Avino Silver & Gold Mines Ltd. (ASM: TSX-V, ASM: NYSE–MKT, GV6: FSE, “Avino” or “the Company”) is pleased to announce the consolidated financial results for the Company’s fourth quarter and year ended December 31, 2016. The financial statements and the management discussion and analysis can be viewed on the Company’s web site at www.avino.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

FOURTH QUARTER 2016 HIGHLIGHTS

• Generated revenues of $12.0 million from the sale of San Gonzalo and Avino concentrates
• Mine operating income amounted to $3.5 million an increase of 141% over the same period of 2015
• Net income after taxes amounted to $1.2 million or a Basic EPS of $0.03
• Produced 707,775 silver equivalent ounces, including 419,355 ounces of silver, 2,581 ounces of gold and 755,645 pounds of copper
• Total consolidated cash1 cost was $11.50 (US$8.62) per payable silver ounce
• Consolidated all-in sustaining cost (“AISC”)1 was $13.36 (US$10.01) per payable silver equivalent ounce, a 5% increase compared to $12.70 (US$9.51) per ounce in the fourth quarter of 2015
• Average realized selling prices for silver and gold were US$16.69 and US$1,194 per ounce respectively
• Cash of $15.8 million and short term investments consisting of cash of $13.4 million was on hand at the end of the quarter

2016 HIGHLIGHTS

• Generated revenues of $39.9 million from sales of San Gonzalo and Avino concentrates
• Mine operating income was $14.5 million, an increase of 79%
• Net income after taxes amounted to $2.0 million or a Basic EPS of $0.05
• Operating cash flows before movements in working capital to $7.6 million or $0.18 per share - Basic
• Produced 2,679,334 silver equivalent ounces, including 1,612,060 million ounces of silver, 7,119 ounces of gold and 4,206,585 pounds of copper
• Total cash cost1 was $11.24 (US$8.48) per silver equivalent ounce
• All-in sustaining cost (“AISC”)1 was $13.70 (US$10.34) per payable silver ounce, a 13% increase compared to $12.14 (US$9.49) per ounce in 2015
• Average realized selling prices for silver and gold were US$17.71 and US$1,258 per ounce respectively
• Cash of $15.8 million and short term investments consisting of cash of $13.4 million were on hand at December 31, 2016
• Invested $10.7 million in capital expenditures net of concentrate proceeds of $6.2 million from the sales of Avino mine concentrates

“I am very pleased to report that Avino continued to deliver strong financial and operating results in 2016, with consistent silver equivalent production and solid performance from our Avino and San Gonzalo mines, our cornerstone assets from which to grow the company from. We continue to meet management’s expectations, and with stringent cost controls we exited the year with strong fundamentals in place. Our steady results are due to the dedication of our teams in both Canada and Mexico. Our focus for 2017 remains consistent operating results and moving forward with our plans for plant and mine expansion to increase throughput capacity at the processing plant by an estimated 70%, the advancement of the Oxide Tailings Resource project, continued construction and consideration of new initiatives regarding tailings storage, and the previously announced three-phased expansion program at Bralorne.”

- David Wolfin, President, CEO & Director

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1. Metal production is expressed in terms of silverequivalent ounces (oz Ag Eq), In 2016, AgEq was calculated using metals pricesof $17.10 oz Ag, $1,248 oz Au and $2.21 lb Cu. In 2015, AgEq wascalculated using $16 oz Ag, $1,150 oz Au and $3.00 lb Cu

2. “Silver equivalent ounces sold” for the purposes of cash costs and all-insustaining costs consists of the sum of silver ounces, gold ounces and coppertonnes sold multiplied by the ratio of the average spot gold and copper pricesto the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silverequivalent ounce, all-in sustaining cash cost per ounce, and cash flow pershare. These measures are widely used in the mining industry as a benchmark forperformance, but do not have a standardized meaning and the calculation methodsmay differ from methods used by other companies with similar reported measures.
Financial Results

The Company generated revenues of $39.9 million during 2016; a 109% increasecompared with 2015, due to the Avino Mine entering into production at levelsintended by management effective April 1, 2016. In 2015, the Avino mine was indevelopment phase and proceeds from the sale of Avino Mine Concentrate wereclassified as a recovery of exploration and evaluation expenditures. Highermetal prices for silver and gold were also a contributing factor.

Mine operating income was $14.5 million during 2016, an increase of $6.4million or 79% from $8.1 million in 2015. During the year of 2016, net incomeincreased by $1.5 million to $2.0 million or $0.05 basic and diluted per share,compared to net income of $0.5 million or $0.01 basic and diluted per shareduring 2015. The primary reason for the increase is the addition of revenuefrom the Avino Mine. The Company continues to maintain efficient and controlledcost models and will continue to evaluate and optimize tax planning strategies.

Operational Results

Silver equivalent production for 2016 decreased by 11% to 2,679,334 oz1compared to 3,020,348 oz in 2015. Silver production for 2016 decreased 1% to1,612,060 oz compared to 2015. Gold production for 2016 increased by 1% to7,119 oz compared to 7,083 oz in 2015. Copper production for 2016 decreased by11% to 4,206,585 lbs compared to 4,743,691 lbs in 2015. Total mill feedprocessed during 2016 was 544,336 dry tonnes compared to 517,887 dry tonnesduring 2015, an increase of 5%.

At the Avino mine, the silver equivalent ounces¹ produced during 2016 totalled1,606,272 which was a decrease of 11%, mainly due to a decrease in the grade ofthe copper in the concentrate, changes in the feed grades processed, andrequired maintenance on the Mill Circuit 3 ball mill during the second quarterof 2016.

At the San Gonzalo Mine, the silver equivalent ounces1 produced during 2016totalled 1,073,062 compared to 1,218,351 produced in 2015. This represents a12% decrease compared to 2015 mainly due to mining taking place in differentareas in 2016, as well as Mill Circuit 2 primarily devoted to processing AvinoMine material.

Costs and Capital Expenditures

Consolidated all-in sustaining cash costs per AgEq ounce1 during 2016 were$13.70 (US$10.34) compared to $12.14 (US$9.49) during the period of 2015, anincrease of 10% mainly due to grade fluctuations. As we continue to transitionfrom development mining to production mining we anticipate achieving lowerproduction costs.

Capital expenditures during 2016, net of concentrate proceeds of $6.2 million,were $10.7 million compared to $8.9 million during 2015.

Capital expenditures primarily relate to advancing the Avino Mines whichincluded installation of a new power line to the mine site, exploration at theAvino Mine, the purchasing of new mining, milling/processing and transportationequipment, as well as advancing the Bralorne Mine and exploration and miningequipment.

Bralorne Mine

During 2016, the Company continued to develop a strategic operating plan toachieve a profitable operation at Bralorne. The company engaged independentengineering professionals to assist in developing a project execution plan toenable production start-up at 100 TPD with eventual expansion to 300 TPD.Independent mining engineers were also engaged to develop a long term mine planwhich includes a change to narrow vein long hole mining wherever possible, toreplace the historic labour intensive shrinkage mining method. Together withtheir input, the Company has established a three-phased and disciplinedapproach to the Bralorne project development which was previously announced ina news release dated January 23, 2017 and is available on the company’s websiteat https://www.avino.com/news/2017/avino-provides-2016-year-end-summary-and-outlook-for-2017/.New mining equipment is being acquired to replace older equipment and tofurther mechanize for long hole mining. The first work to be carried outunderground will be to test the long hole mining method.

Additionally, the Company announced on October 21, 2016 the results of anupdated NI 43-101 resource estimate for the property, the news release and fulltechnical report are available on the company’s website at https://www.avino.com/site/assets/files/4882/2016-10-21_nr-k2iodud98.pdf and https://www.avino.com/site/assets/files/4882/2016_bralorne_tech_report_final.pdf respectively.The dam for the Tailings Storage Facility (“TSF”) was raised in October 2015,and additional buttress work was completed on the tailing’s impoundment duringthe third quarter of 2016. The Interim Mine Closure Plan (“IMCP”) and review processis underway and is expected to be completed in the first quarter of 2017. Thenew Water Treatment Plant (“WTP”) was enclosed in a new building in November toprotect it from the elements and is ready for freshet in early 2017. The workon the TSF, the IMCP, WTP and the strategic operating plan are all contributingto the Company’s goal of obtaining the permits from British Columbia’s Ministryof Energy & Mines and Ministry of Environment to resume processing andmining activities in 2017.

In 2016, in conjunction with North Island College and St’at’imc GovernmentServices, Avino completed a four-month underground mining training educationalcohort for 12 members of the St’at’imc communities. All 12 students graduatedfrom the program and received a number of industry certification tickets. Theprogram, funded largely by the provincial government, involved three months ofclassroom instruction in Lillooet followed by two weeks of hands on training atthe Bralorne Gold Mine. To view the video on the training program please clickhere https://vimeo.com/172272150.

A second similar program commenced in November, 2016, and included astate-of-the-art simulator from Sandvik for advanced training on undergroundmining equipment. This program finished in February, 2017, with the graduationto be held on March 3, 2017. Avino is eager to hire graduates from the programsonce the mine re-opens.

Non-IFRS Measures

The financial results in this news release include references to cash flow pershare, cash cost per silver equivalent ounce, and all-in sustaining cash costper silver equivalent ounce, each of which are non-IFRS measures. Cash flow pershare, cash cost per ounce, and all-in sustaining cash cost per ounce aremeasures developed by mining companies in an effort to provide a comparablestandard of performance. However, there can be no assurance that our reportingof these non-IFRS measures is similar to that reported by other miningcompanies. Cash flow per share, cash cost per silver equivalent ounce, andall-in sustaining cash cost per silver equivalent ounce are measures used bythe Company to manage and evaluate operating performance of the Company’s miningoperations, and are widely reported in the silver and gold mining industry asbenchmarks for performance, but do not have standardized meanings prescribed byIFRS, and are disclosed in addition to the prescribed IFRS measures provided inthe Company’s financial statements and MD&A.

Conference Call

Avino will be holding a conference call on Thursday, March 2, 2017 at 8 am PST(11 am EST).

To participate in the conference call, please dial the following:

Toll Free Canada & USA: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340

No pass-code is necessary to participate in the conference call; participantswill have the opportunity to ask questions during the Q&A portion of thecall.
Participants should dial in 10 minutes prior to the conference.

The conference call will be recorded and the replay will be available on theCompany’s web site within one hour following the conclusion of the call.

Qualified Person(s)

Avino’s Mexican projects are under the supervision of Mr. Chris Sampson, P.Eng,BSc, Avino consultant and Mr. Jasman Yee, P.Eng, Avino director; Avino’sBralorne Mine project is under the supervision of Fred Sveinson, B.A., BSc,P.Eng, Avino Senior Mining Advisor. These individuals are qualified persons(“QP”) within the context of National Instrument 43-101. The respective QP’shave reviewed and approved all the applicable technical data in this MD&A.

Outlook

Avino’s mission is to create shareholder value through profitable organicgrowth at the Avino Property and the strategic acquisition and advancement ofmineral exploration and mining properties. We are committed to expanding ouroperations and managing all business activities in an environmentallyresponsible and cost-effective manner while contributing to the well-being ofthe communities in which we operate.

The Company remains focused on the following key objectives:

1. Maintain     and improve profitable mining operations while managing operating costs     and achieving efficiencies;
2. Advance     the Bralorne project towards profitable production;
3. Explore     regional targets on the Avino Property followed by other properties in our     portfolio;
4. Assess     the potential for processing the oxide tailings resource from previous     milling operations and;
5. Identify     and evaluate potential projects for acquisition.

ON BEHALF OF THE BOARD

“David Wolfin”
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David Wolfin
President & CEO
Avino Silver & Gold Mines Ltd.

Safe Harbor Statement - This news release contains “forward-lookinginformation” and “forward-looking statements” (together, the “forward-lookingstatements”) within the meaning of applicable securities laws and the UnitedStates Private Securities Litigation Reform Act of 1995, including our beliefas to the extent and timing of various studies including the PEA, andexploration results, the potential tonnage, grades and content of deposits, andtiming, establishment, and extent of resource estimates. These forward-lookingstatements are made as of the date of this news release and the dates oftechnical reports, as applicable. Readers are cautioned not to place unduereliance on forward-looking statements, as there can be no assurance that thefuture circumstances, outcomes or results anticipated in or implied by suchforward-looking statements will occur or that plans, intentions or expectationsupon which the forward-looking statements are based will occur. While we havebased these forward-looking statements on our expectations about future eventsas at the date that such statements were prepared, the statements are not aguarantee that such future events will occur and are subject to risks,uncertainties, assumptions and other factors which could cause events oroutcomes to differ materially from those expressed or implied by suchforward-looking statements.

Such factors and assumptions include, among others, the effects of generaleconomic conditions, the price of gold, silver and copper, changing foreignexchange rates and actions by government authorities, uncertainties associatedwith legal proceedings and negotiations and misjudgments in the course ofpreparing forward-looking information. In addition, there are known and unknownrisk factors which could cause our actual results, performance or achievementsto differ materially from any future results, performance or achievementsexpressed or implied by the forward-looking statements. Known risk factorsinclude risks associated with project development; the need for additionalfinancing; operational risks associated with mining and mineral processing;fluctuations in metal prices; title matters; uncertainties and risks related tocarrying on business in foreign countries; environmental liability claims andinsurance; reliance on key personnel; the potential for conflicts of interestamong certain of our officers, directors or promoters with certain otherprojects; the absence of dividends; currency fluctuations; competition;dilution; the volatility of our common share price and volume; tax consequencesto U.S. investors; and other risks and uncertainties. Although we haveattempted to identify important factors that could cause actual actions, eventsor results to differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events or resultsnot to be as anticipated, estimated or intended. There can be no assurance thatforward-looking statements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forward-lookingstatements. We are under no obligation to update or alter any forward-lookingstatements except as required under applicable securities laws.

Cautionary Note to United States Investors - The information contained hereinand incorporated by reference herein has been prepared in accordance with therequirements of Canadian securities laws, which differ from the requirements ofUnited States securities laws. In particular, the term “resource” does notequate to the term “reserve”. The Securities Exchange Commission’s (the “SEC”)disclosure standards normally do not permit the inclusion of informationconcerning “measured mineral resources”, “indicated mineral resources” or“inferred mineral resources” or other descriptions of the amount ofmineralization in mineral deposits that do not constitute “reserves” by SECstandards, unless such information is required to be disclosed by the law ofthe Company’s jurisdiction of incorporation or of a jurisdiction in which itssecurities are traded. U.S. investors should also understand that “inferredmineral resources” have a great amount of uncertainty as to their existence andgreat uncertainty as to their economic and legal feasibility. Disclosure of“contained ounces” is permitted disclosure under Canadian regulations; however,the SEC normally only permits issuers to report mineralization that does notconstitute “reserves” by SEC standards as in place tonnage and grade withoutreference to unit measures.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as thatterm is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.

1. Metal production is expressed in terms of silver equivalent ounces (oz AgEq), In 2016, AgEq was calculated using metals prices of $17.10 oz Ag, $1,248oz Au and $2.21 lb Cu. In 2015, AgEq was calculated using $16 oz Ag,$1,150 oz Au and $3.00 lb Cu

2. “Silver equivalent ounces sold” for the purposes of cash costs and all-insustaining costs consists of the sum of silver ounces, gold ounces and coppertonnes sold multiplied by the ratio of the average spot gold and copper pricesto the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silverequivalent ounce, all-in sustaining cash cost per ounce, and cash flow pershare. These measures are widely used in the mining industry as a benchmark forperformance, but do not have a standardized meaning and the calculation methodsmay differ from methods used by other companies with similar reported measures.

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