Mr. David Wolfin reports

AVINO PROVIDES 2025 OUTLOOK AND HIGHLIGHTS 2024 ACHIEVEMENTS

Avino Silver & Gold Mines Ltd. has shared its outlook for 2025 alongside a summary of its key achievements in 2024.

"Strong operating results from the Avino mine, coupled with a record-breaking financial performance in the fourth quarter, have set the stage for 2025 to be another successful year for Avino," stated David Wolfin, president and chief executive officer. "Many major milestones for our company were achieved for 2024, including the release of the prefeasibility study for the oxide tailings project, which demonstrated positive economic results that continue to improve with the current metal prices. We secured a long-term land use agreement with the local community early in 2024 at La Preciosa, which led to the completion of surface works, and construction of outbuildings, and hauling and processing the surface stockpiles at our Avino mill. Equipment required for the development of the underground ramp was secured. The year ended with the receipt of all required permits and the commencement of development. As we begin 2025, we are thrilled to continue delivering on our growth plan by bringing La Preciosa into production. We aim to leverage what we see as an undervalued silver market, positioned for robust growth driven by increasing demand."

2025 outlook

Production

For 2025, the company plans to process approximately 700,000 to 750,000 tonnes of material through the mill, sourced from both the Avino mine and La Preciosa. During the first half of the year, material will primarily come from the Avino mine, with processing of material from La Preciosa expected to arrive at the mill in the second half of the year.

Based on current metal prices, the company anticipates producing between 2.5 million and 2.8 million silver equivalent ounces.

Balance sheet update

Avino had approximately $26-million in cash at the end of 2024 and remains debt-free, excluding operating equipment leases, demonstrating significant cash flow generation throughout fourth quarter 2024. Its strong balance sheet and working capital will provide the foundation to support its transformational growth plan.

                       CAPITAL BUDGET
               (in millions of U.S. dollars)

                                           Mexican operations

Growth capital                                          $6-$8            
Exploration and evaluation                              $1-$2            
Sustaining capital and mine development                 $6-$8            
Total capital budget                                  $13-$18          

Growth capital

The company's budgeted growth capital for 2025 includes expenditures at the Avino mine and at La Preciosa. As announced on Jan. 15, 2025, Avino has started underground development work at La Preciosa after receiving all required permits.

Growth capital includes underground mining equipment, mine development and surface works, as well as deeper mine development below the bottom of the current mining operation at Avino, along with mill and processing upgrades.

Exploration and evaluation

The company's exploration for 2025 will be focused on drilling the Avino vien below the ET mine, where the company previously hit the highest-grade hole in company history. The results were released on July 5, 2023. This vein is open along strike and at depth following the previous successful drill program. In addition, the company has planned a drill program at the Guadalupe vein, which is one of the many underexplored low-sulphidation epithermal silver, gold, lead, zinc veins on the Avino property. It has shown to be similar in thickness and orientation to the higher-grade San Gonzalo vein that has previously been in production. Finally, additional regional exploration has been budgeted for targets around both Avino and La Preciosa. Total exploration expenditures are budgeted between $1-million and $2-million for 2025.

Sustaining capital and mine development

At Avino, budgeted sustaining capital and mine development expenditures include maintenance and replacement of existing underground mining equipment, as well as further development within the current underground mining operations.

2024 milestones and achievements

Record revenues

Avino posted record revenues in the second quarter, followed by matched third quarter revenues, driven by production increases at the Avino mine, alongside higher metal prices.

Avino mine

Achieved internal production estimates: silver equivalent production increased 32 per cent

The full fourth quarter and full-year production results were released on Jan. 21, 2025. Avino produced 735,557 silver equivalent ounces in Q4 2024, representing a 32-per-cent increase from Q4 of 2023 and a 10-per-cent increase compared with the previous quarter. The increase was driven by improved gold grades and increased mill throughput.

Mill throughput increased 26 per cent

The company processed 181,733 tonnes in Q4 2024, a 26-per-cent increase compared with Q4 2023, and the highest quarter in the company's history.

Gold production increased 76 per cent

Q4 2024 production of 2,560 gold ounces represented a 76-per-cent increase compared with Q4 2023 and was the company's highest quarter of gold production in 2024. Improved feed grade accounted for the majority of the increase, alongside the mill availability noted above.

Silver equivalent production increased 10 per cent

Avino produced 2,652,498 silver equivalent ounces in 2024, representing a 10-per-cent increase from 2023. This was despite an unscheduled production stoppage in June following the breakdown of the company's primary crusher. The mill crew did an excellent job in finding solutions to limit downtime. Without this stoppage, production is estimated to have been closer to 2.8 million silver equivalent ounces, the upper end of its guidance range. The positive movement was primarily due to improved copper and silver grades, improved copper recoveries, and higher mill feed compared with 2023. Full-year production results were within the company's production estimate of 2.5 million to 2.8 million silver equivalent ounces, even after adjusting for changes in metal prices throughout 2024. Silver equivalent production for the year would have been 2.73 million silver equivalent ounces using original budget metal prices, at the upper end of its production estimate range.

Health and safety performance improvements

The company achieved a reduction in lost-time incident frequency rate of 32 per cent for 2024 to 3.39 per one million hours worked, while seeing an increase in hours worked by 47 per cent at the Avino operations. Reportable lost-time incident frequency rate also decreased to 0.07, down over 90 per cent from 2023.

La Preciosa

Avino reached a significant milestone by signing a long-term-use agreement with a local community for the development of La Preciosa, which served as a catalyst for further progress. Following this agreement, the company completed the haulage of old surface stockpiles to the Avino mill for processing, finalized development plans and completed surface works in preparation for commencement. Additionally, the construction of office and outbuildings was completed, and critical stability reinforcements were made at the mine entrance and previously developed underground areas.

Oxide tailings project

Prefeasibility study

The company completed its comprehensive prefeasibility study, which was finalized in early 2024 (see news release dated Feb. 5, 2024). Results demonstrate an after-tax net present value discounted at 5 per cent of $61-million and an internal rate of return of 26 per cent, with $49-million in initial capital expenditures and an NPV to capital expenditure ratio of 1.25.

At current prices of $30.42 per ounce silver and $2,763 per ounce gold, the posttax NPV discounted at 5 per cent has doubled to $122-million, with an NPV to capex ratio of 2.49, IRR of 43 per cent and a payback period of two years.

Environmental, social and governance initiatives

For the third consecutive year, Avino has received the ESR designation for its CSR initiatives and community support. Avino follows the ESG standards and the United Nations sustainable development goals. There are 17 sustainable development goals, which were developed as a call to action by all countries developed and developing in a global partnership. The SDGs serve as a blueprint to achieve a better and more sustainable future for all.

Qualified person

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

Additional information

Avino will release year-end 2024 financial results mid-March, 2025, and will hold a conference call to discuss the results.

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 its growth at the historic Avino property and the strategic acquisition of the adjacent La Preciosa, which was finalized in first quarter 2022. Avino currently controls mineral resources, as per National Instrument 43-101, with a total mineral content of 371 million silver equivalent ounces, within its district-scale land package. Early in 2024, the prefeasibility study on the oxide tailings project was completed. This study is a key milestone in its growth trajectory. As part of Avino's commitment to adopting sustainable practices, it has been operating a dry-stack tailings facility for more than one year 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 it operates.

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