Mr. David Wolfin reports

AVINO REPORTS Q2 2023 FINANCIAL RESULTS

Avino Silver & Gold Mines Ltd. released today its consolidated financial results for the company's second quarter of 2023. The earnings should be read in conjunction with the company's financial statements and management's discussion and analysis (MD&A) for the corresponding period, which can be viewed on the company's website or on SEDAR or EDGAR.

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 one cent 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 $400,000;
• Adjusted earnings (3) of $30,000 or nil per share;
• Cash provided by operating activities of $1.2-million, $500,000 after working capital changes.

"The quarter was highlighted by stable production levels, although impacted by mining in lower-grade areas due to mine sequencing and a few mill equipment delays, which are now behind us. We were able to use the time efficiently by implementing upgrades to the haulage ramp that have since allowed us to increase haulage rates," said David Wolfin, president and chief executive officer. "Our financial results were slightly impacted during the quarter, however, we achieved positive net income and generated cash flow before working capital adjustments. As with other miners in Mexico, the peso's significant increase against the U.S. dollar also impacted operational costs. We expect production to catch up to our internal guidance in the second half of the year. Our focus continues to be on delivering the best performance to our shareholders and stakeholders, while executing on our growth plan to become an intermediate silver producer in Mexico continue on our clear path to transformational growth."

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 of true width of mineralization and is a stepout 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 prefeasibility study (PFS) on the project. This project has been in the company's portfolio for many years and factors prominently into Avino's 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 per cent in the measured and indicated categories to total 5.7 million tonnes and an increase of 287 per cent 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 with 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 farther 500 metres

On May 23, 2023, Avino announced drill results from 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 the company's 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 the MD&A.

Dry-stack tailings facility completed and operational

Avino's tailings management system is based on the company's commitment to safety and environmental stewardship. Avino approaches its tailings management with respect for the people in its communities and the environment. When the company considers its environmental approach, it strives to meet or exceed expectations while being guided by best practice standards globally. For those reasons, Avino 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 Avino's website that provides further information on the company's tailings management system, along with a video (in Spanish) from the mine site 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 Avino is currently preparing the environmental permit for submission. The company will provide further updates as plans develop. Avino is fully committed to moving this project forward as it factors prominently in the company's five-year growth strategy.

Capital expenditures

Second quarter cash capital expenditures companywide were $1.8-million, compared with $3.4-million during Q2 2022, within the range as previously disclosed in the Avino 2023 outlook news release, which can be found on the company's website. This figure also includes exploration expenditures at prospective areas around the Avino property. Key capital items included investment into the mobile equipment fleet, with the acquisition of a scoop tram, bringing the total number to three.

Prefeasibility study -- oxide tailings project

The prefeasibility study is currently under way and is expected to be completed by the end of 2023.

ESG (environmental, social and governance) initiatives

Avino continues to create value for all stakeholders and supports the communities in which it operates as it continues efforts to incorporate principles of sustainability and social responsibility. In line with Avino's policy of local employment, Mexican nationals account for 100 per cent of the mine work force. Currently there are 436 direct jobs at the mine, the number of which has increased substantially since the restart of operations in 2021, which typically translates to three times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area. After working diligently toward obtaining a CSR designation, the team in Durango received the ESR award for the first time in August, 2022, and the company is on track to receive this important designation for a second year.

Qualified persons

Peter Latta, PEng, MBA, vice-president of technical services, Avino, who is a qualified person within the context of National Instrument 43-101, has reviewed and approved the technical data in this news release.

Non-IFRS (international financial reporting standards) measures

The financial results in this news release include references to cash cost per silver equivalent payable ounce, all-in sustaining cash cost per silver equivalent payable ounce, EBITDA, and adjusted earnings or losses, all of which are non-IFRS measures. These measures are used by the company to manage and evaluate operating performance of the company's mining operations and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS. For a reconciliation of non-GAAP (generally accepted accounting principles) and GAAP measures, please refer to the non-IFRS measures section of the company's management's discussion and Analysis dated Aug. 9, 2023, for the three months ended June 30, 2023, which is incorporated by reference within this news release and is available on SEDAR.

Conference call and webcast

In addition, the company will be holding a conference call and webcast on Thursday, Aug. 10, 2023, at 8 a.m. PDT (11 a.m. EDT). Shareholders, analysts, investors and the media are invited to join the webcast and conference call by dialing the following numbers five to 10 minutes prior to the start time.

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

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

About Avino Silver & Gold Mines Ltd.

Avino is a silver producer from its wholly owned Avino mine near Durango, Mexico. The company's silver, gold and copper production remains unhedged. The company's mission and strategy are to create shareholder value through its focus on profitable organic growth at the historic Avino property and the strategic acquisition of the La Preciosa property. Avino currently controls mineral resources, as per National Instrument 43-101, that total 368 million silver equivalent ounces, within its district-scale land package. The company is committed to managing all business activities in a safe, environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which it operates.

(1) In Q2 2023, AgEq (silver equivalent) was calculated using metals prices of $24.18 per ounce (oz) Ag (silver), $1,978 per oz Au (gold) and $3.85 per pound (lb) Cu (copper). 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. For YTD (year to date) 2023, AgEq was calculated using metals prices of $23.37 per oz Ag, $1,933 per oz Au and $3.95 per lb Cu. For YTD 2022, AgEq was calculated using metal prices of $23.29 per oz Ag, $1,873 per oz Au and $4.43 per 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.

We seek Safe Harbor.