Strong Cost Management and Higher Production For the Quarter
Results in Solid Revenues and Lower Cash Costs

Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) released its consolidated financial results for the Company’s second quarter 2022. The Financial Statements and Management’s Discussion and Analysis (MD&A) can be viewed on the Company’s website at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

“We delivered steady financial and operating results for the second quarter of 2022, highlighted by solid revenues and mine operating income,” said David Wolfin, President and CEO. “Even with global inflationary pressures, we have demonstrated strong operational achievements at Avino that have generated $9.4 million in revenues and $3.9 million in mine operating income, with earnings per share of $0.02, operating cash flow and adjusted earnings per share of $0.02, and free cash flow of $1.2 million. Our cash costs and AISC were lower this quarter as a result of greater ounces sold, and higher production in Q2 compared to Q1, 2022. We were also thrilled to announce promising drill results from the Oxide Tailings project and the Avino ET area below the Level 17 mining area. It has been an eventful quarter and, we are looking forward to continued progress during the second half of the year.”

2nd Quarter 2022 Highlights

Strong Q2 2022 Financial Performance with Solid Revenues and Mine Operating Income

• Solid revenues and mine operating income, with revenues of $9.4 million and mine operating income of $3.9 million, earnings per share of $0.02, and adjusted earnings and operating cash flow generated (pre-working capital adjustments) per share of $0.02.

Avino ET Area Drill Results Confirms Continuity at Depth and Significantly Higher Copper Mineralization

• On June 13, 2022, the Company announced the assay results from six drill holes that were completed below the current Level 17 mining area, including 206 AgEq g/t over 41.0 metres, including 4,527 AgEq g/t over 0.19 metres. These results confirm that mineralization continues at depth and contains significantly higher copper mineralization. A second drill has been added to this program and will include a further 13 drill holes for a total of 7,000 metres

Advanced the Oxide Tailings Project

• With the release of the results from a total of 127 drill holes that continue to highlight the potential to expand resources, the Company is moving forward with a comprehensive metallurgical test work program to advance this project to the next phase of development.

Working Capital & Liquidity at June 30, 2022

• The Company’s cash balance at June 30, 2022, totaled $12.8 million compared to $24.8 million at December 31, 2021. Working capital totaled $14.3 million at June 30, 2022, compared to $31.6 million at December 31, 2021. Cash and working capital have increased on a net basis by $3.3 million and $3.0 million, respectively, following the upfront consideration payment of $15.3 million and addition of $5 million note payable to Coeur for the acquisition of La Preciosa.

Second Quarter 2022 Financial Highlights

• Revenues of $9.4 million
• Mine operating income of $3.9 million, $4.4 million net of non-cash depreciation and depletion
• Net income of $2.3 million, or $0.03 per share
• Cash costs per silver equivalent payable ounce sold¹ – $8.39 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold¹ – $15.95 per ounce
• Earnings before interest, taxes, depreciation and amortization¹ of $4.1 million
• Adjusted earnings¹ of $2.5 million, or $0.03 per share
• Operating cash flows (before working capital changes) of $2.5 million, or $0.02 per share¹
• Free cash flow¹ of $1.2 million

Financial Highlights

Cash capital expenditures company-wide for the first half of 2022 were $3.3 million compared to $1.0 million in the first half of 2021. Expenditures relate to exploration drilling costs on the Avino property and on TSF #1, which contains the Oxide Tailings Resource, and costs related to the construction of the dry-stack tailings facility. The Company also added an additional $1.3 million in leased capital equipment, including a new underground scooptram and dozer.

Operating Highlights and Overview

During Q2 2022, underground mining operations continued to ramp up with consolidated production for the quarter of 649,569 silver equivalent ounces consisting of 225,537 ounces of silver, 1,350 ounces of gold, and 1,644,343 pounds of copper.

Underground mining operations are now hauling between 1,800 and 2,400 tpd to surface on a daily basis, with the mill operating at a similar capacity. The Company is working towards achieving nameplate capacity of 2,500 tpd.

Exploration Update – 2022 Drill Program

In the second half of 2022, the Company’s exploration programs will continue at Avino below the current Elena Tolosa production area, as well as at La Potosina. All holes at the Oxide Tailings project have been completed and metallurgical testwork is underway. Further results from all aspects of the exploration program will be released throughout Q3 and Q4 2022.

During Q2 2022 and as mentioned above, the Company announced drill results from the ET area of the Avino mine, as well as the Oxide Tailings project. To view the news releases in their entirety, please visit our website here.

Avino Receives ESR Award

We are very pleased to announce that Avino has received for the first time, the ESR “Empresa Socialmente Responsible ESR 2022” Award granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alizanza por la Responsabilidad Social Empresarial or (AliaRSE)).

The ESR® Award is obtained through a diagnostic process based on indicators reviewed and endorsed annually by a committee of experts in the various CSR areas, supported with documentary evidence, an assessment differentiated by company size and by maturity levels, and an external verification process.

This is an extremely prestigious award in the Mexican business world, granted each year to a select group of enterprises in recognition of “the effort to make a voluntary and public commitment to implementing socially responsible management and ongoing improvement as part of the business culture and strategy”.

“We are thrilled to receive the ESR award, as this is a great accomplishment for Avino” said David Wolfin, President and CEO. “I would like to express my congratulations to the entire Avino team, with special thanks to the ESG team in Durango, led by Oscar Lara, Avino’s Superintendent of Corporate Social Responsibility, whose proactive approach to governance was a top priority since joining the Company just over a year ago.”

ESG Initiatives

Avino continues to create value for all stakeholders and supports the communities that host the Avino mine, with the new Dry Stack Tailings project, the continued replacement of mineral resources, and the strengthening of local partnerships as part of our long-term commitment to the country.  In line with Avino’s policy of local employment, Mexican nationals account for 100% of the mine work force.  In addition, Avino is actively increasing its workforce diversification by hiring more women for historically male-dominated roles through targeted recruitment and development programs.  Currently at site, 10 – 15% of our labor force is female.

We continue to invest in sustainable economic community projects such as road construction and maintenance, an upgraded well for drinking water, cleaning and maintenance of landfills and classroom renovations, to name only a few of the initiatives currently ongoing.

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 flow per share, cash cost per silver equivalent ounce, all-in sustaining cash cost per silver equivalent ounce, EBITDA, adjusted earnings/losses, and free cash flow, 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 MD&A.

About Avino

Avino is primarily 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 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.