Mr. David Wolfin reports

AVINO ANNOUNCES IMPLEMENTATION OF SHAREHOLDER RIGHTS PLAN

Avino Silver & Gold Mines Ltd.'s board of directors has approved and adopted a shareholder rights plan. The plan entitles shareholders to severable rights to purchase additional shares of the company upon the occurrence of a takeover bid (that is, an offer to purchase 20 per cent or more of the issued shares, when aggregated with the offeror's shareholdings), which fails to meet certain conditions. Bids which meet these conditions do not trigger the rights to purchase additional shares. Permitted bids are offers which meet all of the following conditions:

1. The offer is made to all shareholders and includes shares issuable upon exercise of share purchase warrants, stock options and other convertible securities.
2. The offer must contain an irrevocable and unqualified provision that no shares will be taken up or paid for prior to the close of business on a date fewer than 60 days following the date of the bid and only if, at such date, more than 50 per cent of the shares held by independent shareholders have been deposited or tendered and not withdrawn.
3. The offer must contain an irrevocable and unqualified provision that any share deposited may be withdrawn at any time until being taken up and paid for.
4. The offer must contain an irrevocable and unqualified provision that, if the deposit conditions set out in item 2 are met, then the offeror will make a public announcement of that fact, and the bid will remain open for deposits or tenders of additional shares for not fewer than 10 business days from the date of the public announcement.

The plan is designed to ensure that all shareholders are treated fairly and equitably in the event of a takeover bid.

The plan is subject to the acceptance of regulatory authorities, ratification by the shareholders of the company and the acceptance of the rights agent.

We seek Safe Harbor.