Avino Silver & Gold Mines Ltd. (TSX; ASM) (NYSE American: ASM) (FSE: GV6) a growing silver producer in Mexico, released today its consolidated financial results for the Company’s first quarter of 2023. The earnings should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis for the corresponding period, which can be viewed on the Company’s website at www.avino.com, or on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.

First Quarter 2023 Financial Highlights

• Revenues of $9.8 million, impacted by timing of concentrate shipments
• Mine operating income of $1.9 million, $2.6 million net of non-cash costs of sales
• Net loss of $0.4 million, or $Nil per share
• Cash costs per silver equivalent payable ounce sold^1,2 – $14.22 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 – $20.17 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) ³ of $0.3 million
• Adjusted earnings³ of $1.1 million, or $0.01 per share
• Cash provided by operating activities of $0.4 million
• Cash was drawn down by the $5M final payment to Coeur Mining for the acquisition of La Preciosa and impacted by the timing of concentrate sales

“The quarter was highlighted by steady production levels which increased 48% over Q1 2022,” said David Wolfin, President and CEO. “We presented our updated mineral resource estimate which added significant mineral resources, totalling 368 million silver equivalent ounces across all properties and integrated La Preciosa into one single report. These results indicate decades of tonnage for future production. We also were able to share the results of our comprehensive metallurgical testwork program on the Oxide Tailings Project. We are focused on our clear path to transformational and organic growth, and we remain well-positioned to manage through any near-term pressures arising from an overall economic slowdown. We are focused on delivering the best performance to our shareholders and stakeholders, while executing on our growth plan to become an intermediate silver producer in Mexico.”

Financial Highlights

Operating Highlights and Overview

1^st Quarter Operational 2023 Highlights

Steady Production in Q1 – The Avino Mine Continues to Deliver

• Another quarter of strong production results of 678,247 silver equivalent ounces bringing the 12-month trailing total to 2.9 million silver equivalent ounces from the Avino Mine, representing a 48% increase over Q1 2022
• Mill throughput increased by 44% compared to Q1 2022 to 159,757 tonnes, a further increase of 5% from Q4 2022

Adds Significant Mineral Resources to Total 368 Million Silver Equivalent Ounces Across All Properties

• The updated mineral resource estimate includes the Elena Tolosa deposit, the San Gonzalo deposit, and the Oxide Tailings deposit. Inaugural MREs have also been included on the Guadalupe and La Potosina deposits.
• Avino Property Highlights (Comparisons are to 2020 Mineral Resource Estimate on the Avino Property)
  • 161 million measured and indicated silver equivalent ounces, an increase of 38%, made up of:
  • 70 million silver ounces, an increase of 35%
  • 136.7 thousand copper tonnes, an increase of 18%
  • 596 thousand gold ounces, an increase of 23%, contained in:
  • 34.7 million measured and indicated metric tonnes, increase of 28% overall, also
  • 70 million inferred silver equivalent ounces, an increase of 90%
• Oxide Tailings Highlights (Comparisons are to 2020 Mineral Resource Estimate on the Avino Property)
  • 5.7 million tonnes of measured and indicated mineral resources, an increase of 407%
  • 17.4 million measured and indicated silver equivalent ounces, an increase of 287%

Favourable Metallurgical Results from the Oxide Tailings Project

• The metallurgical results from the test work program on its Oxide Tailings Project have been released. The Project hosts gold and silver from past producing historic operations in an inactive tailings facility located on the Avino property with 5.7 million tonnes of measured and indicated resource grading 95 g/t of silver equivalent. Historically, near surface oxidised material was not recovered well by Avino’s conventional flotation mill, which has created this opportunity for re-processing the tailings with an agitated leaching process.
• These results will form the basis for the metallurgical analysis of a Pre-Feasibility Study (“PFS”) on the Project.
• This Project has been in our portfolio for many years and factors prominently into our five-year growth plan to become an intermediate silver producer in Mexico.

Dry-Stack Tailings Facility Completed and Fully Operational

• The dry-stack tailings facility is now complete and fully operational. During the quarter, a conveyor system was installed and is currently transporting the pressed dry tailings to the Avino open pit area. The dry-stack facility was a top ESG priority and demonstrates a commitment to safety for the community and the environment.  In addition, dry-stack tailings require a smaller footprint. A selection of short videos of the facility in operation can be viewed on our website under Videos and Media.

Avino ET Area Drills Results

• On January 5, 2023, the Company announced assay results from 4 drill holes at Avino Elena Tolosa below the current deepest workings at the mine.
• This exploration program was designed to test the continuity of the steeply dipping mineralization and to understand the source of the mineralization. As a result, the Avino vein is now known to extend 800 metres downdip. Additionally, it appears that the Avino vein is getting richer in copper as we go deeper with a grade of 1.63% copper over 16.66 metres in Hole ET 22. Geological modelling is ongoing to determine the potential geometry and controls of the mineralization. The 2023 drill program is underway with 8,000 metres planned.
• During the first quarter, 3,125 metres were drilled.

Capital Expenditures

First quarter cash capital expenditures company-wide were $3.8 million, compared to $0.9 million during Q1 2022, within the range as previously disclosed in the Avino 2023 Outlook press release which can be found here on the Company’s website. This figure also includes exploration expenditures at prospective areas around the Avino Property, such as La Potosina and Guadalupe, which has led to inaugural mineral resource estimates on both deposits. Key capital items included investment into the mobile equipment fleet, with the acquisition of several pieces of underground and surface equipment that will be used for years to come, both at Avino and eventually at La Preciosa.

Pre-Feasibility Study – Oxide Tailings Project

The Pre-Feasibility Study was awarded after completion of the RFP process. The study is expected to be completed by the end of 2023.

ESG Initiatives

Avino continues to create value for all stakeholders and supports the communities in which we operate as we continue ongoing efforts to incorporate principles of sustainability and social responsibility. In line with Avino’s policy of local employment, Mexican nationals account for 100% of the mine work force.  Currently there are 456 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, which typically translates to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area.

Qualified Person(s)

Peter Latta, P.Eng, MBA, VP Technical Services, Avino who is a qualified person within the context of National Instrument 43-101 has reviewed and approved the technical data in this news release.

Non-IFRS Measures

The financial results in this news release include references to cash cost per silver equivalent payable ounce, all-in sustaining cash cost per silver equivalent payable ounce, EBITDA, and adjusted earnings/losses, all of which are non-IFRS measures. These measures are used by the Company to manage and evaluate operating performance of the Company’s mining operations and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS. For a reconciliation of non-GAAP and GAAP measures, please refer to the “Non-IFRS Measures” section of the Company’s Management Discussion and Analysis dated May 10, 2023, for the three months ended March 31, 2023, which is incorporated by reference within this news release and is available on SEDAR at www.sedar.com.

About Avino

Avino is a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company’s silver, gold and copper production remains unhedged. The Company’s mission and strategy is to create shareholder value through its focus on profitable organic growth at the historic Avino Property and the strategic acquisition of the La Preciosa property. Avino currently controls mineral resources, as per NI 43-101, that total 368 million silver equivalent ounces, within our district-scale land package. We are committed to managing all business activities in a safe, environmentally responsible, and cost-effective manner, while contributing to the well-being of the communities in which we operate.