2022 Annual Highlights

• Record operations including silver production, recovery, availability, and ore processed.
• Record revenue and sales:
• Revenue of $38.2 million, an 11.5% increase from 2021.
• Silver sales of 1,935,154 oz, a 28% increase from 2021.
• Operating cash flow for the year of $9.6 million, compared to $17.5 million for 2021.
• Cash cost per silver ounce sold of $12.6 compared to $12.0 in 2021⁽¹⁾.
• Successful 21,645-meter (“m”) drill program at Zgounder which provided 15 of Zgounder’s top 50 intercepts.
• Conducted a 4,012m diamond drill hole (“DDH”) program on Zgounder Regional, testing target areas informed by the spectral and prospecting campaigns.
• Explored the Corporation’s rich regional portfolio located along the South Atlas Fault:
• Boumadine: completed an 18,335m DDH program that extended the strike 23% to 3.2 kilometers (“km”) towards the south and discovered parallel zones along the main trend.
• Imiter bis: conducted a 4,754m DDH drill program and an airborne geophysics survey.
• Advanced Zgounder Mine expansion:
• Completed 4,170m of underground development as of end of January 2023.
• Advanced bulk earthworks to near-completion and launched civil works on site.
• Commenced construction of the new tailings and water storage facilities on schedule.
• Consolidated 100% ownership of Zgounder Mine through the acquisition of 15% interest from the National Office of Hydrocarbons and Mines for approximately $5.2 million.
• Contributed to community health and education through renovation of schools and support for both permanent and mobile health clinics.
• Solid financial position with $41.8 million of cash, cash equivalents and restricted cash. ^(²)
• Commenced trading on the OTCQX under the ticker symbol “AYASF”.
• Ranked 18th on the 2022 TSX30 as a top-performing stock with a 3-year share appreciation of 245%.

2023 Outlook and Year So Far

• Successfully completed a C$92 million (US$69 million) bought-deal public offering.
• Secured a $100 million debt financing package with the European Bank for Reconstruction and Development (“EBRD”) and Climate Investment Funds’ Clean Technology Fund (“CTF”).
• Guidance of between 1.7 and 1.9 million ounces (“oz”) production at cash cost of $14.40/oz. ⁽¹⁾
• Provided a path to near-zero Scope 2 emissions in 2024 by signing a renewable power purchase agreement with Energie Éolienne du Maroc.

"2022 was a year of strong execution and strategic momentum," said Benoit La Salle, President and CEO. “2022’s actions allowed us to mobilize almost $200 million in funds in Q1-2023, deliver record results, begin the Zgounder Mine expansion, double the Boumadine drill program, and be recognized as a top-performing stock in Canada for a second consecutive year. We are especially proud of our sustainability progress: the ESG-linked project financing package; the significant steps towards decarbonizing our expanded operations; and the development of a program to align our operations with the goals of the Paris Agreement.

We entered 2023 in a robust financial position and with a strengthened project pipeline that shows significant potential to deliver value for all stakeholders. Our confidence is underpinned by advancement of Zgounder development, a strong balance sheet, alongside increasing sustainability-driven innovation. Together with our committed team, we are well-positioned for continued excellence in execution throughout this buildout year.”

1. The Corporation reports non-GAAP measures, which include cash costs per silver ounce and free cash flow, which are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the methods used by the Corporation to calculate such measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 20 & 21 of the Corporation’s Q4-2022 MD&A for a reconciliation of non-GAAP to GAAP measures.
2. Non-GAAP Measures, consisting of cash and cash equivalents of $39,360,138 and restricted cash of $2,489,287.

2022 Operational and Financial Highlights

2022 Annual Financial & Operational Highlights

• Record Ag production of 1,880,707 oz, a 17.5% year-over-year increase in silver ounces produced that is a direct result of the higher mining rate, mill throughput and recovery rate.

• Milling operations averaged 699 tonnes per day (“tpd”) for the year compared to 615 tpd in 2021, an increase of 13.6%. Combined mill recovery averaged 86.6% compared to 82.1% in 2021, an increase of 4.5%.
• Cash flows generated by operating activities of $9,648,774 for the year, compared to $17,502,239 generated in operating cash flows for 2021.
• Revenue from silver sales totaled $38,244,921 compared to $34,301,914 in 2021, an increase of 11.5% due to a 28% increase in the volume of sales The increase in sales volume was partially offset by a lower average realized price in 2022 of $19.76/oz (2021 – $22.65/oz).
• The Corporation had cash, cash equivalents and restricted cash of $41,849,425 as at December 31, 2022 compared to $84,185,219 as at December 31, 2021

• Net income for the year was $1,469,320 (diluted EPS of $0.013), compared to a net Income of 1,272,142 (diluted EPS of $0.012) in 2021. Net income for the year was attributable to an increase in production and silver sales.

Fourth Quarter 2022 Financial & Operational Highlights

• Total Ag production of 661,621 oz in Q4-2022, a 53% increase compared to Q4-2021attributable to higher grade (364 g/t vs. 248 g/t) and silver recovery rate (89.9% vs. 82.4%).

• Cost of sales of $8,602,601 (Q4-2021 – $4,634,254) with an average cash cost per oz of $10.9 compared to $14.5/oz in Q4-2021.
• Gross margin increased by 39% to $4,719,205 compared to $3,390,868 in Q4-2021.
• This was due to the increase in the volume of sales during the period (669,506 oz sold in Q4-2022 compared to 338,591 oz sold in Q4-2021).
• Revenue from Ag sales totaled $13,321,806 (Q4-2021 – $8,025,122), an increase of 66%.
• Operating cash flow of $3,639,235 in Q4-2022, a 74% increase compared to $2,088,055 in Q4-2021
• Net income for the period was $2,035,094 (diluted EPS of $0.018), compared to a net loss of ($1,086,033) (diluted EPS of $(0.011)) in Q4-2021.
• Milling operations reached 688 tpd, surpassing design capacity of 670 tpd.
• Average combined mill recovery increased to 89.9% in the quarter compared to 82.4% in Q4-2021, an increase of 7.5%.

2022 Operations Review

2022 was a year focused on advancing the engineering work and commencing construction activities for the Zgounder expansion, while ensuring efficient production. The project construction, mine engineering, geology and maintenance department teams were also strengthened. Procedures, processes, mining and work methods continued to be refined. The Corporation produced a record total of 1,880,707 oz Ag in 2022, a 17% increase from 2021. Mine production metrics improved across the board. Mill metrics also improved to a combined silver recovery of 86.6% and mill availability of 91.7%.

Capital Projects

All capital projects in 2022 and particularly in Q4-2022 were primarily related to the mine expansion. These projects include earthworks; construction start of the tailings pond and haulage road; mine infrastructure, base camp and housing upgrades; site electrical distribution and redundancy; and an underground workshop for mobile equipment.

Zgounder Development

In 2022, construction of the Zgounder Expansion Project continued to progress effectively, and the following milestones had been achieved (as of January 31, 2023 unless otherwise stated):

• Over 4,170m of permanent underground development had been completed out of the 11,000m program.
• Mobilization of the open-pit mining contractor expected in April 2023.
• Detailed engineering had advanced to over 60%.
• Fixed price Engineering Procurement and Construction (“EPC”):
• Detailed design of the process plant is being advanced by Duro Felguera as part of its EPC contract.
• Procurement of the mechanical equipment packages neared completion.
• Fabrication of the 3.3-megawatt ball mill was 62% complete.
• Manufacturing of the crushing equipment had reached 90% completion.
• On-schedule start of construction of a new tailings storage facility and new water storage facility.
• Construction of power line underway for planned completion in Q1-2024.
• Award of contract for new 60/22 kilovolt electrical substation.
• Bulk earthworks were near-complete.
• Civil works began with construction of the leach tank foundations in February 2023.

2022 Successful Exploration Program

Zgounder

A total of 21,645m were drilled in the year on Zgounder with the aim of increasing reserves and resources in the eastern portion of the deposit and at depth. A large portion of the exploration program was carried out in the eastern part of the deposit to define the eastern portion of the deposit for the proposed open pit. Several directional drill holes were carried out on the property to expand the deeper areas of the deposits.

Zgounder Regional

In H1-2022, a comprehensive fieldwork program was carried out across Zgounder Regional properties with a view to expanding the Corporation’s understanding of the geological structures and controls of the permits and informing the H2-2022 drill program. The fieldwork included an airborne geophysics survey (magnetic, VTEM and radiometric); grab sampling; a hyperspectral program; and a stream sediment campaign. Under the airborne geophysics survey, 8,543-line km were flown over the eleven exploration permits. A total of 1,061 grab samples were taken across the permits during the year, generating multiple geological targets, particularly at the Zgounder Ouest, Izza and Tala zones. In addition, the stream sediment program returned a total of 954 samples.

In Q3-2022, the final data from the fieldwork were combined, defining five target areas for the 2022 drill program, which commenced in early October. A 4,012m DDH program was carried out by year-end 2022, and initial drilling results are expected in H1-2023.

Boumadine

In H1-2022, a comprehensive fieldwork program was carried out on Boumadine to expand the Corporation’s understanding of the mineralogy in the permits and to inform the 2022 drill program. The fieldwork included an airborne geophysics survey; a hyperspectral survey; and a litho-geochemistry program. The 349-line km airborne geophysical survey was completed in April 2022 comprising magnetic, radiometric, and electromagnetic surveys. Data from the survey indicated the presence of a conductive anomaly continuing down to at least 600m below surface along the main trend, suggesting at-depth extension. Furthermore, the survey identified conductivity anomalies east and west of main Boumadine trend. The hyperspectral survey outlined strong clay alteration over the main trend and laterally.

A total of 18,335m of DDH were drilled in 2022, more than twice the original 7,500m budget. Results confirmed polymetallic mineralization of the main trend and extended the strike to 3.2km towards the south. The mineralization is open at both ends along strike and at depth within a six km hydrothermal system.

Imiter bis

In 2022, Phase 1 of the planned drill program on Imiter bis completed 24 DDH for a total of 4,754m DDH over four target areas (Northwest, Daoud, Northeast-Extension and Dilatation Zones). Encouraging results were obtained in the North Zone including 3.94 g/t Au over 5.0m and 1.46g/t Au over 11.5m. Phase II drilling, which had been scheduled for Q4-2022, was postponed to focus on Boumadine. The geology and Phase I results indicate the presence of a 4-km potential at-surface polymetallic structure hosted within a low-sulphidation epithermal system. Follow-up drill programs will focus on finding the ‘boiling zone” that could host higher-grade mineralization.

In parallel to the drilling program, an airborne geophysical survey comprising magnetic, radiometric, and electromagnetic surveying was completed over 554 linear km in 2022.

The technical information relating to the Zgounder, Boumadine and Imiter bis Projects was reviewed and approved by David Lalonde, B. Sc, Head of Exploration, designated as a Qualified Person under National Instrument 43-101.

2022 Sustainability Expansion

Aya is committed to maintaining a culture of accountable mining through high standards of Environment, Social and Governance (“ESG”) practices and minimising the impact of its operations on its people, its communities and on the natural environment.

During the year, the Corporation continued to implement its Environment and Social Management System that is aligned with EBRD performance requirements. ESG policies and practices are being embedded across the business, and the Corporation reports on its ESG performance though its Global Reporting Initiative-compliant Sustainability report.

In a context where a growing number of companies are engaging in decarbonization roadmaps and aligning with the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”), the Corporation appointed Ernst & Young to review and assist the Corporation in enhancing its corporate governance for effective climate action. Under the project, a 3-year implementation program has been developed to support the Corporation in aligning its operations with the goals of the Paris Agreement. A first analysis has been conducted to assess the gap between Aya’s current practices and those recommended by the TCFD, supplemented by those of the EBRD Climate Corporate Governance framework. Achievement of certain milestones of the plan will reduce the effective interest rate of the CTF tranche of the Zgounder project loan.

*Disclaimer: Please be aware that this is not financial advice and that you should conduct due diligence before investing.

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