Avino Silver & Gold Mines Ltd. (ASM: TSX-V, ASM: NYSE--MKT, GV6: FSE, "Avino" or "the Company") is pleased to announce the consolidated financial results for the Company's fourth quarter and year ended December 31, 2016. The financial statements and the management discussion and analysis can be viewed on the Company's web site at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

FOURTH QUARTER 2016 HIGHLIGHTS •Generated revenues of $12.0 million from the sale of San Gonzalo and Avino concentrates
•Mine operating income amounted to $3.5 million an increase of 141% over the same period of 2015
•Net income after taxes amounted to $1.2 million or a Basic EPS of $0.03
•Produced 707,775 silver equivalent ounces, including 419,355 ounces of silver, 2,581 ounces of gold and 755,645 pounds of copper
•Total consolidated cash1 cost was $11.50 (US$8.62) per payable silver ounce
•Consolidated all-in sustaining cost ("AISC")1 was $13.36 (US$10.01) per payable silver equivalent ounce, a 5% increase compared to $12.70 (US$9.51) per ounce in the fourth quarter of 2015
•Average realized selling prices for silver and gold were US$16.69 and US$1,194 per ounce respectively
•Cash of $15.8 million and short term investments consisting of cash of $13.4 million was on hand at the end of the quarter
2016 HIGHLIGHTS •Generated revenues of $39.9 million from sales of San Gonzalo and Avino concentrates
•Mine operating income was $14.5 million, an increase of 79%
•Net income after taxes amounted to $2.0 million or a Basic EPS of $0.05
•Operating cash flows before movements in working capital to $7.6 million or $0.18 per share - Basic
•Produced 2,679,334 silver equivalent ounces, including 1,612,060 million ounces of silver, 7,119 ounces of gold and 4,206,585 pounds of copper
•Total cash cost1 was $11.24 (US$8.48) per silver equivalent ounce
•All-in sustaining cost ("AISC")1 was $13.70 (US$10.34) per payable silver ounce, a 13% increase compared to $12.14 (US$9.49) per ounce in 2015
•Average realized selling prices for silver and gold were US$17.71 and US$1,258 per ounce respectively
•Cash of $15.8 million and short term investments consisting of cash of $13.4 million were on hand at December 31, 2016
•Invested $10.7 million in capital expenditures net of concentrate proceeds of $6.2 million from the sales of Avino mine concentrates
"I am very pleased to report that Avino continued to deliver strong financial and operating results in 2016, with consistent silver equivalent production and solid performance from our Avino and San Gonzalo mines, our cornerstone assets from which to grow the company from. We continue to meet management's expectations, and with stringent cost controls we exited the year with strong fundamentals in place. Our steady results are due to the dedication of our teams in both Canada and Mexico. Our focus for 2017 remains consistent operating results and moving forward with our plans for plant and mine expansion to increase throughput capacity at the processing plant by an estimated 70%, the advancement of the Oxide Tailings Resource project, continued construction and consideration of new initiatives regarding tailings storage, and the previously announced three-phased expansion program at Bralorne."

- David Wolfin, President, CEO & Director


HIGHLIGHTS Fourth
Quarter 2016 Fourth Quarter 2015 Change Year 2016 Year 2015 Change
Operating
Tonnes Milled 134,688 136,817 -2% 544,336 517,887 5%
Silver Ounces Produced 419,355 409,216 2% 1,612,060 1,625,285 -1%
Gold Ounces Produced 2,581 1,588 63% 7,119 7,083 1%
Copper Pounds Produced 755,645 1,271,565 -41% 4,206,585 4,743,691 -11%
Silver Equivalent Ounces1 Produced 707,775 761,767 -7% 2,679,334 3,020,348 -11%
Consolidated San Gonzalo and Avino Sales
Silver Equivalent Ounces Sold2 644,479 241,114 167% 2,035,618 1,140,029 79%
Cash Cost per Silver Equivalent Ounce2 $ 11.50 $ 8.24 40% $ 11.24 $ 8.45 33%
US$ Cash Cost per Silver Equivalent Ounce2,3 US$ 8.62 US$ 6.17 40% US$ 8.48 US$ 6.61 28%
All-in Sustaining Cost per Silver Equivalent Ounce2,3 $ 13.36 $ 12.70 5% $ 13.70 $ 12.14 13%
US$ All-in Sustaining Cost per Silver Equivalent Ounce2,3 US$ 10.01 US$ 9.51 5% US$ 10.34 US$ 9.49 9%
Average Realized Silver Price per Ounce ($US) US$ 16.69 US$ 14.29 17% US$ 17.71 $ 15.46 15%
Average Realized Gold Price per Ounce ($US) US$ 1,194 US$ 1,092 9% US$ 1,258 $ 1,148 10%
Average Realized Copper Price per Tonne ($US) US$ 5,313 - 100% US$ 4,850 - 100%
Financial
Revenues $ 12,006,667 $ 3,860,109 211% $ 39,895,591 $ 19,082,847 109%
Mine Operating Income $ 3,546,929 $ 1,471,826 141% $ 14,503,700 $ 8,121,153 79%
Net Income $ 1,217,821 $ 370,675 229% $ 1,992,479 $ 483,424 312%
Cash $ 15,816,628 $ 7,475,134 291% $ 15,816,628 $ 7,475,134 291%
Working Capital $ 31,293,019 $ 6,003,557 421% $ 31,293,019 $ 6,003,557 421%
Shareholders
Earnings per Share ("EPS") - Basic $ 0.03 $ 0.01 200% $ 0.05 $ 0.01 400%
Cash Flow per Share 3 - Basic $ 0.06 $ (0.03) 300% $ 0.18 $ 0.01 1700%
1. Metal production is expressed in terms of silver equivalent ounces (oz Ag Eq), In 2016, AgEq was calculated using metals prices of $17.10 oz Ag, $1,248 oz Au and $2.21 lb Cu. In 2015, AgEq was calculated using $16 oz Ag, $1,150 oz Au and $3.00 lb Cu

2. "Silver equivalent ounces sold" for the purposes of cash costs and all-in sustaining costs consists 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-IFRS 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 $39.9 million during 2016; a 109% increase compared with 2015, due to the Avino Mine entering into production at levels intended by management effective April 1, 2016. In 2015, the Avino mine was in development phase and proceeds from the sale of Avino Mine Concentrate were classified as a recovery of exploration and evaluation expenditures. Higher metal prices for silver and gold were also a contributing factor.

Mine operating income was $14.5 million during 2016, an increase of $6.4 million or 79% from $8.1 million in 2015. During the year of 2016, net income increased by $1.5 million to $2.0 million or $0.05 basic and diluted per share, compared to net income of $0.5 million or $0.01 basic and diluted per share during 2015. The primary reason for the increase is the addition of revenue from the Avino Mine. The Company continues to maintain efficient and controlled cost models and will continue to evaluate and optimize tax planning strategies.

Operational Results

Silver equivalent production for 2016 decreased by 11% to 2,679,334 oz1 compared to 3,020,348 oz in 2015. Silver production for 2016 decreased 1% to 1,612,060 oz compared to 2015. Gold production for 2016 increased by 1% to 7,119 oz compared to 7,083 oz in 2015. Copper production for 2016 decreased by 11% to 4,206,585 lbs compared to 4,743,691 lbs in 2015. Total mill feed processed during 2016 was 544,336 dry tonnes compared to 517,887 dry tonnes during 2015, an increase of 5%.

At the Avino mine, the silver equivalent ounces¹ produced during 2016 totalled 1,606,272 which was a decrease of 11%, mainly due to a decrease in the grade of the copper in the concentrate, changes in the feed grades processed, and required maintenance on the Mill Circuit 3 ball mill during the second quarter of 2016.

At the San Gonzalo Mine, the silver equivalent ounces1 produced during 2016 totalled 1,073,062 compared to 1,218,351 produced in 2015. This represents a 12% decrease compared to 2015 mainly due to mining taking place in different areas in 2016, as well as Mill Circuit 2 primarily devoted to processing Avino Mine material.

Costs and Capital Expenditures

Consolidated all-in sustaining cash costs per AgEq ounce1 during 2016 were $13.70 (US$10.34) compared to $12.14 (US$9.49) during the period of 2015, an increase of 10% mainly due to grade fluctuations. As we continue to transition from development mining to production mining we anticipate achieving lower production costs.

Capital expenditures during 2016, net of concentrate proceeds of $6.2 million, were $10.7 million compared to $8.9 million during 2015.

Capital expenditures primarily relate to advancing the Avino Mines which included installation of a new power line to the mine site, exploration at the Avino Mine, the purchasing of new mining, milling/processing and transportation equipment, as well as advancing the Bralorne Mine and exploration and mining equipment.

Bralorne Mine

During 2016, the Company continued to develop a strategic operating plan to achieve a profitable operation at Bralorne. The company engaged independent engineering professionals to assist in developing a project execution plan to enable production start-up at 100 TPD with eventual expansion to 300 TPD. Independent mining engineers were also engaged to develop a long term mine plan which includes a change to narrow vein long hole mining wherever possible, to replace the historic labour intensive shrinkage mining method. Together with their input, the Company has established a three-phased and disciplined approach to the Bralorne project development which was previously announced in a news release dated January 23, 2017 and is available on the company's website at http://www.avino.com/s/news.asp?ReportID=776401. New mining equipment is being acquired to replace older equipment and to further mechanize for long hole mining. The first work to be carried out underground will be to test the long hole mining method.

Additionally, the Company announced on October 21, 2016 the results of an updated NI 43-101 resource estimate for the property, the news release and full technical report are available on the company's website at http://www.avino.com/i/pdf/nr/2016-10-21_NR-k2iodud98.pdf and http://www.avino.com/i/pdf/reports/2016_Bralorne_Tech_Report_Final.pdf respectively. The dam for the Tailings Storage Facility ("TSF") was raised in October 2015, and additional buttress work was completed on the tailing's impoundment during the third quarter of 2016. The Interim Mine Closure Plan ("IMCP") and review process is underway and is expected to be completed in the first quarter of 2017. The new Water Treatment Plant ("WTP") was enclosed in a new building in November to protect it from the elements and is ready for freshet in early 2017. The work on the TSF, the IMCP, WTP and the strategic operating plan are all contributing to the Company's goal of obtaining the permits from British Columbia's Ministry of Energy & Mines and Ministry of Environment to resume processing and mining activities in 2017.

In 2016, in conjunction with North Island College and St'at'imc Government Services, Avino completed a four-month underground mining training educational cohort for 12 members of the St'at'imc communities. All 12 students graduated from the program and received a number of industry certification tickets. The program, funded largely by the provincial government, involved three months of classroom instruction in Lillooet followed by two weeks of hands on training at the Bralorne Gold Mine. To view the video on the training program please click here https://vimeo.com/172272150.

A second similar program commenced in November, 2016, and included a state-of-the-art simulator from Sandvik for advanced training on underground mining equipment. This program finished in February, 2017, with the graduation to be held on March 3, 2017. Avino is eager to hire graduates from the programs once the mine re-opens.

Non-IFRS Measures

The financial results in this news release include references to cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce, each of which are non-IFRS measures. Cash flow per share, cash cost per ounce, and all-in sustaining cash cost per ounce are measures developed by mining companies in an effort to provide a comparable standard of performance. However, there can be no assurance that our reporting of these non-IFRS measures is similar to that reported by other mining companies. Cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce are measures 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, and are disclosed in addition to the prescribed IFRS measures provided in the Company's financial statements and MD&A.

Conference Call

Avino will be holding a conference call on Thursday, March 2, 2017 at 8 am PST (11 am EST).