Aya Gold & Silver Delivers Robust Boumadine PEA Highlighting High Return, Rapid Payback and a Capital-Efficient Project

On November 4, 2025, Aya Gold & Silver announced a robust Preliminary Economic Assessment (PEA) for its Boumadine polymetallic project in Morocco. The PEA outlines a highly profitable, capital-efficient project with a rapid payback period.

Key highlights of the PEA include: - Base Case Economics (at $2,800/oz gold, $30/oz silver): - Post-tax Net Present Value (NPV) at a 5% discount rate: $1.5 billion. - Post-tax Internal Rate of Return (IRR): 47%. - Payback Period: 2.1 years. - Spot Price Economics (at $4,000/oz gold, $48/oz silver): - Post-tax NPV (5%): $3.0 billion. - Post-tax IRR: 77%. - Project Details: - Initial Capital Expenditure (Capex): $446 million. - All-In Sustaining Cost (AISC): $1,021 per gold equivalent ounce (AuEq). - Mine Life (LOM): 11.1 years. - Average Annual Production: 401,000 oz AuEq for the first five years and 328,000 oz AuEq over the life of the mine.

The CEO, Benoit La Salle, stated that the PEA confirms Boumadine ranks among the most attractive undeveloped precious metal projects globally, citing its low initial capex and high returns. It is crucial to note the standard disclaimer that the PEA is preliminary and includes inferred mineral resources, which are considered too speculative to be categorized as mineral reserves, meaning there is no certainty the PEA will be realized.

The release of the Boumadine PEA is a game-changing event for Aya Gold & Silver. The economic figures presented are exceptionally strong and significantly exceed market expectations, fundamentally altering the company's valuation profile. The base case post-tax NPV of $1.5 billion USD is roughly equivalent to the company's entire market capitalization prior to the announcement, which already includes the producing Zgounder mine. The spot price NPV of $3.0 billion USD suggests a potential value more than double the company's current valuation.

This news is the culmination of a year of successful execution on two fronts:

1. Zgounder Mine Ramp-Up: Throughout 2025, Aya has systematically de-risked and optimized the Zgounder expansion. After declaring commercial production at the end of 2024, the company overcame initial recovery issues related to an oxygen plant (Q1 results) to deliver record production, throughput, and recoveries in Q3 2025 (1.35M oz Ag at 92.5% recovery). This successful ramp-up provides a strong, cash-flowing operational base to support the development of Boumadine. Statements from the August 14 conference call confirm that the last major operational hurdle is managing grade dilution, which the company is actively addressing by hiring more staff and implementing new controls.

2. Boumadine Advancement: The company has consistently delivered high-grade drill results from Boumadine throughout the year, expanded its land package, and increased the mineral resource estimate (February 24 news). They secured a strategic $25 million credit facility from the European Bank for Reconstruction and Development (EBRD) in June, a strong third-party endorsement of the project. The PEA was guided for year-end and has been delivered ahead of schedule, confirming the project's tier-one potential that was signaled by the aggressive exploration program.

The PEA provides a clear growth path, transforming Aya from a successful single-asset silver producer into a multi-asset company with a world-class development project. The project's economics, particularly the 47% base case IRR and 2.1-year payback on a $446 million capex, are compelling and should attract significant project financing interest, further de-risked by the established relationship with the EBRD.

The company also successfully navigated a short-seller report on September 25 by issuing a firm rebuttal and following up with record-breaking Q3 production results on October 15, which caused the stock to rally significantly and demonstrated the company's operational credibility.

In conclusion, the Boumadine PEA is a transformational catalyst built on a foundation of operational excellence at Zgounder. It provides a credible path to a step-change in production and valuation, justifying a major re-rating for the company.

Aya Gold & Silver Inc. is a Canadian-based precious metals company focused on the exploration, development, and operation of assets in the Kingdom of Morocco. - Flagship Producing Asset: The Zgounder Silver Mine, a high-grade silver mine. Aya recently completed a major expansion project, declaring commercial production in December 2024, which has significantly increased its production capacity. - Flagship Development Asset: The Boumadine Project, a large-scale, high-grade polymetallic (gold, silver, zinc, lead) discovery. The November 2025 PEA demonstrates its potential to become a large, low-cost, long-life mining operation.