Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) released its consolidated financial results for the Company’s second quarter 2021. The Financial Statements and Management’s Discussion and Analysis can be viewed on the Company’s web site at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

“During the second quarter, the Company focused on the steps necessary for resumption of operations. These included hiring mine workers, upgrades to improve recoveries at the mill, testing the mill circuits, and clean-up of equipment, grounds, and facilities” said David Wolfin, President and CEO. “We were extremely pleased to announce last week, that mining operations had resumed at the Avino Mine. I wish to extend our sincere appreciation to the management team in Mexico for their tireless efforts as they prepared the way over many months for this positive outcome. Further, I am excited about the released initial drill results from our ongoing 2021 drill program. To date, we have completed 9,200 metres of drilling across the property at various targets. I am also pleased to report that our debt position has been reduced by a further $1.7 million, and our working capital remains above $30 million, as we ended the quarter with a robust balance sheet. Finally, and above all, we are very much looking forward to ramping up production and getting back to normal operation levels as quickly as possible.”

Second Quarter 2021 Financial Highlights

• Ending cash balance of $26.8 million
• Ending working capital of $30.4 million
• Reduction in debt liabilities by $1.7 million since the beginning of the year
• Mine operating losses of $1.7 million
• Net losses from continuing operations of $2.7 million, or $0.03 per share
• Losses before interest, taxes, depreciation, and amortization (“EBITDA”)¹ of $2.9 million
• Adjusted losses¹ of $0.8 million

Financial Highlights

Costs and Capital Expenditures:

Capital expenditures company-wide for the first half of 2021 were $1.0 million compared to $0.7 million for H1 2020.

Capital expenditures at the Avino property relate to exploration drilling costs and costs related to the construction of the dry-stack tailings storage facility. We expect to see a continued increase into Q3 and Q4 2021.

Operational Highlights and Overview

During Q2 2021, there was limited production mining activities as the mill circuits were being tested for ongoing preparations for resumption of operational activities.

Exploration Update – 2021 Drill Program

In July 2021, the Company announced initial drill results from its exploration program. The full results were released on July 15, 2021 and can be found on our Company website as well as on our SEDAR and Edgar profiles under the company name.

Drill results from Phase 1 were released on the El Trompo Vein, the Santiago Vein, and the La Malinche Vein.

We are in the process of integrating the information from the initial drill results into the geological model to improve our understanding as we continue to focus on determining potential target areas.

Current Drilling Results

• To date, 9,200 metres have been drilled, and the breakdown of this drilling is as follows:
  • 2,469 metres at the Avino vein
  • 1,717 metres at the Santiago vein
  • 1,568 metres at El Trompo vein
  • 820 metres at the La Malinche vein
  • 340 metres at the Neustra Senora vein
  • 133 metres at the San Jorge vein
  • 2,160 metres at the oxide tailings

The focus for the next quarter is to ramp up the production levels and operating activities at the mine and to keep moving forward with the exploration program. We are focused on locating new mineralized zones within the property and confirming continuity of mineralization in the current Avino ET production area.

Non-IFRS Measures

The financial results in this news release include references to cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent 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, and are disclosed in addition to the prescribed IFRS measures provided in the Company’s financial statements and MD&A.

Qualified Person

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

About Avino

Avino is primarily a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company’s silver and gold production remains unhedged. The Company’s mission and strategy is to create shareholder value through organic growth at the historic Avino Property and the strategic acquisition of mineral exploration and mining properties. 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.