Mr. David Wolfin reports

AVINO ACQUIRES OUTSTANDING ROYALTIES AND CONTINGENT PAYMENTS ON LA PRECIOSA, ACHIEVING 100% OWNERSHIP AND LOWERING OPERATING COST PROFILE

Avino Silver & Gold Mines Ltd. has acquired 100-per-cent ownership of its La Preciosa project by purchasing and extinguishing all of the outstanding royalties and contingent payment obligations, currently held by Deterra Royalties Ltd. The consideration for this royalty purchase is a $13.25-million upfront payment followed by an $8.75-million payment deferred for one year. This second payment was already accounted for in the existing royalty agreement with Deterra.

Highlights of this transaction:

• Restores full value and control of La Preciosa;
• Optimizes financial structure;
• Enhances project economics;
• Reduces administrative burdens;
• Manageable impact on financial liquidity.

"Avino has seized upon a unique opportunity to buy back all the royalties on La Preciosa" said David Wolfin, president and chief executive officer. "This cornerstone asset is now materially unencumbered, and this transaction represents a unique investment opportunity for Avino, as operators rarely get the chance to increase project value through the purchase of previously granted royalties. By eliminating the royalty burden immediately prior to commencing production, we believe we will generate meaningful returns on our investment by lowering La Preciosa's operating cost profile, and ensuring that as much of La Preciosa's value remains with the operator and its stakeholders. The incremental cash outlay of only $13.25-million (U.S.) represents an acquisition that is accretive to Avino shareholders on a net-asset-value-(NAV)-per-share basis. The current metal price environment has enabled Avino to generate significant profits and cash flows from its current Avino mine operations, leading to the strongest balance sheet in the company's history and granting the ability to pursue investment opportunities that enhance shareholder value such as this. I would like to thank Deterra for being great partners as our team continued to advance La Preciosa on its way to production and I am thrilled to have reached an agreement where it was a win for both parties."

The La Preciosa obligations comprise:

1. A cash payment of $8.75-million (U.S.), to be paid no later than 12 months after initial production at La Preciosa (the contingent production payment);
2. A 1.25-per-cent net smelter returns royalty on the Gloria and Abundancia areas of La Preciosa, and a 2.00-per-cent gross value returns royalty on all other areas of La Preciosa;
3. A payment of 25 U.S. cents per silver equivalent ounce (subject to inflationary adjustment) of new mineral reserves (as defined by National Instrument 43-101) discovered and declared outside of the current mineral resource area at La Preciosa, subject to a cap of $50-million (U.S.), with any such payments to be credited against any existing or future payments owing on the gross value returns royalty.

Background to the transaction

The La Preciosa obligations were initially issued to Coeur Mining Inc. in connection with the acquisition of La Preciosa by Avino in March, 2022. Details of the company's acquisition of La Preciosa are available on the company's website. Following the acquisition, Coeur sold the La Preciosa obligations to Trident Royalties PLC in May, 2023, with Deterra subsequently acquiring the La Preciosa obligations by way of its acquisition of Trident in September, 2024.

Transaction consideration

Avino acquired the La Preciosa obligations from Deterra for immediate cash consideration of $13.25-million (U.S.), plus an additional $8.75-million (U.S.) in cash payable on the one-year anniversary of the closing of the transaction. The upfront payment was financed with Avino's existing cash on hand, which was approximately $48-million (U.S.), immediately prior to this acquisition. The deferred payment was structured to substantially mirror the pre-existing contingent production payment which Avino expects to pay by the end of 2026, given that initial production at La Preciosa is targeted in late 2025. As such, Avino believes the net cash investment for the purchase and extinguishment of the La Preciosa obligations to be the upfront payment, with the contingent production payment already considered in the company's capital allocation for the coming years. The deferred payment is expected to be financed with cash on hand.

Transaction rationale

Avino has made excellent progress advancing La Preciosa with first production expected by the end of 2025 and significant production growth expected in the years thereafter which will see La Preciosa become a cornerstone asset for the company. La Preciosa is one of the largest undeveloped silver resources in Mexico (see current NI 43-101 resource estimate below) located adjacent to Avino's existing mine and infrastructure. Eliminating the 1.25-per-cent net smelter returns royalty on the Gloria and Abunduncia veins and the 2.00-per-cent gross value returns royalty on the remainder of the La Preciosa resource will meaningfully lower La Preciosa's cash production costs, as well as remove any future potential obligations if new reserves are discovered outside of the current resource area.

La Preciosa development update

As seen in the company's latest press release dated July 22, 2025, blasting and construction of the relatively short 360-metre San Fernando main access decline is under way, and equipment mobilization has been swift, allowing development to advance on plan. The new jumbo drill is working on this ramp as it progresses toward intercepting the Gloria and Abundancia veins. Recent photos showcasing the work at La Preciosa are available on the Avino website.

A surface drill has been deployed to La Preciosa and drilling is expected to continue until the end of October. The drilling information will be utilized in underground mine planning and 3-D modelling. The company is also planning to update the current mineral resource estimate for Avino and La Preciosa was well as releasing its first mineral reserve estimate at the same time as the company has now met the requirements for a producing issuer under the National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

A more comprehensive drilling update will be released in the coming weeks.

Qualified person(s)

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

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 intends to maintain long-term sustainable and profitable mining operations to reward shareholders and the community alike through the company's growth at the historic Avino property and the strategic acquisition of the adjacent La Preciosa which was finalized in Q1 2022. Avino has a large silver equivalent resource base with consolidated mineral resources of 277 million AgEq (silver equivalent) ounces in the measured and indicated mineral resource category and 94 million AgEq ounces in the inferred mineral resource category. Early in 2024, the prefeasibility Study on the Oxide tailings project was completed. This study represents a key milestone in the company's growth trajectory. As part of Avino's commitment to adopting sustainable practices, the company has been operating a dry-stack tailings facility for more than two years with excellent results. It 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 the company operates.

We seek Safe Harbor.