Avino Reports Second Quarter 2014 Financial Results - Seite 2

• Silver production increased 27% to 223,183 oz
• Gold production increased 47% to 1,157 oz
• Silver equivalent production increased 32% to 295,531 oz*
• Concentrate inventory available for sale at quarter-end was 65.7 and 97.0 dry metric tonnes from San Gonzalo and the Avino Mine stockpile operations respectively

"I'm pleased to report another solid quarter of stable silver and gold production. Cash costs continue to decrease and revenue increased even in light of weaker metals prices over the same period last year. This is good news for Avino shareholders and can be attributed to our excellent staff of well-trained managers, geologists, mining engineers, metallurgists and the rest of the operations team. The outlook to year-end looks robust as we anticipate bringing circuit number 3 online by the fourth quarter, effectively tripling mill capacity."

- David Wolfin, President, CEO & Director, Avino Silver & Gold Mines Ltd

Financial Review

The Company generated revenues of $5,104,921 for the second quarter of 2014, a 3% increase compared the second quarter 2013. Although metals prices decreased significantly between the periods, the Company recorded a higher number of silver equivalent ounces sold as a result of improved grades and recoveries.

Earnings decreased $1,534,398 for a loss of $87,097 or ($0.00) per share, compared to earnings of $1,447,301 or $0.05 per share during the second quarter of 2013. The decrease reflects significant increases in current and deferred taxes, and non-cash and non-operating charges for foreign exchange losses and fair value adjustments to the derivative warrant liability. Mine operating income was $2,311,928, a decrease of $26,471 or 1% from $2,338,399 during the second quarter of 2013.

Cash flows from operations before movements in working capital and income taxes through the first half of 2014 totalled $3.1 million, an increase of 11% over the $2.8 million generated through the first half of 2013, reflecting higher mine operating income as a result of circuit 2 coming on line in the second quarter of 2013.

Operational Review

Total silver equivalent production in the second quarter increased to 295,531 silver equivalent ounces*, an increase of 32% compared to the second quarter of 2013. The production growth was primarily due to higher feed grades and recoveries at the San Gonzalo mine and higher tonnage processed, higher feed grade, and better silver recoveries at the Avino Mine stockpile operation.