Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) released its consolidated financial results for the Company’s third 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.

“We had a very busy third quarter. We finalized the work necessary to recommence operations at the mine, and the restart was announced on August 3^rd,” said David Wolfin, President and CEO.  “I would like to extend my appreciation to the team in Mexico for their hard work and efforts that made it possible to accomplish the restart. In addition, in early July, we announced initial drill results from Phase 1 of the campaign and completed almost 5,000 metres in the quarter. Q3 production results were achieved after a period of closure, and we continue to increase production and reach levels established prior to closure. Also in the quarter, we made the final installment in our debt to Samsung, and we are now debt free. We had revenues of $1.9 million with only one month of sales, working capital of over $28 million and cash of over $22 million.  With the recent announcement of the acquisition of La Preciosa, we feel we are poised for growth with many more years of mining in our future.”

3^rd Quarter 2021 Highlights

Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc.

• On October 27, 2021, and subsequent to the end of Q3 2021, the Company announced that it has entered into a definitive agreement with Coeur to acquire the La Preciosa silver project, which is located adjacent to the Avino Mine in the state of Durango, Mexico, for upfront consideration of $29.7 million on closing and $5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment.

Mining Operations Resumed at Avino Mine

• On August 3, 2021, the Company announced that mining operations have officially restarted at the Avino Mine. During the three months ended September 30, 2021, mining activities continued to ramp up and management expects to reach previous production levels during Q4 2021 or Q1 2022.

Term Facility Repaid on Schedule

• As of September 30, 2021, the Company has fully repaid its $10 million term facility with Samsung C&T U.K. Limited (“Samsung”). The Company remains committed to selling Avino Mine concentrate to Samsung until December 31, 2024.

Exploration Continues

• Approximately 5,000 metres were drilled during the quarter. Areas drilled include the existing Oxide Tailings Resource, which is contained within the tailings storage facility (“TSF #1). 200 holes are planned on this program, with over 150 having been completed to date. Additional areas for exploration include the main Avino vein below current mining activities and at the La Potosina vein. Turnaround times for assay results have been slow; however, results are expected to be released prior to the end of 2021.

Third Quarter 2021 Financial Highlights

• Cash balance of $23.4 million
• Working capital of $28.9 million
• Completed term facility repayment to Samsung
• Revenues of $1.9 million
• Mine operating income of $0.8 million, $1.1 million net of depreciation & depletion
• Cash costs per silver equivalent ounce sold – $6.75 per ounce
• All-in sustaining cash cost per silver equivalent payable ounce of $25.60
• Earnings before interest, taxes, depreciation, and amortization (“EBITDA”)¹ of $0.2 million

Financial Highlights

Costs and Capital Expenditures:

Year to date 2021 capital expenditures company-wide were $2.1 million compared to year to date 2020 of $1.0 million. Expenditures relate to exploration drilling costs on the Avino property & the Oxide Tailings Resource, costs related to the construction of the dry-stack tailings storage facility, as well as the purchase of a scoop tram. We expect to see a continued increase into Q4 2021.

Operational Highlights and Overview

Operations successfully recommenced and consolidation production of 285,464 silver equivalent ounces consisting of 77,935 ounces of silver, 1,183 ounces of gold, and 685,535 pounds of copper, was achieved during Q3 2021.

Underground mining operations are now hauling between 1,000 and 1,500 tpd to surface on a daily basis, with the mill operating at a similar capacity. The Company is working towards achieving pre-shutdown levels of mine and mill production. Current plant capacity remains at 2,500 tpd.

During Q3 2021 production came primarily from the Avino Mine. The Company is currently mining and milling from the Avino Mine only. As part of the ramp-up of operations 10,806 tonnes of Historic Above Ground stockpile material having been processed during Q3 2021. Production from this material totaled 15,784 silver equivalent ounces, consisting of 9,336 ounces of silver, 58 ounces of gold, and 12,584 pounds of copper, and there was no comparable production from Q2 2020.

Exploration Update – 2021 Drill Program

The Company’s 2021 exploration program is ongoing. 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.

During Q3, 2021, there was a total of 4,931 metres drilled and is as follows:

• La Potosina – 601 metres
• Oxide Tailings – 1,931 metres
• Avino Vein – 2,399

To date, a total of 13,427 metres have been drilled as part of the fully funded 30,600 metre initial drill program. Assay results are pending due to long turn-around times at the laboratories and will be released once received and interpreted.

Strategic Acquisition – La Preciosa

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.

As well, following the news release on October 27, 2021, announcing the acquisition of the La Preciosa project, work is underway to determine how best to integrate La Preciosa into Avino’s current operations given the proximity to the current processing facilities and infrastructure. The Company expects a large portion of the existing La Preciosa resource could be mined via an underground operation to potentially improve Avino’s production and organic growth profile.

The above-mentioned news release which details the rationale and terms of the acquisition can be found on Avino’s website as well as its SEDAR and Edgar profiles.

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.