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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of March, 2025

Commission File Number: 001-35254

AVINO SILVER & GOLD MINES LTD.

Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

☐ Form 20-F ☒ Form 40-F

Explanatory Note

Avino Silver & Gold Mines Ltd. (the “Company”) is filing this Form 6-K to furnish its consolidated financial statements for the years ended December 31, 2024 and 2023 and related Management’s Discussion and Analysis for the year ended December 31, 2024, which are concurrently being filed on SEDAR+.

The information contained in this report and the exhibits hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Exhibits:

The following exhibits are filed as part of this Form 6-K.

Exhibit No.		Document

99.1		Consolidated Financial Statements For the years ended December 31, 2024 and 2023
99.2		Management’s Discussion & Analysis for the year ended December 31, 2024
104		Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AVINO SILVER & GOLD MINES LTD.

Date: March 11, 2025	By:	/s/ Jennifer Trevitt
		Jennifer Trevitt
		Corporate Secretary

EXHIBIT 99.1

AVINO SILVER & GOLD MINES LTD.

Consolidated Financial Statements

For the years ended December 31, 2024 and 2023

Management’s Responsibility for Financial Reporting

The consolidated financial statements of Avino Silver & Gold Mines Ltd. (the “Company”) are the responsibility of the Company’s management. The consolidated financial statements are prepared in accordance with IFRS Accounting Standards Board as issued by the International Financial Reporting Standards Board (“IFRS Accounting Standards”), and reflect management’s best estimates and judgments based on information currently available.

Management has developed and is maintaining a system of internal controls to ensure that the Company’s assets are safeguarded, transactions are authorized and properly recorded, and financial information is reliable.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities. The Audit Committee reviews the results of the annual audit and reviews the consolidated financial statements prior to their submission to the Board of Directors for approval.

“David Wolfin”		“Nathan Harte”

David Wolfin		Nathan Harte, CPA
President & CEO		Chief Financial Officer
March 11, 2025		March 11, 2025

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Avino Silver & Gold Mines Ltd.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of Avino Silver & Gold Mines Ltd. and subsidiaries (the "Company") as at December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2024 and 2023, and its financial performance and its cash flows for each of the two years in the period ended December 31, 2024, in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 11, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Plant, Equipment and Mining properties - Assessment of Whether Indicators of Impairment Exist – Refer to Note 2 and 3 to the financial statements

Critical Audit Matter Description

The Company’s determination of whether or not an indicator of impairment exists at the cash generating unit (“CGU”) level requires significant management judgment. Changes in metal price forecasts or discount rates, increases in estimated future costs of production, increases in estimated future non expansionary capital expenditures, reductions in the amount of recoverable resources and exploration potential and adverse current economic conditions can result in a write-down of the carrying amount of the Company’s plant, equipment and mining properties.

While several factors are assessed to determine whether or not an indicator of impairment exists, the judgments with the highest degree of subjectivity are changes in metal price forecasts (for silver, gold and copper) and inputs to the Company’s market capitalization deficiency assessment at December 31, 2024 (industry specific factors and company performance). Auditing these estimates required a high degree of subjectivity in applying audit procedures and in evaluating the results of those procedures. This resulted in an increased extent of audit effort, including the involvement of fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the changes in metal price forecasts (for silver, gold, and copper) and inputs to the Company’s market capitalization deficiency assessment at December 31, 2024 (industry specific factors and company performance) considered in the assessment of indicators of impairment included the following, among others:

	·	Evaluated the effectiveness of the Company’s controls over management’s assessment of indicators of impairment,

	·	With the assistance of fair value specialists, evaluated future metal prices (for silver, gold, and copper) by comparing management forecasts to third party forecasts, and

	·	Performed an assessment of the Company’s market capitalization deficiency, which included assessing industry specific factors and company performance.

/s/ Deloitte LLP

Chartered Professional Accountants

Vancouver, Canada

March 11, 2025

We have served as the Company's auditor since 2022.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Avino Silver & Gold Mines Ltd.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Avino Silver & Gold Mines Ltd. and subsidiaries (the “Company") as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as at and for the year ended December 31, 2024, of the Company and our report dated March 11, 2025, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte LLP

Chartered Professional Accountants

Vancouver, Canada

March 11, 2025

AVINO SILVER & GOLD MINES LTD.

Consolidated Statements of Financial Position

(Expressed in thousands of US dollars)

	Note		December 31, 2024			December 31, 2023
ASSETS
Current assets
Cash			$	27,317		$	2,688
Amounts receivable				3,350			3,303
Amounts due from related parties		11(b)		18			167
Taxes recoverable		5		195			6,580
Prepaid expenses and other assets				2,278			1,971
Inventory		6		7,611			8,826
Total current assets				40,769			23,535
Exploration and evaluation assets		8		52,890			50,111
Plant, equipment and mining properties		10		53,801			53,069
Long-term investments		7		1,247			934
Other assets				4			691
Total assets			$	148,711		$	128,340
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities			$	10,292		$	11,867
Taxes payable				3,125			127
Derivative liability				475			-
Current portion of finance lease obligations				1,476			1,650
Current portion of equipment loans				166			164
Total current liabilities				15,534			13,808
Finance lease obligations				960			1,445
Equipment loans				27			195
Reclamation provision		12		2,062			2,195
Deferred income tax liabilities		21		4,729			4,696
Total liabilities				23,312			22,339
EQUITY
Share capital		13		163,325			151,688
Equity reserves				11,529			11,041
Treasury shares				(97	)		(97	)
Accumulated other comprehensive loss				(6,035	)		(5,208	)
Accumulated deficit				(43,323	)		(51,423	)
Total equity				125,399			106,001
Total liabilities and equity			$	148,711		$	128,340

Commitments & Contingencies – Note 16

Approved by the Board of Directors on March 11, 2025.

Peter Bojtos

Director

David Wolfin

Director

The accompanying notes are an integral part of the consolidated financial statements

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AVINO SILVER & GOLD MINES LTD.

Consolidated Statements of Operations and Comprehensive Income

(Expressed in thousands of US dollars)

	Note		2024			2023

Revenue from mining operations		14	$	66,178		$	43,889
Cost of sales		14		42,977			36,070
Mine operating income				23,201			7,819

Operating expenses
General and administrative expenses		15		6,226			5,620
Share-based payments		13(c)(d)		2,035			2,269
				14,940			(70	)

Other items
Interest and other income				364			414
Loss on long-term investments		7		(172	)		(931	)
Unrealized loss on derivative liability		18(c)		(475	)		-
Fair value adjustment on warrant liability				-			478
Foreign exchange gain				979			110
Finance cost				(10	)		(81	)
Accretion of reclamation provision		12		(197	)		(49	)
Write-down of uncollectible account				(621	)		-
Interest expense				(387	)		(381	)
Income (loss) before income taxes				14,421			(510	)

Income taxes:
Current income tax (expense) recovery		21		(6,288	)		527
Deferred income tax (expense) recovery		21		(33	)		525
Income tax (expense) recovery				(6,321	)		1,052
Net income				8,100			542

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Currency translation differences				(827	)		15
Total comprehensive income			$	7,273		$	557

Earnings per share		13(e)
Basic			$	0.06		$	0.00
Diluted			$	0.06		$	0.00
Weighted average number of common shares outstanding		13(e)
Basic				134,599,532			121,261,696
Diluted				141,331,864			125,346,674

The accompanying notes are an integral part of the consolidated financial statements

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AVINO SILVER & GOLD MINES LTD.

Consolidated Statements of Changes in Equity

(Expressed in thousands of US dollars)

	Note		Number of Common Shares		Share Capital Amount			Equity Reserves			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total Equity
Balance, January 1, 2023				118,349,090	$	145,515		$	9,852		$	(97	)	$	(5,223	)	$	(52,026	)	$	98,021

Common shares issued:
At the market issuances		13		9,373,825		5,648			-			-			-			-			5,648
Carrying value of RSUs exercised		13		1,005,333		1,019			(1,019	)		-			-			-			-
Issuance costs		13		-		(494	)		-			-			-			-			(494	)
Share-based payments		13		-		-			2,269			-			-			-			2,269
Options cancelled or expired									(61	)								61			-
Net income for the period				-		-			-			-			-			542			542
Currency translation differences				-		-			-			-			15			-			15
Balance, December 31, 2023				128,728,248	$	151,688		$	11,041		$	(97	)	$	(5,208	)	$	(51,423	)	$	106,001

Balance, January 1, 2024				128,728,248	$	151,688		$	11,041		$	(97	)	$	(5,208	)	$	(51,423	)	$	106,001

Common shares issued:
At the market issuances		13		9,338,685		9,732			-			-			-			-			9,732
Exercise of options		13		1,301,000		1,515			(529	)		-			-			-			986
Carrying value of RSUs exercised		13		1,197,709		1,018			(1,018	)		-			-			-			-
Issuance costs		13		-		(628	)		-			-			-			-			(628	)
Share-based payments		13		-		-			2,035			-			-			-			2,035
Net income for the period		13		-		-			-			-			-			8,100			8,100
Currency translation differences				-		-			-			-			(827	)		-			(827	)
Balance, December 31, 2024				140,565,642	$	163,325		$	11,529		$	(97	)	$	(6,035	)	$	(43,323	)	$	125,399

The accompanying notes are an integral part of the consolidated financial statements

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AVINO SILVER & GOLD MINES LTD.

Consolidated Statements of Cash Flows

(Expressed in thousands of US dollars)

	Note		2024			2023


Operating Activities
Net income			$	8,100		$	542
Adjustments for non-cash items:
Deferred income tax expense (recovery)				33			(525	)
Depreciation and depletion				3,386			2,919
Accretion of reclamation provision		12		197			49
Loss on investments		7		172			931
Unrealized loss on derivatives				475			-
Unrealized foreign exchange (gain) loss				(1,074	)		54
Write down of uncollectible account				621			-
Unwinding of fair value adjustment				-			74
Fair value adjustment on warrant liability				-			(478	)
Write down of equipment and materials and supplies inventory				1,144			414
Share-based payments				2,035			2,269
				15,089			6,249

Net change in non-cash working capital items		17		8,035			(4,761	)
Cash provided by operating activities				23,124			1,488

Financing Activities
Shares and units issued for cash, net of issuance costs				9,104			5,154
Proceeds from option exercise				986			-
Lease liability payments				(1,909	)		(1,444	)
Equipment loan payments				(166	)		(222	)
Cash provided by financing activities				8,015			3,488

Investing Activities
Exploration and evaluation expenditures				(2,105	)		(1,156	)
Additions to plant, equipment and mining properties				(4,455	)		(7,375	)
Acquisition of La Preciosa				-			(5,000	)
Cash used in investing activities				(6,560	)		(13,531	)

Change in cash				24,579			(8,555	)

Effect of exchange rate changes on cash				50			(2	)

Cash, beginning				2,688			11,245

Cash, ending			$	27,317		$	2,688

Supplementary Cash Flow Information (Note 17)

The accompanying notes are an integral part of the consolidated financial statements

- 4 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

1. NATURE OF OPERATIONS

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

The Company operates the Elena Tolosa Mine (“ET Mine” or “Avino Mine”) which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Avino property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

2. BASIS OF PRESENTATION

Statement of Compliance

These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”).

Basis of Presentation

These consolidated financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect.

Foreign Currency Translation

Foreign currency transactions

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

Foreign operations

Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Significant Accounting Judgments and Estimates

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its consolidated financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

a) Critical judgments exercised by management in applying accounting policies that have the most significant effect on the amounts presented in these consolidated financial statements are as follows:

i. Economic recoverability and probability of future economic benefits from exploration and evaluation costs

Management has determined that mine and camp, exploratory drilling, and other exploration and evaluation-related costs that were capitalized have future economic benefits and are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including geologic and metallurgic information, scoping studies, accessible facilities, existing permits, and mine plans.

ii. Commencement of production at levels intended by management

Prior to reaching production levels intended by management, costs incurred are capitalized as part of the costs of related exploration and evaluation assets, or as part of the related mine or mill. Depletion of capitalized costs for mining properties and depreciation of plant and equipment begin when operating levels intended by management have been reached. Management considers several factors in determining when a mining property has reached the intended production levels, including production capacity, recoveries, and number of uninterrupted production days.

The basis for achievement of production levels intended by management as indicated by technical feasibility and commercial viability is generally established with proven reserves based on a NI 43-101-compliant technical report or a comparable resource statement and feasibility study, combined with pre-production operating statistics and other factors. In cases where the Company does not have a 43-101-compliant reserve report, on which to base a production decision, the technical feasibility and commercial viability of extracting a mineral resource are considered in light of additional factors including but not limited to:

	·	Acquisition and installation of all critical capital components to achieve desired mining and processing results has been completed. Capital components have been acquired directly and are also available on an as-needed basis from the underground mining contractor;
	·	The necessary labour force, including mining contractors, has been secured to mine and process at planned levels of output;
	·	The mill has consistently processed at levels at or above design capacity and budgeted production levels with consistent recoveries and grades; and,
	·	Establishing sales agreements with respect to the sale of concentrates.

When technical feasibility and commercial viability are considered demonstrable according to the above criteria and other factors, the Company performs an impairment assessment and records an impairment loss, if any, before reclassifying exploration and evaluation costs to plant, equipment, and mining properties.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

iii. Functional currency

The functional currency for the Company and its subsidiaries is the currency of the primary economic environment, in which the entity operates. The Company has determined the functional currency of the Company to be the Canadian dollar. The Company has determined the functional currency of its Mexican subsidiaries to be the US dollar. Determination of functional currency may involve certain judgments to determine the primary economic environment. The Company reconsiders the functional currency of its entities, if there is a change in events and conditions, which determine the primary economic environment.

b) Significant assumptions about the future and other sources of estimation uncertainty that management has made at the consolidated statement of financial position date that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made relate to, but are not limited to, the following:

i. Stockpile and concentrate inventory valuations

Concentrate and stockpile mineralized material are valued at the lower of average cost or net realizable value. The assumptions used in the valuation of concentrate and stockpile mineralized material include estimates of copper, silver, and gold contained in the stockpiles and finished goods assumptions for the amount of copper, silver, and gold that is expected to be recovered from the concentrate. If these estimates or assumptions prove to be inaccurate, the Company could be required to write down the recorded value of its concentrate and stockpile mineralized material inventory, which would result in an increase in the Company’s expenses and a reduction in its working capital.

ii. Estimated reclamation provisions

The Company’s provision for reclamation represents management’s best estimate of the present value of the future cash outflows required to settle estimated reclamation and closure costs at the Avino and San Gonzalo properties. The provision reflects estimates of future costs, inflation, foreign exchange rates and assumptions of risks associated with the future cash outflows, and the applicable risk-free interest rates for discounting the future cash outflows. Changes in the above factors could result in a change to the provision recognized by the Company.

Changes to reclamation and closure cost obligations are recorded with a corresponding change to the carrying amounts of the related exploration and evaluation assets or mining properties. Adjustments to the carrying amounts of related mining properties result in a change to future depletion expense.

iii. Valuation of share-based payments and warrants

The Company uses the Black-Scholes Option Pricing Model for valuation of share-based payments and warrants. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect fair value estimates and the Company’s net income or loss and its equity reserves. Warrant liabilities are accounted for as derivative liabilities.

iv. Impairment of plant, equipment and mining properties, and exploration and evaluation assets

Management considers both external and internal sources of information in assessing whether there are any indications that the Company’s plant, equipment, and mining properties, and exploration and evaluation assets are impaired. External sources of information management considers include changes in the market, economic and legal environments, in which the Company operates, that are not within its control and that affect the recoverable amount of its plant, equipment, and mining properties. Internal sources of information that management considers include the manner in which mining properties and plant and equipment are being used, or are expected to be used, and indications of economic performance of the assets.

- 7 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

In determining the recoverable amounts of the Company’s plant, equipment and mining properties, management makes estimates of the undiscounted future pre-tax cash flows expected to be derived from the Company’s mining properties, and the appropriate discount rate. Reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future non expansionary capital expenditures, reductions in the amount of recoverable resources and exploration potential, and adverse current economic conditions are examples of factors that could result in a write down of the carrying amounts of the Company’s plant, equipment and mining properties, and exploration and evaluation assets.

Impairment

There is significant judgment involved in assessing whether any indications of impairment exist for plant, equipment and mineral properties, with consideration given to both external and internal sources of information.

Information the Company considers include changes in the technological market, economic and legal environment in which the Company operates that are not within its control that affect the recoverable amount of mineral properties. Internal sources of information include the manner in which mineral property, plant and equipment are being used or are expected to be used and indications of the economic performance of the assets.

Changes in metal price forecasts, changes in discount rates, increases or decreases in estimated future costs of production, increases or decreases in estimated future capital costs, reductions or increases in the amount of recoverable mineral resources and/or adverse or favorable current economics can result in a write-down or write-up of the carrying amounts of the Company’s mining interests.

Based on the Company’s assessment with respect to possible indicators of impairment of its mineral properties, including the prevailing market metals prices and existence of a market capitalization deficiency, the Company concluded that as of December 31, 2024, no impairment indicator was identified.

There were no indicators of impairment identified as of December 31, 2024, on any of the Company’s CGUs.

v. Depreciation rate for plant and equipment and depletion rate for mining properties

Depreciation and depletion expenses are allocated based on estimates for useful lives of assets. Should the asset life, depletion rates, or depreciation rates differ from the initial estimate, the revised life or rate would be reflected prospectively through income or loss. A change in the mineral resource estimate may impact depletion expense on a prospective basis.

vi. Recognition and measurement of deferred tax assets and liabilities

Actual amounts of income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the issuance of the consolidated financial statements. Therefore, tax assets and liabilities and net income in subsequent periods will be affected by the amount that estimates differ from the final tax return. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Forecasted cash flows from operations are based on projections internally developed and reviewed by management. Weight is attached to tax planning opportunities that are within the Company’s control, and are feasible and implementable without significant obstacles. The likelihood that tax positions taken will be sustained upon examination by applicable tax authorities is assessed based on individual facts and circumstances of the relevant tax position evaluated in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that could materially affect the amounts of deferred tax assets and liabilities.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Basis of Consolidation

The audited consolidated financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

Subsidiary	Ownership Interest	Jurisdiction	Nature of Operations
Oniva Silver and Gold Mines S.A. de C.V.	100%	Mexico	Mexican administration
Nueva Vizcaya Mining, S.A. de C.V.	100%	Mexico	Mexican administration
Promotora Avino, S.A. de C.V. (“Promotora”)	79.09%	Mexico	Holding company
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”)	98.45% direct 1.22% indirect (Promotora) 99.67% effective	Mexico	Mining and exploration
La Luna Silver & Gold Mines Ltd.	100%	Canada	Holding company
La Preciosa Silver & Gold Mines Ltd.	100%	Canada	Holding company
Proyectos Mineros La Preciosa S.A. de C.V.	100%	Mexico	Mining and exploration
Cervantes LLP	100%	U.S.	Holding company

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

3. MATERIAL ACCOUNTING POLICIES

Exploration and evaluation assets and development costs

(i) Exploration and evaluation expenditures

The Company capitalizes all costs relating to the acquisition, exploration and evaluation of mineral claims. Expenditures incurred before the Company has obtained the legal rights to explore a specific area are expensed. The Company’s capitalized exploration and evaluation costs are classified as intangible assets. Such costs include, but are not limited to, certain camp costs, geophysical studies, exploratory drilling, geological and sampling expenditures, and depreciation of plant and equipment during the exploration stage. Costs not directly attributable to exploration and evaluation activities, including general administrative overhead costs, are expensed in the period in which they occur. The proceeds from the sales of such assets are recognized as revenue.

The carrying values of capitalized amounts are reviewed annually, or when indicators of impairment are present. In the case of undeveloped properties, there may be only inferred resources to allow management to form a basis for the impairment review. The review is based on the Company’s intentions for the development of such properties. If a mineral property does not prove to be viable, all unrecoverable costs associated with the property are charged to the consolidated statement of comprehensive income (loss) at the time the determination is made.

When the technical feasibility and commercial viability of extracting mineral resources have been demonstrated, exploration and evaluation costs are assessed for impairment, reclassified to mining properties and become subject to depletion. Management considers the technical feasibility and commercial viability of extracting a mineral resource to be demonstrable upon the completion of a positive feasibility study and the establishment of mineral reserves. For certain mineral projects, management may determine the completion of a feasibility study to be cost prohibitive, unnecessary or to present undue risk to the structural integrity of the ore body. Under such circumstances, management considers technical feasibility to be demonstrable when the Company has obtained the necessary environmental and mining permits, land surface and mineral access rights, and the mineral project can be physically constructed and operated in a technically sound manner to produce a saleable mineral product. In assessing whether commercial viability is demonstrable, management considers if its internal economic assessment indicates that the mineral project can be mined to generate a reasonable return on investment for the risk undertaken, and markets or long-term contracts for the product exist.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

(ii) Development expenditures

Mine development costs are capitalized until the mineral property is capable of operating in the manner intended by management. The Company evaluates the following factors in determining whether a mining property is capable of operating in the manner intended by management:

	·	The completion and assessment of a reasonable commissioning period of the mill and mining facilities;
	·	Consistent operating results are achieved during the test period;
	·	Existence of clear indicators that operating levels intended by management will be sustainable for the foreseeable future;
	·	Plant / mill has reached a pre-determined percentage of design capacity;
	·	Adequate funding is available and can be allocated to the operating activities; and,
	·	Long term sales arrangements have been secured.

The carrying values of capitalized development costs are reviewed annually, or when indicators are present, for impairment.

Plant, equipment and mining properties

Upon demonstrating the technical feasibility and commercial viability of extracting mineral resources, all expenditures incurred to that date for the mine are reclassified to mining properties. Expenditures capitalized to mining properties include all costs related to obtaining or expanding access to resources including extensions of the haulage ramp and installation of underground infrastructure, and the estimated reclamation provision. Expenditures incurred with respect to a mining property are capitalized when it is probable that additional future economic benefits will flow to the Company. Otherwise, such expenditures are classified as a cost of sales.

Plant and equipment are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Historical costs include expenditures that are directly attributable to bringing the asset to a location and condition necessary to operate in a manner intended by management. Such costs are accumulated as construction in progress until the asset is available for use, at which point the asset is classified as plant, equipment and mining properties and depreciation commences.

After the date that management’s intended production levels have been achieved, mining properties are depleted using the straight-line method over the estimated remaining life of the mine. The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, mineral resource estimates, and management’s intent to operate the property. Such estimation is a subjective process and the accuracy of any mineral resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation. Differences between management’s assumptions including economic assumptions such as metal prices, discount rate and market conditions could have a material effect in the future on the Company’s financial position, results of operation and cash flows.

The Company does not have sufficient reserve information to form a basis for the application of the units-of-production method for depreciation and depletion.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

As at December 31, 2024 and 2023, the Company estimated a remaining mine life for the Avino Mine of 18 years and 19 years, respectively.

Upon the acquisition of an asset or a group of assets and liabilities that does not constitute a business, the Company identifies and recognizes the individual identifiable assets acquired and liabilities assumed. The cost of the group is allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event does not give rise to goodwill. Transaction costs related to the acquisition is capitalized as part of cost of assets acquired.

Accumulated mill, machinery, plant facilities, and certain equipment are depreciated using the straight-line method over their estimated useful lives, not to exceed the life of the mine for any assets that are inseparable from the mine. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (or components) of plant and equipment.

Plant and equipment are depreciated using the following annual rates and methods:

Office equipment, furniture, and fixtures	5 years straight line balance
Computer equipment	3 years straight line balance
Mine machinery and transportation equipment	5 years straight line balance
Mill machinery and processing equipment	5 - 20 years straight line
Buildings	5 - 20 years straight line

Impairment

At each financial position reporting date, the carrying amounts of the Company’s non-financial or long-lived assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

An asset’s recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, provided the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Leases

The Company assesses whether a contract is, or contains, a lease, at inception of the contract. The Company recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

The incremental borrowing rate depends on the term, currency and start date of the lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates; a country-specific risk adjustment; a credit risk adjustment based on bond yields; and an entity-specific adjustment when the risk profile of the entity that enters into the lease is different to that of the Company and the lease does not benefit from a guarantee from the Company.

Lease payments included in the measurement of the lease liability comprise:

	·	Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable
	·	Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date
	·	The amount expected to be payable by the lessee under residual value guarantees
	·	The exercise price of purchase options, if the lessee is reasonably certain to exercise the options
	·	Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease

The lease liability is presented as a separate line in the consolidated statement of financial position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

	·	The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate
	·	The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used)
	·	A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘Plant, Equipment and Mining Properties’ policy.

Inventory

Material extracted from the Company's mine is classified as either process material or waste. Process material represents mineralized material that, at the time of extraction, the Company expects to process into a saleable form and sell at a profit, while waste is considered uneconomic to process and its extraction cost is included in direct mining costs. Raw materials are comprised of process material stockpiles. Process material is accumulated in stockpiles that are subsequently processed into bulk copper, silver, and gold concentrate in a saleable form. The Company has bulk copper, silver, and gold concentrate inventory in saleable form that has not yet been sold. Mine operating supplies represent commodity consumables and other raw materials used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Inventories are valued at the lower of cost and net realizable value (“NRV”). Cost is determined on a weighted average basis and includes all costs incurred, based on normal production capacity, in bringing each product to its present location and condition. Cost of inventories comprises direct labor, materials and contractor expenses, depletion and depreciation on mining properties, plant and equipment, and an allocation of mine site costs. As mineralized material is removed for processing, costs are removed based on the average cost per tonne in the stockpile. Stockpiled process material tonnages are verified by periodic surveys.

NRV of mineralized material is determined with reference to relevant market prices less the estimated costs of completion and the estimated costs necessary to make the sale. NRV of materials and supplies is generally calculated by reference to salvage or scrap values when it is determined that the supplies are obsolete. NRV provisions are recorded within cost of sales in the consolidated statement of operations, and are reversed to reflect subsequent recoveries where the inventory is still on hand.

Revenue from Contracts with Customers

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs to sell can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales tax or duty.

Performance Obligations

Based on the criteria outlined in IFRS 15, the Company applied judgment in determining that the primary performance obligation relating to its sales contracts is the delivery of concentrates. Shipping and insurance services arranged by the Company for concentrate sales that occur after the transfer of control are also considered performance obligations.

Transfer of Control

Based on the criteria outlined in IFRS 15, the Company applied judgment in determining when the transfer of control occurs. Management based its assessment on a number of indicators of control, which include but are not limited to, whether the Company has the present right of payment and whether the physical possession of the goods, significant risks and rewards, and legal title have been transferred to the customer.

Provisional Pricing

Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining variable consideration. The Company identified a provisional pricing component in concentrate sales, representing variable consideration in the form of adjustments between original and final assay results relating to the quantity and quality of concentrate shipments. Pricing adjustments between provisional and final invoicing based on market prices for base and precious metals are included in revenues until final settlement.

Based on the Company’s historical accuracy in the assay process, as evidenced by the negligible historical adjustments relating to assay differences, the Company concluded the variability in consideration caused by the assaying results is negligible. The Company does not expect a significant amount of reversal related to assaying differences. The Company records revenues based on provisional invoices based on quoted market prices of the London Bullion Market Association and the London Metal Exchange during the quotation period outlined in the concentrate sales agreement. The Company applied judgment to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Financial Instruments

Measurement – initial recognition

All financial assets and financial liabilities are initially recorded on the Company’s consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument. All financial asset and liabilities are initially recorded at fair value, net of attributable transaction costs, except for those classified as fair value through profit or loss (“FVTPL”). Subsequent measurement of financial assets and financial liabilities depends on the classifications of such assets and liabilities.

Classification – financial assets

Amortized cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost.

The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effect interest method, and is recognized in Interest and other income, on the consolidated statements of operations and comprehensive income (loss)

The Company financial assets at amortized costs include amounts receivable not related to sales of concentrate (including due from related parties) and reclamation bonds.

Fair value through other comprehensive income (“FVTOCI”)

Financial assets that are held within a business model whose objective is to hold financial assets in order to both collect contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Upon initial recognition of equity securities, the Company may make an irrevocable election (on an instrument-by-instrument basis) to designate its equity securities that would otherwise be measured at FVTPL to present subsequent changes in fair value in other comprehensive income. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other OCI. The cumulative gain or loss is not reclassified to profit or loss on disposal of the instrument; instead, it is transferred to retained earnings.

The Company currently has no financial assets designated as FVTOCI.

Fair value through profit or loss (“FVTPL”)

By default, all other financial assets are measured subsequently at FVTPL, which includes cash, long-term investments, and amounts receivable from concentrate sales.

Classification – financial liabilities

Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading or designated as at FVTPL, are measured at amortized cost using the effective interest method.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Financial liabilities at amortized cost include accounts payable and amounts due to related parties.

Financial liabilities classified FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Fair value changes on financial liabilities classified as FVTPL are recognized in the consolidated statements of operations.

The Company has hedging arrangements. Financial liabilities related to hedging arrangements are classified FVTPL upon initial recognition. Fair value changes on financial liabilities classified as FVTPL are recognized in the consolidated statements of operations. As these arrangements mature, the fair value of the recorded derivative liability on the date of maturity is included in the consolidated statement of operations, along with the related decrease or increase to the derivative liability.

Impairment

The Company recognizes a loss allowance for expected credit losses on its financial assets when necessary. The amount of expected credit losses is updated at each reporting period to reflect changes in credit risk since initial recognition of the respective financial instruments.

Share capital

a) Common shares

Common shares are classified as equity. Transaction costs directly attributable to the issuance of common shares and equity warrants are recognized as a deduction from equity, net of any tax effects. Transaction costs directly attributable to derivative warrants are charged to operations as a finance cost.

b) Repurchase of share capital (treasury shares)

When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to accumulated deficit.

Share-based payment transactions

The Company’s share option plan and restricted share unit (“RSU”) plan allows directors, officers, employees, and consultants to acquire common shares of the Company.

The fair value of options granted is measured at fair value at the grant date based on the market value of the Company’s common shares on that date.

The fair value of equity-settled RSUs is measured at the grant date based on the market value of the Company’s common shares on that date, and each tranche is recognized using the graded vesting method over the period during which the RSUs vest. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of RSUs that are expected to vest.

All options and RSUs are recognized in the consolidated statements of operations and comprehensive income (loss) as an expense over the vesting period with a corresponding increase in equity reserves in the consolidated statements of financial position.

- 15 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Reclamation and other provisions

Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. If material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in any provision due to the passage of time is recognized as accretion expense.

The Company records the present value of estimated costs of legal and constructive obligations required to restore properties in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines and restoration, reclamation, and re-vegetation of affected areas.

The fair value of the liability for a rehabilitation provision is recorded when it is incurred. When the liability is initially recognized, the present value of the estimated cost is capitalized by increasing the carrying amount of the related mining property or exploration and evaluation asset. Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability, which is accreted over time through periodic charges to income or loss. A revision in estimates or new disturbance will result in an adjustment to the provision with an offsetting adjustment to the mineral property or the exploration and evaluation asset. Additional disturbances, changes in costs, or changes in assumptions are recognized as adjustments to the corresponding assets and reclamation liabilities when they occur.

Earnings per share

The Company presents basic and diluted earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares.

Income taxes

Income taxes in the years presented are comprised of current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized as equity.

Deferred tax is recognized using the statement of financial position asset and liability method, which provides for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax recognized is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the consolidated statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that affects neither accounting profit nor taxable profit.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

4. RECENT ACCOUNTING PRONOUNCEMENTS

New and amended IFRS Accounting Standards that are effective for the current year:

Certain new accounting standards and interpretations have been published that are either applicable in the current year, or are not mandatory for the current period and have not been early adopted. We have assessed these standards, and they are not expected to have a material impact on the Company in the current or future reporting periods.

Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current with Covenants

The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

In addition, the amendment requires entities to disclose information to enable users of the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months.

The amendments were applied effective January 1, 2024. The amendments did not to have an impact on the Company’s consolidated financial statements.

Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback

The amendments require a seller/lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller/lessee from recognizing in profit or loss any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 Accounting Policies, Change in Accounting Estimates and Errors to sale or leaseback transactions entered into after the date of initial application.

The amendments were applied effective January 1, 2024. The amendment did not to have an impact on the Company’s consolidated financial statements.

Future Changes in Accounting Policies Not Yet Effective as at December 31, 2024:

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted.

Amendments to IAS 21 – Lack of Exchangeability

The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of currency not being exchangeable.

Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial instruments

The amendments provide guidance on the derecognition of a financial liability settled through electronic transfer, as well as the classification of financial assets for: contractual terms consistent with a basic lending arrangement; assets with non-recourse features and contractually linked instruments.

Additionally, the amendments introduce new disclosure requirements related to investments in equity instruments designated at fair value through other comprehensive income (“FVOCI”), and additional disclosures for financial instruments with contingent features.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The amendments to IFRS 9 and IFRS 7 regarding the Classification and Measurement of Financial Instruments with a mandatory application of the standard on annual reporting periods beginning on or after January 1, 2026.

Amendments to IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB released IFRS 18. IFRS 18 replaces IAS 1 while carrying forward many of the requirements in IAS 1. IFRS 18 introduces new requirements: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management defined performance measures (MPMs) in the notes to the financial statements, iii) improve aggregation and disaggregation. IFRS 18 requires retrospective application with specific transition provisions.

IFRS 18 regarding the Presentation and Disclosure of Financial Statements with a mandatory application of the standard on annual reporting periods beginning on or after January 1, 2027.

These standards are currently being assessed for impact on our consolidated financial statements for future reporting periods.

5. TAXES RECOVERABLE

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

	December 31, 2024		December 31, 2023
VAT recoverable	$	179	$	3,231
GST recoverable		16		20
Income taxes recoverable		-		3,329
	$	195	$	6,580

6. INVENTORY

	December 31, 2024		December 31, 2023
Process material stockpiles	$	2,520	$	4,050
Concentrate inventory		1,861		2,448
Materials and supplies		3,230		2,328
	$	7,611	$	8,826

The amount of inventory recognized as an expense for the year ended December 31, 2024 totalled $42,977 (2023 - $36,070). See Note 14 for further details. During the year ended December 31, 2024, the Company wrote down $156 of materials and supplies inventory due to obsolescence (2023 – $270).

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

7. LONG-TERM INVESTMENTS

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

	Fair Value December 31,		Net		Movements in foreign			Fair value adjustments			Fair Value December 31,
	2023		Additions		exchange			for the period			2024
Talisker Resources Common Shares	$	782	$	-	$	(50	)	$	(47	)	$	685
Silver Wolf Exploration Ltd. Common Shares		71		426		(26	)		(112	)		359
Silver Wolf Exploration Ltd. Warrants		-		30		(1	)		(9	)		20
Endurance Gold Corp. Common Shares		81		81		(9	)		(7	)		146
Endurance Gold Corp. Warrants		-		37		(3	)		3			37
	$	934	$	574	$	(89	)	$	(172	)	$	1,247

Silver Wolf

During the year ended December 31, 2024, the Company received 2,292,000 common shares as part of debt settlement from Silver Wolf, a related party of the Company (see Note 8 and Note 11 for further details), for $335 (C$458). The Company further acquired, by way of participation in Silver Wolf’s Listed Issuer Financing Exemption private placement, 833,334 units at a purchase price of C$0.15 consisting of 833,334 common shares and 416,667 non-transferable common share purchase warrants at an exercise price of C$0.25 as for a total investment of $91 (C$125). The share purchase warrants were recorded at a fair value. Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments.

Endurance Gold Corp.

During the year ended December 31, 2024, the Company received 900,000 common shares (December 31, 2023 – received 400,000 common shares) and 750,000 non-transferrable common share purchase warrants at an exercise price of C$0.17 as part of the terms of the Option Agreement with Endurance Gold Corp. Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments. See Note 8 for full details of the Option Agreement.

- 19 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

8. EXPLORATION AND EVALUATION ASSETS

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

	Avino, Mexico			La Preciosa, Mexico			British Columbia & Yukon, Canada			Total
Balance, December 31, 2022	$	11,828		$	37,975		$	1		$	49,804

La Preciosa non-core concessions transfer		2,946			(2,946	)					-
Drilling and exploration		877			435			-			1,312
Assessments and taxes		88			(930	)		-			(842	)
Effect of movements in exchange rates		22			(122	)		-			(100	)
Option income		(63	)		-			-			(63	)

Balance, December 31, 2023	$	15,698		$	34,412		$	1		$	50,111
Drilling and exploration		130			1,449			-			1,579
Assessments and taxes		195			1,018			-			1,213
Disposition of Olympic claims		-			-			(1	)		(1	)
Effect of movements in exchange rates		(31	)		19			-			(12	)

Balance, December 31, 2024	$	15,992		$	36,898		$	-		$	52,890

(a) Avino, Mexico

The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following two groups:

(i) Avino Mine area property

The Avino Mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares.

(ii) Gomez Palacio/Ana Maria property

The Ana Maria property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares, and is also known as the Ana Maria property.

- 20 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Option Agreement – Silver Wolf Exploration Ltd. (“Silver Wolf”)

On March 11, 2021, the Company entered into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”).

All exploration expenditure requirements on the properties have been met as of December 31, 2024. The future requirement which remains to exercise the option is a milestone payment of $C200 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2025.

Silver Wolf is in compliance with the terms of the Option Agreement as of December 31, 2024.

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

Unification La Platosa properties

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concessions situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

(b) La Preciosa, Mexico

La Preciosa is a development stage mineral property located in the state of Durango, Mexico, within the municipalities of Pánuco de Coronado and Canatlán. The Project is hosting one of the largest undeveloped primary silver resources in Mexico, and is located adjacent to Avino’s existing operations at the Avino Property in Durango, Mexico. The property covers an area of approximately 1,134 hectares and is located on the eastern flank of the Sierra Madre Occidental mountain range.

- 21 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Eagle Property - Yukon

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property. During the year ended December 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The gain on sale of the Eagle Property was recorded to “Interest and other income” on the consolidated statements of operations and comprehensive income (loss).

Minto and Olympic-Kelvin properties – British Columbia

On May 2, 2022, the Company granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

During the year ended December 31, 2024, Endurance exercised the option to acquire 100% ownership of the Olympic Claims by satisfying all required terms of the option agreement. The gain on sale of the Olympic Claims was recorded to “Interest and other income” on the consolidated statements of operations and comprehensive income (loss).

9. NON-CONTROLLING INTEREST

At December 31, 2024, the Company had an effective 99.67% (December 31, 2023 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2023 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been presented separately in the consolidated financial statements.

- 22 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

10. PLANT, EQUIPMENT AND MINING PROPERTIES

	Mining properties			Office equipment, furniture, and fixtures			Computer equipment			Mine machinery and transportation equipment			Mill machinery and processing equipment			Buildings and construction in process			Total
	$			$			$			$			$			$			$
COST
Balance at January 1, 2023		14,687			763			774			14,930			23,294			14,693			69,141
Additions / Transfers		3,716			78			1,176			3,270			3,079			701			12,020
Writedowns		-			(6	)		(22	)		(629	)		(141	)		-			(798	)
Effect of movements in exchange rates		(28	)		9			1			2			-			(24	)		(40	)
Balance at December 31, 2023		18,375			844			1,929			17,573			26,232			15,370			80,323
Additions / Transfers		870			395			18			417			2,994			445			5,139
Writedowns		-			(36	)		(183	)		(1,679	)		(983	)		(822	)		(3,703	)
Effect of movements in exchange rates		(15	)		(12	)		(1	)		20			(21	)		(11	)		(40	)
Balance at December 31, 2024		19,230			1,191			1,763			16,331			28,222			14,982			81,719

ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT
Balance at January 1, 2023		9,106			441			598			5,178			6,733			3,029			25,085
Additions / Transfers		367			111			204			676			1,170			294			2,822
Writedowns		-			(4	)		(21	)		(619	)		(9	)		-			(653	)
Balance at December 31, 2023		9,473			548			781			5,235			7,894			3,323			27,254
Additions / Transfers		426			130			401			1,534			549			339			3,379
Writedowns		-			(35	)		(182	)		(1,472	)		(594	)		(432	)		(2,715	)
Balance at December 31, 2024		9,899			643			1,000			5,297			7,849			3,230			27,918

NET BOOK VALUE
At December 31, 2024		9,331			548			763			11,034			20,373			11,752			53,801
At December 31, 2023		8,902			296			1,148			12,339			18,338			12,047			53,069

- 23 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Included in Buildings and construction in process above are assets under construction of $3,443 as at December 31, 2024 (December 31, 2023 - $3,166) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

As of December 31, 2024, the Company performed an evaluation of the property plant and equipment and recorded a write-down of $988 (December 31, 2023 - $144) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

As at December 31, 2024, plant, equipment and mining properties included a net carrying amount of $5,162 (December 31, 2023 - $5,832) for mining equipment and right of use assets under lease.

11. RELATED PARTY TRANSACTIONS AND BALANCES

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

(a) Key management personnel

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel are as follows:

	2024		2023
Salaries, benefits, and consulting fees	$	1,203	$	1,184
Share-based payments		1,666		1,782
	$	2,869	$	2,966

(b) Amounts due to/from related parties

In the normal course of operations, the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.

The following table summarizes the amounts were due to/(from) related parties:

	December 31, 2024			December 31, 2023
Oniva International Services Corp.	$	95		$	102
Silver Wolf Exploration Ltd.		(113	)		(269	)
	$	18		$	(167	)

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s President and CEO and also a director, for consulting services. For the year ended December 31, 2024, the Company paid $281 (December 31, 2023 - $285) to ICC.

- 24 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company, with a 2.5% markup. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

The transactions with Oniva are summarized below:

	2024		2023
Salaries and benefits	$	974	$	953
Office and miscellaneous		480		482
	$	1,454	$	1,435

12. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at December 31, 2024, is $2,062 (December 31, 2023 – $2,195), and the undiscounted value of the obligation is $4,825 (December 31, 2023 – $5,491).

The present value of the obligation was calculated using a risk-free interest rate of 9.70% (December 31, 2023 – 9.82%) and an inflation rate of 3.69% (December 31, 2023 – 3.76%). Reclamation activities are estimated to begin in 2027 for the San Gonzalo Mine and in 2042 for the Avino Mine.

A reconciliation of the changes in the Company’s reclamation provision is as follows:

	December 31, 2024			December 31, 2023

Balance at beginning of the period	$	2,195		$	445
Changes in estimates		84			1,615
Unwinding of discount		197			49
Effect of movements in exchange rates		(414	)		86
Balance at end of the period	$	2,062		$	2,195

- 25 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

13. SHARE CAPITAL AND SHARE-BASED PAYMENTS

(a) Authorized: Unlimited common shares without par value

(b) Issued:

(i) During the year ended December 31, 2024, the Company issued 9,338,685 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $9,732. The Company paid a 2.75% cash commission of $268 on gross proceeds, for net proceeds of $9,464. The Company also incurred $360 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

During the year ended December 31, 2024, the Company issued 1,197,709 common shares upon exercise of RSUs. As a result, $1,018 was recorded to share capital.

During year ended December 31, 2024, the Company issued 1,301,000 common shares following the exercise of 1,301,000 options. As a result, $1,515 was recorded to share capital, representing cash proceeds of $986 and the fair value upon issuance of $529.

(ii) During the year ended December 31, 2023, the Company issued 9,373,825 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $5,648. The Company paid a 2.75% cash commission of $155 on gross proceeds, for net proceeds of $5,493. The Company also incurred $339 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.

During the year ended December 31, 2023, the Company issued 1,005,333 common shares upon exercise of RSUs. As a result, $1,019 was recorded to share capital.

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

Continuity of stock options is as follows:

	Underlying Shares			Weighted Average Exercise Price (C$)

Stock options outstanding, January 1, 2023		4,256,000		$	1.36
Granted		2,545,000		$	1.12
Expired		(105,000	)	$	1.30
Cancelled / Forfeited		(30,000	)	$	1.40
Stock options outstanding, December 31, 2023		6,666,000		$	1.27
Granted		2,500,000		$	0.78
Exercised		(1,301,000	)	$	1.04
Cancelled / Forfeited		(190,000	)	$	1.26
Stock options outstanding, December 31, 2024		7,675,000		$	1.15
Stock options exercisable, December 31, 2024		7,050,000		$	1.18

- 26 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The following table summarizes information about the stock options outstanding and exercisable at December 31, 2024:

			Outstanding				Exercisable
Expiry Date	Price (C$)		Number of Options		Weighted Average Remaining Contractual Life (Years)		Number of Options		Weighted Average Remaining Contractual Life (Years)
August 4, 2025	$	1.64		1,570,000		0.59		1,570,000		0.59
March 25, 2027	$	1.20		1,905,000		2.23		1,905,000		2.23
May 4, 2027	$	0.92		25,000		2.34		25,000		2.34
March 29, 2028	$	1.12		1,870,000		3.24		1,870,000		3.24
July 10, 2028	$	1.12		150,000		3.53		150,000		3.53
March 25, 2029	$	0.78		2,155,000		4.23		1,530,000		4.23

				7,675,000		2.73		7,050,000		2.73

Valuation of stock options requires the use of estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

	December 31, 2024			December 31, 2023
Weighted average assumptions:
Risk-free interest rate		3.51	%		3.10	%
Expected dividend yield		0	%		0	%
Expected warrant life (years)		5			5
Expected stock price volatility		60.73	%		61.10	%
Expected forfeiture rate		15	%		17	%
Weighted average fair value		C$0.43			C$0.60

During the year ended December 31, 2024, the Company charged $907 (December 31, 2023 - $924) to operations as share-based payments for the fair value of stock options granted.

(d) Restricted Share Units:

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

- 27 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

Continuity of RSUs is as follows:

	Underlying Shares			Weighted Average Price (C$)

RSUs outstanding, January 1, 2023		2,190,666		$	1.27
Granted		1,878,320		$	1.11
Exercised		(1,005,334	)	$	1.37
Cancelled / Forfeited		(68,943	)	$	1.14
RSUs outstanding, December 31, 2023		2,994,709		$	1.03
Granted		1,881,000		$	1.02
Exercised		(1,197,709	)	$	1.15
Cancelled / Forfeited		(137,132	)	$	1.08
RSUs outstanding, December 31, 2024		3,540,868		$	1.08

The following table summarizes information about the RSUs outstanding at December 31, 2024:

Issuance Date	Price (C$)		Number of RSUs Outstanding
March 25, 2022	$	1.19		556,539
March 29, 2023	$	1.12		1,124,288
July 10, 2023	$	0.94		50,000
April 1, 2024	$	1.02		1,810,041
				3,540,868

During the year ended December 31, 2024, 1,881,000 RSUs (December 31, 2023 – 1,878,320) were granted. The weighted average fair value at the measurement date was C$1.02, based on the TSX market price of the Company’s shares on the date the RSUs were granted.

During the year ended December 31, 2024, the Company charged $1,128 (December 31, 2023 - $1,345) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

- 28 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

(e) Earnings per share:

The calculations for basic earnings per share and diluted earnings per share are as follows:

	2024		2023
Net income for the period	$	8,100	$	542
Basic weighted average number of shares outstanding		134,599,532		121,261,696
Effect of dilutive share options, warrants, and RSUs		6,732,332		4,084,978
Diluted weighted average number of shares outstanding		141,331,864		125,346,674
Basic and diluted earnings per share	$	0.06	$	0.00

14. REVENUE AND COST OF SALES

The Company’s revenues for the year ended December 31, 2024 and 2023, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

	2024			2023
Concentrate sales	$	67,133		$	43,199
Provisional pricing adjustments		(955	)		690
	$	66,178		$	43,889

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

	2024		2023
Production costs	$	38,600	$	32,872
Write down of equipment and supplies inventory		1,144		414
Depreciation and depletion		3,233		2,784
	$	42,977	$	36,070

- 29 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

15. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses consist of the following:

	2024		2023
Salaries and benefits	$	1,918	$	1,506
Office and miscellaneous		1,591		1,399
Professional fees		1,326		1,378
Management and consulting fees		490		436
Investor relations		270		245
Directors fees		170		187
Regulatory and compliance fees		176		164
Depreciation		153		135
Travel and promotion		132		170
	$	6,226	$	5,620

16. COMMITMENTS & CONTINGENCIES

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 11.

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

	December 31, 2024		December 31, 2023
Not later than one year	$	180	$	714
Later than one year and not later than five years		1,052		1,241
Later than five years		3,312		3,965
	$	4,544	$	5,920

Office lease payments recognized as an expense during the year ended December 31, 2024, totalled $39 (December 31, 2023 - $29).

Due to the nature of the Company’s activities, the Company is from time to time involved in various claims and legal proceedings arising in the conduct of its business. At the reporting date, none of such claims and legal proceedings are considered probable of resulting in a material loss or judgment against the Company.

- 30 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

17. SUPPLEMENTARY CASH FLOW INFORMATION

	2024			2023
Net change in non-cash working capital items:
Inventory	$	1,053		$	(2,931	)
Prepaid expenses and other assets		(373	)		(225	)
Taxes recoverable		6,385			(2,842	)
Taxes payable		2,998			(768	)
Accounts payable and accrued liabilities		(1,537	)		2,832
Amounts receivable		(47	)		(631	)
Amounts due to related parties		(444	)		(196	)
	$	8,035		$	(4,761	)

	2024		2023
Other supplementary information:
Interest paid	$	238	$	227
Taxes paid		12		37
	$	250	$	264

	2024		2023
Non-cash investing and financing activities:
Shares acquired under terms of option agreements		118		95
Transfer of share-based payments reserve upon exercise of RSUs		1,018		1,019
Transfer of share-based payments reserve upon exercise of options		1,515		-
Transfer of share-based payments reserve upon option cancellation or expiry		-		61
Equipment acquired under finance leases and equipment loans		889		3,193
	$	3,540	$	4,368

18. FINANCIAL INSTRUMENTS

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments are recorded at fair value. The carrying amounts of the Company’s equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

(a) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2023 – three) counterparties (see Note 20). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

- 31 -

AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At December 31, 2024, no amounts were held as collateral.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at December 31, 2024, in the amount of $27,317 and current assets exceeded current liabilities by $25,235 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

The maturity profiles of the Company’s contractual obligations and commitments as at December 31, 2024, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,292	$	10,292	$	-	$	-
Derivative liability		475		475		-		-
Equipment loans		202		174		28		-
Finance lease obligations		2,612		1,620		992		-
Total	$	13,581	$	12,561	$	1,020	$	-

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

Interest Rate Risk

Interest rate risk consists of two components:

(i) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

(ii) To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not result in a material impact on the Company’s operations.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

	December 31, 2024						December 31, 2023
	MXN			CDN			MXN			CDN
Cash	$	13,989		$	396		$	13,338		$	70
Due from related parties		2,287			-			4,558			-
Long-term investments		-			1,742			-			1,236
Reclamation bonds		-			6			-			6
Amounts receivable		3,599			24			18,644			26
Accounts payable and accrued liabilities		(65,989	)		(46	)		(95,662	)		(150	)
Due to related parties		-			(136	)		-			(135	)
Finance lease obligations		(2,031	)		(549	)		(1,129	)		(217	)
Net exposure		(48,145	)		1,437			(60,251	)		836
US dollar equivalent	$	(2,349	)	$	998		$	(3,567	)	$	577

Based on the net US dollar denominated asset and liability exposures as at December 31, 2024, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the year ended December 31, 2024, by approximately $144 (December 31, 2023 - $304). The Company has entered into certain foreign currency contracts to mitigate this risk, and during the year ended December 31, 2024, recorded a derivative liability of $475 (2023 - $Nil).

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At December 31, 2024, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $36 (December 31, 2023 - $134).

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At December 31, 2024, a 10% change in market prices would have an impact on net earnings (loss) of approximately $119 (December 31, 2023 - $86).

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

(d) Classification of Financial Instruments

IFRS 13 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2024:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	27,317	$	-	$	-
Amounts receivable		-		3,350		-
Due from related parties		18		-		-
Long-term investments		1,190		-		57
Total financial assets	$	28,525	$	3,350	$	57

Financial liabilities
Derivative liability		-		-		(475	)
Total financial liabilities	$	-	$	-	$	(475	)

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2023:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,688	$	-	$	-
Amounts receivable		-		3,303		-
Long-term investments		934		-		-
Total financial assets	$	3,622	$	3,303	$	-

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at December 31, 2024, the Company’s Level 3 financial instruments consisted of share purchase warrants in Silver Wolf Exploration Ltd. and Endurance Gold Corp.. See Note 7 for further details.

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

19. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration and expansion of its properties and to maintain a flexible capital structure for its projects for the benefit of its stakeholders. In the management of capital, the Company includes equity (comprising of all issued share capital, equity reserves, retained earnings or accumulated deficit, and other comprehensive income (loss), equipment loan obligations, and finance lease obligations, are listed as follows:

	2024		2023
Equity	$	125,399	$	106,001
Equipment loan obligations		193		359
Finance lease obligations		2,436		3,095
	$	128,028	$	109,455

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may attempt to incur new debt or issue new shares. Management reviews the Company’s capital structure on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. At December 31, 2024, the Company expects its capital resources and projected future cash flows from operations to support its normal operating requirements on an ongoing basis, and planned development and exploration of its mineral properties and other expansionary plans. At December 31, 2024, there was no externally imposed capital requirement to which the Company was subject and with which the Company did not comply.

20. SEGMENTED INFORMATION

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined there is a single reportable operating segment as of December 31, 2024.

The Company’s revenues for the year ended December 31, 2024 of $66,178 (December 31, 2023 - $43,889) are all attributable to Mexico, from shipments of concentrate.

On the consolidated statements of operations, the Company had revenue from the following product mixes:

	2024			2023
Silver	$	28,284		$	16,642
Copper		27,437			20,361
Gold		16,962			13,137
Penalties, treatment costs and refining charges		(6,505	)		(6,251	)
Total revenue from mining operations	$	66,178		$	43,889

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

For the years ended December 31, 2024 and 2023, the Company had the following customers that accounted for total revenues as follows:

	2024		2023
Customer #1	$	58,754	$	35,053
Customer #2		6,218		8,675
Other customers		1,206		161
Total revenue from mining operations	$	66,178	$	43,889

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

	December 31, 2024		December 31, 2023
Exploration and evaluation assets - Mexico	$	52,890	$	50,110
Exploration and evaluation assets - Canada		-		1
Total exploration and evaluation assets	$	52,890	$	50,111

	December 31, 2024		December 31, 2023
Plant, equipment, and mining properties - Mexico	$	53,400	$	52,891
Plant, equipment, and mining properties - Canada		401		178
Total plant, equipment, and mining properties	$	53,801	$	53,069

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

21. INCOME TAXES

(a) Income tax expense (recovery)

Income tax expense (recovery) included in the consolidated statements of operations and comprehensive income (loss) is as follows:

	2024		2023

Current income tax expense (recovery)	$	6,288	$	(527	)
Deferred income tax expense (recovery)		33		(525	)
Total income tax expense (recovery)	$	6,321	$	(1,052	)

The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense recognized in the year is as follows:

	2024			2023

Net income (loss) before income taxes	$	14,421		$	(510	)

Combined statutory tax rate		27.00	%		27.00	%

Income tax expense (recovery) at the Canadian statutory rate		3,894			(138	)

Reconciling items:
Effect of difference in foreign tax rates		477			57
Non-deductible/non-taxable items		217			892
Change in unrecognized deductible temporary differences		(147	)		(334	)
Impact of foreign exchange		761			(1,574	)
Special mining duties		1,063			157
Revisions to estimates		11			(19	)
Impact of change of tax rates		197			-
Share issue costs		(162	)		(136	)
Other items		10			43

Income tax expense (recovery) recognized in the year	$	6,321		$	(1,052	)

The Company recognized a non-cash expense of $171 for the year ended December 31, 2024 (2023 – expense of $30) related to the deferred tax impact of the special mining duty.

	December 31,			December 31,
	2024			2023

Deferred income tax assets	$	2,993		$	2,034
Deferred income tax liabilities		(7,722	)		(6,730	)

	$	(4,729	)	$	(4,696	)

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AVINO SILVER & GOLD MINES LTD.

Notes to the consolidated financial statements

For the years ended December 31, 2024, and 2023

(Expressed in thousands of US dollars, except where otherwise noted)

The approximate tax effects of each type of temporary difference that gives rise to potential deferred income tax assets and liabilities are as follows:

	December 31, 2024			December 31, 2023

Reclamation provision	$	794		$	979
Other deductible temporary differences		2,199			1,055
Exploration and evaluation assets		(3,626	)		(3,054	)
Plant, equipment and mining properties		(4,096	)		(3,676	)

Net deferred income tax liabilities	$	(4,729	)	$	(4,696	)

The net deferred tax liability presented in these consolidated financial statements is due to the difference in the carrying amounts and tax bases of the Mexican plant, equipment and mining properties which were acquired in the purchase of Avino Mexico. The carrying values of the Mexican plant, equipment and mining properties includes an estimated fair value adjustment recorded upon the July 17, 2006, acquisition of control of Avino Mexico that was based on a share exchange, while the tax bases of these assets are historical undeducted tax amounts that were nil on acquisition. The deferred tax liability is attributable to assets in the tax jurisdiction of Mexico.

(b) Unrecognized deductible temporary differences:

Temporary differences and tax losses arising in Canada have not been recognized as deferred income tax assets due to the fact that management has determined it is not probable that sufficient future taxable profits will be earned in Canada to recover such assets. Unrecognized deductible temporary differences are summarized as follows:

	December 31, 2024		December 31, 2023

Tax losses carried forward - Canada	$	18,435	$	20,468
Tax losses carried forward - Mexico		29,845		50,889
Share issue costs		922		815
Plant, equipment and mining properties		563		511
Exploration and evaluation assets		1,070		1,174
Investments		2,237		2,267

Unrecognized deductible temporary differences	$	53,072	$	76,124

The Company has capital losses of $7,281 carried forward and $11,154 in non-capital tax losses carried forward available to reduce future Canadian taxable income. The capital losses can be carried forward indefinitely until used. The non-capital losses have an expiry date range of 2025 to 2043.

The Company has non-capital tax losses of $29,845 carried forward available to reduce future Mexican taxable income and have an expiry date range of 2025 to 2034.

22. SUBSEQUENT EVENTS

Subsequent to December 31, 2024, the Company issued 371,250 common shares through the exercise of 371,250 stock options at an average exercise price of C$1.38 for proceeds of C$513.

Subsequent to December 31, 2024, Silver Wolf Exploration Ltd. (“Silver Wolf”) provided notice of their intention to exercise the final payment associated with the Option Agreement (see Note 8 for details). At the date of the consolidated financial statements, title transfer is in process and no shares of Silver Wolf have been issued to the Company.

- 38 -

EX-99.2 3 avino_ex992.htm MANAGEMENTS DISCUSSION & ANALYSIS avino_ex992.htm

EXHIBIT 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The following discussion and analysis of the operations, results, and financial position of Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) should be read in conjunction with the Company’s audited consolidated financial statements as at and for the year ended December 31, 2024, and the notes thereto.

This Management’s Discussion and Analysis (“MD&A”) is dated March 11, 2025, and discloses specified information up to that date. The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). Unless otherwise cited, references to dollar amounts are in US dollars. This MD&A contains “forward-looking statements” that are subject to risk factors including those set out in the “Cautionary Statement” at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Company’s Board of Directors as of March 11, 2025, unless otherwise indicated. Throughout this report we refer to “Avino”, the “Company”, “we”, “us”, “our”, or “its”. All these terms are used in respect of Avino Silver & Gold Mines Ltd. We recommend that readers consult the “Cautionary Statement” on the last page of this report. Additional information relating to the Company is available on the Company’s website at www.avino.com and on SEDAR+ at www.sedarplus.ca.

Business Description

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada (except for the province of Quebec) and the United States, and its common shares are listed on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

Discussion of Operations

The Company’s production, exploration, and evaluation activities during the year ended December 31, 2024, have been conducted on the Avino Property and the La Preciosa Property.

The Company holds a 99.67% effective interest in Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”), a Mexican corporation which owns the Avino Property. The Avino Property covers approximately 1,104 contiguous hectares, and is located approximately 80 km north-east of the city of Durango. The Avino Property is equipped with milling and processing facilities that presently process all output from the Avino Mine located on the property. The Avino Property also hosts the San Gonzalo Mine, which is currently on care and maintenance. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V. (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

1 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Operational Highlights

HIGHLIGHTS (Expressed in US$, unless otherwise noted)	Fourth Quarter 2024		Fourth Quarter 2023		Change			Year 2024		Year 2023		Change
Operating
Tonnes Milled		181,733		143,738		26	%		648,774		615,373		5	%
Silver Ounces Produced		283,794		224,723		26	%		1,109,214		928,643		19	%
Gold Ounces Produced		2,560		1,452		76	%		7,477		7,335		2	%
Copper Pounds Produced		1,773,694		1,317,793		35	%		6,197,603		5,304,808		17	%
Silver Equivalent Ounces1 Produced		735,557		558,460		32	%		2,652,498		2,415,232		10	%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2		889,294		584,061		52	%		2,562,211		2,086,485		23	%
Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	13.88	$	15.04		-8	%	$	14.84	$	15.61		-5	%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	18.62	$	21.67		-14	%	$	20.57	$	21.87		-6	%

1. In Q4 2024, AgEq was calculated using metal prices of $31.34 per oz Ag, $2,662 per oz Au and $4.17 per lb Cu. In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,976 oz Au and $3.71 lb Cu. For FY 2024, AgEq was calculated using metal prices of $28.24 per oz Ag, $2,387 per oz Au and $4.15 per lb Cu. For FY 2023, AgEq was calculated using metal prices of $23.39 oz Ag, $1,976 oz Au and $3.85 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. Non-IFRS Accounting Standard measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Accounting Standards Measures section for further information and detailed reconciliations.

Financial Highlights

HIGHLIGHTS (Expressed in 000’s of US$)	Fourth Quarter 2024		Fourth Quarter 2023		Change			Year 2024		Year 2023		Change
Financial Operating Performance
Revenues	$	24,382	$	12,530		95	%	$	66,178	$	43,889		51	%
Mine operating income	$	10,456	$	2,561		308	%	$	23,201	$	7,819		197	%
Net income	$	5,092	$	563		804	%	$	8,100	$	542		1394	%
Earnings before interest, taxes and amortization (“EBITDA”)1	$	9,099	$	1,120		712	%	$	18,037	$	2,506		620	%
Adjusted earnings1	$	9,950	$	1,972		405	%	$	21,333	$	4,601		364	%
Cash provided by operating activities	$	15,551	$	621		2404	%	$	23,124	$	1,488		1454	%
Mine operating cash flow before taxes1	$	11,878	$	3,597		230	%	$	27,578	$	11,017		150	%
Per Share Amounts
Earnings per share – basic	$	0.04	$	0.00		100	%	$	0.06	$	0.00		100	%
Earnings per share – diluted	$	0.03	$	0.00		100	%	$	0.06	$	0.00		100	%
Adjusted earnings per share1	$	0.07	$	0.02		250	%	$	0.15	$	0.04		275	%
HIGHLIGHTS (Expressed in 000’s of US$)	December 31, 2024		September 30, 2024		Change			December 31, 2024		December 31, 2023		Change
Liquidity & Working Capital
Cash	$	27,317	$	7,767		252	%	$	27,317	$	2,688		916	%
Working capital1	$	25,235	$	15,878		59	%	$	25,235	$	9,727		159	%

1. Non-IFRS Accounting Standard measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Accounting Standards Measures section for further information and detailed reconciliations.

2 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

4th Quarter 2024 Highlights

	·	Record quarterly revenues of $24.4 million, an increase of 95% from Q4 2023

	·	Record quarterly record gross profit (mine operating income) of $10.5 million, an increase of 308% from Q4 2023

	·	Net income of $5.1 million, or $0.03 per share

	·	Adjusted earnings of $10 million, or $0.07 per share

	·	Cash flow provided by operating activities of $15.6 million

	·	Mine operating cash flow before taxes of $11.9 million

	·	Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $9.1 million

	·	Cash costs per silver equivalent payable ounce sold of $13.88, a cost reduction of 8% from Q4 2023

	·	All in sustaining cash costs per silver equivalent payable ounce sold of $18.62, an improvement of 14% from Q4 2023

	·	Cash balance at quarter end of $27.3 million, a 252% increase from the beginning of the quarter

Silver Equivalent Production Increased 32%:

Avino produced 735,557 silver equivalent ounces in Q4 2024, representing a 32% increase from Q4 of 2023 and a 10% increase compared to the previous quarter. The increase was driven by improved gold grades and increased mill throughput.

Mill Throughput increased 26%:

The Company processed 181,733 tonnes in Q4 2024, a 26% increase compared to Q4 2023, and the highest quarter in the Company’s history. Mill availability and performance is a result of considerable efforts from our operations team in Durango, allowing for meaningful improvements in operational metrics, as well as improving the Company’s cash and working capital positions.

Gold Production Increased 76%:

Q4 2024 production of 2,560 gold ounces represented a 76% increase compared to Q4 2023 and was our highest quarter of gold production in 2024. Improved feed grade accounted for the majority of the increase, alongside the mill availability noted above.

Balance Sheet Strength:

Avino had $27.3 million in cash at the end of 2024 and remains debt-free, excluding operating equipment leases, demonstrating significant cash flow generation throughout Q4 2024. Our strong balance sheet and working capital will provide the foundation to support our transformational growth plan.

3 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

FY 2024 Highlights

	·	Record annual revenues of $66.2 million, an increase of 51% from 2023

	·	Record annual gross profit (mine operating income) of $23.2 million, an increase of 197% from 2023

	·	Net income of $8.1 million, or $0.06 per share

	·	Adjusted earnings of $21.3 million, or $0.15 per share

	·	Cash flow provided by operating activities of $23.1 million

	·	Mine operating income before taxes of $27.6 million

	·	Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $18.0 million

	·	Cash costs per silver equivalent payable ounce sold of $14.84, a cost reduction of 5% from 2023

	·	All in sustaining cash costs per silver equivalent payable ounce sold of $20.57, an improvement of 6% from 2023

	·	Cash balance at year end of $27.3 million, a 916% increase from 2023

	·	Working capital of $25.2 million, a 159% increase from 2023

Consistent Production at Avino:

During the year, production increased significantly due to overall mill performance and availability. With production of 2.65 million silver equivalent ounces, the Company completed the year within our targeted full year production of 2.5 to 2.8 million silver equivalent ounces, as disclosed in February 2024. Production guidance for 2025 consists of a range of 2.5 million to 2.8 million silver equivalent ounces. Silver equivalent ounces in our production guidance range are calculated using prices of $30.00 per ounce for silver, $2,600 per ounce for gold, and $4.18 per pound of copper.

La Preciosa Progress:

Following the signing of the long-term land use agreement with a local community on January 9th, 2024, the Company announced that underground development at its 100%-owned La Preciosa Property (“La Preciosa”) has commenced following receipt of all required permits for mining operations.

With many of the necessary outbuildings completed, Avino has proactively prepared its mining fleet and is now advancing the development of a 350-metre mine access and haulage decline. This is designed to intercept the high-grade La Gloria and Abundancia veins, aligning with the Company’s mine development plan. Development for the first phase at La Preciosa is expected to be under $5M and will be funded from cash reserves. Our strong balance sheet and working capital will provide the foundation to support our transformational growth plans, which will be further outlined in our 2025 Outlook.

Health and Safety Performance Improvements:

The Company achieved a reduction in Lost Time Incident Frequency Rate (“LTIFR”) of 32% for 2024 to 3.39 per 1,000,000 hours worked, while seeing an increase in hours worked by 47% at the Avino operations. Reportable lost time incident frequency rate also decreased to 0.07, down over 90% from 2023.

Balance Sheet Strength:

4 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Financial Results – Three months ended December 31, 2024, compared to three months ended December 31, 2023

	2024			2023
Revenue from mining operations	$	24,382		$	12,530
Cost of sales		13,926			9,969
Mine operating income		10,456			2,561

Operating expenses:
General and administrative expenses		1,708			1,621
Share-based payments		434			460
Income before other items		8,314			480

Other items:
Interest and other income		287			180
Loss on long-term investments		(259	)		(31	)
Unrealized loss on derivative liability		(475	)		-
Unrealized foreign exchange gain (loss)		637			(73	)
Finance cost		-			(1	)
Accretion of reclamation provision		(46	)		(13	)
Interest expense		(139	)		(106	)
Income before income taxes		8,319			436

Income taxes:
Current income tax expense		(4,255	)		(118	)
Deferred income tax recovery		1,028			245
Income tax recovery (expense)		(3,227	)		127
Net income	$	5,092		$	563

Other comprehensive income (loss):
Currency translation differences		(704	)		361
Total comprehensive income	$	4,388		$	819
Earnings per share
Basic	$	0.04		$	0.00
Diluted	$	0.03		$	0.00
Weighted average number of common shares outstanding
Basic		139,726,509			124,714,723
Diluted		146,635,008			127,763,043

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Revenues

During the three months ended December 31, 2024, the Company recognized revenues of $24.4 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to $12.5 million revenues for Q4 2023, an increase of $11.9 million. The increase was due to higher realized metal prices in the quarter for silver, gold, and copper, of 29%, 29% and 13%, respectively, compared to Q4 of 2023. This, coupled with the higher payable silver equivalent ounces sold of 52% during the same period, resulted in the significant increase in revenues.

Metal prices for revenues recognized during the period were $30.21 per ounce of silver, $2,564 per ounce of gold, and $9,300 per tonne of copper, with comparable prices for Q4 2023 were $23.50 per ounce of silver, $1,994 per ounce of gold, and $8,202 per tonne of copper.

Payable silver equivalent ounces sold in the current period were 889,294 ounces, compared to 584,061 ounces in Q4 2023.

Cost of Sales & Mine Operating Income

During the three months ended December 31, 2024, cost of sales was $13.9 million, compared to $10.0 million in Q4 2023, an increase of $3.9 million. The increase is directly attributable to more volume sold partly offset by a quarterly average weaker Mexican peso exchange rate compared to Q4 2023 by about 14%. Gross margin was higher than previous quarters as a result of more ounces sold per tonne processed when compared with prior year quarter, as tonnes processed were up 26% while silver equivalent ounce sold were up 52%. Tonnage processed in Q4 2024 was 181,733 tonnes, compared to 143,798 tonnes in Q4 2023.

Mine operating income, after depreciation and depletion, was $10.5 million, compared to $2.6 million in Q4 2023. Mine operating income was higher than Q4 2024 as a result of increased payable silver equivalent ounces sold and higher realized metal prices in the current quarter, as described above and in the “Revenues” section.

General and Administrative Expenses & Share-Based Payments

General and administrative expenses was $1.7 million, compared to $1.6 million in Q4 2023. The increase is a result of higher salaries and benefits, primarily as a result of increased profit-sharing provisions for employees in Mexico from improved financial performance.

Share-based payments was $0.4 million, compared to $0.5 million in Q4 2023, with the decrease being a result of the vesting of previously issued options and restricted share units at lower prices compared to Q4 2023.

Other Items

Loss on long-term investments was $0.3 million compared to a loss of $0.03 million in Q4 2023. This is a direct result of fluctuations in the Company’s investment in shares of Talisker Resources, as well as the Company’s investment in shares of Silver Wolf Exploration and Endurance Gold.

Unrealized loss on derivatives was $0.4 million compared to Nil million in prior year quarter. This is a direct result of US dollar/Mexican Peso foreign exchange forward contracts entered into during the current quarter to mitigate risks surrounding the Company of material foreign exchange movements that could cause the Company to incur material losses.

Foreign exchange gain for the period was $0.6 million, a change of $0.7 million compared to a loss of $0.1 million in Q4 2023. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the quarter ended December 31, 2024, the US dollar appreciated in relation to the Mexican peso and Canadian dollar, resulting in higher unrealized foreign exchange gain.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Current and Deferred Income Taxes

Current income tax expense was $4.3 million in Q4 2024, a change of $4.2 million compared to an income tax expense $0.1 million for Q4 2023. The movement relates primarily to increased operating profits generated in Q4 2024, which resulted in increased income tax expense.

Deferred income tax recovery was $1.0 million, a change of $0.8 million compared to a recovery of $0.2 million in Q4 2023. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.

Net Income

Net income was $5.1 million for the period, or $0.04 per basic share and $0.03 per diluted share, compared to net income of $0.6 million, or $0.00 per based and diluted share during Q4 2023. The changes are a result of the items noted above, including increases in revenues and mine operating income, as well as increased foreign exchange gains. The positive movements were partially offset by increases to cost of sales, loss on long-term investments, current income tax expenses and unrealized loss on derivatives. The remaining items were consistent, showing no significant variances as noted above.

EBITDA & Adjusted Income/Loss (see “Non-IFRS Accounting Standards Measures”)

EBITDA was $9.1 million, an increase of $8.0 million when compared to $1.1 million for Q4 2023. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, changes in interest expense and income, as well as any changes in income taxes. See Non-IFRS Accounting Standards Measures for a reconciliation for EBITDA.

Adjusted earnings for the period was $10.0 million, an increase of $8.0 million when compared to adjusted earnings of $2.0 million in the corresponding quarter in 2023. Changes to adjusted earnings are a result of the items noted above in EBITDA, further excluding share-based payments, unrealized gains and losses related to derivative liabilities, write-downs of equipment and movements in foreign exchange. See Non-IFRS Measures for a reconciliation for adjusted earnings.

Cash Costs & All-in Sustaining Cash Costs (see “Non-IFRS Accounting Standard Measures”)

Cash costs per silver equivalent payable ounce was $13.88, compared to $15.04 for Q4 2023. The reduction in costs of 8% is attributable to higher ounces sold of 52% in Q4 2024 when compared to Q4 2023 and improvements in the US dollar to Mexican Peso exchange rate.

All-in sustaining cash costs per silver equivalent payable ounce was $18.62, compared to $21.67 for Q4 2023. The reduction in costs is a result of the items mentioned above, with no significant difference between the comparable quarter in sustaining capital and exploration costs, as well as general and administrative expenses.

See Non-IFRS Accounting Standard Measures for a reconciliation for cash costs and all-in sustaining cash costs.

7 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Selected Annual Information – Year ended December 31, 2024, compared to year ended December 31, 2023:

	2024			2023
Revenue from mining operations	$	66,178		$	43,889
Cost of sales		42,977			36,070
Mine operating income		23,201			7,819

Operating expenses
General and administrative expenses		6,226			5,620
Share-based payments		2,035			2,269
		14,940			(70	)

Other items
Interest and other income		364			414
Loss on long-term investments		(172	)		(931	)
Unrealized loss on derivative liability		(475	)		-
Fair value adjustment on warrant liability		-			478
Foreign exchange gain		979			110
Finance cost		(10	)		(81	)
Accretion of reclamation provision		(197	)		(49	)
Write-down of uncollectible account		(621	)		-
Interest expense		(387	)		(381	)
Income (loss) before income taxes		14,421			(510	)

Income taxes:
Current income tax recovery (expense)		(6,288	)		527
Deferred income tax (expense) recovery		(33	)		525
Income tax (expense) recovery		(6,321	)		1,052
Net income		8,100			542

Other comprehensive income (loss)
Currency translation differences		(827	)		15
Total comprehensive income	$	7,273		$	557
Earnings per share
Basic	$	0.06		$	0.00
Diluted	$	0.06		$	0.00
Weighted average number of common shares outstanding
Basic		134,599,532			121,261,696
Diluted		141,331,864			125,346,674

8 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Revenues

The Company recognized revenues net of penalties, treatment costs and refining charges, of $66.2 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to $43.9 million revenues for year ended December 31, 2023, an increase of $22.3 million. The sales are higher than prior year because of higher payable silver equivalent ounces sold in the current period of 2.52 million, compared to 2.08 million in 2023, an increase of 23%, and higher realized metal prices in 2024 compared with prior year.

Metal prices for revenues recognized during the period were $29.21 per ounce of silver, $2,487 per ounce of gold, and $9,251 per tonne of copper, compared to $23.46, $1,953, and $8,439, respectively, for the same period in 2023. The increases in metal prices year over year represented 25% per ounce of silver sold, 27% per ounce of gold, and 10% per tonne of copper.

Cost of Sales & Mine Operating Income

Cost of sales was $43.0 million, compared to $36.1 million in 2023, an increase of $6.9 million. The increase in cost of sales is partially attributable to higher tonnes milled of 5%, which resulted in higher overall costs. The increase is also attributed to a stronger average Mexican peso during the first half of the year, which directly impacted labour and contractor costs. This was partially offset by the weakening of the Mexican peso in the second half of 2024 by approximately 12%, which was favorable to the Company's cost structure.

Mine operating income was $23.2 million, compared to $7.8 million in 2023. The increase in mine operating income is a result of the increased revenues, with offsetting increases in cost of sales, when compared to the comparative period, as noted above.

General and Administrative Expenses & Share-Based Payments

General and administrative expenses was $6.2 million, compared to $5.6 million in the comparable period, with any increases coming from salaries and benefits, primarily as a result of increased profit-sharing provisions for employees in Mexico from improved financial performance.

Share-based payments was $2.0 million, compared to $2.3 million in the comparable period, a decrease of $0.3 million. The decrease is a direct result of the timing of option and RSU grants, and fluctuations in share price from period to period.

Other Items

Loss on long-term investments was $0.2 million, a positive movement of $0.7 million compared to a loss of $0.9 million in the comparable period. This is a direct result of fluctuations in the Company’s investment in shares of Talisker Resources from period to period, as well as the Company’s investment in shares of Silver Wolf Exploration and Endurance Gold.

Unrealized loss on derivatives was $0.5 million compared to Nil million in prior year. This is a direct result of US dollar/Mexican Peso foreign exchange forward contracts entered into during the current quarter to mitigate risks surrounding the Company of material foreign exchange movements that could cause the Company to incur material losses.

Fair value adjustment on warrant liability was Nil, a negative movement of $0.5 million compared to a gain of $0.5 million in the comparable period in 2023. The fair value adjustment on the Company’s warrant liability relates to the issuance of US dollar-denominated warrants, which are re-valued each reporting period, and the value fluctuates with changes in the US-Canadian dollar exchange rate, and in the variables used in the valuation model, such as the Company’s US share price, and expected share price volatility. All US dollar-denominated warrants expired in September 2023, thus there is no adjustment for 2024

9 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Foreign exchange gain for the period was $1.0 million, a positive movement of $0.9 million compared to a gain of $0.1 million in the comparable period in 2023. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the period, the Canadian dollar and the US dollar remained constant in relation to the Mexican peso except for the second half of 2024 where the Mexican peso depreciated against both currencies, resulting in an overall foreign exchange gain for the period. During the year ended December 31, 2023, the US dollar appreciated in relation to the Mexican peso and Canadian dollar, resulting in a foreign exchange gain.

The write down of uncollectible account was $0.6 million, a negative movement of $0.6 million compared to Nil in 2023, as there was no comparable transaction in 2023.

Current and Deferred Income Taxes

Current income tax expense was $6.3 million, compared to a current income tax recovery of $0.5 million in the comparable period. The movements are a result of higher profits generated in 2024, resulting in increased income tax expense, whereas in 2023, the Company was in a recovery position.

Deferred income tax expense was less than $0.1 million compared to a recovery of $0.5 million in 2023. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to the special mining duty in Mexico and to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.

Net Income

Net income was $8.1 million for the period, or $0.06 per share, compared to net income of $0.5 million, or $0.00 per share during the comparable period in 2023. The changes are a result of the items noted above, which are primarily positive movements from increases in revenues, mine operating income, foreign exchange gains as well as decreases in share-based payments and losses on long-term investments between the two comparable periods. Net income was also impacted by negative movements such as increases to general and administrative expenses, fair value adjustments on the warrant liability, and the write-down of an uncollectible account.

EBITDA & Adjusted Income/Loss (see “Non-IFRS Accounting Standard Measures”)

EBITDA was $18.0 million, an increase of $15.5 million when compared to $2.5 million for the comparable period. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, and any changes in income taxes. See Non-IFRS Accounting Standard Measures for a reconciliation for EBITDA.

Adjusted earnings for the period was $21.3 million, an increase of $16.7 million when compared to adjusted earnings of $4.6 million in the corresponding period in 2023. Changes to adjusted earnings are a result of the items noted above in EBITDA, further excluding share-based payments, gains and losses related to warrants, and movements in unrealized foreign exchange. See Non-IFRS Measures for a reconciliation for adjusted earnings.

10 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Cash Costs & All-in Sustaining Cash Costs (see “Non-IFRS Accounting Standard Measures”)

Cash costs per silver equivalent payable ounce was $14.84, compared to $15.61 for the comparable period in 2023. The cost per ounce remained constant with prior year period with a minor decrease primarily driven by foreign exchange movements between the US dollar and Mexican peso, with the Mexican peso being depreciated on average throughout the year ended December 31, 2024 compared to the year ended December 2023.

All-in sustaining cash costs per silver equivalent payable ounce was $20.57, compared to $21.87 for the comparable period in 2023. The decrease is a result of the items noted above, as well as movements in penalties, treatment and refining charges, exploration expenses and sustaining capital expenditures.

See Non-IFRS Accounting Standard Measures for a reconciliation for cash costs and all-in sustaining cash costs.

Avino Mine Production Highlights

Q4 2024	Q4 2023	Change %		YTD 2024	YTD 2023	Change %
181,733	143,798	26%	Total Mill Feed (dry tonnes)	648,774	615,373	5%
56	56	0%	Feed Grade Silver (g/t)	61	54	13%
0.59	0.45	31%	Feed Grade Gold (g/t)	0.51	0.51	0%
0.52	0.49	6%	Feed Grade Copper (%)	0.51	0.47	9%
87%	87%	0%	Recovery Silver (%)	88%	87%	1%
74%	70%	6%	Recovery Gold (%)	71%	72%	-1%
86%	84%	2%	Recovery Copper (%)	87%	83%	5%
283,794	224,723	26%	Total Silver Produced (oz)	1,109,214	928,643	19%
2,560	1,452	76%	Total Gold Produced (oz)	7,477	7,335	2%
1,773,694	1,317,793	35%	Total Copper Produced (Lbs)	6,197,603	5,304,808	17%
735,557	558,460	32%	Total Silver Equivalent Produced (oz)1	2,652,498	2,415,232	10%

Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company's discovery of the San Gonzalo and Avino Mine resources, and in the Company's record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012.

Qualified Person(s)

Peter Latta, P.Eng, MBA, Vice President, Technical Services, is a qualified person within the context of National Instrument 43-101, and has reviewed and approved the technical data in this document.

11 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Non – IFRS Accounting Standards Measures

EBITDA and Adjusted earnings

Earnings, or loss, before interest, taxes and amortization (“EBITDA”) is a non IFRS financial measure which excludes the following items from net earnings:

	·	Income tax expense
	·	Finance costs
	·	Amortization and depletion

Adjusted earnings excludes the following additional items from EBITDA

	·	Share based compensation;
	·	Non-operational items including foreign exchange movements, fair value adjustments on outstanding warrants, derivative liability movements and other non-recurring items

Management believes EBITDA and adjusted earnings provides an indication of continuing capacity to generate operating cash flow to fund capital needs, service debt obligations and fund capital expenditures. These measures are intended to provide additional information to investors and analysts and are indicative of the Company’s financial performance. There are not standardized definitions under IFRS Accounting Standards and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS Accounting Standards.

Adjusted earnings excludes share-based payments, and non-operating or recurring items such as foreign exchange gains and losses, writedown of equipment or supplies and materials inventory, fair value adjustments on outstanding warrants and fair value adjustments on derivative liabilities. Under IFRS Accounting Standards, entities must reflect within compensation expense the cost of share-based payments. In the Company’s circumstances, share-based compensation can involve significant amounts that will not be settled in cash but are settled by issuance of shares in exchange. The Company discloses adjusted earnings to aid in understanding the results of the Company.

12 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The following table provides a reconciliation of net earnings in the financial statements to EBITDA, adjusted earnings and adjusted earnings per share:

Expressed in 000’s of US$, unless otherwise noted	Q4 2024			Q4 2023			YTD 2024			YTD 2023
Net income for the period	$	5,092		$	563		$	8,100		$	542
Depreciation and depletion		882			744			3,386			2,919
Interest income and other		(287	)		(180	)		(364	)		(414	)
Interest expense		139			106			387			381
Finance cost		-			1			10			81
Accretion of reclamation provision		46			13			197			49
Current income tax expense (recovery)		4,255			118			6,288			(527	)
Deferred income tax expense (recovery)		(1,028	)		(245	)		33			(525	)
EBITDA	$	9,099		$	1,120		$	18,037		$	2,506
Fair value adjustment on warrant liability		-			1			-			(478	)
Unrealized loss on derivatives		475			-			475			-
Share-based payments		434			460			2,035			2,269
Write-down of uncollectible asset		-			-			621			-
Write down of equipment and supplies and materials inventory		578			319			1,144			414
Unrealized foreign exchange (gain) loss		(636	)	$	72			(979	)		(110	)
Adjusted earnings	$	9,950		$	1,972		$	21,333		$	4,601
Shares outstanding (diluted)		146,635,008			127,763,043			141,331,864			125,346,674
Adjusted earnings per share	$	0.07		$	0.02		$	0.15		$	0.04

Cash Cost and All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce

The following tables provide a reconciliation of cost of sales from the consolidated financial statements to cash cost and all-in sustaining cash cost per silver equivalent payable ounce sold. In each table, “silver equivalent payable ounces sold” consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot silver, gold and copper prices for the corresponding period.

Cash cost per payable ounce and all-in sustaining cash cost per payable ounce are measures developed by mining companies in an effort to provide a comparable standard. However, there can be no assurance that our reporting of these non-IFRS Accounting Standard measures is similar to that reported by other mining companies. Total cash cost per payable ounce and all-in sustaining cash cost per payable ounce are measures used by the Company to manage and evaluate operating performance of the Company’s mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS Accounting Standards as issued by the IASB, and are disclosed in addition to IFRS Accounting Standards measures.

Cash cost per silver equivalent payable ounce

Management believes that the Company’s ability to control the cash cost per silver equivalent payable ounce is one of its key performance drivers impacting both the Company’s financial condition and results of operations. Achieving a low silver equivalent production cost base allows the Company to remain profitable from mining operations even during times of low commodity prices, and provides more flexibility in responding to changing market conditions. In addition, a profitable operation results in the generation of positive cash flows, which then improve the Company’s financial condition.

13 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The Company’s calculation of all-in sustaining cash costs includes sustaining capital expenditures of $1,533 for the year ended December 31, 2024 (December 31, 2023 - $1,041) and all of which is attributable to the Avino Mine.

To facilitate a better understanding of these measures as calculated by the Company, detailed reconciliations between the non-IFRS Accounting Standard measures and the Company’s consolidated financial statements are provided below. The non-IFRS Accounting Standard measures presented are intended to provide additional information, and should not be considered in isolation nor should they be considered substitutes for IFRS measures. Calculated figures may not add up accurately due to rounding.

The following table reconciles cost of sales to cash cost per payable AgEq oz and all-in sustaining cash cost per payable AgEq oz for the preceding quarters:

Expressed in 000’s of US$, unless otherwise noted	Avino – Consolidated
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
Cost of sales	$	13,926		$	8,907		$	10,090		$	10,054		$	9,969		$	9,952		$	8,175		$	7,974
Exploration expenses		(158	)		(111	)		(163	)		(135	)		(148	)		(41	)		(27	)		(95	)
Write down of equipment and supplies and materials inventory		(578	)		(182	)		(384	)		-			(319	)		(4	)		(91	)		-
Depletion and depreciation		(843	)		(773	)		(796	)		(821	)		(717	)		(720	)		(677	)		(670	)
Cash production cost		12,347			7,841			8,747			9,098			8,785			9,187			7,380			7,209
Payable silver equivalent ounces sold		889,294			525,003			537,037			610,877			584,061			543,686			452,011			506,727
Cash cost per silver equivalent ounce	$	13.88		$	14.94		$	16.29		$	14.89		$	15.04		$	16.90		$	16.33		$	14.23
General and administrative expenses		2,141			1,986			2,439			1,695			2,080			1,907			2,338			1,523
Treatment & refining charges		1,087			787			763			890			978			1,001			651			709
Penalties		745			915			626			692			834			535			634			898
Sustaining capital expenditures		555			510			162			306			318			289			270			163
Exploration expenses		158			111			163			135			148			41			27			95
Share-based payments and G&A depreciation		(473	)		(570	)		(687	)		(459	)		(487	)		(665	)		(878	)		(374	)
Cash operating cost	$	16,560		$	11,580		$	12,214		$	12,357		$	12,656		$	12,295		$	10,422		$	10,223
AISC per silver equivalent ounce	$	18.62		$	22.06		$	22.74		$	20.23		$	21.67		$	22.61		$	23.06		$	20.17

*Certain amounts shown may not add exactly to the total due to rounding differences

14 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The following table reconciles cash cost per AgEq oz production cost to all-in sustaining cash cost per AgEq oz for the year ended December 31, 2024, and 2023:

Expressed in 000’s of US$, unless otherwise noted	Avino - Consolidated
	2024			2023
Cost of sales	$	42,977		$	36,070
Exploration expenses		(567	)		(311	)
Write down of equipment and supplies and materials inventory		(1,144	)		(414	)
Depletion and depreciation		(3,233	)		(2,784	)
Cash production cost		38,033			32,561
Payable silver equivalent ounces sold		2,562,211			2,086,485
Cash cost per silver equivalent ounce	$	14.84		$	15.61
General and administrative expenses		8,261			7,889
Treatment & refining charges		3,527			3,339
Penalties		2,978			2,900
Sustaining capital expenditures		1,533			1,041
Exploration expenses		567			311
Share-based payments and G&A depreciation		(2,188	)		(2,404	)
Cash operating cost	$	52,711		$	48,637
AISC per silver equivalent ounce	$	20.57		$	21.87

Included in the consolidated figures for 2024 were 26,309 silver equivalent ounces sold from the historical La Preciosa stockpiles as part of our ongoing test work.

Mine Operating Cash Flow Before Taxes

Mine operating cash flow before taxes is a non-IFRS Accounting Standard measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Mine operating cash flow before taxes is calculated as mine operating income less depreciation and depletion in cost of sales and write down or reversals of equipment and supplies and materials inventory. Mine operating cash flow before taxes is used by management to assess the performance of the mine operations, excluding corporate activities and is provided to investors as a measure of the Company’s operating performance.

Expressed in 000’s of US$, unless otherwise noted	Q4 2024		Q4 2023		2024		2023
Mine operating income – per financial statements	$	10,456	$	2,561	$	23,201	$	7,819
Depreciation and depletion included in cost of sales		843		717		3,233		2,784
Write down of equipment and supplies and materials inventory		579		319		1,144		414
Mine operating cash flow before taxes	$	11,878	$	3,597	$	27,578	$	11,017

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Working Capital

Management uses working capital to assess the Company’s ongoing liquidity position and future requirements, and believe it provides useful information to an investor. The Company’s working capital position is as follows:

	December 31, 2024			December 31, 2023
Current assets	$	40,769		$	23,535
Current liabilities		(15,534	)		(13,808	)
Working capital	$	25,235		$	9,727

Results of Operations - Summary of Quarterly Results

(000’s)	2024		2024		2024		2024		2023		2023			2023		2023
Quarter ended	Dec 31 Q4		Sep 30 Q3		Jun 30 Q2		Mar 31 Q1		Dec 31 Q4		Sep 30 Q3			Jun 30 Q2		Mar 31 Q1
Revenue	$	24,382	$	14,616	$	14,787	$	12,393	$	12,530	$	12,316		$	9,218	$	9,825
Net income (loss)		5,092		1,169		1,240		599		563		(803	)		1,134		(352	)
Earnings (loss) per share - basic	$	0.04	$	0.01	$	0.01	$	0.00	$	0.00	$	(0.01	)	$	0.01	$	0.00
Earnings (loss) per share - diluted	$	0.03	$	0.01	$	0.01	$	0.00	$	0.00	$	(0.01	)	$	0.01	$	0.00
Total Assets	$	148,711	$	135,366	$	133,702	$	128,644	$	128,340	$	123,493		$	120,469	$	118,606

During Q4 2024, revenue was higher when compared to previous, primarily as a result of higher silver equivalent ounces sold and realized metal prices.

Net income and earnings per share in Q4 2024 were positive. Current quarter was higher than prior quarters mainly due to better metal realized prices, volume sold and lower cost due to cost management as noted above. For further details see “Financial Results” section.

Total assets have increased overall when compared to previous quarters, as a result of operating and financing cash flow generation, and capital investment in the operation.

Quarterly results will fluctuate with changes in revenues, cost of sales, general and administrative expenses, including non-cash items such as share-based payments, and other items including foreign exchange and deferred income taxes. These fluctuations are mainly caused by market conditions such as fluctuations in metal prices, currency fluctuations as well as variations in mineralization of the zones mined.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Discussion and analysis relating to the Company’s financial position, as well as movements in cash flow, is as follows:

Selected Annual Information - Statement of Financial Position

(000’s)	December 31, 2024			December 31, 2023			December 31, 2022
Cash	$	27,317		$	2,688		$	11,245
Total current assets		40,769			23,535			25,585
Total assets		148,711			128,340			121,196
Total current liabilities		15,534			13,808			16,764
Total liabilities		23,312			22,339			23,175
Share capital		163,325			151,688			145,515
Accumulated deficit		(43,323	)		(51,423	)		(52,096	)
Total equity		125,399			106,001			98,021

Cash and current assets have increased in the current year, as a result of higher metal prices and good cost management, partly offset by capital re-investment into mining operations at Avino and exploration expenditures. As a result of capital acquisitions, total assets have increased year over year.

Total current liabilities in 2024 compared to prior years increased, with increases mainly due to higher taxes payable from higher operational profits. The decrease in 2023 is a result of the repayment of the $5 million note payable arising from the La Preciosa acquisition that closed during 2022, as well as reductions in taxes payable and the expiration of the warrants associated with the warrant liability.

Current and total liabilities are in line with prior years, the decrease in 2023 is as a result of the addition of the aforementioned $5 million note payable, as well as increases to accounts payable as the Company ramped up production mining activities during 2022.

Share capital and total equity increased year over year as a result of shares issued as partial consideration for the La Preciosa transaction in 2022 upon closing, as well as At The Market (“ATM”) share issuances for capital expansion purposes.

Accumulated deficit has decreased year over year as a result of profitable operations. Further details are available on operations in the “Financial Results” sections.

Cash Flow

	December 31, 2024			December 31, 2023
Cash generated by operating activities	$	23,124		$	1,488
Cash generated by (used in) financing activities		8,015			3,488
Cash used in investing activities		(6,560	)		(13,531	)
Change in cash		24,579			(8,555	)
Effect of exchange rate changes on cash		50			(2	)
Cash, beginning of period		2,688			11,245
Cash, end of period	$	27,317		$	2,688

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Operating Activities

Cash generated by operating activities for the year ended December 31, 2024, was $23.1 million, an increase of $21.6 million compared to $1.5 million generated for the year ended December 31, 2023. Cash movements from operating activities can fluctuate with changes in net income and working capital movements. In second half of 2024, cash generated from operating activities increased primarily due to higher mine operating income as a result of higher levels of production activities, better realized metal prices and ounces sold. Other movements are primarily a result of working capital changes between the two periods.

Financing Activities

Cash generated by financing activities was $8.0 million for the year ended December 31, 2024, compared to $3.5 million generated for the year ended December 31, 2023. The movement is a result of proceeds from shares issued on the ATM and option exercises, partially offset by higher payments of lease and equipment loan. During the year ended December 31, 2024, the Company received net proceeds from issuance of shares for cash and from options exercise of $10.1 million (December 31, 2023 – $5.2 million). The Company also made lease and equipment loan payments totalling $2.1 million (December 31, 2023 - $1.7 million).

Investing Activities

Cash used in investing activities for the year ended December 31, 2024, was $6.6 million compared to $13.5 million for year ended December 31, 2023. Cash used in investing activities included $6.6 million (December 31, 2023 - $8.5 million) spent on the acquisition of property and equipment and exploration expenditures, as well as $5.0 million related to the repayment of the promissory note associated with the acquisition of La Preciosa during the three months ended March 31, 2023, with no comparable payment in the current period.

Liquidity and Capital Resources

The Company’s ability to generate sufficient amounts of cash, in both the short term and the long term, to maintain existing capacity and to fund ongoing exploration, is dependent upon the discovery of economically recoverable reserves or resources and the ability of the Company to continue with sustainable and profitable mining operations.

Management expects that the Company’s ongoing liquidity requirements will be funded from cash generated from current operations. If required to fund ongoing exploration activities, and meet its objectives, including ongoing advancement at the Avino Mine further financing may be required. The Company continues to evaluate financing opportunities to advance its projects. The Company’s ability to secure adequate financing is, in part, dependent on overall market conditions, the prices of silver, gold, and copper, and other factors.

The Company’s recent financing activities are summarized in the table below.

Intended Use of Proceeds

Actual Use of Proceeds

During 2024, the Company received net proceeds of $9.1 million in connection with a brokered at-the-market offering issued under prospectus supplements and $1.0 million in connection with stock options exercised.

As of the date of this MD&A, the Company is using the funds as intended.

During 2024, all funds were used for exploration and evaluation activities, the acquisition of property and equipment, and the repayments of capital equipment acquired under lease and loan.

During 2021, the Company received net proceeds of $18.1 million in connection with a brokered at-the-market offering issued under prospectus supplements, $0.8 million in connection with warrants exercised and $0.2 million in connection with stock options exercised.

As of the date of this MD&A, the Company has used the funds as intended. During 2021, the Company announced an increase to its exploration from 12,000 to 30,600 metres of exploration and resource drilling. As of the date of this MD&A, over 20,000 metres of the program had been completed.

In supporting mining operations in Mexico, the Company acquired La Preciosa for net cash consideration of $15.4 million. During 2022, the remaining $3.7 million was used for exploration and evaluation activities, the acquisition of property and equipment, the repayment of capital equipment acquired under lease and loan.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements other than those disclosed on the Commitments section of this MD&A.

Transactions with Related Parties

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party.

(a) Key management personnel

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel are as follows:

	2024		2023
Salaries, benefits, and consulting fees	$	1,203	$	1,184
Share-based payments		1,666		1,782
	$	2,869	$	2,966

(b) Amounts due to/(from) related parties

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand.

The following table summarizes the amounts were due to/(from) related parties:

	December 31, 2024			December 31, 2023
Oniva International Services Corp.	$	95		$	102
Silver Wolf Exploration Ltd.		(113	)		(269	)
	$	18		$	(167	)

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The transactions with Oniva are summarized below:

	2024		2023
Salaries and benefits	$	974	$	953
Office and miscellaneous		480		482
	$	1,454	$	1,435

Financial Instruments and Risks

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

(a) Credit Risk

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2023 – three) counterparties. However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at December 31, 2024, in the amount of $27,317 and working capital of $25,235 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of note payable and finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

The maturity profiles of the Company’s contractual obligations and commitments as at December 31, 2024, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,292	$	10,292	$	-	$	-
Derivative liability		475		475		-		-
Equipment loans		202		174		28		-
Finance lease obligations		2,612		1,620		992		-
Total	$	13,581	$	12,561	$	1,020	$	-

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

Interest Rate Risk

Interest rate risk consists of two components:

	(i)	To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

	(ii)	To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

In management’s opinion, the Company is not materially exposed to interest rate risk, as any material debt obligations that bear interest are fixed and not subject to floating interest rates. A 10% change in the interest rate would not a result in a material impact on the Company’s operations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Foreign Currency Risk

	December 31, 2024						December 31, 2023
	MXN			CDN			MXN			CDN
Cash	$	13,989		$	396		$	13,338		$	70
Due from related parties		2,287			-			4,558			-
Long-term investments		-			1,742			-			1,236
Reclamation bonds		-			6			-			6
Amounts receivable		3,599			24			18,644			26
Accounts payable and accrued liabilities		(65,989	)		(46	)		(95,662	)		(150	)
Due to related parties		-			(136	)		-			(135	)
Finance lease obligations		(2,031	)		(549	)		(1,129	)		(217	)
Net exposure		(48,145	)		1,437			(60,251	)		836
US dollar equivalent	$	(2,349	)	$	998		$	(3,567	)	$	577

Based on the net US dollar denominated asset and liability exposures as at December 31, 2024, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the year ended December 31, 2024, by approximately $144 (2023 - $304). The Company has entered into certain foreign currency contracts to mitigate this risk, and during the year ended December 31, 2024, recorded a derivative liability of $475 (2023 - $Nil).

Price Risk

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

(d) Classification of Financial Instruments

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2024:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	27,317	$	-	$	-
Amounts receivable		-		3,350		-
Due from related parties		18		-		-
Long-term investments		1,190		-		57
Total financial assets	$	28,525	$	3,350	$	57

Financial liabilities
Derivative liability		-		-		(475	)
Total financial liabilities	$	-	$	-	$	(475	)

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2023:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,688	$	-	$	-
Amounts receivable		-		3,303		-
Long-term investments		934		-		-
Total financial assets	$	3,622	$	3,303	$	-

Commitments

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

	December 31, 2024		December 31, 2023
Not later than one year	$	180	$	714
Later than one year and not later than five years		1,052		1,241
Later than five years		3,312		3,965
	$	4,544	$	5,920

Office lease payments recognized as an expense during the year ended December 31, 2024, totalled $39 (December 31, 2023 - $29).

Subsequent Events

Subsequent to December 31, 2024, the Company issued 371,250 common shares through the exercise of 371,250 stock options at an average exercise price of C$1.38 for proceeds of C$513

Subsequent to December 31, 2024, Silver Wolf Exploration Ltd. (“Silver Wolf”) provided notice of their intention to exercise the final payment associated with the Option Agreement (see Note 8 of the financial statements for details). At the date of this MD&A, title transfer is in process and no shares of Silver Wolf have been issued to the Company.

Outstanding Share Data

The Company’s authorized share capital consists of an unlimited number of common shares without par value.

As at March 11, 2025 the following common shares, warrants, and stock options were outstanding:

	Number of shares		Exercise price		Remaining life (years)
Share capital		140,936,892		-		-
Restricted Share Units (“RSUs”)		3,540,868		-	0.04 – 2.06
Stock options		7,303,750	C$0.78 - C$1.64		0.40 – 4.04
Fully diluted		151,781,510

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

The following are details of outstanding stock options as at December 31, 2024 and March 11, 2025:

Expiry Date	Exercise Price Per Share	Number of Shares Remaining Subject to Options (December 31, 2024)		Number of Shares Remaining Subject to Options (March 11, 2025)
August 4, 2025	C$1.64		1,570,000		1,315,000
March 25, 2027	C$1.20		1,905,000		1,895,000
May 4, 2027	C$0.92		25,000		25,000
March 29, 2028	C$1.12		1,870,000		1,870,000
July 10, 2028	C$1.12		150,000		150,000
March 25, 2029	C$0.78		2,155,000		2,048,750
Total:			7,675,000		7,303,750

The following are details of outstanding RSUs as at December 31, 2024 and March 11, 2025:

Expiry Date	Number of Shares Remaining Subject to RSUs (December 31, 2024)		Number of Shares Remaining Subject to RSUs (March 11, 2025)
March 25, 2025		556,539		556,539
March 29, 2026		1,174,288		1,174,288
April 1, 2027		1,810,041		1,810,041
Total:		3,540,868		3,540,868

Recent Accounting Pronouncements

New and amended IFRS that are effective for the current year:

Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current with Covenants

The amendments were applied effective January 1, 2024. The amendments did not to have an impact on the Company’s consolidated financial statements.

Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback

The amendments were applied effective January 1, 2024. The amendment did not to have an impact on the Company’s consolidated financial statements.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Future Changes in Accounting Policies Not Yet Effective as at December 31, 2024:

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted.

Amendments to IAS 21 – Lack of Exchangeability

The amendments clarify how an entity should assess whether a currency.is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of currency not being exchangeable.

Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial instruments

Amendments to IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB released IFRS 18. IFRS 18 replaces IAS 1 while carrying forward many of the requirements in IAS1. IFRS 18 introduces new requirements: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management defined performance measures (MPMs) in the notes to the financial statements, iii) improve aggregation and disaggregation. IFRS 18 requires retrospective application with specific transition provisions.

IFRS 18 regarding the Presentation and Disclosure of Financial Statements with a mandatory application of the standard on annual reporting periods beginning on or after January 1, 2027.

These standards are currently being assessed for impact on our consolidated financial statements for future reporting periods.

Disclosure Controls and Procedures

Management, including our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures on financial reporting (as defined in NI 52-109 - Certification of Disclosure in Issuers’ Annual and Interim Filings and as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) and has concluded that, based on its evaluation, that the Company’s disclosure controls and procedures were effective as of December 31, 2024.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Management’s Report on Internal Control over Financial Reporting (“ICFR”)

The management of the Company is responsible for establishing and maintaining adequate internal controls over financial reporting. Internal controls over financial reporting is a process to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS as issued by the IASB. Internal controls over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect the Company’s transactions and dispositions of the assets of the Company; providing reasonable assurance that transactions are recorded as necessary for preparation of the Company’s consolidated financial statements in accordance with IFRS as issued by the IASB; providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of management and the directors of the Company; and providing reasonable assurance that unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements would be prevented or detected on a timely basis.

Management, including our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of the Company’s internal controls over financial reporting based on the framework and criteria established in Internal Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (‘COSO’). This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management concluded that as of December 31, 2024, the Company’s internal controls over financial reporting, as defined in NI 52-109 - Certification of Disclosure in Issuer’s Annual and Interim Filings and as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) were effective as of December 31, 2024.

The consolidated financial statements for the years ended December 31, 2024 and 2023, have been audited by Deloitte LLP, an independent registered public accounting firm, and its attestation report on management's assessment of the Company’s internal control over financial reporting as of December 31, 2024 appearing immediately preceding the Company’s audited consolidated financial statements.

Our management and the Board of Directors do not expect that our disclosure controls and procedures or internal controls over financial reporting will prevent all errors or all instances of fraud. A control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that the control system’s objectives will be met. Further, the design, maintenance and testing of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control gaps and instances of fraud have been detected. These inherent limitations include the reality that judgment in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design, maintenance and testing of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any control system may not succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the year ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2024

Cautionary Note regarding Reserves and Resources

National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), issued by the Canadian Securities Administrators, lays out the standards of disclosure for mineral projects. This includes a requirement that a certified Qualified Person (“QP”) (as defined under the NI 43-101) supervises the preparation of the mineral reserves and mineral resources. Peter Latta, Vice President, Technical Services is a certified QP for the Company and has reviewed this MD&A for QP technical disclosures. All NI 43-101 technical reports can be found on the Company’s website at www.avino.com or under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Resources

This MD&A has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws applicable to U.S. companies. Information concerning our mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in respects from the requirements of the United States Securities and Exchange Commission (the “SEC”) applicable to domestic United States issuers. Accordingly, the disclosure in this MD&A regarding our mineral properties may not be comparable to the disclosure of United States issuers subject to the SEC’s mining disclosure requirements.

Additional Information

Additional information on the Company, including the Company’s Annual Information Form and the Company’s audited consolidated financial statements for the year ended December 31, 2024, is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.avino.com.

Cautionary Statement

This MD&A is based on a review of the Company’s operations, financial position and plans for the future based on facts and circumstances as of March 11, 2025. Except for historical information or statements of fact relating to the Company, this document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements in this document include, but are not limited to, those regarding the economic outlook for the mining industry, expectations regarding metals prices, expectations regarding production output, production costs, cash costs and other operating results, expectations regarding growth prospects and the outlook for the Company’s operations, and statements regarding the Company’s liquidity, capital resources, and capital expenditures. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR+ with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change, except as required by applicable securities regulations. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Material linked to the Company’s website within this MD&A is not deemed to be incorporated by reference nor form a part of this MD&A.

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