Mr. David Wolfin reports

AVINO REPORTS Q2 2017 FINANCIAL RESULTS

Avino Silver & Gold Mines Ltd. has released the consolidated financial results for the company's second quarter ended June 30, 2017. The financial statements, and the management discussion and analysis can be viewed on the company's website, on SEDAR and on EDGAR.

Effective Jan. 1, 2017, the company changed its presentation currency to U.S. dollars from Canadian dollars. As a result, all dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.

"We are pleased to have achieved another productive quarter with strong financial and operational results. Our focus continues to be our expansion plans at the Avino mine with the addition of mill circuit 4, as well as a planned underground drill program at the Bralorne mine to better define the resources above and below the 800 level. We are confident that the implementation of these important plans will continue to support the company's growth efforts. We appreciate the support and dedication of our teams in Mexico and Canada, who continue to maintain efficiencies at our operations," said David Wolfin, president, chief executive officer and director, Avino Silver & Gold Mines.

Second-quarter 2017 highlights (in U.S. dollars):

• Revenues of $7.9-million from the sale of concentrates;
• Mine operating income of $2.5-million, which is consistent with the second quarter of 2016;
• Net income after taxes of $1.2-million or two cents per share;
• Working capital of $17.7-million, an increase of 18 per cent from the second quarter of 2016;
• Cash of $5.9-million and short-term investments of $7.5-million at the end of the quarter;
• Produced 698,174 silver equivalent ounces (1), including 386,002 ounces of silver, 1,954 ounces of gold and 1,113,161 pounds of copper;
• Consolidated all-in sustaining cost (AISC) (2) of $10.42 per payable silver equivalent ounce;
• Average realized selling prices for silver and gold were $17.09 (U.S.) and $1,259 (U.S.) per ounce, respectively, and copper was $5,643 per tonne.

                                        HIGHLIGHTS 

                                                          Q2 2017            Q2 2016
Operating
Tonnes milled                                             137,493            131,612
Silver ounces produced                                    386,002            380,620
Gold ounces produced                                        1,954              1,509
Copper pounds produced                                  1,133,161          1,054,935
Silver equivalent ounces (1) produced                     698,174            629,780
Concentrate sales and cash costs
Silver equivalent ounces sold (2)                         542,002            626,837
Cash cost per silver equivalent ounce (2) (3)     $          8.90    $          9.61
All-in sustaining cost per
silver equivalent ounce (2) (3)                   $         10.42    $         10.97
Average realized silver price per ounce           $         17.09    $         16.99
Average realized gold price per ounce             $         1,259    $         1,262
Average realized copper price per tonne           $         5,643    $         4,706
Financial
Revenues                                          $     7,911,388    $     9,017,929
Mine operating income                             $     2,481,779    $     2,459,477
Net income (loss)                                 $     1,151,549    $      (336,748)
Cash                                              $     5,914,408    $     8,256,627
Working capital                                   $    17,686,701    $    15,041,997
Shareholders
Earnings (loss) per share (EPS) -- basic          $          0.02    $         (0.01)
Cash flow per share (YTD) (3)                     $          0.06    $          0.06

(1) For comparison purposes, the silver equivalent ratio has been calculated using
    metal prices of $17.26 per ounce silver, $1,257 per ounce gold and $2.57 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. Metal production is expressed in terms of silver equivalent ounces, the
    formula for which depends on the copper, gold and silver metal prices used in each
    period and hence are only indicative. 
(2) Silver equivalent ounces sold for the purposes of cash costs and all-in sustaining
    costs consist of the sum of silver ounces, gold ounces and copper tonnes sold
    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-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.

Financial results

The company generated revenues of $7.9-million during the second quarter of 2017, a 12-per-cent decrease compared with the second quarter of 2016. The decrease is a result of fewer ounces sold from the San Gonzalo mine and remaining inventory at the end of the quarter.

Mine operating income was $2.5-million during the second quarter of 2017, which is consistent with the comparable quarter of 2016.

During the second quarter of 2017, net income increased to $1.2-million or two cents per share from a net loss of $300,000 or one-cent basic and diluted per share during the corresponding period of 2016. The increase is mainly due to operational efficiencies achieved at the Avino mine and the San Gonzalo mine.

Operational results

Silver equivalent production for the second quarter of 2017 increased by 11 per cent to 698,174 ounces compared with 629,780 ounces in the second quarter of 2016. Silver production for the second quarter of 2017 increased 1 per cent to 386,002 ounces compared with 380,620 ounces in the second quarter of 2016. Gold production for the second quarter of 2017 increased by 29 per cent to 1,954 ounces compared with 1,509 ounces in the corresponding period of 2016. Copper production increased by 7 per cent to 1,133,161 pounds compared with 1,054,935 pounds in the second quarter of 2016. Total mill feed processed during the second quarter of 2017 was 137,493 dry tonnes compared with 131,612 dry tonnes during the second quarter of 2016, an increase of 4 per cent.

At the Avino mine, silver equivalent ounces produced during the second quarter of 2017 totalled 512,237 compared with 341,521 during the second quarter of 2016, an increase of 50 per cent. The higher production is due to higher feed grades realized during the quarter.

At the San Gonzalo mine, silver equivalent ounces produced during the second quarter of 2017 totalled 185,937, representing a decrease of 35 per cent compared with 288,259 in the second quarter of 2016 mainly due to the lower tonnage processed due to mill circuits 2 and 3 being used exclusively for the Avino mine material.

Costs and capital expenditures

Consolidated all-in sustaining cash costs per AgEq ounce during the second quarter of 2017 were $10.42 compared with $10.97 during the corresponding period of 2016, a decrease of 5 per cent.

All-in sustaining cash costs at San Gonzalo during the second quarter of 2017 were $9.99 per AgEq ounce compared with $10.89 during the second quarter of 2016, a decrease of 8 per cent. All-in sustaining cash costs at Avino during the second quarter of 2017 were $10.56, compared with $11.01 during the second quarter of 2016, a decrease of 4 per cent.

Capital expenditures during the six months ended June 30, 2017, were $4,497,122 compared with $7,383,020 for the corresponding period of 2016.

Capital expenditures in the current period relate to the Avino mine advancement, mining and production equipment (including mill circuit 4) to advance operations at the San Gonzalo, Avino and Bralorne mines.

Bralorne mine update

At Bralorne, the company continued to review strategic operating plans, and on July 10, 2017, it published a comprehensive news release outlining its plans, which can be found on the company's website. The company's new plan involves opening the mine at a higher throughput rather than original plans to scale up the operations to reach the desired throughput level. The company is currently planning an underground drill program to expand and improve confidence in its resource base, which is scheduled to be followed by the construction of a new tunnel at the 800 level, large enough to accommodate the new mechanized equipment for the proposed long-hole retreat mining method.

In addition, the company also received notification that financing to hold its third annual underground mining training contingent was approved. This year it is planning to hold the training in the Pemberton Valley to accommodate community members from N'Quatqua and other communities associated with the Lower St'at'imc Tribal Council. For more information please see the company's news release dated July 10, 2017.

Environmental and permitting progress

The company's senior management and site personnel continue to work closely with the MEM and MOE, and recently met with the chief inspector and deputy chief inspector to discuss environmental and permitting.

Permitting has taken longer than expected, and is partly a result of the government taking a more rigorous approach to environmental requirements and having many projects at the permitting stage in British Columbia.

Second extension of concentrates prepayment agreement with Samsung C&T

The company has further extended the concentrates prepayment agreement with Samsung C&T U.K. Ltd. for one year for repayment between July, 2018, and July, 2019.

Pursuant to a new amending agreement, Avino will sell silver concentrates on an exclusive basis to Samsung until Dec. 31, 2021. Samsung has previously advanced to Avino the sum of $10-million (U.S.) as prepayment of such concentrates, of which Avino has repaid $1,333,332 (U.S.) for a net amount owing of $8,666,668 (U.S.), and the facility will be repaid with interest. This extension will allow Avino to defer the payments and repay the balance with interest by 13 monthly instalments, commencing July, 2018, and ending July, 2019. Other material terms of the facility remain unchanged. Interest on the facility is payable monthly at London interbank offered rate plus 4.75 per cent. The company is pleased to take advantage of the extension of the concentrate sales agreement and revised repayment arrangement, as this ensures a steady long-term contract for the sale of the company's silver concentrates.

Eagle property option agreement

An option agreement dated July 18, 2017, between Avino and Alexco Resource Corp. has granted Alexco the right to acquire a 65-per-cent interest in 14 quartz mining leases located in the Mayo district, Yukon Territory, Canada, known as the Eagle property. To exercise the option, Alexco must pay Avino a total of $70,000 in instalments over four years, issue Avino a total of 70,000 Alexco common shares in instalments over four years, incur $550,000 in exploration work by the second anniversary of the option agreement date and a further $2.2-million in exploration work on the Eagle property by the fourth anniversary of the option agreement date.

In the event that Alexco earns its 65-per-cent interest in the Eagle property, Alexco and Avino will form a joint venture for the future exploration and development of the Eagle property, and may contribute toward expenditures in proportion to their interests (65 per cent Alexco/35 per cent Avino). If either company elects to not contribute its share of costs, then its interest will be diluted. If either company's joint venture interest is diluted to less than 10 per cent, its interest will convert to a 5-per-cent net smelter returns royalty, subject to the other's right to buy down the royalty to 2 per cent for $2.5-million. The Eagle property was previously inactive and held by Avino as a non-essential asset to its current operations.

Conference call

Avino will be holding a conference call for analysts and investors on Thursday, Aug. 3, 2017, at 8 a.m. Pacific Daylight Time (11 a.m. Eastern Daylight Time).

Conference call numbers:

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

Outside of Canada and 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 Jasman Yee, PEng, Avino director, and Avino's Bralorne mine project is under the supervision of Fred Sveinson, BA, BSc, PEng, Avino senior mining adviser. These individuals are qualified persons 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 is a silver and gold producer with a diversified pipeline of gold, silver and base-metal properties in Mexico and Canada employing approximately 500 people. Avino produces from its wholly owned Avino and San Gonzalo mines near Durango, Mexico, and is currently planning for future production at the Bralorne gold mine in British Columbia, Canada. The company's gold and silver production remains unhedged.

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. It is committed to expanding 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.

The company remains focused on the following key objectives:

• Maintain and improve profitable mining operations while managing operating costs and achieving efficiencies;
• Complete the mill circuit 4 expansion to increase Avino mine production;
• Conduct a successful underground drill program in 2017 to increase and improve confidence in the resource base at Bralorne;
• Continue mine expansion drilling and explore regional targets on the Avino property;
• Follow the recommendations made in the 2017 preliminary economic assessment on the oxide tailings resource at the Avino mine and assess the potential for processing the oxide tailings resource.

We seek Safe Harbor.