Avino Mine

Avino Mine, Mexico

Operations - 2023

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 sold^1,2 - $16.33 per ounce
• All in sustaining cash cost per silver equivalent payable ounce sold^1,2 - $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.

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.

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.

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.

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.

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

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.