Mr. Malcolm Davidson reports

AVINO REPORTS EARNINGS FOR FIRST QUARTER OF COMMERCIAL PRODUCTION AND RELEASES YEAR 2012 FINANCIAL RESULTS

Avino Silver & Gold Mines Ltd. has released its earnings for its first quarter of commercial production (the fourth quarter of 2012) and released its audited consolidated financial statements for the 2012 fiscal year (all figures are in Canadian dollars unless otherwise specified). The information in this news release should be read in conjunction with the company's audited consolidated financial statements for the year ended Dec. 31, 2012, and associated management discussion and analysis, which are available on the company's website and under the company's profile on SEDAR.

"We are very pleased to report earnings for the fourth quarter 2012, our first quarter of commercial production, at our San Gonzalo mine. This milestone is particularly satisfying given the environment of declining metal prices and uncertainty in the current markets," stated Malcolm Davidson, chief financial officer. "Further, this was achieved by selling just two months of production while incurring fully three months of general and administration expenses and other items. During the transition from the exploration to production stage, there were many costs that were expensed instead of capitalized, diminishing reported earnings. Now that we have completed this transition, we expect the increased efficiencies will improve the profitability of our operations."

2012 fourth quarter financial and operational highlights (i)

• Revenues reported for the quarter -- $2,255,376;
• Mine operating income -- $820,807;
• General and administrative expenses -- $889,152;
• Earnings before income taxes -- $443,981;
• Earnings for the period -- $176,660;
• Earnings per share, basic and diluted -- one cent;
• Processed ore for the fourth quarter of 2012 was 19,539 tonnes;
• Silver ounces sold for the fourth quarter of 2012 was 107,850;
• Gold ounces sold for the fourth quarter of 2012 was 413;
• Cash cost per equivalent silver ounce was $14.22;
• Ore stockpile and concentrate inventory value at Dec. 31, 2012, was $2,016,832.

(i) On Oct. 1, 2012, the company commenced commercial production at its San Gonzolo mine. The Dec. 31, 2012, consolidated financial statements reflect the revenues and related cost of sales for production produced and sold for October and November, 2012, only. December, 2012, production is included in the balance of inventory at Dec. 31, 2012, in accordance with the company's revenue recognition policy. Prior to achieving commercial production, the company received proceeds of $3,490,581 from the sale of bulk concentrate produced from the historic Avino mine stockpiles.

These proceeds were considered incidental revenue earned by the company while it was tuning the mill and preparing for commercial operations, and accordingly, the proceeds were recorded as a reduction in exploration and evaluation assets. This method of account is consistent for exploration-stage companies. Comparative periods have not been presented in this news release as the comparative information is not available, or is it relevant as the company was in the exploration stage during the comparable quarter. The information in this news release should be read in conjunction with the company's audited consolidated financial statements for the year ended Dec. 31, 2012, and associated management discussion and analysis.

Outlook

The company's primary focus for the 2013 fiscal year is to improve and strengthen the operational efficiency and manage costs of the San Gonzalo mine operation.

Management remains focused on the following key objectives:

1. Increase profitable mining operations at San Gonzalo by decreasing operating costs and improving efficiency;
2. Increase mill throughput using the new circuit that went on line in April, 2013 (see news release dated April 29, 2013);
3. Develop the Avino mine for commercial production commencing in 2014;
4. Continue to review and develop plans to process the oxide tailings resource from historic milling operations (preliminary economic assessment issued in 2012);
5. Continue to explore regional targets on the property and consider acquisition opportunities.

We seek Safe Harbor.