of 500 tpd. The planned annual shutdown was executed on time, and overall production for the quarter reached 450,000 oz and 1.97 Moz for the year. Underground production was steady, and mining production for the quarter averaged 1,915 tpd, for a total of 176,208 t of ore for the quarter. In 2023, the corporation extracted 493,340 t of ore, with an average of 1,109 tpd from underground mining and 243 tpd from the open pit. The open-pit operation started in Q3 2023 and reached 1,035 tpd in December.

In Q4 2023, 66,449 t of ore were processed, adding over 113,000 t of ore to inventory, in line with the 2024 commissioning plan. The December mill shutdown lowered total availability to 91.3 per cent for the quarter. The ore that went into the mill had 239 g/t Ag, and the extraction process recovered 86.7 per cent of it for a total production of 450,046 oz in the quarter.

For 2023, steady throughput, head grade, recovery and availability of both plants resulted in total silver production of 1,970,646 oz, beating guidance. Over all, 281,634 t were processed in 2023 at a grade of 250 g/t Ag, with combined recovery of 86.9 per cent and availability of 93.6 per cent.

As planned, the mine development rate has slowed down. A total of 1,014 m of lateral development was completed for the quarter and a total of 4,685 m for the year.

Annual training at Zgounder more than doubled to total 10,760 hours, reflecting the corporation's commitment to solidifying best practices, including health and safety (H&S) at Zgounder. The quarter also saw a second phase of training and drills for the mine rescue and emergency response team. By Q1 2024, the team is expected to have a significantly improved response capacity and to be fully operational in H2 2024.

Zgounder development

At year-end 2023, construction of the plant and surface infrastructure continued to track budget. Over all, the expansion project was 80 per cent complete, compared with 60 per cent at the end of Q3 2023.

• Mine expansion is fully financed and on track for commissioning in Q2 2024;
• Tailings and water storage facilities are complete;
• Processing plant approximately 71 per cent completed;
• Electrical infrastructure is 76 per cent completed;
• Underground development of 8,452 m completed, 90 per cent of the initial lateral development program;
• Approximately 80 per cent of vertical development completed;
• Production from the open pit is continuing with 87,475 t stockpiled;
• $110-million has been spent and an additional $38-million has been committed;
• On target to complete expansion within the $159-million capital cost estimate.

Operational readiness

The corporation's operations team continues to advance preparations to begin commissioning in Q2 2024. The recruitment of senior technical and operational personnel has started.

Mining at from the open pit continues, and a total of 250,114 t had been stockpiled at year-end 2023 for commissioning of the new mill.

Following intensive training sessions, Zgounder's mine rescue team is expected to be fully operational in H2 2024. Furthermore, the corporation's environmental and community teams are maintaining its commitments to local authorities, communities and external stakeholders through increased engagement and transparent reporting.

2023 exploration campaign

Zgounder

A total of 17,752 m were drilled in the year. In H1 2023, drilling focused on targets east and south of Zgounder. Following completion of underground development of the 1,925 m and 1,950 m levels, the at-depth drill program was launched later than expected in the fourth quarter. This is now expected to be completed in Q2 2024.

Zgounder regional

In H1 2023, 8,462 m of DDH were completed on the Zgounder regional permits to follow up on 2022 results and test new targets. Preliminary results from the drilling program, although anomalous, confirmed the potential for discovery of satellite deposits for the Zgounder mine.

Subsequently, the 2023 regional campaign was reoriented to test the potential continuation of the Zgounder deposit east of the granophyre; to test the southern contact of the rhyolite and a new target in the Tourchkal area. At year-end, 10,900 m had been drilled, including a total of 920 m on Tourchkal.

During the year, the corporation continued to consolidate its land position at Zgounder, boosting its total package by 20 per cent to 354 square kilometres. Four new exploration permits were acquired as part of a reallocation of exploration permits by the Moroccan Directorate of Mines.

Boumadine

The initial 2023 program of 36,000 m was successfully completed in July, extending the strike length from 2.5 km to 3.8 km. Results identified a new, high-grade sulphide stockwork zone that expanded the South zone. The mapping and prospecting programs enabled discovery of a new at-surface mineralized structure in the northwest.

In July, 2023, the Boumadine drill program was more than doubled to total 74,295 m in 197 DDH to carry out infill and exploration drilling along strike, including on new targets. At year-end, drilling had extended the strike length of the Main zone to over 4.2 km. Results continued to confirm the continuity and extension of the mineralized footprint of the Boumadine Main zone, which remains open in all directions. Furthermore, holes BOU-DD23-223 and BOU-DD23-218 confirmed high-grade mineralization and continuity to the south and north of the main trend, respectively.

A National Instrument 43-101 mineral resource estimate for Boumadine is expected in H1 2024 that will incorporate drilling data from 2018 through 2023.

The corporation also announced recoveries of 89 per cent silver and 85 per cent gold from preliminary metallurgical test work at Boumadine. A two-step metallurgical process is envisaged involving a flotation stage followed by an oxidation and leaching stage. The corporation plans to refine the initial metallurgy results further as its understanding of the deposit evolves.

In 2023, the corporation continued to shore up its Boumadine landholdings through the acquisition of five permits. Its Boumadine land package increased by 209 per cent to total 97.8 square km by year-end 2023.

The technical information relating to Zgounder, Zgounder regional and Boumadine properties was reviewed and approved by David Lalonde, BSc, head of exploration, designated as a qualified person under National Instrument 43-101.

The corporation expects 2024 production from Zgounder to range between 2.6 million and 3.2 million silver oz at a cash cost of between $13 and $14.50/oz. The increase in cost is due to the lower grades at the mills in 2024, the additional development work needed in 2024 and the additional costs associated to the start-up of the expansion. It is also in conjunction with a higher silver price. The following metal prices and foreign currency assumptions were used in the guidance: U.S. dollars/Canadian dollar 1.39; and U.S. dollar/Moroccan dirham 10.50.

2024 exploration program primarily focused on growth

An exploration budget of $36-million has been set for 2024, focusing on Boumadine (120,000 m), Zgounder (15,000 m) and Zgounder regional (10,000 m).

At Boumadine, 50 per cent of the drilling will focus along the main trend to continue extending the known mineralization trend along strike and at depth and to infill known areas as the project advances toward a preliminary economic assessment. The remaining 60,000m of drilling is greenfield exploration designed to test geological hypotheses and drill targets generated from the past two years of work. A large airborne geophysics campaign is being flown over a large area of the corporation's permits and immediately around its permits. A mineral resource estimate for Boumadine is expected in H1 2024 that will incorporate drilling data from 2018 through 2023.

At Zgounder, the 15,000 m program will follow up on underground targets generated from the 2023 program. An additional 10,000 m will be drilled on targets on the Zgounder regional permits with the objective of finding similar mineralization to Zgounder.

A small drill and fieldwork program is planned on the Amizmiz gold property in the middle of the year.

2024 sustainability outlook

In 2024, the corporation maintains its 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 this year:

• Further embed a zero-incident H&S culture and operationalize the mine response teams;
• Connect Zgounder to the renewable-energy power line to set the table for achieving its 88-per-cent greenhouse gas reduction target in 2025;
• Enhance transparency through one streamlined TCFD-, GRI- and IFRS-2-compliant report;
• 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 authorities and community organizations;
  • Education -- reinforce local capacity through school supplies, on-line support for middle-school children and an adult literacy program;
  • Stakeholder engagement -- deepen communication and awareness of the revised stakeholder engagement plan and grievance mechanism.

Q4 2023 conference call

The corporation will hold a conference call on March 28, 2024, at 9 a.m. EDT to discuss its Q4 and full-year 2023 financial and operational results. The webcast can be accessed as follows:

• Via webcast;
• Via conference call dial-in as below:
  • All parties must register to participate in the conference call;
  • Register by going on-line and completing the on-line registration form;
  • Once registered, you will receive the dial-in numbers and PIN number for input at the time of the call.

The live webcast will be archived and will be available for replay. Presentation slides that will accompany the conference call will also be posted on Aya's website.

Change in transfer agent

The corporation also announces that TSX Trust Company has replaced Computershare Trust Company of Canada as its registrar and transfer agent. Shareholders need not take action in respect of the change in transfer agent and registrar.

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.

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

We seek Safe Harbor.