Avino Silver & Gold Mines Ltd.: Operational Update 

VANCOUVER, BC - Avino Silver and Gold Mines Ltd. reported activities at its Avino's mine operation located near Durango, Mexico.

The decline from level 2 to level 3 at the San Gonzalo Development has advanced 275 metres to date, and a total of 155 metres remain to go until the level 3 elevation of 2215 metres is reached. Productivity has increased approximately 3 fold when the recently purchased 5yd scoop was put into service. It is expected this productivity will increase further once the Company Jumbo has been completely reconditioned and put into use. A smaller 3yd scoop for the smaller crosscuts and drifts has been sourced and arrangements are in the works for its purchase. These equipment acquisitions will replace the contractor's low availability equipment.

Avino has also leased an energy efficient generator to power our fan with the aim of improving the underground ventilation and also to provide power to the Jumbo. This temporary power supply is required while the new power line is being built once the permits have been granted.

A ventilation study was commissioned in early August work on stope 2-200 is almost complete and ready for drawdown. The calculated tonnage of this stope is 3723 tonnes with an estimated grade of 300 g/t and 1.2 g/t silver and gold respectively. This resource is not in the original 43-101 resource estimate prepared by Orequest. The continuity of this mineralized block above level 1 is currently being evaluated.

Mining on stope 2-080 towards the old mine workings has slowed as the tonnage extracted is small due to a different mining method. The average grade of this stope is 216 g/t silver and 0.9 g/t gold. Plans to continue mining this stope has been put on hold. Development mineralized material from all these areas are currently being stockpiled on surface near the coarse ore bin of the crushing plant. The estimated tonnage of this surface stockpile is 4550 tonnes. Milling operations continued throughout the quarter with the processing of the old Avino ET stockpiles. Because of the extremely big and hard boulders, a more robust rock breaker was leased. This new breaker was put into service after the major crusher repairs were made. Downtime of the crushing plant was approximately 2 weeks to replace all of the jaw crusher bearings and to install the new drive shaft of the cone crusher. In addition to the crusher repairs, the mill lifter bars were also changed. Because of the hardness of the ore, average daily tonnage processed was about 180 tonnes per day. Typical grade of the feed was 0.15% copper and 90 g/t silver. There is an inventory of approximately 250 tonnes of concentrate grading 3.5% copper, 2.2k g/t silver and 20 g/t gold on hand. A deal for the sale of this product is being finalized and shipping to the port of Manzanillo is expected in October. Avino still has approximately 10 to 12,000 tonnes of stockpiled material remaining from level 2 stopes of San Gonzalo and will begin processing this material once the remaining stockpiles of historical ET Avino vein material are depleted.