Dear Fellow Shareholders,
Avino Silver & Gold Mines Ltd. (“Avino” or the “Company”) delivered an exceptionally strong performance in 2025, marked by solid operational execution and important milestones that advanced our growth strategy. During the year we continued to generate robust financial results while progressing and advancing our broader multi-asset growth strategy in Durango, Mexico. Our progress over the year reflects strong execution and a consistent focus on advancing our strategic objectives.
The year marked a significant turning point for the Company as we moved decisively into development at La Preciosa, advancing the project along a fast-tracked path toward production. Higher metal prices, improved efficiencies, and disciplined capital management supported our performance, while drill results at La Preciosa exceeded expectations and highlighted the potential of this important asset in our growth plans. Our achievements would not have been possible without the dedication and expertise of our employees and operational teams. Their commitment to safety, innovation, and operational excellence continues to drive Avino forward.
Our investment proposition is underpinned by a diversified asset base and a clear trajectory for growth. At the center is the Avino Mine, supported by the advancing development of La Preciosa and the emerging potential of the Oxide Tailings Project.
2025 marked a year of meaningful advancement for the Company, with notable progress across our operations and development pipeline. Silver remained a strong-performing commodity, supported by global uncertainty, evolving trade conditions, and growing demand associated with the energy transition. This environment strengthened project economics and highlighted the strategic importance of responsible resource development.
The year was defined by consistent financial outperformance, with each quarter delivering record metrics alongside improved cost management. This momentum drove a substantial increase in cash, growing from $27 million to a record $102 million.
Following receipt of all required mining permits early in the year, underground development at La Preciosa commenced marking a key step in advancing the asset toward production. Construction of the 360-metre decline progressed on plan, supported by efficient equipment mobilization. The addition of a new jumbo drill accelerated development along the San Fernando haulage ramp toward the Gloria and Abundancia veins, positioning La Preciosa to become a meaningful contributor within our multi-asset growth strategy.
Beyond direct job creation, activities at La Preciosa have been driving local economic growth, including the generation of both direct and indirect employment opportunities among local suppliers, subcontractors, and community groups. Avino is committed to operating La Preciosa in an environmentally and economically sustainable manner.
The Company produced 2.6 million silver equivalent ounces in 2025, in line with guidance of 2.5 to 2.8 million ounces. This was underpinned by strong operational execution, including the rapid advancement of La Preciosa from first blast in April 2025 to delivering development material to the mill in under eight months.
In the fourth quarter, we returned to primary silver producer status, with silver contributing over 50% of consolidated silver equivalent production-an important step toward our long-term growth ambitions.
During the year we commenced a drill program at Avino which began from surface and is targeting the downdip extension of the Avino vein system and is still ongoing. A second drill at La Preciosa was deployed to confirm historical results. Excellent results were reported from the drilling at La Preciosa including intercept grades that are significantly higher than the average grades outlined in our current resource, highlighting the potential we aim to capture by using underground mining methods. In addition, the larger widths encountered at both La Gloria and Abundancia were a welcomed surprise underscoring that there is still much to learn about this deposit despite the 1,500 drill holes and substantial exploration investment performed by previous operators. The data generated has been instrumental in refining underground mine planning, 3D modelling, and an updated mineral resource estimate, culminating in the Company’s inaugural mineral reserve estimate, which we were thrilled to announce in our news release dated April 16, 2026.
As exploration and development progressed, we undertook a key initiative to further optimize La Preciosa by acquiring and extinguishing all remaining royalty interests and contingent payment obligations. This strategic move restores full value and control to Avino while simplifying the ownership structure and strengthening project economics.
With La Preciosa now largely unencumbered, we have increased our exposure to future cash flow while improving financial flexibility and reducing administrative complexity. Opportunities of this nature are rare in the mining sector, where operators seldom have the ability to reacquire previously granted royalties.
By completing this transaction ahead of production, we have strengthened La Preciosa’s position as a cornerstone asset within our multi-asset growth strategy. We expect this to translate into a lower operating cost profile and stronger long-term returns, ensuring that a greater share of value accrues directly to Avino and its stakeholders.
Also, in 2025, Avino received accolades by distinguishing itself having reached the 5th position in the 2025 TSX30™ ranking, which is a flagship program recognizing the 30 top-performing TSX stocks on a dividend-adjusted share price appreciation over a three-year period. For the three years ended June 30, 2025, Avino’s share price performance has increased 610% and market capitalization has increased 778%. These achievements reflect the decisive steps we took to prioritize Avino’s transformational growth and our plans to go from one to three producing assets by 2029. These results are a testament to the commitment, determination and hard work of all Avino’s employees.
In addition to achieving the TSX30™ distinction, Avino was added to several key indices, including the Market Vectors Junior Gold Miners Index and the VanEck Junior Gold Miners ETF. The Company is now held in a number of ETFs, further validating the investment case for Avino. These inclusions enhance our visibility and position Avino to attract a broader base of institutional and retail investors.
As a mining company, we are committed to operating responsibly, with a strong focus on environmental stewardship, the safety of our people, and the well-being of the communities in which we operate. Continuous improvement remains central to our approach as we work to strengthen our practices and deliver meaningful, sustainable outcomes.
Our efforts have been recognized with the ESR (Empresa Socialmente Responsable) distinction for the 4th consecutive year, reinforcing our commitment to responsible and sustainable operations. We also published our inaugural Sustainability Report, enhancing transparency and providing stakeholders with greater insight into our sustainability performance and priorities.
Avino follows the ESG Standards and the United Nations Sustainable Development goals. There are 17 Sustainable Development Goals (“SDGs”), which were developed as a call to action by all countries developed and developing in a global partnership. The SDGs serve as a blueprint to achieve a better and more sustainable future for all.
The results achieved in 2025 highlight the strength of operations and the effectiveness of our disciplined, team driven approach.
As we enter 2026 with a strong balance sheet, growing production profile, and a favourable precious metals market, we believe Avino is well positioned to continue delivering long-term value for our shareholders.
The Avino team is aligned behind a clear growth strategy, grounded in operational discipline, adaptability, and collaboration.
We remain focused on executing our growth strategy, enhancing financial strength, and delivering consistent value to shareholders.
I would like to extend my sincere thanks to our employees and Board of Directors for their ongoing dedication and leadership.
Our path to growth is clear as we progress toward becoming an intermediate producer. Thank you for your continued support as we work to create long-term value at Avino Silver & Gold Mines Ltd.
Sincerely,
AVINO SILVER & GOLD MINES LTD.
s/ “David Wolfin”
DAVID WOLFIN,
President and Chief Executive Officer