Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American, GV6: FSE, “Avino” or “the Company”) is pleased to announce its fourth quarter and full year 2018 production results from its Avino property near Durango, Mexico.

Consolidated Production Highlights for 2018 (Compared to 2017)
•Silver equivalent production increased by 6% to 2,863,753 oz*
•Gold production increased by 2% to 8,092 oz
•Silver production decreased by 8% to 1,286,382 oz
•Copper production increased by 10% to 4,819,022 lbs

Consolidated Production Highlights for Fourth Quarter, 2018 (Compared to Fourth Quarter, 2017)
•Silver equivalent production increased by 13% to720,187 oz*
•Gold production increased by 34% to 1,973 oz
•Silver production decreased by 10% to 288,600 oz
•Copper production increased by 24% to 1,375,758 lbs


* In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu.


*In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 Cu. In Q4, 2017, AgEq was calculated using metals prices of $16.70 oz Ag, $1,276 Au and $3.09 Cu.

“We had another year of consistent production at the Avino property, producing 2,863,753 silver equivalent ounces, which was in line with our internal projections.” said David Wolfin, President and CEO. “The completion of Mill Circuit 4 contributed to an increase of 6% in silver equivalent ounce production over 2017, and also helped offset decreasing grades at the San Gonzalo Mine which is nearing the end of its mine life. The underground development at San Luis was temporarily reduced to save costs in the third and fourth quarters of 2018, therefore we are positioned to increase the throughput and the rate of development of the San Luis area during the latter part of 2019. We expect 2019 production to be similar to 2018. We continue to be mindful of costs Company-wide and are taking a pragmatic approach to expanding our operations. Finally, I wish to thank the operations team in Mexico for all their hard work and dedication.”

Consolidated Production Tables
2018
Production by Mine Tonnes
Processed Silver Oz Gold Oz Copper Lbs AgEq
Avino 426,794 614,361 4,625 4,546,952 1,847,303
San Gonzalo 79,140 456,709 2,070 - 635,684
Historic Above Ground Stockpiles 202,830 215,312 1,397 272,070 380,766
Consolidated 708,764 1,286,382 8,092 4,819,022 2,863,753

2018
Grade & Recovery by Mine Tonnes
Processed Grade
Ag g/t Grade Au g/t Grade Cu % Recovery Ag % Recovery Au % Recovery Cu %
Avino 426,794 53 0.49 0.55 84% 69% 87%
San Gonzalo 79,140 222 1.03 - 77% 75% -
Historic Above Ground Stockpiles 202,830 58 0.41 0.16 57% 52% 38%
Consolidated 708,764 73 0.53 0.43 76% 65% 72%

Q4 2018
Production by Mine Tonnes
Processed Silver
Oz Gold Oz Copper Lbs AgEq
Avino 101,104 132,092 1,078 1,256,347 465,139
San Gonzalo 19,437 81,684 414 - 116,599
Historic Above Ground Stockpiles 69,033 74,824 481 119,411 138,449
Consolidated 189,574 288,600 1,973 1,375,758 720,187

Q4 2018
Grade & Recovery by Mine Tonnes
Processed Grade
Ag g/t Grade Au g/t Grade Cu % Recovery Ag % Recovery Au % Recovery Cu %
Avino 101,104 47 0.47 0.62 87% 71% 91%
San Gonzalo 19,437 172 0.89 - 76% 75% -
Historic Above Ground Stockpiles 69,033 60 0.43 0.18 56% 51% 44%
Consolidated 189,574 64 0.50 0.44 75% 64% 72%

Although the focus is on our overall consolidated results, there are some noteworthy points for each of our mines, as well as our above ground historical stockpiles, which can be determined from the tables below.

During 2018, material mined from the Avino Mine (Elena Tolosa (“ET”) area was processed using Mill Circuit 3, as well as Mill Circuit 2 through mid-July. In the latter portion of July, Mill Circuit 2 transitioned to processing Avino Historic Above Ground (“AHAG”) Stockpiles, and on September 24th, Mill Circuit 2 began processing mined material from the newly-developed San Luis area of the Avino Mine. Mill Circuit 4 was commissioned on the AHAG Stockpiles and continued to process this material through all of 2018. Through 2018, Mill Circuit 1 continued to process San Gonzalo ore.

Avino Mine Production Highlights
Q4 2018 Q4 2017 Quarterly Change % 2018 2017 Yearly Change %
Total Mill Feed (dry tonnes) 101,104 109,088 -7% 426,794 460,890 -12%
Feed Grade Silver (g/t) 47 50 -7% 53 64 -16%
Feed Grade Gold (g/t) 0.47 0.322 45% 0.49 0.52 -11%
Feed Grade Copper (%) 0.62 0.52 19% 0.55 0.48 18%
Recovery Silver (%) 87% 87% 0% 84% 85% 0%
Recovery Gold (%) 71% 69% 3% 69% 69% 0%
Recovery Copper (%) 91% 88% 3% 87% 89% -1%
Total Silver Produced (kg) 4,109 4,756 -14% 19,109 24,990 -26%
Total Gold Produced (g) 33,534 24,161 39% 143,843 163,582 -21%
Total Copper Produced (Kg) 1,256,347 1,108,800 13% 4,546,952 4,373,166 2%
Total Silver Equivalent Produced (oz)* 465,139 417,182 11% 1,847,303 1,911,428 -7%


* In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu.


*In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 Cu. In Q4, 2017, AgEq was calculated using metals prices of $16.70 oz Ag, $1,276 Au and $3.09 Cu.

Mill throughput was down 7% on a quarterly basis due to switching Mill Circuit 2 to San Luis material from AHAG Stockpiles. Copper and gold grades increased 19% and 45%, respectively, compared to Q4 2017, with only a slight 7% decrease in silver grade.

The copper feed grade increased by 18% while the silver and gold grades decreased by 16% and 11%, respectively. The change in grades was mainly due to the areas being mined at the ET and San Luis areas.

When examined on a yearly basis, overall mill throughput and calculated silver ounces are lower, as a result of Mill Circuit 2 processing historic stockpile material during Q3, 2018, as we have mentioned above and in previous press releases. The lower tonnage processed combined with the variations in feed grades resulted in an increase in copper production by 2% and silver and gold production decreased by 26% and 21%, respectively, for the year compared to 2017.

Despite the lower throughput from the Avino Mine, the consolidated production numbers show an increase in overall production as we varied our feed mix to each mill circuit throughout the year to maximize profitability.

Finally, underground development was also up 19% on a yearly basis as we continue to develop both the ET and San Luis underground areas at the Avino Mine.

San Gonzalo Production Highlights
Q4 2018 Q4 2017 Quarterly Change % 2018 2017 Yearly Change %
Total Mill Feed (dry tonnes) 19,437 20,467 -5% 79,140 81,045 -2%
Feed Grade Silver (g/t) 172 290 -41% 222 269 -17%
Feed Grade Gold (g/t) 0.89 1.36 -35% 1.03 1.32 -22%
Recovery Silver (%) 76% 87% -12% 77% 84% -8%
Recovery Gold (%) 75% 77% -3% 75% 78% -4%
Total Silver Produced (kg) 2,541 5,187 -51% 13,500 18,375 -27%
Total Gold Produced (g) 12,867 21,612 -40% 60,800 83,215 -27%
Total Silver Equivalent Produced (oz)* 116,599 219,830 -47% 592,098 789,157 -25%

* In 2018, AgEq was calculated using metals prices of $15.71 oz Ag and $1,270 oz Au. In 2017, AgEq was calculated using metals prices of $17.05 oz Ag and $1,258 oz Au.

*In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 Cu. In Q4, 2017, AgEq was calculated using metals prices of $16.70 oz Ag, $1,276 Au and $3.09 Cu.

At San Gonzalo, the mine is approaching its end of life and the grades, recoveries and production have started to tail off. This is in line with our internal expectations.

During the fourth quarter, 2018, silver and gold feed grades declined by 41% and 35%, respectively, compared to the fourth quarter, 2017, along with a decrease in both silver recovery, and to a much lesser extent gold recovery. Combined with a 5% decrease in mill feed tonnes, there was a resulting 47% decrease in silver equivalent ounces produced.

On an annual basis the silver and gold feed grades declined by 17% and 22%, respectively, compared to year end 2017. This combined together with a slight decrease in both silver and gold recovery lead to San Gonzalo producing 25% fewer ounces on a year over year comparison basis.

These lost ounces were more than offset through the addition of Mill Circuit 4 and the processing of the AHAG Stockpiles as discussed below.

Historic Above Ground Stockpiles Production Highlights

Q4 2018 2018
Total Mill Feed (dry tonnes) 69,033 202,830
Feed Grade Silver (g/t) 60 58
Feed Grade Gold (g/t) 0.43 0.41
Feed Grade Copper (%) 0.18 0.16
Recovery Silver (%) 56% 57%
Recovery Gold (%) 51% 52%
Recovery Copper (%) 44% 38%
Total Silver Produced (kg) 2,327 6,697
Total Gold Produced (g) 14,961 43,452
Total Copper Produced (Kg) 54,164 123,409
Total Silver Equivalent Produced (oz) calculated* 138,449 380,766

* In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. In 2017, AgEq was calculated using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb Cu.


*In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 Cu. In Q4, 2017, AgEq was calculated using metals prices of $16.70 oz Ag, $1,276 Au and $3.09 Cu.

In the fourth quarter, 2018, Mill Circuit 4 processed 69,033 tonnes of the AHAG Stockpiles, producing 138,449 silver equivalent ounces. As per our July 18th press release, linked here https://www.avino.com/news/2018/avino-announces-q2-2018-production-results/. Mill Circuit 4 started processing material in May 2018; therefore, the 2018 figures reflect that start-up date, including the initial commissioning phases, where the mill was not running at its 1,000 tpd capacity. In keeping with the Company cost reduction initiatives, which were announced in the third quarter 2018, Mill Circuit 2 also processed the AHAG Stockpiles material to allow reduced underground work at the ET area of the Avino Mine. A total of 202,830 dry tonnes of AHAG Stockpiles was processed through the mill circuits, which added a total of 380,766 silver equivalent ounces to our overall consolidated silver equivalent production.

Avino Mine Expansion (San Luis Area)

The San Luis area of the Avino Mine is accessed through a separate portal located approximately 2 km from the main entrance of the Avino Mine (Elena Tolosa area). Current resources at San Luis were included in the most recent resource estimate on the Avino property, which can be found in Avino’s news release dated February 21, 2018 on Avino’s website and under the company’s profile on the SEDAR system. The news release was also filed with the SEC on Form 6-K.

San Luis material is currently being processed in Mill Circuit 2 until sufficient underground development has been done to transition to processing this material to the larger Mill Circuit 4.

Zinc Circuit

During the fourth quarter, 2018, the Company did not continue its testing program for recovery of precious metals and zinc from the San Gonzalo tailings, due to lower grades. The Company will evaluate the zinc circuit on a quarterly basis and may resume its testing program in the future.

Quality Assurance/Quality Control

Mill assays are performed at the Avino property’s on-site lab. Check samples are sent to SGS Labs in Durango, Mexico for verification. All concentrate shipments are assayed by one of the following independent third party labs: AHK, and Inspectorate in the UK and LSI in the Netherlands.

Qualified Person(s)

Peter Latta, P.Eng, MBA, Senior Technical Advisor, Avino and Jasman Yee P.Eng, Avino director, both of whom are qualified persons within the context of National Instrument 43-101 have reviewed and approved the technical data in this news release.