Aya Gold & Silver

2022 ESG Report

Published on July 31, 2023

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

Its mission is to build a sustainable, ethical and profitable mining business that positively impacts lives.

The Corporation is concentrated on producing silver and exploration activities at its flagship project, the Zgounder property through its 100% ownership of Zgounder Millenium Silver Mine S.A (“ZMSM”). The Corporation also owns 85% of the Boumadine polymetallic project and is the sole owner of the permits related to the Amizmiz, Azegour, Zgounder Regional and Imiter bis properties. All of these properties are located in the Kingdom of Morocco. The Corporation also owns through Algold Resources Ltd. (“Algold”), 75% of the Tijirit project located in Mauritania. Aya’s registered office is located at 1320 boulevard Graham, suite 132, Mont-Royal, Quebec, Canada, H3P 3C8.

Aya is incorporated under the Canada Business Corporations Act; its financial year-end is December 31 and trades on the Toronto Stock Exchange under the symbol “AYA” and on the OTCQX under the symbol “AYASF”. All projects other than the Zgounder project are at the exploration and evaluation stage.

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 seasoned 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

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

2022-01-01

2022-12-31

External Assurance

Describe its policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved

This ESG report was first reviewed internally
and by analysts from the Onyen Corporation.

The report has been submitted to the ESG
Committee of the Board of Directors for final
approval before publication.

Has the report been externally assured

Audit Status

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

Self-Declared

Financial Reporting Period

Specify the frequency of sustainability reporting

Annually

Whether Financial reporting period aligns with the period for its sustainability reporting

Yes

Specify the contact point for questions about the report or reported information

David Vilder

Questions about the report or reported
information should be addressed to David
Vilder, Sustainability Manager :
david.vilder@ayagoldsilver.com

Geographic Scope of Report

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

• Canada
• Mauritania
• 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.)

In 2022, Aya Gold & Silver holds six exploration
assets located in Morocco and Mauritania, and
its headquarters are located in the Town of
Mount Royal, Quebec, Canada.

This report generally focuses on our single
operational site, the Zgounder Silver Mine,
while including our exploration activities on the
Boumâadine property and Zgounder regional in
2022. As such, all disaggregated information
regarding human resources, health and safety,
environment, community relations, and climate
change relate to all Moroccan employees and
activities.

Financial information, however, is disclosed for
all of Aya's assets (administrative offices and
exploration sites) in Morocco, Mauritania and
Canada.

Finally, the governance section of this report
relates to Aya's Corporate team in its head
office in Canada and to the Corporation's
Board of Directors.

Zgounder Silver Mine

Boumadine Exploration Project Description

Amizmiz Exploration Project Description

Imiter Bis Exploration Project Description

Azegour Exploration Project Description

Tijirit 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

See answer above for Geographic Scope of
Report.

Mineral Resource Types in Scope

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

• Inferred
• Indicated
• Measured

Mineral Reserves – Zgounder Mine, Morocco

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

Markets

Report the sector(s) in which it is active

Primary metal

Aya Gold and Silver is a producer in the mining
and metals industry.

Reporting Practice

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

The 2022 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

2022-07-25

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

Provide a list of all legal entities included in its sustainability reporting

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
100% of Zgounder Millenium Silver Mine S.A
(“ZMSM”), which owns the Zgounder property.

The Corporation also owns 85% of the
Boumadine polymetallic project and owns the
permits related to the Amizmiz, Azegour,
Zgounder Regional 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 10, 2021, Aya
owns 75% of the Tijirit project located in
Mauritania.

Our subsidiaries include:
• Aya Gold & Silver Maroc S.A. (“AGSM”)
• Zgounder Millenium 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”)
• Precious Metal Finance and Services Inc.
(“PMFS”)

Aya Gold & Silver Financial Reports

If the organization has audited consolidated financial statements or financial information filed on public record, specify the differences between the list of entities included in its financial reporting and the list included in its sustainability reporting

There are no exclusions related to this report.

If the organization consists of multiple entities, explain the approach used for consolidating the information

The consolidated financial statements of the
Corporation have been prepared in accordance
with International Financial Reporting
Standards ("IFRS").

Does the approach involve adjustments to information for minority interests

Where the Corporation’s interest in a
subsidiary is less than 100%, the Corporation
recognizes noncontrolling interests in its
Consolidated Financial Statements.

How does the approach take into account mergers, acquisitions, and disposal of entities or parts of entities

In 2022, the Corporation purchased the 15%
non controlling interests (NCI) owned by
OHNYM in ZMSM. Following the acquisition,
the Corporation reversed the equity portion of
NCI. Aya was not involved in any merger or
disposal activities in 2022.

Refer to the 2022 audited financial statements
for further information.

Explain whether and how the approach differs across the disclosures in this Standard and across material topics

N/A

Report the reasons for restatements, if any, from previous reporting periods

In 2023, Aya restated the CO2 factors used for
Scope 1 and 2 in its 2021 ESG report.

In May 2023, Aya Gold & Silver contracted a
Moroccan consulting firm to calculate its Scope
3 emissions. Through this new partnership, Aya
was able to access a new set of factors that are
official for Morocco. This resulted in changing
our Scope 2 emissions from 21930.617 to
9607.359 CO₂-e tonnes.

Until then, our calculations were based on the
factors from the GHG Protocol Tool and the
International Energy Agency, which had factors
for the Moroccan grid for up to 2020 only.

From 2023 on (which includes the disclosures
in the present 2022 ESG report), Aya will
exclusively use the factors from the Outil Bilan
Carbone Maroc for its Scope 1 and 2 emissions.

L’Outil Bilan Carbone Maroc

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

Membership of Associations

List of the industry associations, other membership associations, and national or international advocacy organizations in which the organisation participates in a significant role

In 2022, Aya Gold & Silver did not belong to
industry or other associations, including
national and international advocacy
organizations.

Raw Material Produced

Metals

58.497

Aya Gold & Silver has only one project in
operations, the Zgounder Silver Mine, which
produces silver. In 2022, The Zgounder Silver
Mine produced 1880707 ounces of silver.

Finished Product for Sale

Metals

58.497

Silver (Ag) (tonne)

58.497

Net Sales

Report the following information ($Millions)

Report the net sales (for private sector organizations) ($Millions)

Aya Gold & Silver's 2022 financial statements

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 2022, the Corporation was not a member of
any associations and did not participate in any
external initiatives.

However, Aya Gold & Silver follows the
following initiatives and standards in its
approach to Sustainability and HSEC
Governance :

• The Global Reporting Initiative (GRI);
• The Task Force on Climate-related Financial
Disclosures (TCFD);
• ISO 14001 and 45001 standards;
• The European Bank for Reconstruction and
Development (EBRD)'s Environmental and
Social Policy;
• The International Finance Corporation (IFC)'s
Performance Standards;
• ICMM guidance.

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 MM Supplement - Global Reporting
Initiative - Mining and Metals Supplement
• ICMM - International Council on Mining &
Metals
• IFC - International Finance Corporation -
Equator Principles
• ONYEN - Institutional and Investor
Questions
• OSHA - Occupational Safety and Health
Administration
• SASB - Sustainability Accounting Standards
Board
• TCFD - The Task Force on Climate-related
Financial Disclosures

Aya's HSEC Governance

Aya's approach to Sustainability

Strategy

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

Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for for contributing to sustainable development. (CEO's message for this report)

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

Benoit La Salle, CEO for Aya Gold & Silver

Supply Chain

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

In 2022, Aya Gold & Silver commenced
earthworks for the Zgounder Silver Mine
Project Expansion.

This induced the introduction of new
contractors in the supply chain.

In 2022, Aya also announced that it had closed
a deal with the National Office of
Hydrocarbons and Mines ("ONHYM") to
acquire the ONHYM's 15% interest in the
Zgounder project and five adjacent permits to
the Zgounder Silver Mine for a total
consideration of 67 million dirhams
(approximately US$6.5 million).

There were no further significant changes to
the organization’s size, structure, ownership.

Aya Gold & Silver Closes Deal to Consolidate
100% Interest in Zgounder

Changes in Locations and Operations

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

In 2022, Aya Gold & Silver commenced
earthworks for the Zgounder Silver Mine
Project Expansion.

There were no changes in the location of, or
changes in, operations, including facility
openings, closings, and expansions in 2022.

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
2022.

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

In 2022, Aya Gold & Silver commenced
earthworks for the Zgounder Silver Mine
Project Expansion, which caused the
introduction of new contractors.

There were no changes in the location of
suppliers, the structure of the supply chain, or
relationships with suppliers, including selection
and termination in 2022.

Policy commitments

Provide a description of the organization’s policy commitments for responsible business conduct

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

Our mission is to build a sustainable, ethical,
and profitable mining business that positively
impacts lives.

We aim 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

Aya Gold & Silver - Our Approach to
Sustainability

Framework for Sustainability Reports

What are (if any) the authoritative intergovernmental instruments that the commitments reference

Aya Gold & Silver follows the
following initiatives and standards in its
approach to Sustainability and HSEC
Governance :

• The Global Reporting Initiative (GRI);
• The Task Force on Climate-related Financial
Disclosures (TCFD);
• ISO 14001 and 45001 standards;
• The European Bank for Reconstruction and
Development (EBRD)'s Environmental and
Social Policy;
• The International Finance Corporation (IFC)'s
Performance Standards;
• ICMM guidance.

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 MM Supplement - Global Reporting
Initiative - Mining and Metals Supplement
• ICMM - International Council on Mining &
Metals
• IFC - International Finance Corporation -
Equator Principles
• ONYEN - Institutional and Investor
Questions
• OSHA - Occupational Safety and Health
Administration
• SASB - Value Reporting Foundation
• TCFD - The Task Force on Climate-related
Financial Disclosures

Do the commitments stipulate conducting due diligence

Aya Gold & Silver's International Business
Conduct Policy provides stipulations for
conducting due diligence.

International Business Conduct Policy

Do the commitments stipulate applying the Precautionary Principle or Approach

Yes

Aya Gold & Silver's statement regarding the
Precautionary Principle or Approach is not
referred to in the Corporation Code of Ethics,
however it is stipulated in the Sustainability
Framework.

Aya Gold & Silver - Our Approach to
Sustainability

Do the commitments stipulate respecting human rights

Describe the specific policy commitment to respect human rights

Aya Gold & Silver's Code of Business Conduct
and Ethics does not specify policy commitments
to respect human rights generally. However,
the policy specifies the following commitments:

• Compliance with Laws, Rules and Regulations
• Compliance with Environmental Laws
• Discrimination and Harassment
• Health and Safety; and
• Diversity & Equal Opportunity

What are the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment

In 2022, Aya Gold & Silver did not reference
any specific categories of stakeholders in its
commitments.

Provide links to the policy commitments, if publicly available, or, if the policy commitments are not publicly available, explain the reason for this

Aya's policy commitments are available on the
Corporation's website, under the section
"Governance".

Code of Ethics and Business Conduct

Report the level at which each policy commitment was approved within the organization, including whether this is the most senior level

All of Aya's policies need approval from the
Board of Directors, the highest level of
authority in the Company.

To what extent the policy commitments apply to the organization’s activities and to its business relationships

The Code of Business Conduct and Ethics (the
“Code”) applies to everyone at Aya Gold &
Silver Inc. (the “Company”), including its
employees, Officers and Directors, regardless
of their position in our organization, at all times
and everywhere we do business. References in
this Code to the “Company” mean the Company
and any of its subsidiaries.

Describe how the policy commitments are communicated to workers, business partners, and other relevant parties

Our Company's Code of Business Conduct and
Ethics is accessible to the public through our
website, where it can be viewed and
downloaded at any time. Moreover, our
standard terms and conditions and agreements
with various partners specifically require that
such parties read and agree to abide by the
terms and conditions of our core policies,
namely the Code of Business Conduct and
Ethics and International Business Conduct
Policy.

As for our internal communication, our
management team has taken a proactive
approach to ensure that all employees are fully
informed and engaged with the policy. To this
end, we have provided every employee with an
email containing a comprehensive presentation
of all our policies, including the Code of
Business Conduct and Ethics. In addition, each
employee was asked to sign and return an
"Acknowledgment of new effective policies"
document, which confirms their understanding
and agreement to comply with the policy's
provisions. This formal process ensures that
our employees have thoroughly reviewed and
acknowledged the Code of Business Conduct
and Ethics, and are committed to upholding its
principles. A formal onboarding process
requires that every new employee reads and
acknowledges having read and agrees to
comply with the corporate policies, including
the Code of Business Conduct and Ethics.

Embedding policy commitments

Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships

See answers below.

How are responsibilities allocated in order to implement the commitments across different levels within the organization

The Company embeds each of its policy
commitments for responsible business conduct
throughout its activities and business
relationships by establishing specific persons
responsible for its implementation. These
include the Board of Directors, its committees,
management, and the Legal Officer. Regarding
our Aya International Business Conduct Policy,
the Board of Directors has reviewed and
approved the Policy, and its committees are
responsible for reviewing its adequacy and
appropriateness. The Legal Officer is
responsible for promulgating the Policy,
obtaining annual certifications, and providing
consultation and advice. The CEO is
responsible for ensuring the organization
conducts business in accordance with the
Policy and fosters a culture of compliance. The
CFO is the primary person responsible for
financial controls and accounting.

How are the commitments integrated into organizational strategies, operational policies, and operational procedures

We have implemented a range of policies to
ensure that our commitments to responsible
business conduct are integrated into our
organizational strategies, operational policies,
and operational procedures.

These policies include:

1. Code of Business Conduct and Ethics - this
policy outlines the principles and values that
guide our business conduct, including our
commitment to complying with legal and
regulatory requirements.

2. International Business Conduct Policy - this
policy sets out the specific standards and
guidelines that we follow in our international
business activities, including our commitment
to ethical business practices, fair competition,
and transparency.

3. Whistle-Blowing Policy – Handling of
Complaints - this policy provides a mechanism
to report any concerns or violations of our
Code of Business Conduct and Ethics or other
policies, without fear of retaliation.

4. Insider Trading Policy - this policy
establishes procedures to prevent the use of
confidential information to buy or sell
securities for personal gain.

5. Cybersecurity Policy - this policy outlines
the measures we take to protect our
information and systems.

6. Social Media & Internet Usage Policy - this
policy sets out the guidelines for using social
media and the internet in a responsible and
professional manner, in accordance with our
Code of Business Conduct and Ethics.

Overall, these policies are essential to ensuring
that our commitment to responsible business
conduct is integrated into our everyday
operations, decision-making, and strategic
planning. By following these policies, we aim to
create value for all stakeholders involved and
contribute to sustainable development.

Moreover, “Ethics and Integrity” are two of the
company’s core values associated to its mission
statement. Management strives to integrate
these values as part of the company’s DNA
through its formal discourse, internal meetings,
annual KPIs as well as annual and quarterly
certifications by senior management and the
board of directors as regards conflicts of
interest, suspicion or awareness of fraud or
financial reporting integrity, amongst others.
On a strategic level, the values and mission
statement of the company are an integral part
of the Company's risk assessment matrix which
is adopted and reviewed at the audit committee
level and guides management in their daily risk
assessment decisions.

How does the organization implement its commitments with and through its business relationships

In terms of business relationships, we
implement our commitments through a range
of approaches. Our International Business
Conduct Policy applies to all persons, whether
or not employees, and all entities who are
authorized to interface with Foreign Officials
for the Company as agents, representatives or
independent contractors. We are developing
due diligence procedures as part of our
selection of contractors to ensure compliance
with our commitments related to
environmental stewardship, labor practices,
human rights, health and safety, and other
areas. Our focus on responsible business
conduct is a fundamental part of our
organizational culture, and we are committed
to upholding these principles in all of our
activities and business relationships.

What implementation training does the organization provide

The Company provides periodic training for
employees and third parties to inform them of
the policies and assist in understanding how
they apply to relevant situations and fact-
patterns, as well as how to deal with situations
in which conduct prohibited by the policies may
be encountered. The Legal Officer identifies
those employees who will receive training and
determines the frequency of repetition, which
shall be at least once every three years. The
Legal Officer's annual report to the CEO also
addresses the efficacy of the training required
by the International Business Conduct Policy.

Ethics and Integrity

Describe the mechanisms for individuals to: seek advice on implementing the organization’s policies and practices for responsible business conduct

Individuals seeking advice on implementing the
organization's policies and practices for
responsible business conduct can seek counsel
from their supervisor and/or the Legal Officer.
The Legal Officer is available to provide advice
on compliance with the principles and
procedures outlined in the policies. The
organization emphasizes the importance of
consultation when in doubt and discourages
individuals from making difficult judgement
calls alone.

Aya Gold & Silver Code of Business Conduct
and Ethics

Describe the mechanisms for individuals to: raise concerns about the organization’s business conduct

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.

The Corporation has a strong commitment to
conduct its 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. The Corporation prohibits 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

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

Supply Chain

Provide a description of the organization’s supply chain, including the types of suppliers (e.g., brokers, contractors, wholesalers, etc.)

The Zgounder Silver Mine's supply chain's
primary elements include:

- chemical products for metal processing;
- transport and logistics;
- machinery and parts;
- consulting services for engineering, health and
safety, environment, and human resources
management;
- insurance providers;
- mining contractors and various contracting
works linked with operations.

Total estimated number of suppliers throughout its supply chain and in each tier (e.g., first tier, second tier);

713

Estimated number of first tier suppliers

713

Estimated number of second tier suppliers

Estimated number of third tier suppliers

The types of activities related to the organization’s products and services carried out by its suppliers (e.g., manufacturing, providing consulting services)

• Manufacturing
• Mobile Equipment
• Spare Parts
• Construction Materials
• Chemicals
• Transportation Services
• Consultancy Services
• IT Services
• Food and hospitality

Describe the nature of its business relationships with its suppliers (e.g., long-term or short-term, contractual or non-contractual, project-based, event-based, etc.)

The list of suppliers for the Corporation's
operations in Morocco include all type of
procurement items, from office furniture to
parts for the processing plants and to chemical
reagents such as cyanide.

Business relationship include long-term mining
contractors and short-term contractors such as
consulting firms for project-based services.

The sector-specific characteristics of its supply chain (e.g., labor-intensive, energy intensive, geograficaly disperced, etc.)

There is no sector-specific characteristics of
the Corporation's supply chain.

The estimated monetary value of payments made to its suppliers ($Millions)

39.200

The geographic location of its suppliers

• Australia
• Belgium
• Burkina Faso
• Canada
• China
• Congo, Democratic Republic of the
• France
• Germany
• Italy
• Korea, Republic of
• Morocco
• Netherlands
• Spain
• Switzerland
• United Kingdom of Great Britain and
Northern Ireland
• United States Minor Outlying Islands

Estimated Total number of Business Entities in its downstream

Material Topics

Governance of Material Topics

Describe the process followed to determine the organization's material topics, including:

i. How has the organization identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships; provide details

• Environmental impact assessment
• Social impact assessment
• Human rights impact assessment
• Grievance mechanisms
• Civil society organizations
• Other external sources, please list

Aya Gold & Silver's materiality assessment and
the topics identified were determined on the
basis of approved GRI methodology. While the
Corporation's identified material topics are
key, our wider efforts continue to address
topics beyond those in our material section.
Specifically, in 2022 Aya started to include
formal Climate Change risk assessment to its
routine materiality assessment, in order to
address Climate Change related-risks and as
per TCFD guidelines.

Further, Aya Gold & Silver conducted a project
level risk assessment for the Zgounder Silver
Mine Expansion Project prior to finalizing its
2022 Feasibility Study. This risk assessment
adds content to the Corporation's materiality
assessment.

ii. How has the organization prioritized the impacts for reporting based on their significance

In 2022, the Corporation used the output of
the ESIA risk assessment and the output of its
internal risk analysis to determine the material
topics for the Zgounder Silver Mine.

In addition, we included stakeholder concerns
communicated through our continual
engagement and grievance mechanism.

Finally, in 2022 Aya Gold & Silver secured a
US$100 million debt financing package to
support expansion of the Zgounder Silver
Project. The European Bank for Reconstruction
and Development (“EBRD”). The agreement
includes an Environmental and Social Action
Plan (ESAP) that is a result of a ESG due
diligence from EBRD, and the ESAP further
steers' Aya's identification of material topics.

Zgounder Environmental and Social Audit and
Assessment, Non-Technical Summary

Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details

• Civil society organizations
• Customers
• Employees and other workers
• Governments
• Local communities
• Non-governmental organizations
• Shareholders and other capital providers
• Suppliers

List the organization's material topics

• Energy
• Water
• Emissions
• Effluents and Waste
• Overall environmental
• Occupational Health and Safety
• Supplier Assessment for Labor Practices
• Grievance Mechanisms
• Local Communities
• Anti-corruption
• Emergency Preparedness

List the organization's non-material topics

• Economic Performance
• Market Presence
• Indirect Economic Impacts
• Procurement Practices
• Materials
• Biodiversity
• Products and Services
• Compliance
• Transport
• Supplier
• Environmental Assessment
• Environmental Grievances
• Employment
• Labor/Management Relations
• Diversity and Equal Opportunity
• Equal Remuneration for Women and Men
• Supplier Assessment for Labor Practices
• Labor Practices
• Grievance Mechanisms
• Human Rights Investment
• Non-discrimination
• Freedom of Association and Collective
Bargaining
• Child Labor
• Forced or Compulsory Labor
• Security Practices
• Indigenous Rights
• Supplier Human Rights Assessment
• Human Rights Grievance Mechanisms
• Public Policy
• Anti-competitive Behavior
• Supplier Assessment for Impacts on Society
• Grievance Mechanisms for Impacts on
Society
• Artisanal and Small-scale mining
• Resettlement
• Closure Planning
• Customer Health and Safety
• Product and Service Labeling
• Marketing
• Communications
• Customer Privacy
• Materials Stewardship

Provide reason for considering such topics not material, provide details

Not applicable

Report changes to the list of material topics compared to the previous reporting period

The ERBD's due diligence result and
subsequent ESAP provided a list of new
material topics compared to 2021 incuding:
• Procurement Practices (implementation of a
supplier management system);
• Grievance mecanism

For the top 5 material topics, the reporting organization shall report the following information:

Topic #1

Water

An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights

Use of water resources, or water stress, is both
an operational and a societal risk. Water quality
is also material as local communities use water
for agriculture and livestock, as well as drinking
water from underground sources.

Where the impacts occur

During its due diligence process for the
acquisition of the Zgounder Silver Mine, Aya
Gold & Silver determined the asset had a
history of weak water management.

Water is also a national point of contention, and
the variability of precipitations due to climate
changes heightens the perceived risk.

The impact occurs in the immediate vicinity of
the Zgounder Silver Mine, and at the mine
itself.

Expansion of the Zgounder Silver Mine is
dependent on finding new water sources, which
communities require for drinking and
agriculture.

The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships

Aya Gold & Silver's analysis concluded that
water pollution stemmed from a pulp overflow
from the cyanide processing plant, prior to
2021.

The expansion of the Zgounder Silver Mine is
dependent on finding new water sources.

Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships

Activities

Describe/provide a link to the corporate policies or commitments regarding the topic

Please refer to the Aya Gold & Silver HSEC
Policy in the link below.

Aya Gold & Silver's HSEC Policy

Explain how the organization manages the topic; describe actions taken and related impacts, including

Actions to prevent or mitigate potential negative impacts

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

In 2022, Aya Gold & Silver reinforced physical
control measures that were implemented in
2021 as part of the continuous improvement of
its environmental and social management
system.

Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation

In 2022, no negative impacts related to water
were identified in local communities.

The 2022 CAPEX investment aimed to mitigate
potential future impacts related to the
expansion project.

Actions to manage actual and potential positive impacts

Aya Gold & Silver, together with national
authorities, is evaluating the feasibility of
building a retention dam or similar
infrastructure to take advantage of excess
water during the rainy season.

Report the following information about tracking the effectiveness of the actions taken

Processes used to track the effectiveness of the actions;

• Internal auditing
• External auditing or verification
• Impact assessments
• Measurement systems
• Stakeholder feedback
• Grievance mechanisms

Goals, targets, and indicators used to evaluate progress;

The Zgounder Silver Mine Expansion Project is
currently implementing hardware and
developing capacity to closely monitor water
consumption and recycling rates, and thus
assess progress on its Water Strategy.

Aya Gold & Silver's water monitoring program
tests water quality against national and WHO
drinking and irrigation water standards, and
sampling is carried out monthly to ensure
compliance.

The effectiveness of the actions, including progress toward the goals and targets; any related adjustments

In 2022, the effectiveness of the measures
described above was assessed. The overall
monitoring results are very positive with a clear
improvement in results.

Lessons learned and how these have been incorporated into the organization’s operational policies and procedures

In 2022, the Corporation improved its internal
communication of environmental issues and
monitoring results to improve corporate and
strategic decision making.

Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective

In 2022, the actions taken were informed
chiefly from hard data and environmental
monitoring.

Topic #2

Supplier

An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights

In 2022, Aya identified a gap in its supply chain
management performance during a routine
Health and Safety (H&S) incident investigation.
The findings were consistent with the ESG due
diligence conducted by EBRD for the financing
of the Zgounder Silver Mine Expansion Project.

This could potentially impact the effectiveness
of our H&S management system, including the
mine's implementation of its Emergency
Preparedness and Response Plan.

Where the impacts occur

H&S is a concern for operations within the mine
site and applies to both direct employees and
contractors.

The Corporation's quarterly water quality
sampling reports show that river water in the
immediate vicinity of the mine has regularly
shown traces of pollution since 2015. Although
it remains contained (sample points 3 km
downstream are always negative), the
Corporation’s management team considers this
an extremely urgent matter.

The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships

Aya is direcly linked to the impacts as potential
H&S impacts affect the Corporation's overall
performance.

Please refer to Aya Gold & Silver's 2020
Sustainability Report for further information.

Aya Gold & Silver 2020 Sustainability Report

Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships

Activities

Describe/provide a link to the corporate policies or commitments regarding the topic

Aya's Code of Ethics and Business Conduct
covers its relationship with the supply chain.

Code of Ethics and Business Conduct

Explain how the organization manages the topic; describe actions taken and related impacts, including

Actions to prevent or mitigate potential negative impacts

In 2022, Aya began implementing a supply
chain management system. This included
reinforced due diligence, risk assessment and
monitoring of supplier performance.

Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation

Please refer to the answers above.

Actions to manage actual and potential positive impacts

The results from the newly implemented supply
chain management system at the Zgounder
Silver Mine will be reported in 2022.

Report the following information about tracking the effectiveness of the actions taken

Processes used to track the effectiveness of the actions

• Internal auditing
• External auditing or verification
• Impact assessments
• Measurement systems
• Stakeholder feedback
• Grievance mechanisms
• External performance ratings

Goals, targets, and indicators used to evaluate progress

Indicators to evaluate progress include:
• Number of suppliers screened
• Number of audits conducted

The effectiveness of the actions, including progress toward the goals and targets; any related adjustments

The effectiveness of the actions will be
assessed in 2022.

Lessons learned and how these have been incorporated into the organization’s operational policies and procedures

Aya's supply chain management system is still
in its implementation phase.

Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective

Aya's supply chain management system is still
in its implementation phase.

Topic #3

Effluents and Waste

An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights

Tailing Storage Facilities (TSF) dam leakages or
dam failures can impact host populations and
the environment.

For further information on the assessment of
potential impact, please refer to the
Corporation's 2020 Sustainability Report.

Aya Gold & Silver 2020 Sustainability Report

Where the impacts occur

This material topic is linked to the Company's
TSF obligations.

Two of the four TSFs are decommissioned and
stable since 2021. Potential impacts could be
incurred by the remaining two TSFs in
operation , which are subject to regular
monitoring.

The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships

Impacts are directly linked to the Zgounder
Mine site operations.

Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships

Activities

Describe/provide a link to the corporate policies or commitments regarding the topic

Please refer to Aya Gold and Silver's HSEC
Policy below.

Aya Gold & Silver HSEC Policy

Explain how the organization manages the topic; describe actions taken and related impacts, including

Actions to prevent or mitigate potential negative impacts

In 2021, the Corporation’s management team
mandated quarterly external audits for its TSFs.
Action Plans were immediately developed, and
the effectiveness of control measures assessed
through monitoring.

In 2022, quarterly audits continued and the
Corporation continued to monitor all of its
TSFs, operating and decommissioned. Action
Plans implemented in 2021 were assessed in
2022 and deemed successful in mitigating
potential impacts.

After extensive repairs in 2020, in 2021,
internal quarterly audits were conducted with
the objective of implementing GIST standards.

Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation

In 2022, no actual negative impacts were
identified on the topic of Effluent and Waste.

2020 Sustainability Report

Actions to manage actual and potential positive impacts

In 2022, no positive impacts were identified for
this material issue.

Report the following information about tracking the effectiveness of the actions taken

Processes used to track the effectiveness of the actions

• Internal auditing
• External auditing or verification
• Measurement systems
• Stakeholder feedback

Goals, targets, and indicators used to evaluate progress

Goals, target and indicators are presented in
external audits and verified on a quarterly
basis.

The effectiveness of the actions, including progress toward the goals and targets; any related adjustments

In 2022, more than a year since the first control
measures were implemented, the Corporation
assessed that the latter's effectiveness was
highly satisfactory and no further adjustments
were needed. The Corporation continues its
monitoring and third party audits.

Lessons learned and how these have been incorporated into the organization’s operational policies and procedures

Not applicable at this stage of development.

Please note the material topic was part of an
environmental legacy that Aya Gold and Silver
acquired and is not part of the Corporation's
operational policies and procedures.

Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective

In 2022, The Corporation did not seek
information from stakeholder engagement with
regards to the effectiveness of its control
measures as decisions are based on data and
environmental monitoring.

Topic #4

Occupational Health and Safety

An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights

In 2020, Aya Gold & Silver reported Health &
Safety (“H&S”) as a major concern at the
Corporation’s operations. Preliminary findings
from the Corporation’s assessment pointed to a
clear lack of risk awareness, and to the absence
of a H&S culture at all organization levels of the
Zgounder Silver Mine. This issue remained a
top priority in 2021 and remains so in 2022 as
cultural, behavioral and organizational change
takes time to be effective.

Where the impacts occur

H&S is a concern for mine site operations, for
both direct employees and contractors.

H&S is a material issue and a concern at all
operational levels of the Zgounder Silver Mine.

The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships

H&S is a concern for mine site operations, for
both direct employees and contractors.

Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships

Both Activities and business relationships

Describe/provide a link to the corporate policies or commitments regarding the topic

Please refer to the document in the link below.

Aya Gold & Silver HSEC Policy

Explain how the organization manages the topic; describe actions taken and related impacts, including

Actions to prevent or mitigate potential negative impacts

In 2022, Aya Gold & Silver continued its efforts
to improve organizational competency and
capacity to operate, and to implement its
Environmental and Social Management System.

Six (6) new members were recruited to
reinforce the HSEC department, including
senior candidates with over 40 years of
experience internationally.

Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation

Please refer to the answers above.

Actions to manage actual and potential positive impacts

The results from the newly implemented H&S
system at the Zgounder Silver Mine will be
reported in 2022.

Report the following information about tracking the effectiveness of the actions taken

Processes used to track the effectiveness of the actions

• Internal auditing
• External auditing or verification
• Impact assessments
• Measurement systems
• Benchmarking

Goals, targets, and indicators used to evaluate progress

Aya Gold & Silver utilizes the standard H&S KPI
list and benchmarks against its industry peers
to evaluate its performance.

The effectiveness of the actions, including progress toward the goals and targets; any related adjustments

In 2022 the H&S department went from 1 to 6
persons, and this enabled us to work more
closely with all operations to improve incident
detection and reporting. As a result, our LTI &
TRI numbers skyrocketed for the 2022 year,
however this must be seen as positive as it
means we are now able to capture and locate
the risks and measure consequence much more
accurately as incident reporting and awareness
dramatically improved.

The main positive point remains the fact that in
2022 no fatalities were recorded, and this
translates in our severity rates curve that is
dropping steadily since 2021 as we transition
from few recorded accidents to more accidents
that are less severe. Our target is that our
incident reporting statistics reflects the
traditional safety pyramid, whereas there 90%
or more of reported incidents are minor
incidents.

Lessons learned and how these have been incorporated into the organization’s operational policies and procedures

Looking forward, Aya will continue to work
relentlessly to become on par with the best of
the industry. While Aya’s ambition is zero
incident in the medium-term, H&S targets in
the short-term are meaningless. In the near
term our focus is on incident analysis,
corrective actions, and reporting to
management and cross departments meetings
to improve awareness and Environmental and
Social Management System (ESMS) adoption
and consolidation.

Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective

In 2022, the increase in H&S capacity allowed
an increase in engagement with stakeholders,
committee follow up and internal audits. These
are instrumental in providing timely feedback
to the development and implementation of the
new H&S system.

In 2022 Aya also signed a ESG-linked finance
agreement with the European Bank for
Reconstruction and Development (ERBD). As a
result, the EBRD-issued ESAP has several H&S
related action items that has informed the
Corporation.

Topic #5

Local Communities

An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights

The Zgounder Silver Mine has over 40 years of
history that spans several operators and
administrations, from state companies to
private ownership, and includes intermittent
periods of inactivity.

This has resulted in complicated relations and
historical baggage with the communities.

Where the impacts occur

Concerns related to the relationship between
the Zgounder Silver Mine and its host
communities.

The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships

The impact was caused by an absence of
relationship-building between past mine
operators and the surrounding villages.

Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships

Both Activities and business relationships

Describe/provide a link to the corporate policies or commitments regarding the topic

Please refer to the document in the link below.

Aya Gold & Silver HSEC Policy

Explain how the organization manages the topic; describe actions taken and related impacts, including

Actions to prevent or mitigate potential negative impacts

In 2022, Aya Gold & Silver hired a senior
community relations consultant to help lead the
implementation of the Project's Stakeholder
Engagement Plan (SEP).

Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation

In 2022, Aya Gold & Silver worked with local
authorities to formalize its grievance
mechanism.

Actions to manage actual and potential positive impacts

In addition to maintaining a high local content
management strategy, in 2022, Aya Gold &
Silver continued to develop its community
investment plan aligned with national and
regional development programs, and local
authority and local communities' feedback and
participation.

Report the following information about tracking the effectiveness of the actions taken

Processes used to track the effectiveness of the actions

• Internal auditing
• Impact assessments
• Measurement systems
• Stakeholder feedback
• Grievance mechanisms
• Benchmarking

Goals, targets, and indicators used to evaluate progress

In 2021, Aya Gold & Silver established and
committed to an annual community investment
budget. All investment targets were met.

This budget was increased in 2022, and will
continue to increase annually until full
commissioning of the Zgounder Silver Mine
Project Expansion.

The effectiveness of the actions, including progress toward the goals and targets; any related adjustments

In 2022, Aya adjusted its strategy for the
implementation of the Project's SEP. The
process was delayed in order to hold several
community meetings to reframe Aya's strategy
and manage expectations.

Lessons learned and how these have been incorporated into the organization’s operational policies and procedures

Aya Gold & Silver defined internal
administrative procedures to streamline
community investments, and learned to work
with local administrations to achieve joint
objectives while safeguarding the company's
commitment to transparency.

Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective

In 2022, feedback from local administrations
and communities as well as the counselling of a
senior social consultant helped Aya reframe its
Community Investment Program to increase its
participatory process and prepare the
implementation of the Project's SEP.

A description of the grievance mechanism: if the management approach includes such mechanism, describe how the stakeholders who are the intended users of the grievance mechanisms are involved in the design, review, operation, and improvement of these mechanism(s)

Aya Gold & Silver formalized the Zgounder
Silver Mine grievance mechanism in 2021.

Grievance Mechanism: Ownership of the mechanism

The grievance mechanism is managed by Aya
Gold & Silver in conjunction with the local
representative of the Kingdom of Morocco's
Ministry of the Interior.

Grievance Mechanism: The purpose of the mechanism and its relationship to other grievance mechanisms

The Zgounder Silver Mine grievance
mechanism is exclusively for use by external
stakeholders. Internal stakeholders report
grievances through the Human Resources
system and their representatives.

Grievance Mechanism: The organization’s activities that are covered by the mechanism

The community grievance mechanism is utilized
by external stakeholders.

Grievance Mechanism: The intended users of the mechanism

Intended users of the mechanism include:

1. Village residents
2. Local administrations
3. Local service providers
4. Civil society organizations
5. Any other external stakeholders affected by
Zgounder Silver Mine activities

Grievance Mechanism: How the mechanism is managed

The mechanism is co-managed by Aya Gold &
Silver and local authorities.

Grievance Mechanism: The process to address and resolve grievances, including how decisions are made

Grievances are received by local authorities
and/or community relations employees.
Grievances are jointly investigated and
resolved.

If required, ad hoc committees can be formed
to resolve complaints.

If warranted, the grievance may escalate to be
resolved through the justice system.

Grievance Mechanism: The effectiveness criteria used

The effectiveness of the grievance mechanism
is measured by the expedient resolution of
grievances, and by a general lack of
interruption to operations as a result of
unresolved community grievances.

The total number of grievances filed through the mechanism during the reporting period

The number of grievances that were addressed (or reviewed) during the reporting period

The number of grievances that were resolved during the reporting period

The number of grievances filed through the mechanism prior to the reporting period that were resolved during the reporting period

The number of grievances that were resolved by remediation

Environment

General Disclosure

Compliance with laws and regulations

Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by:

Number of instances for which fines were incurred

Number of instances for which non-monetary sanctions were incurred

Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period

Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($Million)

Total number of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period

Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($Million)

Total number of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods

Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods

Describe the significant instances of non-compliance

In 2022, 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)

4,880.695

Methane (CH₄) (tonne CO₂-e)

0.000

Nitrous oxide (N₂O) (tonne CO₂-e)

0.000

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

0.000

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

0.000

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

0.000

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

0.000

Perfluoromethane (CF₄) (tonne CO₂-e)

0.000

Perfluoroethane (C₂F₆) (tonne CO₂-e)

0.000

Perfluorobutane (C₄F₁₀) (tonne CO₂-e)

0.000

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

0.000

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

4,880.695

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 2022, there were no significant changes.

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 reports 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 2022 report, Aya Gold & Silver reports
GHG Scope 1 emissions based on a calculation
from the total diesel consumption of mining
mobile equipment fleet and light vehicles at the
Zgounder Silver Mine. This includes the diesel
consumed by long-term mining contractors.

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.

Diesel consumption at Aya's exploration
sites at Boumâadine, Imiter Bis, and at Tijirit in
Mauritania are mostly caused by drilling
machines that are operated by contractors.
These emissions will be covered by the Scope 3
calculations that the Corporation will disclose
later in 2023.

Discuss 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 to be replaced.

Please discuss reduction emissions target(s) (if any) for Scope 1 in your company, and analyse the performance against the target(s) as follows

In 2022, Aya did not set any Scope 1 emissions
reduction target, as the solutions and
technology required to effectively reduce
Scope 1 emissions do not exist at the moment.

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

Does Not Apply

In 2022, Aya Gold & Silver did not have any
target emissions reduction.

Total base year GHG emissions

0.000

Present year GHG emissions

4,880.695

The timelines for the emissions reduction activity:

Discuss whether its strategies, plans, and/or reduction targets are related to, or associated with, emissions limiting and/or emissions reporting-based programs or regulations (e.g., the EU Emissions Trading Scheme, Quebec Cap-and-Trade System, California Cap-and-Trade Program), including regional, national, international, or sectoral programs

The Corporation's strategies, plans, and/or
reduction targets for are not related to, or
associated with, emissions limiting and/or
emissions reporting-based programs or
regulations.

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, which uses US EPA
conversion factors recommended by the GHG
Protocol.

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):

Does the company purchase externally supplied energy (grid electricity)

Yes

Report the total energy purchased from external suppliers for the reporting year in gigajoules (GJ)

51,736.273

In what jurisdiction is the source of energy (utility) located

Other, please specify

In 2022, the source of energy purchased was
located in Morocco.

For its Scope 2 emissions, Aya only discloses its
emissions linked to operations in Morocco at
the Zgounder Silver Mine.

Conversion factor (see Guidance):

0.721

For the purpose of this report, we utilized the
factors from Outil Bilan Carbone Maroc, the
official list of factors in Morocco, where the
operations are based.

The Mohammed VI Foundation for the
Environment, with the support of the
Association pour la Transition Bas Carbone
(ABC), and its Moroccan institutional partners,
has adapted the Bilan Carbone® method to the
Moroccan context, with in particular the
update of 350 emission factors of which 60%
are adapted to the national context.

Total amount of Scope 2 GHG emissions from purchased energy (CO₂-e) (tonne)

10,361.634

Does the company purchase externally supplied heat

Does the company purchase externally supplied steam

Does the company purchase externally supplied cooling

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

10,361.634

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%

Discuss long-term and short-term strategy or plan to manage Scope 2 emissions, emissions reduction targets, and an analysis of performance against those targets

In line with our HSEC Policy and engagement to
reduce our carbon footprint, in February 2023,
Aya Gold & Silver signed a Power Purchasing
Agreement (PPA) with an independent power
producer connected to the Moroccan national
grid.

The PPA will come into effect in 2024 on
commissioning of the new processing plant.

Please see the press release in the link below.

Press Release PPA Agreement

Aya Climate Strategy

Please discuss reduction emissions target(s) for Scope 2 (if any) in your company, and analyse the performance against the target(s) as follows

By 2025, the Corporation will reduce the Scope
2 emissions at its Zgounder Silver Mine in
Morocco by approximatively 88% compared
to 2021, the base year for calculation.

In 2025, Aya expects its Zgounder Silver Mine
operations to emit approx. 1148 tCO2e. This
represents a 98% reduction compared to Scope
2 emissions of 56,000 tCO2e if operations had
continued to be powered with a regular grid
connection (Business as usual).

If relevant, what is the scope of the emission reduction target (e.g., the percentage of total emissions the target is applicable to)

This emission reduction target is applicable to
100% of Aya's Scope 2 emissions.

What type of target is it:

Absolute

Yes

Intensity Based

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

0.0000%

Total base year GHG emissions

9,607.359

Present year GHG emissions

10,361.634

The timelines for the emissions reduction activity:

Start year

2023-02-16

Target year

2025-01-01

Base year

2021-01-01

Rationale for choosing the base year for the calculation

The Corporation chose 2021 as the base year
for the calculation given that it is the first year
that Scope 2 emissions were calculated and
disclosed.

Scope 2 GHG emissions in the base year (CO₂-e)

9,607.359

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

In May 2023, Aya Gold & Silver contracted a
Moroccan consulting firm to calculate its Scope
3 emissions. Through this new partnership, Aya
was able to access a new set of factors that are
official for Morocco.

Until then, our calculations used the factors
from the GHG Protocol Tool and the
International Energy Agency, which had factors
for the Moroccan grid for up to 2020 only.

From 2023 on (which includes the disclosures
in the present 2022 ESG report), Aya will
exclusively use the factors from the Outil Bilan
Carbone Maroc for its Scope 2 emissions.

What is the mechanism(s) for achieving the target

In 2024, Aya Gold & Silver will sign a Power
Purchasing Agreement (PPA) with an
independent power producer connected to the
Moroccan National Grid, EEM-Nareva.

This PPA will become effective when the new
processing plant is commissioned in mid-year
2024.

By 2025, the Zgounder Silver Mine will be
powered exclusively with wind power through
this PPA.

Are there any circumstances in which the target or base year emissions have been, or may be, recalculated retrospectively or the target or base year has been reset

In 2023, Aya restated the CO2 factors used for
Scope 2 emissions in its 2021 ESG report, which
are the base-year emissions.

In May 2023, Aya Gold & Silver contracted a
Moroccan consulting firm to calculate its Scope
3 emissions. Through this new partnership, Aya
was able to access a new set of factors that are
official for Morocco.

Until then, our calculations used the factors
from the GHG Protocol Tool and the
International Energy Agency, which had factors
for the Moroccan grid for up to 2020 only.

From 2023 on (which includes the disclosures
in the present 2022 ESG report), Aya will
exclusively use the factors from the Outil Bilan
Carbone Maroc for its Scope 2 emissions. The
Corporation does not foresee any further
change, recalculation, or restatement to its
base-year emissions.

Discuss the activities and investments required to achieve the plans and/or targets, and any risks or limiting factors that might affect achievement of the plans and/or targets

There are no risks or limiting factors that could
affect achievement of the plans and/or targets.

Discuss the scope of strategies, plans, and/or reduction targets, such as whether they pertain differently to different business units, geographies, or emissions sources

The strategy covers the Zgounder Silver Mine.

Aya's emissions reduction strategy is not
related to or associated with emissions-limiting
and/or emissions reporting-based programs or
regulations.

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

L’Outil Bilan Carbone Maroc

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

In this report, Aya Gold & Silver's calculations
were made in line with the GHG Protocol
methodology, while using TCFD guidelines.

GHG Calculation Tool

Implementing the Recommendations of the
Task Force on Climate-related Financial
Disclosures

Intensity Ratio

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

4,880.695

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

10,361.634

GHG emissions intensity ratio for the organization

59.779

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

254.976

The above number ( 254.976) 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

Reduction of GHG emissions

GHG emissions reduced as a direct result of reduction initiatives (in metric tonnes of CO2 equivalent)

0.000

In 2022, Aya did not have any initiatives to
reduce GHG emissions. The Corporation will
start disclosing reduction in 2024, when its
Power Purchasing Agreement comes into
effect, as per Aya's plan to reduce Scope 2
emissions.

Base year or baseline, including the rationale for choosing it

Base year

This is the first reporting period that Aya Gold
& Silver has quantified and reported its GHG
emissions.

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

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

Carbon Offset

Credits

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

0.000

Emissions

Emissions Management

Disclose the management approach regarding Emissions

As per its HSEC Policy, Aya Gold & Silver
strives to promote the efficient use of natural
resources in order to reduce consumption and
waste, reduce its carbon footprint, and protect
the environment.

In 2022, Aya Gold & Silver assessed its climate
change-related risks and opportunities against
the TCFD guidelines.

Details: In evaluating the principal sources of its Scope 1 and Scope 2 GHG emissions, the Corporation
determined that it is unable to significantly reduce Scope 1 emissions at this time as it is currently impossible to
electrify its mining fleet due the unavailability of appropriate technology. Aya commits to review emerging new
technology and assess the feasibility of transitioning to electric mining fleet upon the renewal of its existing fleet,
in approximately 5 years (2027-2028).

Scope 2 emissions, however, form the bulk of the Zgounder Silver Mine's carbon footprint. In 2022, the
Corporation's first target for Scope 2 emissions was to find a partner and sign a PPA for renewable energy. That
year, Aya signed an Interconnection Agreement with the Office National de L’Électricité et de l’Eau Potable
(“ONEE”) in order to secure access to a clean energy supply for Zgounder. In February 2023, Aya Gold & Silver
signed a renewable Power Purchase Agreement (PPA) with Energie Éolienne du Maroc (EEM).

This PPA will allow the Zgounder Silver Mine to operate predominantly with renewable electricity supplied
through the grid and supports the Corporation’s objective of implementing responsible mining and climate change
initiatives in the Kingdom of Morocco. Specifically, the wind PPA allows Aya to achieve up to near zero Scope 2
emissions.

By 2025, the Corporation will reduce the Scope 2 emissions at its Zgounder Silver Mine in Morocco by
approximatively 88% compared to 2021, the base year for calculation.

In 2025, Aya expects its Zgounder Silver Mine operations to emit approx. 1148 tCO2e. This represents a 98%
reduction compared to Scope 2 emissions of 56000 tCO2e if operations had continued to be powered with a
regular grid connection.

Aya Climate Strategy

Air Emissions

Report emissions of air pollutants that are released into the atmosphere

Emissions of carbon monoxide, reported as CO (tonne)

25.155

The calculations for CO, NOx, SOx and VOCs
correspond to the Zgounder mine's mining fleet
and light vehicles. The results are derived from
the total annual diesel consumed at the
Zgounder Silver Mine, and it includes its
Contractors (underground mining, exploration,
and general civil engineering surface works).

Emissions of carbon monoxide (CO) are
calculated following the US EPA Webfire
emissions factors, for Internal Combustion
Engines ; Industrial ; Large Bore Engine ; Diesel.
Emission Factor : 1.16E+02 Lb per 1000
Gallons Diesel Burned.

Emissions of oxides of nitrogen (NOx), reported as NOx (tonne)

94.982

Emissions of oxides of nitrogen (NOx) are
calculated following the US EPA Webfire
emissions factors, for Internal Combustion
Engines ; Industrial ; Large Bore Engine ; Diesel.
Where :
Emission Factor : 4.38E+02 Lb per 1000
Gallons Diesel Burned;

Emissions of oxides of sulphur (SOx), reported as SOx (tonne)

56.382

Emissions of oxides of sulfur (SOx) are
calculated following the US EPA Webfire
emissions factors, for Internal Combustion
Engines ; Industrial ; Large Bore Engine ; Diesel.
Where :
Emission Factor : 2.60E+02 Lb per 1000
Gallons Diesel Burned;

Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne)

0.392

The calculations for PM10 correspond to dust
emitted from the crushing at the Zgounder
Silver Mine's two operating processing plant.
This number is the total emissions for
particulate matter less than or equal to 10
micrometers (µm) (PM10) ) that are calculated
by summing all individual emissions calculated
for each substance from each process.

It follows the methodology from the Tools for
calculating and reporting emissions for crushed
stone processing from the Government of
Canada website.

The general equation for estimation using an
emissions factor is:

E = A x EF

where:

• E = emissions
• A = activity rate
• EF = emission factor

Emissions of lead and lead compounds, reported as Pb (tonne)

0.000

Emissions of mercury and mercury compounds, reported as Hg (tonne)

0.000

Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne)

2.494

Emissions of non-methane Volatile Organic
Compounds (VOCs) are calculated following
the US EPA Webfire emissions factors, for
Internal Combustion Engines ; Industrial ; Large
Bore Engine ; Diesel.
Where :
Emission Factor : 1.15E+01 Lb per 1000
Gallons Diesel Burned;

Discuss the calculation methodology for emissions disclosure

Engineering calculations

In 2022, the Zgounder Silver Mine did not have
continuous monitoring devices for air
pollutants. However, as per the Corporation's
HSEC Policy, Aya strives to develop procedures
and strategies to mitigate or avoid its negative
impacts on the environment, which include
non-GHG emissions.

The Zgounder Silver Mine has a strict strategy
for dust suppression in order to reduce its total
PM emissions, and it implements strict
maintenance schedule with its mobile
equipment in order to reduce CO, NOx, SOx,
and VOCs emissions

Government of Canada : Tools for calculating
and reporting emissions

WebFIRE is EPA’s online emissions factor
repository, retrieval, and development tool.

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

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

Volatile organic compounds (VOCs)

2.494

Mining Sector

Acetone (also known as propanone)

0.000

Acetaldehyde

0.000

Antimony (Sb)

0.000

Arsenic (As)

0.000

Asbestos