Avino Silver & Gold Mines LTD

Avino Silver & Gold Mines Ltd. is a Canadian-based primary silver producer with operations in Mexico, embarking on the most significant transformational growth period in its 57-year history. The company is transitioning from a single-asset producer to a multi-asset mid-tier operation, with a clear path to becoming an intermediate producer by 2029. With 277 million silver equivalent ounces in measured and indicated resources plus 94 million ounces in inferred resources, Avino represents a compelling precious metals growth story.

Currently producing approximately 2.6 million silver equivalent ounces annually from its flagship Avino Mine in Durango, Mexico, the company is advancing two additional assets: the La Preciosa underground silver project and the Oxide Tailings gold-silver project. The March 2022 acquisition of La Preciosa shifted Avino's resource profile to 60% silver-focused, reinforcing its primary silver producer status.

Avino is listed on TSX and NYSE American (ASM), with a market capitalization of approximately $922 million CAD as of November 2025. The company achieved 5th place on the TSX30 2025 for outstanding performance (610% share price increase, 778% market cap growth over three years) and has been added to major ETFs including GDXJ, SILJ, and SLVR. With a debt-free balance sheet, $57.3 million in cash, and nearly six decades of operational expertise, Avino is positioned to execute its ambitious growth strategy.

Avino Silver & Gold Mines presents a compelling multi-faceted investment opportunity with three distinct value drivers: a cash-generating producing mine, a high-grade silver development project, and a permitted gold-silver tailings project - all in Durango, Mexico's mining-friendly jurisdiction.

The flagship Avino Mine delivered strong Q3 2025 results: $21 million revenue, 47% gross margin, $7.7 million net income, and AISC of $24.06 per silver equivalent ounce. The operation achieved record mill throughput - 188,757 tonnes, up 21% year-over-year - demonstrating operational excellence. With 2025 guidance of 2.5-2.8 million silver equivalent ounces, Avino's base business provides stable cash flow to fund growth.

La Preciosa represents the transformational catalyst, featuring 17.4 million tonnes of indicated resources grading 202 g/t silver equivalent (113 million ounces). Recent drilling returned exceptional results including 1,638 g/t silver over 7.90 meters, with 15,352 g/t over 0.37 meters. Located just 19km from the Avino Mine with dedicated 7.3MW power, paved roads, and water access, La Preciosa benefits from significant infrastructure advantages reducing capital intensity. Underground development is underway with first production targeted for 2025.

The Oxide Tailings project adds compelling economics: post-tax NPV of US$61 million, 26% IRR, and just US$10.23 AISC per ounce - among industry's lowest. With US$49.1 million initial capital and 3.5-year payback, this project offers attractive near-term returns. Combined with AI-integrated exploration and decades of mine life, Avino delivers significant silver price leverage through a de-risked, multi-asset growth profile.

Avino Silver & Gold Mines is led by an experienced management team with deep Mexican mining expertise and a proven value creation track record. President and CEO David Wolfin brings 30 years of mining and finance experience, starting as a geologist's assistant and working on the Vancouver Stock Exchange floor before joining the Oniva Group in 1990, where he has helped raise over C$100 million across resource companies.

COO Carlos Rodriguez, a professional geologist with 34 years of underground mining experience in Mexico, graduated from the University of Sonora (1984) and Colorado School of Mines (1998). His expertise has strengthened Avino's operational capabilities and mine leadership. CFO Nathan Harte, CPA, joined in 2016 from Deloitte LLP and was promoted to CFO in 2018, bringing specialized public mining company financial expertise.

VP Technical Services Peter Latta, P.Eng, MBA, holds degrees from the University of British Columbia (Metals and Materials Engineering, 2008) and Simon Fraser University (MBA, 2017). With over 10 years commissioning and optimizing mineral processing circuits worldwide across four continents, he ensures operational efficiency and metallurgical excellence.

The team is supported by Head of Investor Relations Jennifer North (26 years mining experience including 17 years with Aurizon Mines) and Corporate Secretary Jennifer Trevitt (25+ years in securities/corporate finance). The Board of Directors includes Chairman Ronald Andrews and independent directors Peter Bojtos, P.Eng (50+ years global mining), Carolina Ordoñez (Top 10 Most Influential Hispanics in Canada), and Michael Clark, CPA (CFO of Contango ORE, Inc.), providing comprehensive governance and industry expertise.

Avino Silver & Gold Mines is executing a comprehensive strategy to transform from a single-asset producer into a diversified mid-tier Mexican silver producer by 2029. The strategy centers on three parallel tracks: optimizing the Avino Mine, bringing La Preciosa into production, and advancing the Oxide Tailings project - leveraging existing infrastructure and secured permits to minimize execution risk while maximizing near-term growth.

The Avino Mine foundation continues strengthening, with mill throughput reaching historic highs - up 36% from Q2 2024. An aggressive exploration program aims to expand resources, with an updated Mineral Reserve and Resource estimate scheduled for Q1 2026. AI integration into geological modeling, using VRIFY software to process 5.94GB of data including 194,277 drill assays and 52 geophysics layers, represents a technological leap enabling precise targeting and resource definition.

La Preciosa development represents the most significant catalyst. With all permits secured and underground development underway, first production is targeted for 2025. The company achieved 100% ownership by acquiring outstanding royalties, restoring full shareholder value. Initial development targets the high-grade Gloria vein, with infrastructure to access Abundancia and Martha veins subsequently. Modern equipment deployment, including new Sandvik jumbo drills, demonstrates commitment to mechanized, efficient operations.

The Oxide Tailings project, with its completed pre-feasibility study showing 26% IRR and modest US$49.1 million capital requirement, represents a highly achievable near-term opportunity fundable from operating cash flow. Throughout this growth, Avino maintains environmental stewardship commitment, evidenced by three consecutive years of ESR designation and UN Sustainable Development Goals alignment, ensuring sustainable community partnerships.

As of September 30, 2025, Avino maintains a robust financial position with a debt-free balance sheet, $57.3 million in cash, and $50.8 million in working capital - providing substantial liquidity to fund growth initiatives without restrictive covenants limiting strategic flexibility.

Current operations demonstrate strong cash generation and improving efficiency. Q3 2025 delivered $21 million revenue, $9.9 million gross profit (47% margin, 53% excluding non-cash items), $7.7 million net income ($0.05/share), and $8.3 million operating cash flow. Free cash flow reached $4.5 million ($5.4 million excluding La Preciosa development). Cost performance remains competitive with cash costs of $17.09 per silver equivalent ounce and AISC of $24.06 - positioning Avino favorably among primary silver producers. Year-to-date performance shows even stronger efficiency: $14.95 cash costs and $21.64 AISC per ounce.

Growth projects offer compelling economics enhancing the financial profile. The Oxide Tailings project presents post-tax NPV of US$61 million with 26% IRR, requiring US$49.1 million initial capital and delivering industry-leading AISC of US$10.23 per ounce with rapid 3.5-year payback. The project will generate over US$50 million in Mexican tax contributions and US$140 million in local economic benefits. La Preciosa's 113 million silver equivalent ounces grading 202 g/t, combined with proximity infrastructure advantages and exceptional drill results, positions it as transformational.

Market recognition includes TSX30 2025 inclusion (610% three-year share price performance) and major ETF additions (GDXJ, SILJ), broadening the investor base. With 157 million shares outstanding, 79 institutional holders, and strong management ownership, Avino maintains reasonable capital structure and alignment of interests.

Avino Silver & Gold Mines stands at a transformational inflection point, executing the largest expansion in its 57-year history. With a producing mine generating strong cash flows, a high-grade silver project entering production, and a permitted gold-silver tailings project with compelling economics, the company offers investors current income, near-term catalysts, and long-term growth potential - backed by a debt-free balance sheet and 277 million silver equivalent ounces of measured and indicated resources.

Strategic positioning is exceptionally strong. TSX30 2025 recognition (5th place, 610% three-year share price growth) and major ETF additions reflect growing institutional awareness. La Preciosa's secured permits and commenced underground development, with recent 15,352 g/t silver drill results, mark decisive progress toward realizing transformational potential. The Oxide Tailings pre-feasibility study (26% IRR, $10.23 AISC per ounce) provides a third production center with minimal capital and rapid payback. These assets, combined with proximity infrastructure and decades of Mexican operational experience, position Avino to deliver significant production growth with lower capital intensity than greenfield developments.

Management brings proven execution capability, financial discipline, and community relationship expertise. Three consecutive years of ESR designation and UN SDG alignment ensure sustainable growth creating lasting stakeholder benefits. AI integration into exploration demonstrates forward-thinking operational excellence.

For investors seeking primary silver exposure with significant organic growth, operational leverage to rising metals prices, and demonstrated execution capability, Avino presents compelling opportunity. The clear path to mid-tier producer status by 2029, supported by permitted projects, existing infrastructure, substantial resources, and strong financial position, offers attractive risk-reward. With multiple near-term catalysts including La Preciosa first production and updated resource estimates, Avino represents both a sound current investment and a well-positioned long-term operator in Mexico's premier mining jurisdiction.