Mr. David Wolfin reports

AVINO DOUBLES PROCESSING CAPACITY TO 500 TONNES PER DAY WITH SECOND CIRCUIT

Avino Silver & Gold Mines Ltd. has completed installation and testing on the new 250-tonne-per-day (tpd) circuit at its processing facility located on the Avino property near Durango, Mexico.

The new circuit was commissioned on April 11, 2013, and is currently being used to process historic surface stockpiled material left from past mining of the main Avino vein. The company expects the stockpiles will provide enough mill feed for approximately seven months of operations. During the third quarter of 2012, circuit 1 (250 tonnes per day) produced 50,074 ounces of silver equivalent (calculated) from the same stock piles; Avino expects output will be similar from circuit 2. After the historic stockpiles have been depleted, the new circuit will have the ability to process additional mill feed from the San Gonzalo and Avino mines as they are developed at depth. The circuit could also be used for toll milling and to potentially process material from other high-priority targets elsewhere on the property once further exploration and development has been completed.

Estimated and rounded data from the first week of production are as follows:

• Average daily throughput: 205 tonnes per day;
• Average feed grades: 85 grams per tonne (g/t) silver (Ag), one g/t gold (Au);
• Metallurgical recoveries: 67 per cent for silver and 54 per cent for gold;
• Concentrate grades: 3,600 g/t silver and 32 g/t gold.

Circuit 2 brings the current processing capacity at the plant to 500 tpd. Avino plans to further expand the plant to 1,500 tpd with the recommissioning of an additional 1,000 tpd circuit to be completed in 2014 which will be used to treat new material from the historic main Avino mine.

In order to start production next year, the Avino mine is currently being dewatered. New underground earth moving machinery will be acquired and financed through Caterpillar using a $5-million credit facility announced in December, 2012 (see news release dated Dec. 20, 2012)

We seek Safe Harbor.