Aya Gold & Silver

2021 ESG Report

Published on July 25, 2022

Aya Gold & Silver is a rapidly growing, Canadian-based silver producer with a strong presence in Morocco.

Listed on the TSX, the Corporation operates the Zgounder Silver Mine, an underground silver mine located 260km east of Agadir in Morocco. In addition to advancing its Boumadine polymetallic project, Aya Gold & Silver is actively drilling its Imiter bis exploration property located along the prolific Anti-Atlas belt that is host to Zgounder and Managem’s Imiter Mine.

Disclaimer and Forward Looking Statements

Company Profile

Organizational Profile

Name

Aya Gold & Silver

Describe nature of activities, brands, products and services

Aya Gold & Silver's goal is to create
shareholder value by generating revenue and
growth through its operations and exploration
programs. Our experienced team of directors
and officers have extensive experience
launching and operating precious metals mines
around the world.

Together with ongoing Zgounder operational
improvements, Aya Gold & Silver is focused on
extending Zgounder high-grade mineralization
through drill programs with the aim of
expanding plant capacity from 700 tpd to 2,700
tpd.

Link to Corporate Website

https://ayagoldsilver.com/

Industry Classification

NAICS:
2122 Metal ore mining
21222 Gold and silver ore mining

Market Capitalization

$100 Million up to $1 Billion USD

Type of Operations

Primarily production oriented

Company Headquarters

Mont-Royal, Canada

Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy; previously published Sustainability/ESG performance or reports. (URL)

ESG Accountability

Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance.

Benoit La Salle, President & CEO

ESG Reporting Period

Unless otherwise noted, all data contained in this report covers the following period:

From

2021-01-01

2021-12-31

Geographic Scope of Report

Unless otherwise noted, the data in this report covers ESG matters related to the following locations of operations

Morocco

Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.)

Aya Gold & Silver holds five exploration assets
located in Morocco and Mauritania. This report
focuses on our ongoing operations at the
Zgounder Silver Mine. It does not cover
exploration sites in Morocco or Mauritania as
no exploration was conducted in 2021.

Imiter Bis Exploration Project Description

Boumadine Exploration Project Description

Amizmiz Exploration Project Description

Fragile and Conflict-Affected Situations

Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations"

None

Business Operations Scope of Report

Aya Gold & Silver holds five exploration assets
located in Morocco and Mauritania. This report
does not cover these exploration sites as no
exploration was conducted in 2021.

Mineral Resource Types in Scope

Which of the following mineral resource types are covered by this report

• Inferred
• Indicated
• Measured

2021 Fourth Quarter Production
HighlightsPress Release

Mineral Reserve Types in Scope

Which of the following mineral reserve types are covered by this report

• Proven
• Probable

Currency

Unless otherwise noted, all financial figures referenced in this report are in the following currency

USD

Audit Status

Identify the degree to which any inputs of the report are third-party checked:

Self-Declared

Reporting Practice

Provide a list of all entities included in the organization’s consolidated financial statements or equivalent documents

Aya Gold & Silver Inc. (the “Corporation or
“Aya”) is a Canadian-based precious metals
mining corporation focusing on the
exploration, development, production and
acquisition of precious metals mining projects.

The Corporation is concentrated on producing
silver and exploration activities at its flagship
project, the Zgounder property.
Aya owns 85% of Zgounder Millennium Silver
Mine S.A (“ZMSM”), which owns the Zgounder
property.

The Corporation also owns 85% of the
Boumadine polymetallic project and is the sole
owner of the permits related to the Amizmiz,
Azegour and Imiter Bis properties.

All of these properties are located in the
Kingdom of Morocco.

Following the acquisition of Algold Resources
Ltd. (“Algold”) completed on June 11, 2021, Aya
owns 75% of the Tijirit project located in
Mauritania.

Our subsidiaries include:
• Compagnie Minière Maya-Maroc S.A.
(“CMMM”)
• Zgounder Millennium Silver Mining S.A.
(“ZMSM”)
• Boumadine Global Mining S.A. (“BGM”)
• Atlas Gold & Silver S.A.R.L.(“AGS”)
• Kanosak (Barbados) Limited (“KANOSAK”)
• Algold Resources Ltd. (“Algold”)
• Algold Mauritania SARL (“ALGOLD SARL”)
• Société Tijirit Recherche et Exploration
SARL (“TIREX”)

Aya Gold & Silver Financial Reports

Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report

There are no exclusions related to this report.
However, the 2021 ESG report focuses
primarily on Zgounder Millennium Silver
Mining S.A. (“ZMSM”) as all 2021 operating
activities were carried out in the ZMSM
concession.

Provide an explanation of the process for defining the report content and the topic boundaries

Our ESG Report will provide transparent,
comprehensive and appropriate content,
addressing Aya Gold & Silver's material aspects
and impacts, as well as our stakeholders'
material topics.

Provide an explanation of how the organization has implemented the Reporting Principles for defining report content

Our material sustainability topics were
determined on the basis of approved GRI
methodology. While our identified material
topics are key, our wider efforts continue to
address topics beyond those in our material
section.

Provide a list of the material topics identified in the process for defining report content

• General Disclosure
• Compliance
• Greenhouse Gas Emissions
• Emissions
• Energy
• Water and Effluents
• Water
• Waste
• Effluents and Waste
• Waste Management
• Employment
• Labour Relations
• Occupational Health and Safety
• Workforce Health and Safety
• Training and Education
• Local Communities
• Community Relations
• Water Management
• Anti-corruption

Report the effect of any restatements of information given in previous reports, and the reasons for such restatements

No restatement

Report significant changes from previous reporting periods in the list of material topics and topic Boundaries

The 2021 ESG report does not contain any
significant changes in the list of material topics
and topic boundaries.

If applicable, report the date of the most recent previous report

2021-06-15

Provide the contact point for questions regarding the report or its contents

For questions regarding this report, please
contact the following:

David Vilder, HSEC Manager,
david.vilder@ayagoldsilver.com.

Choose the statement as to whether the organization has chosen the CORE or COMPREHENSIVE options in preparing the GRI aligned report

This report has been prepared in accordance
with the GRI Standards: Comprehensive option

If the report has been externally assured, provide:

i. A reference to the external assurance report, statements, or opinions. If not included in the assurance report accompanying the sustainability report, a description of what has and what has not been assured and on what basis, including the assurance standards used, the level of assurance obtained, and any limitations of the assurance process

This is a self-declared report. No external audit
has been conducted.

Raw Material Produced

Metals:

45.378

Aya Gold & Silver has only one project in
operations, the Zgounder Silver Mine, which
produces silver. In 2021, The Zgounder Silver
Mine produced 1600646 ounces of silver.

Silver (Ag) (tonne)

45.378

Finished Product for Sale

Metals:

Silver (Ag) (tonne)

Organizational Profile

Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact

In 2021, the Corporation was not a member of
any associations and did not participate in any
external initiatives.

For the purpose of this report, Aya Gold &
Silver is disclosing information aligned with the
following standards:

• CDP - Carbon Disclosure Project
• GRI - Global Reporting Initiative
• GRI Comprehensive - Global Reporting
Initiative – Comprehensive
• GRI Core - Global Reporting Initiative – Lite
• GRI MM Supplement - Global Reporting
Initiative - Mining and Metals Supplement
• ICMM - International Council on Mining &
Metals
• IFC - International Finance Corporation -
Equator Principles
• ISS - ISS & Glass Lewis - Proxy Advisors
• ONYEN - Institutional and Investor
Questions
• OSHA - Occupational Safety and Health
Administration
• PRI - Principles of Responsible Investing
• SASB - Value Reporting Foundation
• SASB Modified - Value Reporting
Foundation – Modified
• UGC - UN Global Compact – Sustainable
Development Goals (SDGs)

Strategy

Provide a statement from the most senior decision-maker of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability (CEO's message for this report)

As Aya Gold & Silver (“Aya” or “the
Corporation”) celebrates its second year of
existence, I am proud to share our second
Sustainability Report with you.

The report, which covers our performance in
2021, follows up on the environmental, social
and governance (“ESG”) baseline provided last
year that characterized my appointment as
President and CEO.

CEO Statement

Benoit La Salle, CEO

Provide a description of key impacts, risks, and opportunities,

The impacts, risks and opportunities of the
Zgounder Silver Mine are outlined in the
Zgounder Silver Mine ESIA.

Please refer to the link below for further
information.

Zgounder Expansion Project ESIA

Ethics and Integrity

Provide a description of the organization’s values, principles, standards, and norms of behaviour

The Board of Directors of Aya Gold & Silver is
committed to ethical practices and high
standards of corporate governance.

Our mission is to leverage our extensive
expertise to play a leadership role in building
and operating viable precious metals mines that
create value for our shareholders and
community stakeholders.

Aya Gold & Silver Code of Business Conduct
and Ethics

Aya Gold & Silver HSEC Policy

Aya Gold & Silver Strategy

a. Describe internal and external mechanisms for:

i. Seeking advice about ethical and lawful behaviour, and organizational integrity

We have a strong commitment to conduct our
business in a lawful and ethical manner.
Employees are encouraged to report violations
of laws, rules, regulations and the Code of
Conduct and Ethics either to their supervisor,
member of senior management or through the
confidential whistleblower mechanism detailed
in the Corporation’s Handling of Complaints -
Whistle Blowing Policy. We prohibit retaliatory
action against any employee who, in good faith,
reports a possible violation. It is unacceptable
to file a report knowing it to be false.

Aya Gold & Silver Code of Business Conduct
and Ethics

ii. Reporting concerns about unethical or unlawful behavior, and organizational integrity

Aya Gold & Silver is committed to the highest
standards of openness, honesty and
accountability as outlined in the Corporation’s
Code of Business Conduct and Ethics (the
“Code”). The latter also provides guidance on
alternative methods of reporting employee
concerns and directs that employees inform
designated members of management regarding
known or suspected instances of irregularities,
fraud or misconduct.

Aya Gold & Silver Code of Business Conduct
and Ethics

Aya Gold & Silver Handling of Complaints –
Whistle-Blowing Policy and Procedure

Supply Chain

a. Provide a description of the organization’s supply chain, including its main elements as they relate to the organization’s activities, primary brands, products, and services

The Zgounder Silver Mine's supply chain's
primary elements include:
- chemical products for metal processing
- machinery and parts
- consulting services for engineering, health and
safety, environment, and human resources
management.

a. Report on significant changes to the organization’s size, structure, ownership, or supply chain, including:

In 2021, there were no significant changes in
the Zgounder Silver Mine's size, structure,
ownership or supply chain.

Changes in Locations and Operations

i. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions

There were no changes in the location of, or
changes in, operations, including facility
openings, closings, and expansions in 2021.

Changes in Capital Structure

ii. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations)

There were no changes in the share capital
structure and other capital formation,
maintenance, and alteration operations in
2021.

Changes in Supply Chain

iii. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination

There were no changes in the location of
suppliers, the structure of the supply chain, or
relationships with suppliers, including selection
and termination in 2021.

Precautionary Principle

a. Report whether and how the organization applies the Precautionary Principle or approach

Where there is potential for environmental or
social harm, lack of certainty cannot be
accepted as a reason for inaction. At Aya Gold
& Silver, we believe that the use of the
precautionary principle is a key directive of
responsible environmental and social
governance and an important factor in the
journey towards a more sustainable future.

Although applying the precautionary principle
means taking action despite scientific
uncertainty, it does not negate the need for, or
value of, pursuing a risk-based approach –
remaining informed of the best available
information and taking uncertainties into
account. Our dedicated Environment, Health
and Safety department takes the lead on
assessing the potential for environmental and
social harm and taking preventative measures
where possible, erring on the side of caution
where extensive scientific knowledge of risks is
lacking.

Membership of Associations

List of the major memberships of industry or other associations, and national or international advocacy organizations

Aya Gold & Silver does not belong to industry
or other associations, including national and
international advocacy organizations.

Environment

Compliance

a. Report fines and non-monetary sanctions for non-compliance with environmental laws and/or regulations in terms of:

i. Total monetary value of significant fines

ii. Total number of non-monetary sanctions

iii. Cases brought through dispute resolution mechanisms

b. If the organization is in compliance with environmental laws and/or regulations, a brief statement if this fact is sufficient

In 2021, Aya Gold & Silver was in compliance
with all environmental laws and/or regulations.

Greenhouse Gas Emissions

Scope 1

For your operations, disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e):

Carbon dioxide (CO₂) (tonne CO₂-e)

3103.758

Methane (CH₄) (tonne CO₂-e)

Nitrous oxide (N₂O) (tonne CO₂-e)

Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e)

Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e)

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

Perfluoromethane (CF₄) (tonne CO₂-e)

Perfluoroethane (C₂F₆) (tonne CO₂-e)

Perfluorobutane (C₄F₁₀) (tonne CO₂-e)

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

3103.758

The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms.

0.0000%

Discuss any change in its emissions from the previous reporting period, including whether the change was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation methodology.

In the 2020 report, Aya Gold & Silver did not
disclose its GHG emissions as they were not
material.

In the case that current reporting of GHG emissions to the CDP or other entity (e.g., a national regulatory disclosure program) differs in terms of the scope and consolidation approach used, the entity may disclose those emissions.

Aya Gold & Silver is reporting its emissions
based on CDP disclosure guidelines.

The entity may discuss the calculation methodology for its emissions disclosure, such as if data are from continuous emissions monitoring systems (CEMS), engineering calculations, or mass balance calculations.

In the 2021 report, Aya Gold & Silver is
reporting GHG Scope 1 emissions based on the
output of light vehicle and the diesel
consumption of mining mobile equipment.

The entity may, where relevant, provide a breakdown of its emissions by mineral or business unit.

Scope 1 emissions represent operations at the
Zgounder Silver Mine only. Aya Gold & Silver
had no operations in any of its other assets or
jurisdictions in 2021.

The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions.

Scope 1 emissions are generated mostly by
operating machinery to mine ore. The type of
machinery that we currently operate does not
exist in electric form. As a result, it is currently
impossible for us to significantly reduce our
Scope 1 emissions.

We plan to monitor new emerging technologies
and evaluate other opportunities when our
mining equipment needs replaced.

The percentage reduction against the base year, with the base year representing the first year against which emissions are evaluated toward the achievement of the target

In 2021, Aya Gold & Silver did not have any
target got emissions reduction.

Total base year GHG emmissions

Present year GHG emmissions

The timelines for the reduction activity

iii The context for any significant changes in emissions that triggered recalculations of the base year emissions

In this reporting period, Aya Gold and Silver did
not recalculate any of its base year emissions.

Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source

The source of emission factors is the Onyen
reporting platform.

Consolidation approach for emissions - whether equity share, financial control, or operational control

Operational control

Standards, methodologies, assumptions, and/or calculation tools used

For the purpose of this report, we used Carbon
Disclosure Project guidelines as a calculation
tool.

Scope 2

Disclose the gross location-based energy indirect (Scope 2) global greenhouse gas (GHG) emissions to the atmosphere (tonne CO₂-e):

Carbon dioxide (CO₂) (tonne CO₂-e)

9556.717

Methane (CH₄) (tonne CO₂-e)

66.5

Nitrous oxide (N₂O) (tonne CO₂-e)

12307.4

Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e)

Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e)

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

Perfluoromethane (CF₄) (tonne CO₂-e)

Perfluoroethane (C₂F₆) (tonne CO₂-e)

Perfluorobutane (C₄F₁₀) (tonne CO₂-e)

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne)

21930.617

Percentage of its gross global Scope 2 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, i.e., cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms

0.0000%

Discussion of long-term and short-term strategy or plan to manage Scope2 emissions, emissions reduction targets, and an analysis of performance against those targets

In 2024, Aya Gold & Silver will sign a Power
Purchasing Agreement with a clean energy
provider connected to the Moroccan National
Grid. By 2025, the Corporation will effectively
reduce its scope 2 emissions to zero at its
Zgounder Silver Mine in Morocco.

iii The context for any significant changes in emissions that triggered recalculations of the base year emissions

No significant change in emissions triggered
recalculation of our 2020 emissions.

Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source

For the purpose of this report, we utilized the
International Energy Agency (IEA) defined
emission factors (2021).

Standards, methodologies, assumptions, and/or calculation tools used

In this report, Aya Gold & Silver utilized the
Carbon Disclosure Project Calculation
guidelines.

GHG Calculation Tool

Intensity Ratio

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

3103.758

The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne)

21930.617

GHG emissions intensity ratio for the organization

112.085

The total amount of organization's specific metric chosen to calculate the intensity ratio.

223.352

The above number (223,352) is in thousands of
tonnes of ore produced.

The organizations specific metric unit of measure. Note: when choosing a company specific metric, it must be used throughout all calculations

Production volume

The intensity ratio is thousands of tonnes of ore
processed by tonnes of CO2.

Types of GHG emissions included in the intensity ratio; whether Scope 1, Scope 2 and/or Scope 3

• Scope 1
• Scope 2

Carbon Offset

Credits

How much CO₂ (metric tonnes) offset credits were purchased?

Emissions

Emissions Management

Disclose the management approach regarding Emissions

In 2021, Aya Gold & Silver evaluated the
principal sources of its GHG emissions,
assessed electrification of its fleet and finding a
green energy producer. As a result,
management will seek a clean energy producer
in the Moroccan national electrical grid to
reduce its Scope 2 emissions.

Air Emissions

Report emissions of air pollutants that are released into the atmosphere:

Emissions of carbon monoxide, reported as CO (tonne)

Aya Gold & Silver is not currently monitoring
air emissions but will in the future monitor and
disclose as per the Environmental and Social
Management Plan included in the Zgounder
Silver Mine 2022 ESIA.

Ozone-Depleting Substances (ODS)

The reporting organization shall report the following information

Production, imports, and exports of Ozone Depleting Substances (ODS) in metric tonnes of CFC-11 (trichlorofluoromethane) equivalent:

Production of of ODS in metric tonnes of CFC-11 (trichlorofluoromethane) equivalent

ODS produced in metric tonnes of CFC-11 (trichlorofluoromethane)

Amount of ODS destoyed by approved technologies

Amount of ODS entirely used as feedstock in the manufacture of other chemicals

Import amount of ODS in metric tonnes of CFC-11 (trichlorofluoromethane)

Export amount of ODS in metric tonnes of CFC-11 (trichlorofluoromethane) equivalent

Source of the emission factors used

Aya Gold & Silver does not utilize equipment in
its operations that can produce ozone-
depleting substances.

Significant Air Emissions

The reporting organization shall report the following information

Significant air emissions, in kilograms or multiples, for each of the following

iii. Persistent Organic Pollutants (POPs):

Aya Gold & Silver does not produce Persistent
Organic Pollutants as a result of its operations.

iv. Volatile Organic Compounds (VOCs)

Aya Gold does not utilize equipment in its
operations that can produce Volatile Organic
Compounds.

v. Hazardous Air Pollutants (HAPs)

Mining Sector:

Acetone (also known as propanone)

Acetaldehyde

Antimony (Sb)

Arsenic (As)

Asbestos

Benzene (including benzene from gasoline)

1,3-Butadiene

Cadmium (Cd)

Carbon Dioxide (CO2)

Carbon Monoxide (CO)

Chloroform

Chromium (Cr)

Copper (Cu)

Cyanide (CN)

2,3-dimethylbutane

Ethylbenzene

Hexachlorobenzene

Hydrogen Cyanide (HCN)

Hydrogen Sulphide (H2S)

Iron (Fe)

p-isopropyltoluene

Lead (Pb)

Manganese (Mn)

Mercury (Hg)

Aya Gold & Silver considers mercury emissions
a material topic but we were not able to
monitor these emissions in 2021. The
Corporation will monitor and disclose in the
future as per the Environmental and Social
Management Plan included in the Zgounder
Silver Mine 2022 ESIA.

Methane (CH4)

Methylene chloride (Dichloromethane)

Methyl tert butyl ether (MTBE)

Nickel (Ni)

Nitrous Oxides (NOx)

Particulate Matter (PM2.5)

Particulate Matter (PM10)

i-pentane

Polychlorinated Biphenyls (PCBs)

Polyhalogenated Aromatic Hydrocarbons (PAHs)

Propene (also known as propylene or methyl ethylene)

Sulphur Dioxide (SO2)

Sulphur Oxides (SOx)

2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD)

2,3,7,8-tetrachlorodibenzofurans (TCDF)

Thallium (Tl)

Toluene

Tetrachloroethylene (also known as perchloroethylene or PCE)

o-Xylenes

m-Xylenes

p-Xylenes

Zinc (Zn)

vi. Total Particulate Matter (TPM):

PM2.5

PM10

vii. Other standard categories of air emissions identified in relevant regulations

Aya Gold & Silver does not currently monitor
air emissions. In the future, it will monitor and
disclose as per the Environmental and Social
Management Plan included in the 2022
Zgounder Silver Mine ESIA.

Energy Management

Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy)

47970.133

Percentage energy consumed that was supplied by grid electricity

100.0000%

Percentage of energy consumed that is renewable energy

37.0000%

Energy Consumption

c. Report the energy consumed in gigajoules for the following :

Electricity consumption (gigajoules, GJ)

47970.133

The figure provided here is for the global
electricity consumption at the Zgounder Silver
Mine in 2021, and does not include the
administrative offices in Casablanca.

Heating consumption (gigajoules, GJ)

Cooling consumption (gigajoules, GJ)

Steam consumption (gigajoules, GJ)

d. Report energy sold in gigajoules and report the totals for each:

Electricity sold (gigajoules, GJ)

Heating sold (gigajoules, GJ)

Cooling sold (gigajoules, GJ)

Steam sold (gigajoules, GJ)

f. Report the standards, methodologies, assumptions, and/or calculation tools used

To calculate this data, the
Corporation converted the KWh purchased
from the national grid to gigajoules, GJ.

g. Report the source of the conversion factors used

To calculate this data, the Corporation
converted the KWh purchased from the
national grid to gigajoules, GJ.

Energy Intensity Ratio

Report the energy intensity ratio for inside the organization. This intensity ratio is the total ratio for all countries in which the company operates

0.215

Energy Intensity

The total energy consumption within the organization, in gigajoules

47970.133

The organizations specific metric chosen to calculate the intensity. Note: when choosing a company specific metric, it must be used throughout all calculations

223352

Organization-specific metric to identify the denominator:

Production volume

Reduction in Energy Consumption

Report the amount of reductions (from the previous reporting period) in energy consumption achieved as a direct result of conservation and efficiency initiatives, in gigajoules (GJ). Note - if you did not report in the previous reporting period, please indicate with a statement in the details section, "This is our foundational (for clarity, our first) ESG report for the organization".

Report the basis for calculating reductions in energy consumption, i.e. base year or baseline, including the rationale for choosing it

This is Aya Gold & Silver's first ESG report that
discloses energy consumption. The Corporation
is focused on acquiring and analyzing its data
before planning reductions.

Reduction in Energy Requirements

Report the reductions in energy requirements of sold products and services in this reporting period (from the previous reporting period), in gigajoules (GJ). Note - if you did not report in the previous reporting period, please indicate with a statement in the details section, "This is our foundational (for clarity, our first) ESG report for the organization", (e.g., if you used electric vehicles this year as opposed to last year, please indicate).

Report the basis for calculating reductions in energy requirements, i.e., base year or baseline, including the rationale for choosing it

This is Aya Gold & Silver's first ESG report that
discloses energy consumption. The Corporation
is focused on acquiring and analyzing
data before planning reductions.

Water

Efficiency

Proportion of water reused and recycled by the site to reduce the overall consumptive water demand:

56.2427%

Intensity

Total volume of water consumed per tonne/unit of material moved, ore mined, ore processed:

0.2136%

Water Management

Disclose the amount of water that was withdrawn from freshwater sources (in thousands of cubic meters):

195.611

Analyze and list all operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct.

Aya Gold & Silver's Zgounder Silver Mine and
production facility are located across the limits
between an area with low Baseline Water
Stress and an area with extremely high Baseline
Water Stress as classified by the World
Resources Institute's (WRI) Water Risk Atlas
tool.

World Resources Institute’s (WRI) Water Risk
Atlas tool, Aqueduct

Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn

100.0000%

Disclose water withdrawn in locations with High or Extremely High Baseline Water Stress (in thousands of cubic meters):

195.611

Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed:

100.0000%

Disclose the amount of water that was consumed in its operations (in thousands of cubic meters)

195.611

Total water consumed in locations with high or extremely high baseline water stress (in thousands of cubic meters)

195.611

Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations

Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards.

Disclosure of incidents governed by national, state, and local statutory permits and regulations, including, but not limited to, the discharge of a hazardous substances, violation of pretreatment requirements, or total maximum daily load (TMDL) exceedances.

Aya Gold & Silver was not subject to any
national, state or local authority regulation
violation relating to the environment.

Water and Effluents

Interactions with Water As A Shared Resource

Describe how the organization interacts with water, including how and where water is withdrawn, consumed, and discharged, and the water-related impacts caused or contributed to, or directly linked to the organization’s activities, products or services by a business relationship (e.g., impacts caused by runoff)

Aya Gold & Silver's Zgounder operations draw
freshwater from the Macoste spring, which is
located 5km upstream from our operations.

Water is consumed by the processing plant and
the base camp. There is no discharge into the
environment.

For the purpose of this report, potential water-
related impacts include the use of a shared
water resource, and pollution from operations
due to accidental runoff or infiltration.

Describe the approach used to identify water-related impacts, including the scope of assessments, their timeframe, and any tools or methodologies used

Water risks are assessed through the
Corporation's risk management system, where
mitigation measures are identified, and
mitigation plans are developed and
incorporated into the annual CAPEX and OPEX
budgets.

The Environmental and Social
Impact Assessment for the Zgounder Silver
Mine (approved by Moroccan authorities in Q1
2022) also provided Aya Gold and Silver's
management with updated baseline
information and impact identification.

Describe how water-related impacts are addressed, including how the organization works with stakeholders to steward water as a shared resource, and how it engages with suppliers or customers with significant water-related impacts

In 2021, Aya Gold & Silver implemented
physical control measures in its operations and
initiated an environmental monitoring program
with a third-party accredited lab.

In addition, in 2020, the Corporation identified
that increased water storage could have a
significant water-related impact by enabling
operations to capture excess water in the rainy
season and reduce extraction during the dry
season.

In 2021, Aya Gold & Silver began construction
of a 60,000 m3 water storage basin. The result
of this investment will be disclosed in the 2022
ESG report.

Explain the process for setting any water-related goals and targets that are part of the organization’s management approach, and how they relate to public policy and the local context of each area with water stress

In 2021, Aya Gold & Silver set up an internal
committee to monitor water-related efforts
and report to executive management and the
Board of Directors.

The Corporation's water-related goals, targets
and performance are established by this
committee.

Water Withdrawal

Total freshwater withdrawn by segment, in megaliters (ML):

195.611

i. Surface water (total in ML):

195.611

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

195.611

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

ii. Groundwater (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iii. Seawater (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iv. Produced water (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

v. Third-party water (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

Report on the total water withdrawal from all areas with water stress in megaliters (ML), and a breakdown of this total by the following sources:

195.611

ii. Groundwater (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iii. Seawater (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iv. Produced water (total in ML):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

v. Third-party water, in megaliters (ML), and a breakdown of this total by the withdrawal sources:

Surface water source

Not applicable

Surface water

Groundwater source

Not applicable

Groundwater

Seawater source

Not applicable

Seawater

Produced water source

Not applicable

Produced water

Report any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used

Data is estimated from the annual tonnage of
processed ore and a recirculation rate of 59%
from TSF reclaim water.

Water Consumption

Report the total water consumption from all areas in megaliters

500.488

Report the total water consumption from all areas with water stress in megaliters

195.611

Report the change in water storage in megaliters, if water storage has been identified as having a significant water related impact,

In 2020, Aya Gold & Silver identified that
increased water storage could have a
significant water-related positive impact as
storage enables operations to capture excess
water in the rainy season and reduces
withdrawals during the dry season.

In 2021, the Corporation begun construction of
a 60,000 m3 water storage basin. The results of
this investment will be disclosed in the 2022
ESG report.

Report any contextual information necessary to understand how the data was compiled, including standards, methodologies, and assumptions used, including whether the information is calculated, estimated, modeled, or sourced from direct measurements, and the approach taken for this, i.e., the use of any sector-specific factors

Data is estimated from the annual tonnage of
processed ore and a recirculation rate of 59%
from TSF reclaim water.

Water Discharge-Related Impacts

Provide a description of any minimum standards set for the quality of effluent discharge, and how these minimum standards were determined, including:

i. How standards for facilities operating in locations with no local discharge requirements were determined

The Zgounder Silver Mine does not discharge
effluent into the environment.

The Zgounder Silver Mine is designed to be a
zero-discharge facility. The company does not
have operational water discharges and/or
runoff into the Zgounder river derived from its
operations.

ii. Water quality standards or guidelines developed internally

Aya Gold & Silver's water monitoring program
tests water quality against national and World
Health Organization (WHO) drinking water
standards. Water quality is evaluated monthly
to ensure compliance.

iii. Sector-specific standards considered

As per above, at the Zgounder Silver Mine, the
Corporation tests water quality against
national and WHO drinking water standards.

iv. Profile of the receiving waterbody considered

The Zgounder Silver Mine does not discharge
effluent into the environment.

Water Discharge

Report the total water discharge to all areas in megaliters:

The Zgounder Silver Mine is designed to be a
zero-discharge facility. The facility does not
have operational water discharges and/or
runoff into the Zgounder river derived from its
operations.

i. Surface water

ii. Groundwater

iii. Seawater

iv. Third-party water (total)

iv. Third-party water that is sent for use to other organizations, if applicable

Report the breakdown of total water discharge to all areas in megalitres by the following categories

i. Surface water (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

ii. Groundwater (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iii. Seawater (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

v. Produced water (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

v. Third-party water (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iv. Third-party water that is sent for use to other organizations:

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

Report the total water discharge to all areas with water stress in megalitres

i. Surface water (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

ii. Groundwater (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iii. Seawater (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iv. Produced water (total):

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

iv. Third-party water that is sent for use to other organizations:

Freshwater (≤1,000 mg/L Total Dissolved Solids or TDS)

Other water (>1,000 mg/L Total Dissolved Solids or TDS)

Report the substances of concern, in priority, where discharges are treated

Alachlor

Anthracene

Atrazine

Benzene

Brominated diphenylether

Cadmium and its compounds

(depending on water hardness classes)

Carbon-tetrachloride

C10-13 Chloroalkanes

Chlorfenvinphos

Chlorpyrifos (Chlorpyrifos-ethyl)

Cyclodiene pesticides:

Aldrin

Dieldrin

Endrin

Isodrin

DDT total

para-para-DDT

1,2-Dichloroethane

Dichloromethane

Di(2-ethylhexyl)-phthalate (DEHP)

Diuron

Endosulfan

Fluoranthene

Hexachloro-benzene

Hexachloro-butadiene

Hexachloro-cyclohexane

Isoproturon

Lead and its compounds

Mercury and its compounds

Naphthalene

Nickel and its compounds

Nonylphenol (4-Nonylphenol)

Octylphenol ((4-(1,1′,3,3′-tetramethylbutyl)-phenol))

Pentachloro-benzene

Pentachloro-phenol

Polyaromatic hydrocarbons (PAH)

Benzo(a)pyrene

Benzo(b)fluor-anthene

Benzo(k)fluor-anthene

Benzo(g,h,i)-perylene

Indeno(1,2,3-cd)-pyrene

Simazine

Tetrachloro-ethylene

Trichloro-ethylene (7)

Tributyltin compounds (Tributhyltin-cation)

Trichloro-benzenes

Trichloro-methane

Trifluralin

i. How priority substances of concern were defined, and any international standard, authoritative list, or criteria used

ii. The approach for setting discharge limits for priority substances of concern

The Zgounder Silver Mine does not discharge
effluent into the environment.

iii. Number of incidents of non-compliance with discharge limits

a. Report the total volume of planned and unplanned water discharges by (exclude collected rainwater and domestic sewage):

The Zgounder Silver Mine is designed to be a
zero-discharge facility. The facility does not
have operational water discharges and/or
runoff into the Zgounder river derived from its
operations.

i. Volume of planned discharge to surface water (e.g., wetlands, lakes, rivers)

i. Unplanned discharge to surface water (e.g., wetlands, lakes, rivers)

i. Planned discharge to groundwater

i. Unplanned discharge to groundwater

i. planned discharge to seawater

i. Unplanned discharge to seawater

i. Planned third-party water discharge

i. Unplanned third-party water discharge

i. Planned third-party water discharge that is sent for use to other organizations

i. Unplanned third-party water discharge that is sent for use to other organizations

ii. Quality of the water of the planned discharge to surface water (e.g., wetlands, lakes, rivers)

The Zgounder Silver Mine does not discharge
effluent into the environment.

ii. Treatment method for the planned discharge to surface water

Not Applicable

ii. Quality of the water of the unplanned discharge to surface water (e.g. wetlands, lakes, rivers)

Aya Gold & Silver did not have unplanned water
discharge during this reporting period.

ii.Treatment method of unplanned discharge to surface water

Not Applicable

ii. Quality of the water of the planned discharge to groundwater

The Zgounder Silver Mine does not discharge
effluent into the environment.

ii. Treatment method for the planned discharge to groundwater

Not Applicable

ii. Quality of the unplanned discharge to groundwater

Aya Gold & Silver did not have unplanned water
discharge during this reporting period.

ii. Treatment method of the unplanned discharge to groundwater

Not Applicable

iii. Was the water of the unplanned discharge to groundwater reused by another organization

ii. Quality of the planned discharge to seawater

The Zgounder Silver Mine does not discharge
effluent into the environment.

ii. Treatment method of the planned discharge to seawater

Not Applicable

ii. Quality of the unplanned discharge seawater

Aya Gold & Silver did not have unplanned water
discharge during this reporting period.

ii. Treatment method of the unplanned discharge to seawater

Not Applicable

ii. Quality of the planned third-party water discharge

The Zgounder Silver Mine does not discharge
effluent into the environment.

ii. Treatment method of the planned third-party water discharge

Not Applicable

ii. Quality of the unplanned third-party water discharge

Aya Gold & Silver did not have unplanned water
discharge during this reporting period.

ii. Treatment method of the unplanned third-party water discharge

Not Applicable

ii. Quality of the planned third-party water discharge that is sent for use to other organizations

The Zgounder Silver Mine does not discharge
effluent into the environment or send it to third
parties.

ii. Treatment method of the planned third-party water discharge that is sent for use to other organizations

Not Applicable

ii. Quality of unplanned third-party water discharge that is sent for use to other organizations

Aya Gold & Silver did not have unplanned water
discharge during this reporting period.

ii. Treatment method of unplanned third-party water discharge that is sent for use to other organizations

Not Applicable

b. Standards, methodologies, and assumptions used

The Zgounder Silver Mine does not discharge
effluent into the environment. Aya Gold &
Silver did not have unplanned water discharge
during this reporting period.

Waste

Waste Generation and Significant Waste-Related Impacts

The reporting organization shall report the following information

i. Describe the inputs, activities, and outputs that lead or could lead to these impacts;

Waste streams that may be generated during
the operational phase of mining activities
include:

• Residues from mining/processing operations
(overburden and tailings);
• Hazardous waste (waste oil, chemicals,
solvents, batteries, laboratory waste and
medical waste);
• Industrial waste (scrap metal, wood
packaging, plastics);
• Household waste (inert waste such as
plastics, glass and building materials);
• Organic waste (food and plant material).

ii. Describe whether these impacts relate to waste generated in the organization’s own activities or to waste generated upstream or downstream in its value chain

These impacts relate to waste generated by the
Corporation's own activities at the Zgounder
Silver Mine.

Report the total amounts generated of the following and associated risks (tonnes)

293099

Overburden amount (tonnes)

Overburden is not applicable to the Zgounder
Silver Mine as this is an underground operation
as of 2021.

Overburden risks

Not Applicable

Rock amount (tonnes)

74844

Rock risks

Not Applicable

In 2021, the Zgounder Silver Mine was an
underground mining operation, and as such the
volumes of waste rock generated are very low.
Waste rock is used for mine back-fill and as
material for civil engineering.

Aya Gold & Silver commissioned a third-party
audit of its waste rock in 2021, and the results
showed no significant potential for acid
generation.

Tailings amount (tonnes)

218255