Avino Mine

Avino Mine, Mexico

Operations - 2024

Fourth Quarter and Full Year 2024 Highlights

Fourth Quarter 2024 Financial Highlights

• Record Revenues: The Company realized revenues of $24.4 million, an increase of 95%, driven by increased production and higher realized silver and gold prices in the quarter.
• Record Gross Profit: Gross profit, or mine operating income, was $10.5 million and represented an increase of 308%. The significant improvement was a result of items noted related to revenues, as well as meaningful unit cost reductions and currency movements between the US dollar and Mexican Peso.
• Record Cash Flow Generation: The Avino Mine delivered cash provided by operating activities of $15.6 million, up over 2,000%, as well as mine operating cash flows before taxes³ of $11.9 million, up 230%.  
• Record Earnings and Adjusted Earnings: The Company realized net income of $5.1 million, or $0.03 per share, up 804%, and adjusted earnings³ of $10 million, or $0.07 per share, an increase of 405%. Earnings before interest, taxes, depreciation and amortization (“EBITDA”)³ was $9.1 million, up 712%
• Improved Costs per Ounce Metrics: Cash costs per silver equivalent payable ounce sold^1,2,3 was $13.88 and all-in sustaining cash costs per silver equivalent payable ounce sold^1,2,3 was $18.62, down 8% and 14%, respectively.

Full Year 2024 Financial Highlights

• All-Time High in Cash Strength: Cash balance of $27.3 million, an increase of 916%. This represents the highest balance in the Company’s history and positions the Company to execute on its organic growth plans.
• Record Revenues: The Company realized revenues of $66.1 million, an increase of 51%, driven by improved production and sales volumes, as well as higher realized metal prices in 2024
• Record Gross Profit: Gross profit, or mine operating income, was $23.2 million and represented an increase of 197%.
• Record Earnings and Adjusted Earnings: The Company realized net income of $8.1 million, or $0.06 per share, with adjusted earnings³ up 364% at $21.3 million, or $0.15 per share. EBITDA³ rose significantly and was $18 million, up 620%.
• Record Cash Flow Generation: The Avino Mine delivered cash provided by operating activities of $23.1 million, up over 1400%. Mine operating cash flow before taxes³ of $27.6 million, an increase of 150%
• Improved Costs per Ounce Metrics: Cash costs per silver equivalent payable ounce sold^1,2,3 came in at $14.84, down 5% and all-in sustaining cash costs per silver equivalent payable ounce sold^1,2,3 was $20.57, down 6%.

1. In Q4 2024, AgEq was calculated using metal prices of $31.34 per oz Ag, $2,662 per oz Au and $4.17 per lb Cu. In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,976 oz Au and $3.71 lb Cu. For FY 2024, AgEq was calculated using metal prices of $28.24 per oz Ag, $2,387 per oz Au and $4.15 per lb Cu. For FY 2023, AgEq was calculated using metal prices of $23.39 oz Ag, $1,976 oz Au and $3.85 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. Non-IFRS Accounting Standard measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Accounting Standards Measures section for further information and detailed reconciliations.

PRODUCTION HIGHLIGHTS – Q4 2024

• Silver Equivalent Production Increased 32%: Avino produced 735,557 silver equivalent ounces in Q4 2024, representing a 32% increase from Q4 of 2023 and a 10% increase compared to the previous quarter. The increase was driven by improved gold grades and increased mill throughput.
• Mill Throughput Increased 26%: The Company processed 181,733 tonnes in Q4 2024, a 26% increase compared to Q4 2023, and the highest quarter in the Company’s history. Mill availability and performance is a result of considerable efforts from our operations team in Durango, allowing for meaningful improvements in operational metrics, as well as improving the Company’s cash and working capital positions.
• Gold Production Increased 76%: Q4 2024 production of 2,560 gold ounces represented a 76% increase compared to Q4 2023 and was our highest quarter of gold production in 2024. Improved feed grade accounted for the majority of the increase, alongside the mill availability noted above.

PRODUCTION HIGHLIGHTS – FULL YEAR 2024

• Silver equivalent production increased 10%: Avino produced 2,652,498 silver equivalent ounces in 2024, representing a 10% increase from 2023. The positive movement was primarily due to improved copper and silver grades, improved copper recoveries, and higher mill feed compared to 2023. Full year production results were within our production estimate of 2.5 to 2.8 million silver equivalent ounces, even after adjusting for changes in metal prices throughout 2024. Silver equivalent production for the year would have been 2.73 million silver equivalent ounces using original budget metal prices, at the upper end of our production estimate range.
• Health and Safety Performance Improvements: The Company achieved a reduction in Lost Time Incident Frequency Rate (“LTIFR”) of 32% for 2024 to 3.39 per 1,000,000 hours worked, while seeing an increase in hours worked by 47% at the Avino operations. Reportable lost time incident frequency rate also decreased to 0.07, down over 90% from 2023.

 In Q4 2024, AgEq was calculated using metal prices of $31.34 per oz Ag, $2,662 per oz Au and $4.17 per lb Cu. In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,976 oz Au and $3.71 lb Cu. For FY 2024, AgEq was calculated using metal prices of $28.24 per oz Ag, $2,387 per oz Au and $4.15 per lb Cu. For FY 2023, AgEq was calculated using metal prices of $23.39 oz Ag, $1,976 oz Au and $3.85 lb Cu. Calculated figures may not add up due to rounding.

4th Quarter and Full Year Operating Highlights

Silver Equivalent Production Increases:

• Avino produced 735,557 silver equivalent ounces in Q4 2024, representing a 32% increase from Q4 of 2023 and a 10% increase compared to the previous quarter. This increase was driven by improved gold grades and increased mill throughput.
• Full year 2024 production increased significantly due to overall mill performance and availability. With production of 2.65 million silver equivalent ounces, the Company completed the year within our targeted full year production of 2.5 to 2.8 million silver equivalent ounces. Production guidance for 2025 consists of a range of 2.5 million to 2.8 million silver equivalent ounces. Silver equivalent ounces in our production guidance range are calculated using prices of $30.00 per ounce for silver, $2,600 per ounce for gold, and $4.18 per pound of copper.

Mill Throughput Increases:

• The Company processed 181,733 tonnes in Q4 2024, a 26% increase compared to Q4 2023, and the highest throughput quarter in the Company’s history. Mill availability and performance is a result of considerable work from our operations team in Durango, allowing for meaningful improvements in operational metrics, as well as improving the Company’s cash and working capital positions. In 2024, mill throughput was 648,774 tonnes, a 5% overall increase from 2023.

Fourth Quarter Gold Production:

• Q4 2024 production of 2,560 gold ounces represented a 76% increase compared to Q4 2023 and was our highest quarter of gold production in 2024. Improved feed grade accounted for the majority of the increase, alongside the mill availability noted above.

La Preciosa

• Following the signing of the long-term land use agreement with a local community on January 9th, 2024, the Company announced on January 15, 2025 that underground development at La Preciosa had commenced following receipt of all required permit for mining operations.

Health and Safety Performance Improvements:

• The Company achieved a reduction in Lost Time Incident Frequency Rate (“LTIFR”) of 32% for 2024 to 3.39 per 1,000,000 hours worked, while seeing an increase in hours worked by 47% at the Avino operations. Reportable lost time incident frequency rates also decreased to 0.07, down over 90% from 2023.

2024 Capital Expenditures

Capital expenditures in 2024 were $6.6 million, compared to $8.5 million in 2023, which came in below the range previously disclosed in the Avino 2024 Outlook press release which can be found here on the Company’s website. This is a result of certain La Preciosa expenditures being deferred to 2025, following the receipt of all necessary mining permits after the close of 2024.

ESG Initiatives

Avino follows the ESG Standards and the United Nations Sustainable Development goals. There are 17 Sustainable Development Goals (SDGs), which were developed as a call to action by all countries developed and developing in a global partnership.

At Avino, the communities surrounding our operations are at the heart of our success. We remain deeply committed to supporting local citizens, our dedicated personnel, and their families, reinforcing our role as a responsible and engaged partner in the region.

For the third consecutive year, Avino has received the ESR designation which reflects our economic, social and environmental commitment to making a positive impact for our local communities. The distinction is awarded annually by the Mexican Council for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibility for Mexico (AliaRSE).

Mexican nationals account for 100% of our mine work force. At the end of the year, we have approximately 451 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area.

Third Quarter 2024 Highlights

• Revenues of $14.6 million, an increase of 19% from Q3 2023
• Gross profit / mine operating income of $5.7 million
• Mine operating cash flow before taxes³ of $6.7 million
• Net income of $1.2 million, or $0.01 per share
• Adjusted earnings³ of $5.0 million, or $0.04 per share
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)³ of $3.8 million
• Cash costs per silver equivalent payable ounce sold1,2,3 of $14.94, down 12% from Q3 2023
• All in sustaining cash costs per silver equivalent payable ounce sold^1,2,3 of $22.06, down 3% from Q3 2023

1. In Q3 2024, AgEq was calculated using metal prices of $29.42 per oz Ag, $2,476 per oz Au and $4.18 per lb Cu. In Q3 2023, AgEq was calculated using metals prices of $23.57 oz Ag, $1,929 oz Au and $3.79 lb Cu. For YTD 2024, AgEq was calculated using metal prices of $27.21 per oz Ag, $2,295 per oz Au and $4.15 per lb Cu. For YTD 2023, AgEq was calculated using metal prices of $23.44 oz Ag, $1,932 oz Au and $3.90 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3.  Non-IFRS measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section of the Company’s Management’s Discussion and Analysis for the nine months ended September 30, 2024, dated November 12, 2024, which is available on the Company’s website at www.avino.com and on SEDAR+ at www.sedarplus.ca, for further information and detailed reconciliations.

3rd Quarter 2024 Highlights

Consistent Production at Avino

• The production significantly increased by 13% achieving 670,887 silver equivalent ounces, resulting from overall mill performance and availability. The Company remains on track with our targeted full year production of 2.5M to 2.8M silver equivalent ounces.

Improved Operating Margins

• With higher realized metal prices across all three metals and improved unit operating costs, the Company demonstrated strong cash operating margins, generating $5.7 million in mine operating income and $6.7 million in mine operating cash flows before taxes3, both increased from recent quarters in 2024 and 2023.

La Preciosa

• La Preciosa Stockpiles: The Company continued to process La Preciosa historical stockpile material as part of a sampling program to better prepare for fresh mill feed. Initial recoveries from the lower-grade material were better than expected and provide for potential upside as the project moves forward.
• La Preciosa Progress: Following the signing of the long-term land use agreement with a local community on January 9th, 2024, our operations team is in the final stages for approval to move forward with the underground development at La Preciosa. Recent photos from the La Preciosa property can be viewed on our website by clicking here.

2024 Capital Expenditures

Capital expenditures to date for 2024 were $5.0 million, compared to $7.4 million in the first nine months of 2023, which is within the range previously disclosed in the Avino 2024 Outlook press release which can be found here on the Company’s website.

ESG Initiatives

Avino follows the ESG Standards and the United Nations Sustainable Development goals. There are 17 Sustainable Development Goals (SDGs), which were developed as a call to action by all countries developed and developing in a global partnership. The SDGs serve as a blueprint to achieve a better and more sustainable future for all. During the quarter Avino focused on the following: Infrastructure, Environment and Quality Education.

Through our commitment to achieve a brighter future for all, the Company reinforces its commitment to the local citizens, our personnel and their families.

Avino considers the communities near the heart of our operations to be central to the success of our mining projects.

Mexican nationals account for 100% of our mine work force. Currently, we have 471 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area.

The earnings should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the corresponding period, which can be viewed on the Company’s website at www.avino.com, or on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov.

Second Quarter 2024 Highlights

Second Quarter 2024 Financial Highlights

• Revenues of $14.8 million, an increase of 60% from Q2 2023
• Gross Profit (mine operating income) of $4.7 million, $5.9 million net of non-cash costs of sales
• Net income of $1.2 million, or $0.01 per share
• Adjusted earnings3 of $4.3 million, or $0.03 per share
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)3 of $3.4 million
• Cash costs per silver equivalent payable ounce sold1,2,3 of $16.29
• All in sustaining cash costs per silver equivalent payable ounce sold1,2,3 of $22.74

1. In Q2 2024, AgEq was calculated using metal prices of $28.42 per oz Ag, $2,331 per oz Au and $4.40 per lb Cu. In Q2 2023, AgEq was calculated using metals prices of $24.18 oz Ag, $1,978 oz Au and $3.85 lb Cu. In Q2 2023, For YTD 2024 AgEq was calculated using metal prices of $26.62 per oz Ag, $2,252 per oz Au and $4.18 per lb Cu. For YTD 2023 AgEq was calculated using metal prices of $23.37 oz Ag, $1,933 oz Au and $3.95 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

2nd Quarter 2024 Highlights La Preciosa

La Preciosa Stockpiles:

• During the quarter, almost 10,000 tonnes were processed from the La Preciosa surface stockpiles in Circuits 1 and 2, which produced a saleable high-grade concentrate.
• La Preciosa Progress: Following the signing of the long-term land use agreement with a local community on January 9th, 2024, the application for the Environmental Permit was submitted by the Company to the relevant authorities. Following feedback received in Q2 2024, the Company’s response has been re-submitted with minor modifications. A further permit application will be submitted shortly after receipt of the Environmental Permit, which is required to commence the construction of the portal, haulage ramp, and the mining of the Gloria and Abundancia veins. Recent photos from the La Preciosa property can be viewed on our website by clicking here. 

Production In line with Expectations

• Silver equivalent production of 629,302 ounces is within our guidance range and the Company remains on track with our targeted full year production of 2.5M to 2.8M silver equivalent ounces.

2024 Capital Expenditures

Capital expenditures to date for 2024 were $3.3 million, compared to $5.6 million in the first half of 2023, which is within the range previously disclosed in the Avino 2024 Outlook press release which can be found here on the Company’s website.

ESG Initiatives

Avino follows the ESG Standards and the United Nations Sustainable Development goals. There are 17 Sustainable Development Goals (SDGs), which were developed as a call to action by all countries developed and developing in a global partnership. The SDGs serve as a blueprint to achieve a better and more sustainable future for all. During the quarter Avino focused on the following: Good Health and Wellbeing, Quality Education, Gender Equality, and Industry, Innovation and Infrastructure.

Through our commitment to achieve a brighter future for all, the Company reinforces its commitment to the local citizens, our personnel and their families.

Avino considers the communities near the heart of our operations to be central to the success of our mining projects.

Mexican nationals account for 100% of our mine work force. Currently, we have 479 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area.

First Quarter 2024 Highlights

First Quarter 2024 Financial Highlights

• Revenues of $12.4 million
• Gross Profit (mine operating income) of $2.3 million, $3.1 million net of non-cash costs of sales
• Net income of $0.6 million
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)3 of $1.7 million
• Adjusted earnings3 of $2.0 million, or $0.02 per share
• Cash costs per silver equivalent payable ounce sold1,2,3 of $14.89
• All in sustaining cash costs per silver equivalent payable ounce sold1,2,3 of $20.23

1. In Q1 2024, AgEq was calculated using metal prices of $23.36 per oz Ag, $2,072 per oz Au and $3.83 per lb Cu. In Q4 2023, AgEq was calculated using metals prices of $23.23 per oz Ag, $1,977 per oz Au and $3.71 per lb Cu. In Q1 2023, AgEq was calculated using metal prices of $22.56 per oz Ag, $1,888 per oz Au and $4.05 per lb Cu.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

First Quarter 2024 Operational Highlights

La Preciosa

• On February 28, 2024, the Company provided an update on recently completed and ongoing work in connection with La Preciosa. Capital costs for 2024 are expected to be between US$3.0 – US$4.0 million and will include surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins. Avino has the mining equipment necessary to commence operations at La Preciosa. The application for the Environmental Permit has been submitted to the relevant authorities. A further permit application will be submitted shortly after receipt of the Environmental Permit, which is required to commence the construction of the portal, haulage ramp, and the mining of the Gloria and Abundancia veins. Avino anticipates receiving these permits in the coming year. Avino is fully committed to moving this project forward as it factors prominently in the Company’s 5-year growth strategy. Recent photos from the La Preciosa property can be viewed on our website by clicking here.

Production In line with Expectations

• Silver equivalent production of 629,302 ounces is within our guidance range and the Company remains on track with our targeted full year production of 2.5M to 2.8M silver equivalent ounces.

Pre-Feasibility Study – Oxide Tailings Project

On February 5, 2024, the Company announced the completion of the Pre-Feasibility Study (“PFS”) for its Oxide Tailings Project (“OTP”) at the Avino Mine Operations. The completion of the PFS is a key milestone in our growth trajectory.

• The study highlighted Proven and Probable Mineral Reserves, a first in Avino’s 57-year history, of 6.7 Million tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively.
• The OTP is considered one of our 3 catalysts for future growth as a gold and silver production asset.

Dry-Stack Tailings Facility Completed and Operational

• With the rearrangement of our handling of tailings as a result of the completed dry-stack tailings facility, which has been in use for over a year, the prior method of wet tailings deposition is no longer in use. A tab is available on our website that provides further information on our tailings management system along with videos (in English and Spanish) that can be viewed. In addition, a selection of short videos of the facility in operation can be viewed on our Company website, under Videos and Media.

First Quarter 2024 Capital Expenditures

• First quarter capital expenditures company-wide were $2.0 million, compared to $3.8 million in Q1 2023, which is within the range previously disclosed in the Avino 2024 Outlook press release which can be found here on the Company’s website.

ESG Initiatives

• Avino continues to strengthen and cultivate relationships with our local communities and stakeholders, as we aim to contribute in positive and meaningful ways. We consider the communities near the heart of our operations to be central to the success of our mining projects. We strive to enlighten the local youth about the benefits of mining, encouraging them to envision a future where they can pursue meaningful careers close to home. Mexican nationals account for 100% of our mine work force. Currently, we have 490 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area.

Production Highlights – Q1 2024 (compared to Q4 2023)

• Silver equivalent production increased 13% to 629,302 oz
• Silver production increased 12% to 250,642 oz
• Copper production increased 2% to 1.35 million lbs
• Gold production increased 22% to 1,778 oz
• Mill throughput increased 18% to 169,595 tonnes

In Q1 2024, AgEq was calculated using metal prices of $23.36 per oz Ag, $2,072 per oz Au and $3.83 per lb Cu. In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,977 oz Au and $3.71 lb Cu. In Q1 2023, AgEq was calculated using metal prices of $22.56 per oz Ag, $1,888 per oz Au and $4.05 per lb Cu.

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Operations - 2023

Fourth Quarter and Year End 2023 Highlights

Fourth Quarter 2023 Financial Highlights

• Revenues of $12.5 million
• Mine operating income of $2.6 million, $3.6 million net of non-cash costs of sales
• Net Income of $0.6 million
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)3 of $1.1 million
• Adjusted earnings3 of $2.0 million
• Cash costs per silver equivalent ounce payable sold1,2,3 of $15.04
• All in sustaining cash costs per equivalent payable ounce sold1,2,3 of $21.67

Full Year 2023 Financial Highlights

• Revenues of $43.9 million
• Mine operating income of $7.8 million, $11.1 million net of non-cash costs of sales
• Net Income of $0.5 million
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)3 of $2.5 million
• Adjusted earnings3 of $4.6 million
• Cash costs per silver equivalent payable ounce sold1,2,3 of $15.61
• All in sustaining cash costs per silver equivalent payable ounce sold 1,2,3 of $21.87 
• Cash of $2.7 million at December 31, 2023
• Working capital 3 of $9.7 million at December 31, 2023

1. In Q4 2023, AgEq was calculated using metals prices of $23.50 oz Ag, $1,994 oz Au and $3.72 lb Cu. In Q4 2022, AgEq was calculated using metals prices of $21.18 oz Ag, $1,729 oz Au and $3.63 lb Cu. For YTD 2023, AgEq was calculated using metals prices of $23.46 oz Ag, $1,953 oz Au and $3.83 lb Cu. For YTD 2022, AgEq was calculated using metal prices of $21.75 oz Ag, $1,801 oz Au and $4.00 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted earnings, adjusted earnings per share, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Fourth Quarter and Full Year Highlights

La Preciosa

• On February 28, 2024, the Company provided an update on recently completed and ongoing work in connection with La Preciosa. Capital costs for 2024 are expected to be between US$3.0 – US$4.0 million and will include surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins. Avino already has the mining equipment necessary to commence operations at La Preciosa. The application for the Environmental Permit has been submitted by the Company to the relevant authorities. A further permit will be submitted shortly after receipt of the Environmental Permit, which is required to commence the construction of the portal, haulage ramp, and the mining of the Gloria and Abundancia veins. Avino anticipates receiving these permits sometime in 2024. Avino is fully committed to moving this project forward as it factors prominently in the Company’s 5-year growth strategy. Recent photos from the La Preciosa property can be viewed on our website by clicking here.

Consistent Production Results at Avino: 

• Silver equivalent production was steady although 27% lower compared to Q4 2022 and 9% lower compared to full year 2022. Overall production was impacted by mining in lower grade areas. Although grades were lower in 2023, we did see positive increases as we moved into other blocks of the mine in the fourth quarter. 2023 planned production levels for 2024, both the Avino Mine and stockpiles from La Preciosa will be 700,000 – 750,000 tonnes for mill processing. Targeted full year production between 2.5M and 2.8M silver equivalent ounces.

Pre-Feasibility Study – Oxide Tailings Project

• On February 5, 2024, the Company announced the completion of the Pre-Feasibility Study (“PFS”) for its Oxide Tailings Project (“OTP”) at the Avino Mine Operations. The completion of the PFS is a key milestone in our growth trajectory.
• The study highlighted Proven and Probable Mineral Reserves, a first in Avino’s long history, of 6.70 Million tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively.
• The OTP is considered one of our 3 catalysts for growth as a future gold and silver production asset.

2023 Drill Programs - Announced Exceptional Drill Results

Avino completed its planned and budgeted drilling program for 2023 by drilling 7,545 metres in 13 drill holes. Thisincluded the best intercept in Avino’s 55-year history and was announced on July 5, 2023. Our team of geologists are implementing recommendations made by our consulting structural geologists to further study the potential of the entire mineralization. Drilling news releases for the year can be found in these links: January 5, 2023, May 23, 2023, July 5, 2023, and September 14, 2023.

Avino Exploration and Evaluation for 2024

The Company’s budgeted exploration and evaluation expenditures for 2024 will be focused on regional exploration and further understanding of the structural geology below the current Avino Mine production area, with no drilling planned. The Company’s priority is to move La Preciosa forward to development and production.

Dry-Stack Tailings Facility

The facility has been fully operational for a year. The conveyor system is installed and is currently transporting the pressed dry residues to the disused Avino open pit area. A tab is now available on our website that provides further information on our tailings management system along with videos (in English and Spanish) that can be viewed. In addition, a selection of short videos of the facility in operation can be viewed on our Company website, under Videos and Media.

Capital Expenditures

Fourth quarter capital expenditures company-wide were $1.1 million, bringing the year-to-date total to $8.5 million, compared to just under $9.0 million for the full year 2022 and 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 on the Avino Property.

ESG Initiatives

Avino continues to strengthen and cultivate relationships with our local communities and stakeholders as it is our goal to contribute in positive and meaningful ways. We view the communities near the core of our operations as being indelibly at the center of successful mining projects. With recent additions to our Community Relations team in Durango, our energy has been directed towards supporting education in the local schools. Our ambition is to educate a younger population in their backyard, to encourage them to see the benefits of mining, and allow them to dream of a future where they can have a real career close to home. Mexican nationals account for 100% of our mine work force. Currently, we have 448 direct jobs which includes the workers at the mine site and in our Durango offices. This translates to approximately 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area. After working diligently towards obtaining an ESR designation in 2022, the team in Durango has received this designation for the second time in August 2023, and is currently working on repeating this distinction.

Production Highlights – Q4 2023

• Silver equivalent production was 558,460 oz1
• Silver production was 224,743 oz
• Copper production was 1.3 million lbs
• Gold production to 1,452 oz
• Mill throughput was 143,798 tonne

In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,977 oz Au and $3.71 lb Cu. In Q4 2022, AgEq was calculated using metals prices of $21.18 oz Ag, $1,729 oz Au and $3.63 lb Cu. For FY 2023, AgEq was calculated using metals prices of $23.39 oz Ag, $1,943 oz Au and $3.85 lb Cu. For FY 2022, AgEq was calculated using metal prices of $21.75 oz Ag, $1,801 oz Au and $4.00 lb Cu

Third Quarter 2023 Highlights

Third Quarter 2023 Financial Highlights

• Revenues of $12.3 million, increase of over $3 million from both Q1 and Q2 2023
• Mine operating income of $2.4 million, $3.1 million net of non-cash costs of sales
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) ³ of $0.7 million
• Adjusted earnings³ of $1.6 million, or $0.01 per share
• Net loss of $0.8 million, or $0.01 per share, driven by non-cash items
• Cash costs per silver equivalent payable ounce sold^1,2 - $16.90 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 - $22.69 per ounce
• Cash generated by operating activities (pre working capital adjustments) of $1.8 million
• Working capital of $7.4 million, up $2.8 million from June 30, 2023

1. In Q3 2023, AgEq was calculated using metals prices of $23.26 oz Ag, $1,927 oz Au and $3.80 lb. Cu. In Q3 2022, AgEq was calculated using metals prices of $19.32 oz Ag, $1,734 oz Au and $3.51 lb. Cu. For YTD 2023, AgEq was calculated using metals prices of $23.46 oz Ag, $1,942 oz Au and $3.87 lb. Cu. For YTD 2022, AgEq was calculated using metal prices of $22.05 oz Ag, $1,856 oz Au and $4.10 lb. Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted earnings, adjusted earnings per share, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Third Quarter Operational 2023 Highlights

Consistent Production at Avino

• The silver equivalent production was steady albeit lower compared to Q3 2022 and decreased by 24% to 591,208 ounces. Based on year-to-date production and the current timeline associated with processing the surface material from La Preciosa, the Company adjusted its internal production estimate to 2.4 – 2.7 million silver equivalent ounces for 2023.

Avino Announced Continuing Exceptional Drill Results

• On September 14, 2023, the Company released the results of a further four holes from below Level 17, the current deepest workings at the Elena Tolosa (“ET”) area of the Avino system. These latest deep step-out holes test the SW extent of the robust Avino vein and one infill hole was drilled to confirm local continuity. The current drilling follows the continuity of the steeply dipping mineralization and aids in understanding the deep source of the mineralization. Geological modelling is ongoing to determine the potential geometry and controls of the mineralization.

• Avino has completed its planned and budgeted drilling program for the year by drilling 7,545 metres in 13 drill holes. The team of geologists on site are implementing the recommendations made by our consulting structural geologists to further study the potential of the entire mineralization and formulate exploration plans and budget for 2024.

Avino Announced Best Drill Intercept in Company History

• On July 5, 2023, the Company released the results of three holes from below Level 17, the current deepest workings at the Elena Tolosa (“ET”) area of the Avino system. Drill Hole ET-23-09 showed 57 metres true width of mineralization and is a step-out 50 metres to the west of Avino’s most westerly drill hole at 200 metres downdip below Level 17. This mineralized intercept is exceptionally wide and has very high silver, gold and copper grades. The vein system continues to be open along strike and at depth.

Dry-Stack Tailings Facility

• The facility has been fully operational for a year. The conveyor system is installed and is currently transporting the pressed dry residues to the Avino open pit area. A tab is now available on our website that provides further information on our tailings management system, along with videos (in English and Spanish) from the mine site that can be viewed. In addition, a selection of short videos of the facility in operation can be viewed on our company website, under Videos and Media

La Preciosa

• The Company is conducting community engagement in the nearby towns adjacent to the property, and the Environmental Permit is being prepared in parallel with the engagement process. We will provide further updates as plans develop. Avino is fully committed to moving this project forward as it factors prominently in the Company’s 5-year growth strategy.

Production Highlights – Q3 2023 

• Silver equivalent production was 591,208 oz
• Silver production was 237,165 oz
• Copper production was 1.14 million lbs
• Gold production increased 73% to 2,077 oz
• Mill throughput increased by 33% to was 154,507 tonnes

In Q3 2023, AgEq was calculated using metals prices of $23.57 oz Ag, $1,929 oz Au and $3.79 lb Cu. In Q3 2022, AgEq was calculated using metals prices of $19.22 oz Ag, $1,720 oz Au and $3.51 lb Cu. For YTD 2023, AgEq was calculated using metals prices of $23.44 oz Ag, $1,932 oz Au and $3.90 lb Cu. For YTD 2022, AgEq was calculated using metal prices of $21.94 oz Ag, $1,825 oz Au and $4.12 lb Cu.

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Second Quarter 2023 Highlights

Second Quarter 2023 Financial Highlights

• Revenues of $9.2 million, impacted by lower concentrate sales
• Mine operating income of $1.0 million, $1.8 million net of non-cash costs of sales
• Net income of $1.1 million, or $0.01 per share
• Cash costs per silver equivalent payable ounce sold1,2 - $16.33 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold1,2 - $23.06 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) 3 of $0.4 million
• Adjusted earnings3 of $0.03 million, or $Nil per share
• Cash provided by operating activities of $1.2 million, $0.5 million after working capital changes

1. In Q2 2023, AgEq was calculated using metals prices of $24.18 oz Ag, $1,978 oz Au and $3.85 lb Cu. In Q2 2022, AgEq was calculated using metals prices of $22.64 oz Ag, $1,873 oz Au and $4.32 lb Cu. For YTD 2023, AgEq was calculated using metals prices of $23.37 oz Ag, $1,933 oz Au and $3.95 lb Cu. For YTD 2022, AgEq was calculated using metal prices of $23.29 oz Ag, $1,873 oz Au and $4.43 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce,. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Second Quarter Operational 2023 Highlights

Avino Drills Best Intercept in Company History

• On July 5, 2023, and subsequent to the end of Q2, the Company released the results of three holes from below Level 17, the current deepest workings at the Elena Tolosa (“ET”) area of the Avino system. Drill Hole ET-23-09 showed 57 metres true width of mineralization and is a step-out 50 metres to the west of Avino’s most westerly drill hole at 200 metres downdip below Level 17. This mineralized intercept is exceptionally wide and has very high silver, gold and copper grades. The vein system continues to be open along strike and at depth.

Metallurgical Testing Completed at the Oxide Tailings Project

• On April 5, 2023, Avino announced metallurgical results from the testwork program that was completed and will form the basis of the metallurgical analysis in 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. These results also build on the studies in the 2017 Preliminary Economic Assessment (“PEA”) and increase the level of confidence in the Project through the extensive testwork completed. In the recent update, The Oxide Tailings mineral resource was increased by 407% in the measured and indicated categories to total 5.7 million tonnes, and an increase of 287% to the silver equivalent ounces resulting in 17.4 million.

Steady Production at Avino

• Silver equivalent production of 587,317 ounces is another consistent quarter of mining operations. Production decreased when compared to recent quarters, primarily due to mine sequencing of certain lower grade zones of the Avino Mine along with supply chain issues for some maintenance parts that affected recovery in the mill.

Released ET Area Drilling Results – Avino Vein Extends a Further 500 Metres:

• On May 23, 2023, Avino announced drill results from ten (10) drill holes at the Avino Elena Tolosa (“ET”) area below the current deepest workings at the mine. These drill results show the Avino Vein to extend a further 500 metres downdip of the lowest mining level. This exploration program is designed to test the continuity and to improve our understanding of the potential for deeper mineralization. As a result, the Avino Vein is now known to extend 1,100 metres downdip from surface outcrop. Additionally, a previously undiscovered breccia vein was intersected approximately 15 to 30 metres below the Avino Vein in the football intrusive rocks. For further details, see the “Exploration” section in this MD&A.

Dry-Stack Tailings Facility Completed and Operational

• Avino’s tailings management system is based on our commitment to safety and environmental stewardship. We approach our tailings management with respect for the people in our communities and the environment. When we consider our environmental approach, we strive to meet or exceed expectations while being guided by best practice standards globally. For those reasons we selected dry stack and constructed a dry stack tailings facility which is now complete and fully operational. The conveyor system is installed and is currently transporting the pressed dry tailings to the Avino open pit area. A tab is now available on our website that provides further information on our tailings management system, along with a video (in Spanish) from the minesite that can be viewed.  In addition, a selection of short videos of the facility in operation can be viewed under Videos and Media.

La Preciosa

• The Company is conducting community engagement in the nearby towns adjacent to the property, and we are currently preparing the Environmental Permit for submission. We will provide further updates as plans develop. Avino is fully committed to moving this project forward as it factors prominently in the Company’s 5-year growth strategy.

Production Highlights – Q2 2023 (Compared to Q2 2022)

• Silver equivalent production decreased 10% to 587,317 oz
• Silver production increased 3% to 232,417 oz
• Copper production decreased 12% to 1.45 million lbs
• Gold production increased 13% to 1,520 oz
• Mill throughput increased by 33% to 157,371 tonnes

In Q2 2023, AgEq was calculated using metals prices of $24.18 oz Ag, $1,978 oz Au and $3.85 lb Cu. In Q2 2022, AgEq was calculated using metals prices of $22.64 oz Ag, $1,873 oz Au and $4.32 lb Cu. For YTD 2023, AgEq was calculated using metals prices of $23.37 oz Ag, $1,933 oz Au and $3.95 lb Cu. For YTD 2022, AgEq was calculated using metal prices of $23.29 oz Ag, $1,873 oz Au and $4.43 lb Cu.

First Quarter 2023 Highlights

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

1. In Q1 2023, AgEq was calculated using metals prices of $22.56 oz Ag, $1,888 oz Au and $4.05 lb Cu. In Q4 2022, AgEq was calculated using metals prices of $21.18 oz Ag, $1,729 oz Au and $3.63 lb Cu. In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu Calculated figures may not add up due to rounding.
2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.
3. The Company reports non-IFRS measures which include adjusted earnings, EBITDA, cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information.

First 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 (“MRE”) includes the Elena Tolosa (“ET”) 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 (“the 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 (“ET”) 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.

Production Highlights – Q1 2023 (Compared to Q1 2022)

• Silver equivalent production increased 48% to 678,247 oz¹
• Silver production increased 43% to 234,338 oz
• Copper production increased 15% to 1.4 million lbs
• Gold production increased 185% to 2,286 oz
• Mill throughput increased by 44% to 159,757 tonnes, a further increase of 5% from Q4 2022

1. In Q1 2023, AgEq was calculated using metal prices of $22.56 per oz Ag, $1,888 per oz Au and $4.05 per lb Cu. In Q1 2022, AgEq was calculated using metal prices of $23.94 per oz Ag, $1,874 per oz Au and $4.53 per lb Cu.

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Operations - 2022

2022 Fourth Quarter and Year End Highlights

Avino Achieves Net Earnings of $3.1 Million in 2022; Record Quarterly & Annual Revenues of $14.6 & $44.2 Million

2022 Fourth Quarter Highlights

• Revenues of $14.6 million
• Mine operating income of $4.4 million, $5.3 million net of non-cash costs of sales
• Net income of $1.3 million, or $0.01 per share
• Cash costs per silver equivalent payable ounce sold^1,2 - $11.76 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 - $18.63 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)³ of $3.2 million
• Adjusted earnings³ of $4.0 million, or $0.03 per share
• Cash provided by operating activities of $3.3 million

Full Year 2022 Highlights

• Revenues of $44.2 million
• Mine operating income of $15.1 million, $17.6 million net of non-cash costs of sales
• Net income of $3.1 million, or $0.03 per share
• Cash cost per silver equivalent payable ounces sold^1,2 - $10.34 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 - $17.91 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)³ of $10.3 million
• Adjusted earnings³ of $10.2 million, or $0.08 per share
• Cash provided by operating activities of $11.8 million

1. In Q4 2022, AgEq was calculated using metal prices of $21.18 oz Ag, $1,729 oz Au, and $3.63 lb Cu. In Q4 2021, AgEq was calculated using metals prices of $23.32 oz Ag, $1,783 oz Au and $4.39 lb Cu. In FY 2022, AgEq was calculated using metal prices of $21.75 oz Ag, $1,801 oz Au and $4.00 lb Cu. In FY 2021, AgEq was calculated using metal prices of $23.84 oz Ag, $1,786 oz Au and $4.32 lb Cu.
Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company’s decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company’s discovery of the San Gonzalo and Avino Mine resources, and in the Company’s record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012.
2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.
3. The Company reports non-IFRS measures which include cash costs per silver equivalent payable ounce, all-in sustaining cash costs per silver equivalent payable ounce, EBITDA, adjusted earnings, adjusted earnings per share, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information.

Fourth Quarter and Full Year Highlights

Closing of Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc. (“Coeur”)

• On March 21, 2022, the Company announced that it has closed the acquisition 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, which has now been paid. Further contingent consideration including cash, royalties and a mineral reserve discovery payment. Currently the company is conducting community engagement in the nearby towns adjacent to the property to move forward with the growth plan.

Beats Yearly Silver Equivalent Production Estimate at Avino; Ramped Up to 3.0 Million AgEq Oz Annualized Production During 2nd Half of 2022

• With over 2.65 million silver equivalent ounces produced during the year, the Company successfully beat the internal annual production estimate of 2.2 to 2.4 million silver equivalent ounces following the restart of mining operations in late 2021.
• 457,798 silver equivalent ounces were produced in Q1 2022, as the Company continued its ramp-up of production. Q1 2022 marked the second full quarter following the restart of operations in August 2021.
• 649,569 silver equivalent ounces were produced in Q2 2022, as the Company continued its ramp-up of production, with a significant increase shown over Q1 2022.
• A record 778,008 silver equivalent ounces were produced in Q3 2022, marking a 20% increase over Q2 2022.
• 770,127 silver equivalent ounces were produced in Q4 2022, which represents second highest production quarter in recent times and inline with Q3 2022 production.

Dry-Stack Tailings Facility Completed

• The installation and commissioning of the dry-stack tailings project has been completed and the facility is now fully operational. Avino chose dry-stack tailings for its environmental, safety and economic advantages. Dry-stack tailings improve the overall tailings facility safety and stability and reduces the need for fresh water by recycling the water contained in the tailings. In addition, dry-stack tailings require less storage area which results in a smaller environmental footprint.

Avino ET Area Drills Higher Grade Silver and Copper in Multiple Holes

• On June 13, 2022, the Company announced drill results from the Avino Elena Tolosa Area (“ET”) to define the continuity of widths and grades of the Avino vein extending significant potential depth of at least 290 metre down dip below the current development, the results confirm the mineralization continues and also contains significantly higher copper mineralization in the ET area. 
• On October 11, 2022, the Company announced drill results from a further six holes at the Avino Elena Tolosa Area (“ET”) to define the continuity of widths and grades of the Avino vein extending significant potential depth of at least 290 metre down dip below the deepest levels of development. The results confirm the mineralization continues and also contains significantly higher copper mineralization in the ET area. 
• On January 5, 2023, the Company announced assays results showing the Avino vein now extending 315 metres below the deepest level 17 mining area demonstrating the Avino vein is getting richer in copper. 

Working Capital and Liquidity at December 31, 2022

• The Company’s cash balance at December 31, 2022, totaled $11.2 million compared to $24.8 million at December 31, 2021. Working capital totaled $8.8 million at December 31, 2022, compared to $31.6 million at December 31, 2021.

Production Highlights – Q4 2022 (Compared to Q4 2021)

• Silver equivalent production increased 42% to 770,127 oz¹
• Silver production increased by 89% to 309,856 oz
• Copper production increased by 37% to 1.5 million lbs
• Gold production increased by 12% to 2,426 oz
• Mill throughput increased by 45% to 150,292 tonnes

1. In Q4 2022, AgEq was calculated using metal prices of $21.18 per oz Ag, $1,729 per oz Au and $3.63 per lb Cu. In Q4 2021, AgEq was calculated using metal prices of $23.32 per oz Ag, $1,783 per oz Au and $4.39 per lb Cu. In 2022, AgEq was calculated using metal prices of $21.75 per oz Ag, $1,801 per oz Au and $4.00 per lb Cu. In 2021, AgEq was calculated using metal prices of $23.84 per oz Ag, $1,786 per oz Au and $4.32 per lb Cu.

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2022 Third Quarter Highlights

Third Quarter 2022 Financial Highlights

• Revenues of $9.1 million
• Mine operating income of $2.1 million, $2.6 million net of non-cash depreciation and depletion
• Net loss of $1.1 million, or $0.01 per share
• Cash costs per silver equivalent payable ounce sold^1,2 - $10.29 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 - $17.32 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)³ of $0.2 million
• Adjusted earnings³ of $0.4 million, or $0.003 per share
• Operating cash flows (before working capital changes) of $1.6 million, or $0.01 per share³
• Avino Achieves a Quarterly Record 778,008 oz of Silver Equivalent Production in Q3 2022; a 20% Increase over Q2 2022

1. In Q3 2022, AgEq was calculated using metals prices of $19.32 oz Ag, $1,734 oz Au and $3.51 lb Cu. In Q3 2021, AgEq was calculated using metals prices of $24.36 oz Ag, $1,789 oz Au and $4.25 lb Cu. For YTD 2022, AgEq was calculated using metal prices of $22.05 oz Ag, $1,856 oz Au, and $4.10 lb Cu. For YTD 2021, AgEq was calculated using metals prices of $24.36 oz Ag, $1,789 oz Au and $4.25 lb Cu.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include EBITDA, adjusted earnings, adjusted earnings per share, cash flow per share and working capital . These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information.

Third Quarter 2022 Highlights

Record Quarterly Production at Avino

• A record 778,008 silver equivalent ounces were produced in Q3 2022, marking a 20% increase over Q2 2022. Q3 2022 marks the fourth full quarter following the restart of operations in August 2021.

Avino ET Area Drills High Grade Silver and Copper in Multiple Holes

• On October 11, 2022, Avino announced further drill results from the Avino Elena Tolosa (“ET”) area below the current Level 17 mining area. These drill results continue to confirm the downdip continuity of widths and grades of the Avino vein extending significant potential to a depth of at least 290 metres down dip below the deepest levels of development. The results confirm the mineralization continues and also contains significantly higher copper mineralization in the ET area.

Commissioning of Dry-Stack Tailings Facility

• During Q3 2022, the Company completed construction of the dry-stack tailings facility and is currently processing 100% of its tailings through the facility.

Working Capital & Liquidity at September 30, 2022

• The Company’s cash balance at September 30, 2022, totaled $10.9 million compared to $24.8 million at December 31, 2021 and $22.3 million at September 30, 2021. Working capital totaled $12.3 million at September 30, 2022, compared to $31.6 million at December 31, 2021 and $28.9 million at September 30, 2021.

Production Highlights - Q3 2022 (Compared to Q2 2022¹)

• Silver Equivalent produciton increased 20% to 778,008 oz²
• Silver production increased by 27% to 285,44 oz
• Copper production increased by 28% to 2.1 million lbs
• Gold production decreased by 11% to 1,201 oz
• Mill throughput increased by 37% to 162,169 tonnes

1. Q2 2022 was the most recent three-month period of consolidated production and is most appropriate for comparison purposes, as there was limited production for Q3 2021. Full Year 2021 was used as a comparison for YTD 2022, as it includes the most recent 9 month period of production prior to 2022.

2. In Q3 2022, AgEq was calculated using metals prices of $19.22 per oz Ag, $1,729 per oz Au and $3.51 per lb Cu. In Q2 2022, AgEq was calculated using metals prices of $22.64 per oz Ag, $1,873 per oz Au and $4.32 per lb Cu. In YTD 9M 2022, AgEq was calculated using metal prices of $21.94 per oz Ag, $1,825 per oz Au and $4.12 per lb Cu. In FY 2021, AgEq was calculated using metal prices of $23.84 per oz Ag, $1,786 per oz Au and $4.32 per lb Cu.

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2022 Second Quarter Highlights

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 amortization (“EBITDA”)¹ 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

1. The Company reports non-IFRS measures which include EBITDA, adjusted earnings, adjusted earnings per share, cash flow per share, working capital and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Second 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.

Production Highlights - Q2 2022 (Compared to Q1 2022¹)

• Silver equivalent production increased 42% to 649,569 oz²
• Silver production increased by 37% to 225,537 oz
• Copper production increased by 35% to 1.6 million lbs
• Gold production increased by 69% to 1,350 oz
• Mill throughput increased by 6% to 118,224 tonnes

1. Q1 2022 & H2 2021 were the most recent three- and six-month periods of consolidated production and is most appropriate for comparison purposes, as there was no production for Q1, Q2 or H1 2021.

2. In Q2 2022, AgEq was calculated using metals prices of $22.64 oz Ag, $1,873 oz Au and $4.32 lb Cu. In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu. In H2 2022, AgEq was calculated using metal prices of $23.29 oz Ag, $1,873 oz Au and $4.43 lb Cu. In H2 2021, AgEq was calculated using metal prices of $23.84 oz Ag, $1,786 oz Au and $4.32 lb Cu.

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2022 First Quarter Highlights

First Quarter 2022 Financial Highlights

• Record revenues of $11.1 million
• Record mine operating income of $4.7 million, $5.2 million net of non-cash depreciation and depletion
• Net income of $0.6 million, or $0.01 per share
• Cash costs per silver equivalent payable ounce sold¹ - $11.81 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold¹ - $19.90 per ounce
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ of $2.8 million
• Adjusted earnings¹ of $3.4 million, or $0.03 per share
• Operating cash flows (before working capital changes) of $3.7 million, or $0.03 per share¹

^{1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted earnings, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section of the MD&A for further information and detailed reconciliations.}

First Quarter 2022 Highlights

Strong Q1 2022 Financial Performance with Record Revenues and Mine Operating Income

• Record revenues and mine operating income, with revenues of $11.1 million and mine operating income of $4.7 million, earnings per share of $0.01 and operating cash flow generated (pre-working capital adjustments) per share of $0.03.

Closing of Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc. (“Coeur”)

• On March 21, 2022, the Company announced that it has closed the acquisition 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, consisting of $15.3 million cash and the remaining in equity on closing, and $5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment.

La Potosina Exploration Results Continue to Impress

• On March 9, 2022, the Company announced drill results from the La Potosina area of the Avino property, including 668 g/t AgEq over 2.95 metres. These results are following up on historic results from 2011, which included 2,737 g/t AgEq over 0.40 metres.

Advanced the Oxide Tailings Project

• With the release of the results from the 110 drill-hole program, the Company is moving forward with a comprehensive metallurgical testwork program to progress this project to the next phase of development.

Working Capital & Liquidity at March 31, 2022

• The Company’s cash balance at March 31, 2022, totaled $11.7 million compared to $24.8 million at December 31, 2021. Working capital totaled $14.5 million at March 31, 2022, compared to $31.6 million at December 31, 2021. Both of these figures have increased on a net basis following the upfront consideration payment of $15.3 million and addition of $5 million note payable to Coeur for the acquisition La Preciosa.

Production Highlights - Q1 2022 (Compared to Q4 2021)

Q1 2022 came from the Avino Mine only. The Company is not expecting to process any Historical Above Ground Stockpiles at this time.

• Silver equivalent production decreased 15% to 457,798 oz*
• Silver production remained constant at 164,358 oz
• Copper production increased by 8% to 1.2 million lbs
• Gold production decreased by 66% to 801 oz
• Mill throughput increased by 7% to 111,138 tonnes

*In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu. In Q4 2021, AgEq was calculated using metals prices of $23.32 oz Ag, $1,783 oz Au and $4.40 lb Cu.

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Why is the Avino Property so unique?                                                                                                                                                       

• There are 20 named veins on the property
• Over 50 additional veins on the property
• On the edge of a caldera
• Structurally controlled
• Multiple conduits for mineralization
• Geological window of exposed older host rocks
• Composite vein sets with different composition
• Bulk veins, narrow vein, gold, silver and copper
• An abundance of potential exploration targets

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Qualified Person(s)

Avino’s Mexican projects are under the supervision of 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 herein.

Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company’s decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company’s discovery of the San Gonzalo resource, and in the Company’s record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012. This approach is being applied for the advancement of the Avino Mine project, for which similar risks and uncertainties have been identified.