Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American; FSE: GV6, “Avino” or “the Company”) released today its consolidated financial results for the Company’s fourth quarter and year end 2021. The Financial Statements and Management’s Discussion and Analysis (MD&A) 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.

“2021 was highlighted by many positive achievements for Avino, with our fourth quarter results showcasing the progress made in the restart of operations with meaningful earnings and free cash flow generation. It was a pivotal year in many respects as we restarted mining operations after an extended closure period, repaid our $10 million term facility to Samsung C&T UK, and announced the proposed acquisition of La Preciosa,” said David Wolfin, President and CEO. “Revenues, earnings and cash flow generation all increased considerably compared to all preceding quarters in 2021 and 2020, with cash costs and AISC costs showcasing these strong margins. We look forward to further encouraging production numbers and exploration drill results as we move through 2022.”

4th Quarter and FY 2021 Highlights

Strong Q4 Financial Results Following Production Restart

Highest recorded revenues since Q4 2019, with revenues of $9.3 million generating $4.4 million in mine operating income, earnings per share of $0.03 and operating cash flow generated (pre-working capital adjustments) per share of $0.04.

Strategic Acquisition of La Preciosa Silver Project from Coeur Mining Inc. (“Coeur”)

On October 27, 2021, the Company announced that it has entered into a definitive agreement (the “Agreement”) with Coeur to acquire the La Preciosa silver project, which is located adjacent to the Avino Mine in the state of Durango, Mexico, for upfront consideration of $29.7 million on closing and $5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment. The transaction is expected to close during Q1 2022
Working Capital & Liquidity at December 31, 2021

The Company’s cash balance at December 31, 2021, totaled $24.8 million compared to $22.3 million at September 30, 2021 and $11.7 million at December 31, 2020. Working capital totaled $31.6 million at December 31, 2020, compared to $28.9 million at September 30, 2021 and $14.7 million at December 31, 2020.
Term Facility Repaid on Schedule

As of September 30, 2021, the Company has fully repaid its $10 million term facility with Samsung C&T U.K. Limited (“Samsung”). The Company remains committed to selling Avino Mine concentrate to Samsung until December 31, 2024.Fourth Quarter 2021 Financial Highlights
Revenues of $9.3 million
Mine operating income of $4.4 million, $5.1 million net of non-cash depreciation and depletion
Net income from continuing operations of $2.6 million, or $0.03 per share
Cash costs per silver equivalent payable ounce sold1 - $9.57 per ounce
All in sustaining cash cost per silver equivalent payable ounce sold1 - $17.24 per ounce
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)1 of $4.8 million Adjusted earnings1 of $4.7 million

Operating cash flows (before working capital changes) of $4.0 million, or $0.04 per share1
Full Year 2021 Financial Highlights

Cash balance of $24.8 million
Working capital of $31.6 million
Fully repaid $10 million term facility to Samsung C&T U.K. Limited
Revenues of $11.2 million
Mine operating income of $3.5 million, $5.5 million net of non-cash depreciation and depletion
Net loss from continuing operations of $2.0 million, or $0.02 per share
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)1 of $0.4 million
Adjusted earnings1 of $2.3 million
Cash costs per silver equivalent payable ounce sold1 - $9.09 per ounce
All-in sustaining cash cost per silver equivalent payable ounce sold1 - $24.51 per ounce
Operating cash flows (before working capital changes) of $1.7 million, or $0.02 per share1
Financial Highlights


HIGHLIGHTS
(Expressed in 000’s of US$) Fourth Quarter 2021 Fourth Quarter 2020
Change Year 2021 Year 2020 Change
Financial Operating Performance
Revenues $9,318 $ 1,407 562% $ 11,228 $ 16,022 -30%
Mine operating income (loss) $ 4,406 $ (1,251) 452% $ 3,547 $ 190 1767%
Net income (loss) from continuing operations $ 2,629 $ (1,553) 269% $ (2,057) $ (7,482) 73%
Net income (loss) $ 2,629 $ (1,555) 269% $ (2,057) $ (7,651) 73%
Earnings (losses) before interest, taxes and amortization (“EBITDA”)1 $ 4,821 $ (2,269) 312% $ 443 $ (6,945) 106%
Adjusted earnings (losses)1 $ 4,746 $ (182) 2708% $ 2,298 $ 1,500 53%
Per Share Amounts
Earnings (loss) per share – basic & diluted $ 0.03 $ (0.02) 250% $ (0.02) $ (0.09) 78%
Cash Flow per share1 – basic $ 0.04 $ (0.03) 233% $ 0.02 $ (0.03) 167%

HIGHLIGHTS
(Expressed in 000’s of US$) December 31, 2021 December 31, 2020
Change December 31, 2021 December 31, 2020

Change
Liquidity & Working Capital
Cash $ 24,675 $ 11,713 111% $ 24,675 $ 11,713 111%
Working capital $ 31,635 $ 14,680 115% $ 31,635 $ 14,680 115%
1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted earnings, 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. See Non-IFRS Measures section for further information and detailed reconciliations.

Capital Expenditures:

Capital expenditures company-wide for the full year 2021 were $3.2 million compared to $2.2 million for 2020. Expenditures relate to exploration drilling costs on the Avino property & on TSF #1, which contains the Oxide Tailings Resource, costs related to the construction of the dry-stack tailings storage facility, as well as the purchase of a scoop tram.

Operational Highlights and Overview


HIGHLIGHTS
(Expressed in US$) Fourth Quarter 2021 Fourth Quarter 2020
Change1 Year 2021 Year 2020

Change1
Operating
Tonnes Milled 103,513 - 100% 165,304 204,286 -19%
Silver Ounces Produced 163,933 - 100% 245,372 317,299 -23%
Gold Ounces Produced 2,158 - 100% 3,386 1,935 75%
Copper Pounds Produced 1,128,728 - 100% 1,869,306 2,267,939 -18%
Silver Equivalent Ounces1 Produced 541,432 - 100% 842,373 842,230 0%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2 417,881 59,710 600% 524,993 1,071,367 -51%
Cash Cost per Silver Equivalent Payable Ounce1,2,3 $ 9.57 $ 14.01 -32% $ 9.09 $ 10.68 -15%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3 $ 17.24 $ 73.08 -76% $ 24.51 $ 20.35 20%
1. In Q4 2021, AgEq was calculated using metal prices of $23.33 oz Ag, $1,795 oz Au, and $4.40 lb Cu. In Q4 2020, AgEq was calculated using metals prices of $24.39 oz Ag, $1,867 oz Au and $2.67 lb Cu

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, 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 payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, 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. See Non-IFRS Measures section for further information and detailed reconciliations.

During Q4 2021, underground mining operations continued to ramp up with consolidation production for the quarter of 541,342 silver equivalent ounces consisting of 163,933 ounces of silver, 2,158 ounces of gold, and 1,128,728 pounds of copper.

Underground mining operations are now hauling between 1,400 and 1,900 tpd to surface on a daily basis, with the mill operating at a similar capacity. The Company is working towards achieving pre-shutdown levels of mine and mill production. Current plant capacity remains at 2,500 tpd.

During Q4 2021 production came primarily from the Avino Mine. The Company is currently mining and milling from the Avino Mine only.

Exploration Update – 2021/2022 Drill Program

The Company completed just over 15,500 metres of drilling in 2021. The areas drilled include the existing Oxide Tailings Resource, which is contained within the tailings storage facility (“TSF #1). 124 holes have been drilled on this program, with 110 having reported assays and currently under review by our technical team. Additional areas for exploration include the main Avino vein below current mining activities and at the La Potosina vein. Turnaround times for assay results have been slow and results will continue to be released throughout 2022.

La Preciosa Acquisition Update - Received Mexican Anti-Trust Approval

Avino is pleased to announce the receipt of the clearance decision from the Comisión Federal de Competencia Económica (“COFECE”) with respect to the pending acquisition of the La Preciosa Property from Coeur Mining Inc. Inc. (NYSE: CDE) (“Coeur”). The COFECE approval was the final government agency approval required before completing the acquisition, which is anticipated to occur before the end of the first quarter, 2022.

Avino announced the transaction to acquire La Preciosa on October 27, 2021, the full news release which details the rationale and terms of the acquisition can be found on Avino’s website as well as its SEDAR and Edgar profiles.

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, EBITDA, and adjusted earnings/losses, all of which are non-IFRS measures. These measures are 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 and Webcast

In addition, the Company will be holding a conference call and webcast on Thursday, March 17, 2022, at 8:00 am PDT (11:00 am EDT). Shareholders, analysts, investors and media are invited to join the webcast and conference call by logging in here Avino Fourth Quarter and Year End 2021 Financial Results Conference Call and Webcast.

Toll Free Canada & USA: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340

ON BEHALF OF THE BOARD

“David Wolfin”

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David Wolfin
President & CEO