Mr. David Wolfin reports

AVINO REPORTS Q1 2016 FINANCIAL RESULTS

Avino Silver & Gold Mines Ltd. has released the consolidated financial results for the company's first quarter ended March 31, 2016. The financial statements and management's discussion and analysis can be viewed on the company's website, on SEDAR and on EDGAR.

First quarter 2016 highlights:

• Generated revenues of $2,751,949 from the sale of San Gonzalo concentrates;
• Mine operating income amounted to $1,775,185;
• Net income after taxes amounted to $58,046;
• Produced 715,933 silver equivalent ounces, including 403,447 ounces of silver, 1,497 ounces of gold and 1,350,912 pounds of copper;
• Consolidated all-in sustaining cost (AISC) (2) was $11.29 ($8.22 (U.S.)) per payable silver equivalent ounce, a 9-per-cent decrease compared with $12.36 ($10.09 (U.S.)) per ounce in the first quarter of 2015;
• Total consolidated cash (2) cost was $5.64 per payable silver ounce;
• Average realized selling prices for silver and gold were $16.42 (U.S.) and $1,194 (U.S.) per ounce, respectively;
• Cash and cash equivalents of $6,022,283 were on hand at the end of the quarter.

"We are pleased to have delivered another quarter of positive operating and financial results. Our revenues from the San Gonzalo mine were lower than expected due to a new sales arrangement, which resulted in only two months of sales. Going forward, each quarter will reflect three months of sales and related production costs. Our teams in Mexico and Canada have done an excellent job of monitoring and reducing costs. With stronger metal prices, we anticipate improved profitability in future periods. During the quarter, we achieved a consolidated all-in sustaining cash cost of $11.29 ($8.22 (U.S.)) compared to $12.36 ($10.09 (U.S.)) per silver equivalent ounce in the first quarter of 2015. In April, 2016, the company commenced underground mining using the long-hole caving method at the Avino mine. Management is currently analyzing the economics of the new mining method and is optimistic that the results will lead to a commercial production decision in the coming months," said David Wolfin, president, chief executive officer and director.

                            OVERALL PERFORMACE AND HIGHLIGHTS 
Highlights                                                      First quarter 2016      First quarter 2015

Operating

Tonnes milled                                                              140,116                 114,453
Silver ounces produced                                                     403,447                 363,210
Gold ounces produced                                                         1,497                   1,750
Copper pounds produced                                                   1,350,912                 872,884
Silver equivalent ounces (1) produced                                      715,933                 627,058

Consolidated San Gonzalo and historical stockpiles

Silver equivalent ounces (1) sold                                          155,507                 253,194
Cash cost per silver equivalent ounce (1, 2)                                 $5.64                   $8.60
All-in sustaining cost per silver equivalent ounce (1, 2)                   $11.29                  $12.36
Average realized silver price per ounce ($U.S.) (1)                         $16.42                  $16.22
Average realized gold price per ounce ($U.S.) (1)                           $1,194                  $1,188

Financial

Revenues -- San Gonzalo                                                 $2,751,949              $4,285,541
Mine operating income -- San Gonzalo                                    $1,775,185              $2,087,856
Net income                                                                 $58,046                $376,287

Financial results

The company generated revenues of $2,751,949 during the first quarter of 2016; a 36-per-cent decrease compared with the first quarter of 2015. The decrease was due to a new sales agreement for sale of San Gonzalo mine concentrate. The new sales agreement has slightly different shipping, which resulted in the sale of March production being deferred to April, 2016. Accordingly, the first quarter financial figures represent only operations during January and February. This deferral will only occur once, and subsequent quarters will reflect three months or revenues and related production costs.

Mine operating income was $1,775,185 during the first quarter of 2016, a decrease of $312,761 or 15 per cent from $2,087,856 in 2015. During the first quarter of of 2016, net income decreased by $318,241 to $58,046 or nil per share, compared with net income of $376,287 or one cent basic and diluted per share during the corresponding period of 2015.

Operational results

Silver equivalent production for the first quarter of 2016 increased 14 per cent to 715,933 ounces (1) compared with 627,058 ounces in the first quarter of 2015. Silver production for the first quarter of 2016 increased 11 per cent to 403,447 ounces compared with the first quarter of 2015. Gold production for the first quarter of 2016 decreased by 14 per cent to 1,497 ounces compared with 1,750 ounces in the corresponding period of 2015. Copper production increased by 55 per cent to 1,350,912 pounds compared with 872,884 pounds in the first quarter of 2015. Total mill feed processed during the first quarter of 2016 was 140,116 dry tonnes compared with 114,453 dry tonnes during the first quarter of 2015, an increase of 22 per cent.

At the Avino mine, silver equivalent ounces (1) produced during the first quarter totalled 474,206 compared with 319,216 during the first quarter of 2015, an increase of 48 per cent. The production increase can be attributed to the use of both mill circuit 2 and mill circuit 3 to process mill feed from the Avino mine whereas in the corresponding quarter last year, only mill circuit 3 was used.

At the San Gonzalo mine, silver equivalent ounces (1) produced during the first quarter of 2016 totalled 241,727, representing an increase of 14 per cent compared with the first quarter of 2015. All-in sustaining cash costs during the first quarter of 2016 were $11.29 per silver equivalent ounce (1) compared with $12.36 during the first quarter of 2015, a decrease of 9 per cent.

Costs and capital expenditures

Consolidated all-in sustaining cash costs per AgEq ounce (1) during the first quarter of 2016 were $11.29 compared with $12.36 during the corresponding period of 2015, a decrease of 9 per cent.

Capital expenditures during the first quarter of 2016, net of concentrate proceeds of $5.6-million, were $1,234,509 compared with $445,466 during the first quarter of 2015.

Capital expenditures relate to the Avino mine advancement and mining and production equipment to advance operations at the San Gonzalo, Avino and Bralorne mines.

Bralorne mine update

During the first quarter of 2016, Bralorne continued to prepare and evaluate a strategic mine plan, including an assessment of more cost-effective mining methods and capital expenditures needed to bring the project to a profitable position. The company has acquired new mining equipment, including two new scoop trams and a rock breaker from Sandvik, and a loader from Caterpillar, as well as a new medical facility and woman's dry. Further, the company has ordered a new development jumbo from Sandvik and expects to take delivery in the coming months. This brand new equipment will help to reduce maintenance costs while increasing mining productivity and efficiency when the project resumes operations. Continuing maintenance and improvements continued in 2015, and the company has been reviewing the requirements to increase processing capacity, should the resources and mine plan prove feasible and viable. A raise to the embankment dam for the tailings storage facility was completed in October, 2015, and the company is currently in the process of obtaining the permits to resume processing and mining activities from British Columbia's Ministry of Energy and Mines and Ministry of Environment.

In February, 2016, Bralorne, in conjunction with North Island College, the government and first nations, completed a four-month-long underground mining fundamentals educational cohort for 12 students from the St'at'imc First Nation communities around Lillooet. Following three months of classroom instruction, Bralorne provided support and access to the mine site for hands-on training. All 12 students graduated the program with a number of industry certification tickets, which will help toward Bralorne's long-term goal of enhancing the local labour force. The company is maintaining open lines of communication with first nations communities, and management continues its efforts to build meaningful positive relationships with its stakeholders.

Conference call

Avino will be holding a conference call on May 17, 2016, at 8 a.m. PST (11 a.m. EST).

To participate in the conference call, please dial the following:

Toll-free in Canada and the United States:  1-800-319-4610

Outside of Canada and the U.S.:  1-604-638-5340

No passcode is necessary to participate in the conference call. Participants will have the opportunity to ask questions during the question-and-answer portion of the call.

Participants should dial in 10 minutes prior to the conference.

The conference call will be recorded, and the replay will be available on the company's website within one hour following the conclusion of the call.

Qualified person(s)

Avino's Mexican projects are under the supervision of Chris Sampson, PEng, BSc, Avino consultant, and Jasman Yee, PEng, Avino director. Avino's Bralorne mine project is under the supervision of Fred Sveinson, BA, BSc, PEng, Avino senior mining adviser. These individuals are qualified persons (QP) within the context of National Instrument 43-101. The respective QPs have reviewed and approved all the applicable technical data in this press release.

Outlook

Avino's mission is to create shareholder value through profitable organic growth at the Avino property and the strategic acquisition and advancement of mineral exploration and mining properties. The company is committed to expanding its operations and managing all business activities in an environmentally responsible and cost-effective manner while contributing to the well-being of the communities in which it operates.

Management remains focused on the following key objectives:

• Maintain and improve profitable mining operations while managing operating costs and achieving efficiencies;
• Advance the Bralorne project toward profitable production;
• Explore regional targets on the Avino property followed by other properties in the company's portfolio;
• Assess the potential for processing the oxide tailings resource from previous milling operations (preliminary economic assessment issued in 2012);
• Identify and evaluate potential projects for acquisition.

(1) For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $14.84 per ounce silver, $1,180 per ounce gold and $2.12 per pound copper. Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.

(2) The company reports non-international financial reporting standard measures, which include cash cost per silver equivalent ounce, all-in sustaining cash cost per ounce 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.

We seek Safe Harbor.