Update on Proposed Arrangement and Loan Agreement Between Bralorne and Avino and Bralorne's Financial Position - Seite 2

Bralorne is reviewing its operational plan and is also discussing additional financing options with Avino to meet short term working capital requirements. The Company has not achieved commercial production and as such is not generating sufficient cash flow from its operations.

Bralorne's Board of Directors continues to recommend that Bralorne shareholders vote in favour of the Transaction with Avino. Pursuant to the Transaction, upon closing, Bralorne shareholders will receive 0.14 of an Avino common share for each Bralorne common share held by such shareholder (the "Share Exchange Ratio"), and all of the issued and unexercised stock options of Bralorne will be cancelled. Bralorne will as a result become a wholly-owned subsidiary of Avino. Avino previously held 179,149 common shares of Bralorne and recently purchased another 9,500,000 common shares of Bralorne from a third party, and therefore already owns 9,679,149 common shares of Bralorne, representing approximately 34% of Bralorne's outstanding common shares. Avino is Bralorne's largest shareholder and will vote in favour of the Transaction. The directors and officers of Bralorne have also entered into voting support agreements with Avino under which they have agreed to vote their Bralorne shares and options in favour of the Transaction, representing approximately 5.31% of the Bralorne common shares outstanding and 75% of the Bralorne outstanding options entitled to vote at the Bralorne annual general and special meeting scheduled to be held on October 9, 2014. The Share Exchange Ratio represents a 25.2% offer premium to Bralorne shareholders based on the closing prices of Avino and Bralorne on the TSX Venture Exchange as of June 27, 2014, the last trading day before the news release announcing the letter of intent with respect to the Transaction on June 30, 2014. Bralorne will mail a management information circular containing full details of the Transaction to its shareholders this week and a copy will also be available on www.sedar.com.

Considering the above and other factors, the independent directors of Bralorne have determined that the Loan and arrangement are in the best interests of Bralorne and its security holders. Accordingly, the Board of Directors is unanimous in recommending that security holders vote in favour of the Transaction.

About Bralorne

Bralorne is a Canadian junior mining and exploration company, whose current project is a 100% interest in the Bralorne Gold Mine, BC. The Bralorne mining camp has a history of past production of 4 million ounces of gold from three mines (Bralorne, Pioneer and King) that fed two mills with a combined capacity of 875 tons per day with gold grades that averaged half an ounce per ton until 1971. Historically, the focus was on mining high grade material delineated by driving drifts on the veins at successively lower levels in the mines. Minimal exploration work was conducted beyond the known veins, and the areas between the historical mines were left undeveloped. Under Bralorne's management, new mill facilities have been developed, permitted, and are fully operational, and new discoveries have been made within the gap areas between the old mines, using geochemical surveys followed by diamond drilling. On November 21, 2012, Bralorne filed on SEDAR a preliminary economic assessment report on the Bralorne Mine property prepared by Beacon Hill Consultants (1988) Ltd., which reported as at August 31, 2012 measured and indicated mineral resources of 170,583 tons grading 0.266 oz gold/ton, and inferred mineral resources of 272,089 tons grading 0.256 oz gold/ton (mineral resources are not mineral reserves and do not have demonstrated economic viability).