- Record Production and Exploration Activity Forecasted in 2021
Montreal, Quebec, March 26, 2021 - Aya Gold & Silver Inc. (TSX: AYA) (“Aya” or the “Corporation”) today reported its financial and operational results for the fourth quarter and year ended December 31, 2020. All amounts are in US dollars unless otherwise stated.

2020 Highlights (as of December 31, 2020)

Record silver production of 726,319 ounces (“oz”) in 2020, an increase of 61% from 2019
Revenues of $13,822,709 in 2020, an increase of 127% from 2019
Net loss of $1,779,590 in 2020 compared to a net loss of $576,513 in 2019
Monthly mill recovery increased to 78.9% with 677 tonnes per day (“tpd”) milled in December 2020
Near-completion of an operational review to reach nameplate capacity of 700 tpd
Drill exploration program of 19,000 meters (“m”) compared to an initial target of 15,000m
Launch of a feasibility study to assess potential to increase production capacity to 2,000 tpd
Completion of a private placement offering for gross proceeds of $20,016,468
Strong cash position of $33,291,691 at year-end compared to $16,628,989 at year-end 2019
Strengthening of governance and accountability with the appointment of a new board chair and management as well as the implementation of proper financial and governance controls
Change of company name to Aya Gold & Silver Inc.
2021 Outlook & Year So Far

Resource update in Q4 2021 following M&I mineral resources increase by 340% to 44.4 million oz
Guidance of 1.2 million oz production at cash cost of $11.28/oz an all-time company best
Work ongoing on the 2,000 tpd expansion feasibility study for completion in Q4 2021
Acquisition of Algold Resources Ltd.’s Tijirit property under way - a fully permitted, near-term producing asset in Mauritania


“Congratulations to the entire Aya team for their hard work and continued dedication in 2020,” said Benoit La Salle, President and CEO. “All areas including operations, exploration and development saw meaningful improvements and even all-time bests, especially in the fourth quarter, setting the stage for a successful 2021. We expect to achieve many milestones at Zgounder in 2021 including record silver production of 1.2 million oz in addition to completing our feasibility study and our most extensive drill program yet, enabling us to reach our strategic goal of 100 million oz of silver resources by year-end. We are executing on our vision and are on a path to generating additional shareholder value through our work at Zgounder and our regional exploration activities in Morocco.”

2020 Annual Highlights
Key Performance Metrics 2020 2019 Variation ’20 vs ’19

Operational
Ore Processed (tonnes) 128,923 100,667 28%
Average Grade (g/t Ag) 255 218 17%
Mill Recovery (%) 68.7% 64.2% 7%
Silver Ingots Produced (oz) 439,448 286,294 53%
Silver in Concentrate for Sale Produced (oz) 286,871 166,122 73%
Total Silver Produced (oz) 726,319 452,416 61%
Silver Ingots Sold (oz) 395,489 262,837 50%
Silver in Concentrate for Sale Sold (oz) 266,079 163,068 63%
Total Silver Sales (oz) 661,567 425,905 55%

Financial
Revenues 13,822,709 6,081,400 127%
Cost of Sales 9,779,055 5,147,137 90%
Gross Margin 4,043,654 934,263 333%
Operating (Loss) (832,832) 42,921 (2040%)
Net (Loss) Earnings (1,779,590) (576,513) 139%
Operating Cash Flows 1,278,193 3,574,536 (67%)
Cash and Restricted Investments Cash 33,291,691 16,628,989 100%

Change in Working Capital Items (1,347,195) 1,286,749 (207%)

Shareholders
(Loss) Earnings per Share (“EPS”) – basic & diluted (0.021) (0.007)

2020 Annual Financial & Operational Highlights

A portion of the 2020 highlights results from a series of operational changes implemented in late Q3 2020 under the Zgounder operations turnaround plan:

Record silver production of 726,319 oz in 2020, an increase of 61% compared to silver production of 452,416 oz in 2019
Revenues of $13,822,709 in 2020 compared to $6,081,400 in 2019, driven by the record production and a 46% increase in the average realized silver price
Operating cash flows of $1,278,193 in 2020 compared to $3,574,536 in 2019
Net loss of $1,779,590 in 2020 due to the grant of share purchase options that yielded an expense of $2,916,399. Excluding this non-cash expense, the net gain would have been $1,539,281.
Ore processed of 128,923 tonnes in 2020, a 28% increase compared to 100,667 tonnes in 2019
Average grade to the mill was 255 grams per tonne (“g/t”) silver in 2020 compared to 218 g/t silver in 2019

Fourth Quarter 2020 Financial & Operational Highlights

The following highlights were positively impacted by a series of operational changes implemented in late Q3 2020 under the Zgounder operations turnaround plan:

Operating cash flows of $3,409,415 in Q4 2020, a 201% increase compared to $1,105,928 in Q4 2019
Total silver production of 407,986 oz in Q4 2020, an 180% increase compared to Q4 2019
Total silver sales of 443,454 oz in Q4 2020, an increase of 164% compared to the same period in 2019
Ore processed of 52,115 tonnes in Q4 2020, an increase of 480% compared to the same period in 2019
Mill recovery increased to 78.9% with 677 tpd milled in December 2020, compared to recovery of 64.1% in Q4 2019

2020 Operations

A 12-month operational optimization plan was launched at Zgounder to achieve its nameplate capacity of 700 tpd. In late Q3 2020, four main operational improvements were implemented including flowsheet reorganization, grade control, selective mining, and milling throughput. The most important improvement was the reconfiguration of the processing flowsheet, which separated the cyanidation and flotation plant operations. Following the operational changes, throughput, ore processing, recoveries, and production substantially increased.

In August, the Corporation launched a feasibility study to assess expansion of the Zgounder Silver Mine capacity from 700 to 2,000 tpd. Since then, the Corporation has engaged several contractors in specific areas related to the feasibility study. Geotechnical, hydrological, and metallurgical field work has already commenced, and a budget of $2.4 million has been set for its completion.

2020 Exploration Review

In 2020, the initial 15,000m exploration program at Zgounder was expanded twice to follow up on strong results, completing the year with 284 diamond drill holes over 19,000m of drilling. The exploration program had two objectives: first, to increase the confidence level of the mineral resources by converting the 28.3 million silver oz of inferred mineral resource into the M&I classification; and second, to identify new prospective mineralization at depth and better characterize the mineral resource potential in the eastern part of the deposit. The Corporation succeeded on both counts, extending the mineralization approximately 90m along the eastern strike extension and at depth.

Following completion of the 2020 exploration program, an updated mineral resource statement for Zgounder was compiled together with drilling results from 2018 and 2019. In addition to M&I mineral resources increasing to 44.4 million oz of silver, an exploration target of 3-6 million tonnes grading 190-295 g/t silver for 20-60 million silver oz was established for Zgounder at depth and along lateral extensions. The exploration target was derived from a larger mineralized envelope including all mineral intersects while excluding the mineral resources reported. The potential quantity and grade of the exploration target are conceptual in nature, and there has been insufficient exploration to define a mineral resource.

2021 Exploration

An initial exploration budget of $6.7 million has been set for Zgounder in 2021 for a total of 41,000m of drilling. Of these 41,000m, 35,000m of diamond drill holes will be completed on the Zgounder mining permit and 6,000m of RC drilling will be conducted on the Zgounder regional permits. The 35,000m drilling program will focus on the exploration target area with the view to further expanding the resource and supporting a maiden reserve statement.

Exploration activities involving field work and geophysics and 9,000m of drilling will commence on the other Moroccan properties, Azegour, Amizmiz and Imiter bis, in the second half of 2021.

About Aya Gold & Silver Inc.

Aya Gold & Silver Inc. is a publicly traded Canadian company focused on the operation, exploration, acquisition and development of silver and gold deposits. Aya is currently operating mining and processing facilities at its Zgounder Silver Mine, an 85%-15% joint venture between its subsidiary, Zgounder Millenium Silver Mining SA, and the Office National des Hydrocarbures et des Mines (“ONHYM”) of the Kingdom of Morocco.

Aya’s mining portfolio also includes the Boumadine polymetallic deposit located in the Anti-Atlas Mountains of Eastern Morocco, which is also a joint venture with ONHYM wherein Aya retains an 85% ownership. Additionally, the Corporation’s portfolio includes the Amizmiz and Azegour properties, both being 100% owned, with gold, tungsten, molybdenum, and copper occurrences in the center of a historical mining district of Morocco.

For additional information, please visit Aya’s website at www.ayagoldsilver.com.

Or contact:
Benoit La Salle, FCPA FCA
President & CEO
benoit.lasalle@ayagoldsilver.com