Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) released its consolidated financial results for the Company’s fourth quarter and year end 2020. The Financial Statements and Management’s Discussion and Analysis (MD&A) 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.

David Wolfin, President and CEO commented, “2020 was a challenging year, and although we are relieved to put it behind us, the year can be marked as one of learning, patience, and a significant focus on the health and safety of the entire company spanning Mexico, Canada, and the US. The pandemic presented new challenges for our entire team and I am proud of the way we were united by our shared culture of discipline, flexibility and teamwork that made us stronger as a Company. Operations were temporarily suspended in April due to the pandemic; a phased ramp up started in June; and in early July, we were sidelined with a strike at the mine. Fortunately, the strike came to a successful conclusion in October. As we begin a new year, we are thrilled to have already reported an increase in measured and indicated mineral resources at the Avino property, and have kicked off the 2021 drill program, as well, we remain focused on ramping up operations at the Avino mine as we embark upon a busy and positive year ahead.”

Fourth Quarter 2020 Financial Highlights

• Ending cash balance of $11.7 million
• Ending working capital of $14.7 million
• Reduction in debt liabilities by $1.1 million
• Revenues from mining operations of $1.4 million
• Mine operating losses of $ 1.3 million, including $1.5 million in stand-by costs
• Net losses from continuing operations of $1.6 million, or $0.02 per share
• Losses before interest, taxes, depreciation, and amortization (“EBITDA”)³ of $2.3 million
• Adjusted losses³ of $0.2 million
• Consolidated cash production costs³, including standby costs, of $14.01 per silver equivalent payable ounce sold²
• Consolidated all-in sustaining cash costs, including standby costs of $1.5 million,³ of $73.08 per silver payable equivalent ounce sold² due to significantly lower ounces sold in the quarter

Full Year 2020 Financial Highlights

• Reduction in debt liabilities by $7.1 million
• Revenues from mining operations of $16.0 million
• Mine operating income of $0.2 million, including $2.4 million in stand-by costs
• Net loss from continuing operations of $7.5 million, or $0.09 per share
• Losses before interest, taxes, depreciation, and amortization³ of $6.9 million
• Adjusted earnings³ of $1.5 million
• Consolidated cash production costs³, including standby costs, of $10.68 per silver equivalent payable ounce sold²
• Consolidated all-in sustaining cash costs, including standby costs of $2.4 million,³ of $20.35 per silver payable equivalent ounce sold²

Financial Highlights

Costs and Capital Expenditures:

On a consolidated basis, the Company reduced its G&A expenditures by $0.3 million, or 9% for the full year 2020 compared to 2019.

Capital expenditures company-wide for the full year 2020, were $2.2 million compared to $9.0 million for 2019.

Capital expenditures at the Avino property mainly relate to finalizing key upgrades to mill equipment to boost gold recoveries as well as payments for items that are needed for the planned dry-stack tailings storage facility (“TSF #2”).

Operational Highlights and Overview

During the Q4 2020, no production mining activities took place due to the work stoppage at the Avino Mine. Transitional efforts are underway to restart production and mining operations.

Operational Overview

Consolidated Production Tables

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.