Update on Proposed Arrangement and Loan Agreement Between Bralorne and Avino and Bralorne's Financial Position

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 11, 2014) - Bralorne Gold Mines Ltd. (TSX VENTURE:BPM)(OTCQX:BPMSF)(BERLIN:GV7)(FRANKFURT:GV7) (WKN A0B75M) ("Bralorne" or the "Company") reports that further to the proposed acquisition of Bralorne by Avino Silver & Gold Mines Ltd. ("Avino") by plan of arrangement as announced on June 30, 2014 and August 1, 2014 (the "Transaction"), Avino has advanced to Bralorne the second loan instalment of $750,000 to meet Bralorne's ongoing working capital requirements.

Avino has now advanced to Bralorne a total of $1.25 million under the terms of the loan agreement previously announced on June 30, 2014 and July 24, 2014 (the "Loan"). The Loan bears interest at 12% per annum payable on maturity, and is repayable with interest thirty days after demand on October 31, 2014 (if the proposed arrangement is not completed for any reason), and is secured by a first charge general security interest over all of the assets, present and future, of Bralorne. The terms of the Loan and security were accepted for filing by the TSX Venture Exchange. The Loan was necessary to maintain Bralorne's operations and mitigate the immediate financial distress that Bralorne was experiencing. The Loan assists with immediate working capital deficiencies that Bralorne is experiencing as a result of lower than anticipated incidental revenue and cash inflow from operations.

The British Columbia Ministry of Energy & Mines (the "Ministry") has requested that Bralorne address a long term solution to the freeboard issue of the tailings storage facility, which the Ministry has determined to be inadequate. Bralorne intends to fully cooperate with the Ministry. The Company recently engaged an engineering firm to review the design for raising the dam and update the dam safety inspection, dam consequence classification and operating and emergency plans, as well as provide geotechnical supervision of construction works for raising the dam. Together with construction, the entire project is estimated to cost between $300,000 and $600,000. Bralorne is committed to responsible and environmentally safe mining, minerals processing and tailings management. In order to execute the tailings design updates and raise the dam, Bralorne will require additional capital.