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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 May, 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 furnishing this Form 6-K to provide its financial information for the three months ended March 31, 2025, and to incorporate such financial information into the Company’s registration statement referenced below.

Exhibits:

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

Exhibit No.		Document

99.1		Condensed Consolidated Interim Financial Statements For the three months ended March 31, 2025 and 2024
99.2		Management’s Discussion and Analysis
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
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: May 13, 2025	By:	/s/ Jennifer Trevitt
		Jennifer Trevitt
		Corporate Secretary

EXHIBIT 99.1

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2025 and 2024

(Unaudited)

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in thousands of US dollars - Unaudited)

	Note		March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash			$	26,627		$	27,317
Amounts receivable				5,874			3,350
Amounts due from related parties		10(b)		146			18
Taxes recoverable		4		549			195
Prepaid expenses and other assets				3,093			2,278
Inventory		5		9,880			7,611
Total current assets				46,169			40,769
Exploration and evaluation assets		7		51,099			52,890
Plant, equipment and mining properties		9		57,103			53,801
Long-term investments		6		1,691			1,247
Other assets				1,631			4
Total assets			$	157,693		$	148,711
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities			$	10,067		$	10,292
Taxes payable				2,184			3,125
Derivative liability				70			475
Current portion of finance lease obligations				2,184			1,476
Current portion of equipment loans				325			166
Total current liabilities				14,830			15,534
Finance lease obligations				2,203			960
Equipment loans				317			27
Reclamation provision		11		2,119			2,062
Deferred income tax liabilities				5,936			4,729
Total liabilities				25,405			23,312
EQUITY
Share capital		12		164,993			163,325
Equity reserves				11,038			11,529
Treasury shares				(97	)		(97	)
Accumulated other comprehensive loss				(5,940	)		(6,035	)
Accumulated deficit				(37,706	)		(43,323	)
Total equity				132,288			125,399
Total liabilities and equity			$	157,693		$	148,711

Commitments & Contingencies – Note 15

Approved by the Board of Directors on May 13, 2025.

Peter Bojtos

Director

David Wolfin

Director

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

- 1 -

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)

(Expressed in thousands of US dollars, other than per share amounts - Unaudited)

			Three months ended March 31,
	Note		2025			2024
Revenue from mining operations		13	$	18,836		$	12,393
Cost of sales		13		8,274			10,054
Mine operating income				10,562			2,339
Operating expenses
General and administrative expenses		14		2,123			1,272
Share-based payments		12(c)(d)		362			423
				8,077			644
Other items
Interest and other income				163			3
Gain on long-term investments		6		444			132
Unrealized gain on derivative liability		17(c)		405			-
Foreign exchange (loss) gain				(99	)		80
Finance cost				(5	)		(2	)
Accretion of reclamation provision		11		(48	)		(51	)
Interest expense				(81	)		(90	)
Income before income taxes				8,856			716
Income taxes:
Current income tax expense				(2,032	)		(199	)
Deferred income tax (expense) recovery				(1,207	)		82
Income tax expense				(3,239	)		(117	)
Net income				5,617			599
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Currency translation differences				95			(111	)
Total comprehensive income			$	5,712		$	488
Earnings per share		12(e)
Basic			$	0.04		$	0.00
Diluted			$	0.04		$	0.00
Weighted average number of common shares outstanding		12(e)
Basic				140,863,356			130,027,962
Diluted				147,827,215			133,022,671

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

- 2 -

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in thousands of US dollars - Unaudited)

	Note		Number of Common Shares		Share Capital Amount			Equity Reserves			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total Equity
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		12		1,886,248		926			-			-			-			-			926
Carrying value of RSUs exercised		12		585,265		512			(512	)		-			-			-			-
Issuance costs		12		-		(38	)		-			-			-			-			(38	)
Share-based payments		12		-		-			423			-			-			-			423
Net income for the period				-		-			-			-			-			599			599
Currency translation differences				-		-			-			-			(111	)		-			(111	)
Balance, March 31, 2024				131,199,761	$	153,088		$	10,952		$	(97	)	$	(5,319	)	$	(50,824	)	$	107,800
Balance, January 1, 2025				140,565,642	$	163,325		$	11,529		$	(97	)	$	(6,035	)	$	(43,323	)	$	125,399
Common shares issued:
At the market issuances		12		1,300		3			-			-			-			-			3
Exercise of options		12		793,581		1,207			(452	)		-			-			-			755
Carrying value of RSUs exercised		12		334,989		279			(279	)		-			-			-			-
Carrying value of RSUs forfeited for withholding taxes									(122	)											(122	)
Issuance costs		12		-		179			-			-			-			-			179
Share-based payments		12		-		-			362			-			-			-			362
Net income for the period		12		-		-			-			-			-			5,617			5,617
Currency translation differences				-		-			-			-			95			-			95
Balance, March 31, 2025				141,695,512	$	164,993		$	11,038		$	(97	)	$	(5,940	)	$	(37,706	)	$	132,288

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

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in thousands of US dollars - Unaudited)

			Three months ended March 31,
	Note		2025			2024
Operating Activities
Net income			$	5,617		$	599
Adjustments for non-cash items:
Deferred income tax expense (recovery)				1,207			(82	)
Depreciation and depletion				872			857
Accretion of reclamation provision		11		48			51
Gain on investments		6		(444	)		(132	)
Unrealized gain on derivatives				(405	)		-
Unrealized foreign exchange loss (gain)				103			(88	)
Write down of equipment and materials and supplies inventory				1			-
Share-based payments				362			423
				7,361			1,628
Net change in non-cash working capital items		16		(6,603	)		719
Cash provided by operating activities				758			2,347
Financing Activities
Shares and units issued for cash, net of issuance costs				182			888
Proceeds from option and RSU exercises, net				634			-
Lease liability payments				(396	)		(452	)
Equipment loan payments				(70	)		(44	)
Cash provided by financing activities				350			392
Investing Activities
Exploration and evaluation expenditures				(410	)		(1,116	)
Additions to plant, equipment and mining properties				(1,386	)		(851	)
Cash used in investing activities				(1,796	)		(1,967	)
Change in cash				(688	)		772
Effect of exchange rate changes on cash				(2	)		14
Cash, beginning				27,317			2,688
Cash, ending			$	26,627		$	3,474

Supplementary Cash Flow Information (Note 16)

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

- 4 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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.

2. BASIS OF PRESENTATION

Statement of Compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting under IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2024, annual consolidated financial statements, which were prepared in accordance with IFRS Accounting Standards as issued by the IASB.

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.

- 5 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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.

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2024.

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.

- 6 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

3. 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.

4. 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.

	March 31, 2025		December 31, 2024
VAT recoverable	$	536	$	179
GST recoverable		13		17
	$	549	$	195

5. INVENTORY

	March 31, 2025		December 31, 2024
Process material stockpiles	$	2,722	$	2,520
Concentrate inventory		3,439		1,861
Materials and supplies		3,719		3,230
	$	9,880	$	7,611

The amount of inventory recognized as an expense for the three months ended March 31, 2025 totaled $8,274 (2024 - $10,054). See Note 13 for further details.

- 7 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

6. 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:

For the three months ended March 31, 2025:

	Fair Value December 31,		Net		Movements in foreign		Fair value adjustments for			Fair Value March 31,
	2024		Additions		exchange		the period			2025
Talisker Resources Common Shares	$	685	$	-	$	-	$	584		$	1,269
Silver Wolf Exploration Ltd. Common Shares		359		-		-		(135	)		224
Silver Wolf Exploration Ltd. Warrants		20		-		-		-			20
Endurance Gold Corp. Common Shares		146		-		-		(5	)		141
Endurance Gold Corp. Warrants		37		-		-		-			37
	$	1,247	$	-	$	-	$	444		$	1,691

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

7. 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, 2023	$	15,698		$	34,412		$	1		$	50,111

Drilling and exploration		130			1,449			-			1,579
Assessments and taxes		195			1,018			-			1,213
Effect of movements in exchange rates		(31	)		19			-			(12	)
Disposition of Olympic claims		-			-			(1	)		(1	)
Balance, December 31, 2024	$	15,992		$	36,898		$	-		$	52,890

Drilling and exploration		13			310			-			323
Assessments and taxes		88			12			-			100
Transfer to other assets		-			(2,215	)					(2,215	)
Effect of movements in exchange rates		1			-			-			1
Balance, March 31, 2025	$	16,094		$	35,005		$	-		$	51,099

(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.

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 March 31, 2025, and Silver Wolf is in compliance with the terms of the Option Agreement as of March 31, 2025. As of March 31, 2025, the final milestone payments and the transfer of title of the claims comprising the properties remain outstanding.

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

- 9 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

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.

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.

8. NON-CONTROLLING INTEREST

At March 31, 2025, the Company had an effective 99.67% (December 31, 2024 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2024 - 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.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

9. 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, 2024		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
Additions / Transfers		324			8			57			3,369			322			147			4,227
Writedowns		-			(5	)		(54	)		(6	)		(5	)		-			(70	)
Effect of movements in exchange rates		-			1			-			1			1			22			25
Balance at March 31, 2025		19,554			1,195			1,766			19,695			28,540			15,151			85,901
ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT
Balance at January 1, 2024		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
Additions / Transfers		114			36			154			46			515			84			949
Writedowns		-			(5	)		(54	)		(6	)		(4	)		-			(69	)
Balance at March 31, 2025		10,013			674			1,100			5,337			8,360			3,314			28,798
NET BOOK VALUE
At March 31, 2025		9,541			521			666			14,358			20,180			11,837			57,103
At December 31, 2024		9,331			548			763			11,034			20,373			11,752			53,801

- 11 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

Included in Buildings and construction in process above are assets under construction of $3,011 as at March 31, 2025 (December 31, 2024 - $3,443) 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 March 31, 2025, the Company performed an evaluation of the property plant and equipment and recorded a write-down of $1 (December 31, 2024 - $988) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

As at March 31, 2025, plant, equipment and mining properties included a net carrying amount of $6,948 (December 31, 2024 - $5,162) for mining equipment and right of use assets under lease.

10. 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 is as follows:

	Three months ended March 31,
	2025		2024
Salaries, benefits, and consulting fees	$	576	$	293
Share-based payments		288		387
	$	864	$	680

(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:

	March 31, 2025			December 31, 2024
Oniva International Services Corp.	$	97		$	95
Silver Wolf Exploration Ltd.		(243	)		(113	)
	$	(146	)	$	(18	)

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 three months ended March 31, 2025, the Company paid $185 (March 31, 2024 - $71) to ICC.

- 12 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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:

	Three months ended March 31,
	2025		2024
Salaries and benefits	$	311	$	254
Office and miscellaneous		134		133
	$	445	$	387

11. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at March 31, 2025, is $2,119 (December 31, 2024 – $2,062), and the undiscounted value of the obligation is $4,845 (December 31, 2024 – $4,825).

The present value of the obligation was calculated using a risk-free interest rate of 9.70% (December 31, 2024 – 9.70%) and an inflation rate of 3.69% (December 31, 2024 – 3.69%). 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:

	March 31, 2025		December 31, 2024
Balance at beginning of the period	$	2,062	$	2,195
Changes in estimates		-		84
Unwinding of discount		48		197
Effect of movements in exchange rates		9		(414	)
Balance at end of the period	$	2,119	$	2,062

- 13 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

12. SHARE CAPITAL AND SHARE-BASED PAYMENTS

(a) Authorized: Unlimited common shares without par value

(b) Issued:

(i) During the three months ended March 31, 2025, the Company issued 1,300 common shares in an at- the-market offering under prospectus supplement for gross proceeds of $3. The Company paid a 2.75% cash commission of on gross proceeds, for net proceeds of $3.

During the three months ended March 31, 2025, the Company issued 334,989 common shares upon exercise of RSUs. As a result, $279 was recorded to share capital and $122 was recorded as a result of RSUs forfeit for withholding taxes.

During the three months ended March 31, 2025, the Company issued 793,581 common shares following the exercise of 826,250 options, with 32,669 shares being forfeit for net exercise. As a result, $1,207 was recorded to share capital, representing cash proceeds of $656 and the fair value upon issuance of $451.

(ii) 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 the 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.

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.

- 14 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

Continuity of stock options is as follows:

	Underlying Shares			Weighted Average Exercise Price (C$)
Stock options outstanding, January 1, 2024		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
Exercised		(826,250	)	$	1.44
Stock options outstanding, March 31, 2025		6,848,750		$	1.11
Stock options exercisable, March 31, 2025		6,848,750		$	1.11

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2025:

			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		970,000		0.35		970,000		0.35
March 25, 2027	$	1.20		1,835,000		1.98		1,835,000		1.98
March 29, 2028	$	1.12		1,870,000		3.00		1,870,000		3.00
July 10, 2028	$	1.12		150,000		3.28		150,000		3.28
March 25, 2029	$	0.78		2,023,750		3.99		2,023,750		3.99

				6,848,750		2.65		6,848,750		2.65

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:

	March 31, 2025			December 31, 2024
Weighted average assumptions:
Risk-free interest rate	-		%		3.51	%
Expected dividend yield	-		%		0	%
Expected warrant life (years)		-			5
Expected stock price volatility	-		%		60.73	%
Expected forfeiture rate	-		%		15	%
Weighted average fair value		-		C$	0.43

During the three months ended March 31, 2025, the Company charged $37 (December 31, 2024 - $907) to operations as share-based payments for the fair value of stock options granted.

- 15 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

(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.

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, 2024		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
Exercised		(334,989	)	$	1.19
Forfeited for withholding taxes		(146,550	)	$	1.19
RSUs outstanding, March 31, 2025		3,059,329		$	1.06

The following table summarizes information about the RSUs outstanding at March 31, 2025:

Issuance Date	Price (C$)		Number of RSUs Outstanding
March 25, 2022	$	1.19		75,000
March 29, 2023	$	1.12		1,124,288
July 10, 2023	$	0.94		50,000
April 1, 2024	$	1.02		1,810,041
				3,059,329

During the three months ended March 31, 2025, Nil RSUs (December 31, 2024 – 1,881,000) were granted.

During the three months ended March 31, 2025, the Company charged $325 (December 31, 2024 - $1,128) 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.

- 16 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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:

	Three months ended March 31,
	2025		2024
Net income for the period	$	5,617	$	599
Basic weighted average number of shares outstanding		140,863,392		130,027,962
Effect of dilutive share options, warrants, and RSUs		6,963,858		2,994,709
Diluted weighted average number of shares outstanding		147,827,215		133,022,671
Basic and diluted earnings per share	$	0.04	$	0.00

13. REVENUE AND COST OF SALES

The Company’s revenues for the three months ended March 31, 2025 and 2024, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

	March 31, 2025		March 31, 2024
Concentrate sales	$	15,761	$	12,674
Provisional pricing adjustments		3,075		(281	)
	$	18,836	$	12,393

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 for the three months ended March 31, 2025 and 2024:

	March 31, 2025		March 31, 2024
Production costs	$	7,440	$	9,233
Depreciation and depletion		834		821
	$	8,274	$	10,054

- 17 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

14. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses consist of the following:

	March 31, 2025		March 31, 2024
Salaries and benefits	$	1,000	$	396
Office and miscellaneous		446		381
Management and consulting fees		247		107
Professional fees		187		159
Investor relations		95		73
Regulatory and compliance fees		44		41
Depreciation		37		36
Directors fees		34		44
Travel and promotion		33		35
	$	2,123	$	1,272

15. 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 10.

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:

	March 31, 2025		December 31, 2024
Not later than one year	$	172	$	180
Later than one year and not later than five years		1,476		1,052
Later than five years		2,890		3,312
	$	4,538	$	4,544

Office lease payments recognized as an expense during the three months ended March 31, 2025, totaled $8 (March 31, 2024 - $10).

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.

- 18 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

16. SUPPLEMENTARY CASH FLOW INFORMATION

	March 31, 2025			March 31, 2024
Net change in non-cash working capital items:
Inventory	$	(2,193	)	$	418
Prepaid expenses and other assets		(815	)		(106	)
Taxes recoverable		(354	)		78
Taxes payable		(941	)		62
Accounts payable and accrued liabilities		352			(1,153	)
Amounts receivable		(2,525	)		1,447
Amounts due to related parties		(127	)		(27	)
	$	(6,603	)	$	719

	March 31, 2025		March 31, 2024
Other supplementary information:
Interest paid	$	68	$	64
Taxes paid		1,457		10
	$	1,525	$	74

	March 31, 2025		March 31, 2024
Non-cash investing and financing activities:
Transfer of share-based payments reserve upon exercise of RSUs		1,207		512
Transfer of share-based payments reserve upon exercise of options		279		-
Equipment acquired under finance leases and equipment loans		3,009		108
	$	4,495	$	620

17. 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.

- 19 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

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 two (December 31, 2024 – two) counterparties (see Note 18). 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.

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 March 31, 2025, 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 March 31, 2025, in the amount of $26,627 and current assets exceeded current liabilities by $31,339 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 March 31, 2025, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,067	$	10,067	$	-	$	-
Derivative liability		70		70		-		-
Equipment loans		709		366		343		-
Finance lease obligations		4,787		2,443		2,344		-
Total	$	15,633	$	12,946	$	2,687	$	-

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.

- 20 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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:

	March 31, 2025						December 31, 2024
	MXN			CDN			MXN			CDN
Cash	$	4,029		$	725		$	13,989		$	396
Due from related parties		4,928			-			2,287			-
Long-term investments		-			2,379			-			1,742
Reclamation bonds		-			6			-			6
Amounts receivable		4,307			127			3,599			24
Accounts payable and accrued liabilities		(57,559	)		(701	)		(65,989	)		(46	)
Due to related parties		-			(139	)		-			(136	)
Finance lease obligations		(1,749	)		(514	)		(2,031	)		(549	)
Net exposure		(46,044	)		1,883			(48,145	)		1,437
US dollar equivalent	$	(2,256	)	$	1,309		$	(2,349	)	$	998

Based on the net US dollar denominated asset and liability exposures as at March 31, 2025, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2025, by approximately $107. (December 31, 2024 - $144). The Company has entered into certain foreign currency contracts to mitigate this risk. and during the three ended March 31, 2025, recorded a derivative liability of $70 (December 31, 2024 - $475).

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 March 31, 2025, 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 $344 (December 31, 2024 - $36).

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 March 31, 2025, a 10% change in market prices would have an impact on net earnings (loss) of approximately $164 (December 31, 2024 - $119).

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.

- 21 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

(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 March 31, 2025:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	26,627	$	-	$	-
Amounts receivable		-		5,874		-
Due from related parties		146		-		-
Long-term investments		1,634		-		57
Total financial assets	$	28,407	$	5,874	$	57

Financial liabilities
Derivative liability		-		-		(70	)
Total financial liabilities	$	-	$	-	$	(70	)

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	)

- 22 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

18. 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 that each producing mine represents an operating segment, of which there is one as of March 31, 2025.

The Company’s revenues for the three months ended March 31, 2025 of $18,836 (March 31, 2024 - $12,393) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, and is considered to be one single reportable operating segment.

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

	March 31, 2025			March 31, 2024
Silver	$	6,900		$	5,036
Copper		7,060			5,906
Gold		6,376			3,033
Penalties, treatment costs and refining charges		(1,500	)		(1,582	)
Total revenue from mining operations	$	18,836		$	12,393

For the three months ended March 31, 2025 and 2024, the Company had the following customers that accounted for total revenues as follows:

	March 31, 2025		March 31, 2024
Customer #1	$	17,693	$	8,596
Customer #2		1,143		13
Other customers		-		3,784
Total revenue from mining operations	$	18,836	$	12,393

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

	March 31, 2025		December 31, 2024
Exploration and evaluation assets - Mexico	$	51,099	$	52,890
Exploration and evaluation assets - Canada		-		-
Total exploration and evaluation assets	$	51,099	$	52,890

	March 31, 2025		December 31, 2024
Plant, equipment, and mining properties - Mexico	$	56,725	$	53,400
Plant, equipment, and mining properties - Canada		378		401
Total plant, equipment, and mining properties	$	57,103	$	53,801

- 23 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2025, and 2024

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

19. SUBSEQUENT EVENTS

At-The-Market Sales –Subsequent to March 31, 2025, the Company issued 2,000,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $4,192.

Share Issuance –Subsequent to March 31, 2025, the Company issued 973,307 common shares as a result of the vesting conditions of RSUs exercised.

RSU & Option Grant –Subsequent to March 31, 2025, the Company granted 2,397,000 incentive stock options and 1,476,000 RSUs to its directors, officers, employees and consultants. The stock options are exercisable for up to five years at a price of C$2.11 per share and will be vested in stages over a 12-month period with no more than 1/4 of the options vesting in any three-month period from the date of the grant. The RSUs will be vested at the rate of 1/3 annually for a period of three years from the date of grant, until fully vested. The stock options and the RSUs are non-transferable.

Stock Options Exercises – Subsequent to March 31, 2025, the Company issued 97,500 common shares through the exercise of 97,500 stock options at an average exercise price of C$0.96 for proceeds of C$93

- 24 -

EX-99.2 3 avino_ex992.htm MANAGEMENT DISCUSSION AND ANALYSIS avino_ex992.htm

EXHIBIT 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

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 condensed consolidated interim financial statements for the three months ended March 31, 2025, and the notes thereto.

This Management’s Discussion and Analysis (“MD&A”) is dated May 13, 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 May 13, 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 three months ended March 31, 2025, 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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Operational Highlights

HIGHLIGHTS (Expressed in US$, unless otherwise noted)	First Quarter 2025		First Quarter 2024		Change			First Quarter 2025		Fourth Quarter 2024		Change
Operating
Tonnes Milled		167,853		169,575		-1	%		167,853		181,733	-8	%
Silver Ounces Produced		265,681		250,642		6	%		265,681		283,794	-6	%
Gold Ounces Produced		2,225		1,778		25	%		2,225		2,560	-13	%
Copper Pounds Produced		1,604,343		1,347,110		19	%		1,604,343		1,773,694	-10	%
Silver Equivalent Ounces1 Produced		678,458		629,302		8	%		678,458		735,557	-8	%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2		567,811		610,877		-7	%		567,811		889,294	-36	%
Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	12.62	$	14.89		-15	%	$	12.62	$	13.88	-9	%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	20.08	$	20.23		-1	%	$	20.08	$	18.62	8	%

1. In Q1 2025, AgEq was calculated using metal prices of $31.67 per oz Ag, $2,866 per oz Au and $4.17 per lb Cu. In Q4 2024, AgEq was calculated using metals prices of $31.34 oz Ag, $2,662 oz Au and $4.17 lb Cu. In Q1 2024, AgEq was calculated using metal prices of $23.36 per oz Ag, $2,072 per oz Au and $3.83 per 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 Accounting Standards 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$)	First Quarter 2025		First Quarter 2024		Change			First Quarter 2025		Fourth Quarter 2024		Change
Financial Operating Performance
Revenues	$	18,836	$	12,393		52	%	$	18,836	$	24,382		-23	%
Mine operating income	$	10,562	$	2,339		352	%	$	10,562	$	10,456		1	%
Net income	$	5,617	$	599		838	%	$	5,617	$	5,092		10	%
Earnings before interest, taxes and amortization (“EBITDA”)1	$	9,694	$	1,713		466	%	$	9,694	$	9,099		7	%
Adjusted earnings1	$	9,751	$	2,057		374	%	$	9,751	$	9,950		-2	%
Cash provided by operating activities	$	758	$	2,347		-68	%	$	758	$	15,551		-95	%
Mine operating cash flow before taxes1	$	11,397	$	3,161		261	%	$	11,397	$	11,878		-4	%
Per Share Amounts
Earnings per share – basic	$	0.04	$	0.00		100	%	$	0.04	$	0.04		0	%
Earnings per share – diluted	$	0.04	$	0.00		100	%	$	0.04	$	0.03		33	%
Adjusted earnings per share1	$	0.07	$	0.02		250	%	$	0.07	$	0.07		0	%
HIGHLIGHTS (Expressed in 000’s of US$)	March 31, 2025			March 31, 2024		Change			March 31, 2025		December 31, 2024		Change
Liquidity & Working Capital
Cash	$	26,627	$	3,474		666	%	$	26,627	$	27,317		-3	%
Working capital1	$	31,339	$	9,785		220	%	$	31,339	$	25,235		24	%

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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

1st Quarter 2025 Financial Highlights

	·	Revenues of $18.8 million, an increase of 52% from Q1 2024

	·	Record quarterly record gross profit (mine operating income) of $10.6 million, an increase of 352% from Q1 2024

	·	Record quarterly net income of $5.6 million, or $0.04 per share

	·	Adjusted earnings of $9.8 million, or $0.07 per share, an increase of 374% from Q1 2024

	·	Cash flow provided by operating activities of $0.8 million. Prior to working capital adjustments, cash flow provided from operating activities was $7.4 million

	·	Mine operating cash flow before taxes of $11.4 million, an increase of 261% from Q1 2024.

	·	Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $9.7 million, an increase of 466% from Q1 2024.

	·	Cash costs per silver equivalent payable ounce sold of $12.62, a cost reduction of 15% from Q1 2024

	·	All in sustaining cash costs per silver equivalent payable ounce sold of $20.08, an improvement of 1% from Q1 2024

Balance Sheet Strength:

Avino had $26.7 million in cash at the end March 31, 2025 and remains debt-free, excluding operating equipment leases. Our strong balance sheet and working capital will provide the foundation to support our transformational growth plan.

1st Quarter 2025 Operational Highlights

	·	Silver Equivalent Production Increased 8%: Avino produced 678,458 silver equivalent ounces in Q1 2025, representing an 8% increase from Q1 of 2024. The increase was driven by improved grades in all three metals (silver, gold and copper) and offset by slightly lower mill throughput. All three metals saw increased production compared to Q1 of 2024.

	·	Gold Production Increased 25%: Q1 2025 production of 2,225 gold ounces represented a 25% increase compared to Q1 2024. Improved feed grade of 17% accounted for the majority of the increase, alongside significant improvements in recoveries to 75% from 70% in Q1 of 2024.

	·	Copper Production Increased 19%: Avino produced 1.6 million pounds of copper in Q1 2025, a 19% increase compared to Q1 2024. The increase was driven by improved copper feed grade of 17%, as well as an increase in recoveries to 87% from 84% in Q1 of 2024.

	·	Silver Production Increased 6%: Silver production for Q1 2025 was 265,681 ounces, representing a 6% increase compared to Q1 2024, with feed grade increases of 10% driving the improvement overall. The increase was offset by a slight decrease in silver recoveries.

	·	La Preciosa Progress: Significant progress continues at La Preciosa mine. Blasting and construction of the relatively short 360 metre decline is underway and equipment mobilization has been swift, allowing development to advance on plan. The new jumbo drill is working on the San Fernando haulage ramp as it progresses toward intercepting the Gloria and Abundancia veins. As previously announced on January 15, 2025, Avino has started underground development work at La Preciosa after receiving all required permits.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Financial Results – Three months ended March 31, 2025, compared to three months ended March 31, 2024

	Q1 2025			Q1 2024
Revenue from mining operations	$	18,836		$	12,393
Cost of sales		8,274			10,054
Mine operating income		10,562			2,339
Operating expenses:
General and administrative expenses		2,123			1,272
Share-based payments		362			423
Income before other items		8,077			644
Other items:
Interest and other income		163			3
Gain on long-term investments		444			132
Unrealized gain on derivative liability		405			-
Foreign exchange (loss) gain		(99	)		80
Finance cost		(5	)		(2	)
Accretion of reclamation provision		(48	)		(51	)
Interest expense		(81	)		(90	)
Income before income taxes		8,856			716
Income taxes:
Current income tax expense		(2,032	)		(199	)
Deferred income tax (expense) recovery		(1,207	)		82
Income tax expense		(3,239	)		(117	)
Net income	$	5,617		$	599

Other comprehensive income (loss):
Currency translation differences		95			(111	)
Total comprehensive income	$	5,712		$	488
Earnings per share
Basic	$	0.04		$	0.00
Diluted	$	0.04		$	0.00
Weighted average number of common shares outstanding
Basic		140,863,356			130,027,962
Diluted		147,827,215			133,022,671

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Revenues

The Company recognized revenues of $18.8 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to $12.4 million revenues for Q1 2024, an increase of $6.4 million.

The increase is a result of higher average realized metal prices, as described below, and was partially offset by 7% less payable silver equivalent ounces sold in the current period.

Metal prices for revenues recognized during the period were $31.67 per ounce of silver, $2,866 per ounce of gold, and $9,194 per tonne of copper, with comparable prices for Q1 2024 were $23.14 per ounce of silver, $2,066 per ounce of gold, and $8,384 per tonne of copper.

Payable silver equivalent ounces sold in the current period were 567,881 ounces, compared to 610,877 ounces in Q1 2024.

Cost of Sales & Mine Operating Income

Cost of sales was $8.3 million, compared to $10.1 million in Q1 2024, a decrease of $1.8 million. The decrease is mainly attributable to a weaker Mexican peso during the current quarter, with an average of 20.42 Mexican Pesos to 1 US dollar in Q1 2025 compared to an average of 17.01 Mexican Pesos to 1 US dollar in Q1 2024, a difference of 20%.

Mine operating income, after depreciation and depletion, was $10.6 million, compared to $2.3 million in Q1 2024. The increase in mine operating income is a result of the items noted above, and partially due to provisional pricing adjustments that had a positive impact on revenues and mine operating income.

General and Administrative Expenses & Share-Based Payments

General and administrative expenses were $2.1 million, compared to $1.3 million in Q1 2024. The increase is a result of higher salaries and benefits, consulting fees and professional fees primarily as a result of increase in operations and increased employee benefits and profit sharing from improved financial performance.

Share-based payments was $0.4 million, compared to $0.4 million in Q1 2024, consistent with prior year quarter, and as a result of the vesting of previously issued options and restricted share units.

Other Items

Gain on long-term investments was $0.4 million compared to a gain of $0.1 million in Q1 2024. 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 gain on derivative liability was $0.4 million with no comparable transaction in Q1 2024. This is a direct result of US dollar/Mexican Peso foreign exchange forward contracts entered into mitigate risks surrounding the Company of material foreign exchange movements that could cause the Company to incur material losses.

Foreign exchange loss for the period was $0.1 million, a change of $0.2 million compared to a gain of $0.1 million in Q1 2023. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the quarter ended March 31, 2025 and 2024, the US dollar remained constant in relation to the Mexican peso and Canadian dollar, resulting in immaterial unrealized foreign exchange movements.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Current and Deferred Income Taxes

Current income tax expense was $2.0 million in Q1 2025, a change of $1.8 million compared to an income tax expense $0.2 million for Q1 2024. The movement relates primarily to increased operating profits generated in Q1 2025, which resulted in increased income tax expense.

Deferred income tax expense was $1.2 million, a change of $1.3 million compared to a recovery of $0.1 million in Q1 2024. 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 $5.6 million for the period, or $0.04 per basic share and $0.04 per diluted share, compared to net income of $0.6 million, or $0.00 per basic and diluted share during Q1 2024. The changes are a result of the items noted above, including increases in revenues, mine operating income, gain on long-term investments and unrealized gain in derivatives. The positive movements were partially offset by increases to current income tax expense and deferred income tax expense. The remaining items were consistent, showing no significant variances as noted above.

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

EBITDA was $9.7 million, an increase of $8.0 million when compared to $1.7 million for Q1 2024. 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 $9.8 million, an increase of $7.8 million when compared to adjusted earnings of $2.1 million in the corresponding quarter in 2024. 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 $12.62, compared to $14.89 for Q1 2024. The reduction in costs of 15% is attributable to improvements in the US dollar to Mexican Peso exchange rate partly offset by slightly lower silver equivalent ounces sold.

All-in sustaining cash costs per silver equivalent payable ounce was $20.08, compared to $20.23 for Q1 2024. The costs remained constant 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

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Avino Mine Production Highlights

Q1 2025	Q1 2024	Change %		Q1 2025	Q4 2024	Change %
167,853	169,595	-1%	Total Mill Feed (dry tonnes)	167,853	181,733	-8%
58	52	12%	Feed Grade Silver (g/t)	58	56	4%
0.55	0.47	17%	Feed Grade Gold (g/t)	0.55	0.59	-7%
0.50	0.43	16%	Feed Grade Copper (%)	0.50	0.52	-4%
85%	88%	-3%	Recovery Silver (%)	85%	87%	-2%
75%	70%	7%	Recovery Gold (%)	75%	74%	1%
87%	84%	3%	Recovery Copper (%)	87%	86%	1%
265,681	250,642	6%	Total Silver Produced (oz)	265,681	283,794	-6%
2,225	1,778	25%	Total Gold Produced (oz)	2,225	2,560	-13%
1,603,343	1,347,110	19%	Total Copper Produced (Lbs)	1,603,343	1,773,694	-10%
678,458	629,302	8%	Total Silver Equivalent Produced (oz)1	678,458	735,557	-8%

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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

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.

Adjusted earnings per share is calculated taking adjusted earnings divided by the weighted average number of diluted common shares per the financial statements.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

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	Q1 2025		Q1 2024		Q1 2025		Q4 2024
Net income for the period	$	5,617	$	599	$	5,617	$	5,092
Depreciation and depletion		867		857		867		882
Interest income and other		(163)		(3)		(163)		(287)
Interest expense		81		90		81		139
Finance cost		5		2		5		-
Accretion of reclamation provision		48		51		48		46
Current income tax expense		2,032		199		2,032		4,255
Deferred income tax expense (recovery)		1,207		(82)		1,207		1,028
EBITDA	$	9,694	$	1,713	$	9,694	$	9,099
Unrealized (gain) loss on derivatives		(405)		-		(405)		475
Share-based payments		362		423		362		434
Write down of equipment and supplies and materials inventory		1		1		1		578
Unrealized foreign exchange (gain) loss		99		(80)		99		(636)
Adjusted earnings	$	9,751	$	2,057	$	9,751	$	9,950
Shares outstanding (diluted)		147,827,215		133,022,671		147,827,215		146,635,008
Adjusted earnings per share	$	0.07	$	0.02	$	0.07	$	0.07

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, 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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

The Company’s calculation of all-in sustaining cash costs includes sustaining capital expenditures of $379 for the three months ended March 31, 2025 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
	Q1 2025		Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023		Q3 2023		Q2 2023
Cost of sales	$	8,274	$	13,926	$	8,907	$	10,090	$	10,054	$	9,969	$	9,952	$	8,175
Exploration expenses		(274)		(158)		(111)		(163)		(135)		(148)		(41)		(27)
Write down of equipment and supplies and materials inventory		(1)		(578)		(182)		(384)		-		(319)		(4)		(91)
Depletion and depreciation		(834)		(843)		(773)		(796)		(821)		(717)		(720)		(677)
Cash production cost		7,165		12,347		7,841		8,747		9,098		8,785		9,187		7,380
Payable silver equivalent ounces sold		567,881		889,294		525,003		537,037		610,877		584,061		543,686		452,011
Cash cost per silver equivalent ounce	$	12.62	$	13.88	$	14.94	$	16.29	$	14.89	$	15.04	$	16.90	$	16.33
General and administrative expenses		2,485		2,141		1,986		2,439		1,695		2,080		1,907		2,338
Treatment & refining charges		608		1,087		787		763		890		978		1,001		651
Penalties		890		745		915		626		692		834		535		634
Sustaining capital expenditures		379		555		510		162		306		318		289		270
Exploration expenses		274		158		111		163		135		148		41		27
Share-based payments and G&A depreciation		(399)		(473)		(570)		(687)		(459)		(487)		(665)		(878)
Cash operating cost	$	11,402	$	16,560	$	11,580	$	12,214	$	12,357	$	12,656	$	12,295	$	10,422
AISC per silver equivalent ounce	$	20.08	$	18.62	$	22.06	$	22.74	$	20.23	$	21.67	$	22.61	$	23.06

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

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 Accounting Standards 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	Q1 2025		Q1 2024		Q1 2025		Q4 2024
Mine operating income – per financial statements	$	10,562	$	2,339	$	10,562	$	10,456
Depreciation and depletion included in cost of sales		834		821		834		843
Write down of equipment and supplies and materials inventory		1		1		1		579
Mine operating cash flow before taxes	$	11,397	$	3,161	$	11,397	$	11,878

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Working Capital

Management uses working capital to assessment 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:

	March 31, 2025	December 31, 2024
Current assets	$ 46,169	$ 40,769
Current liabilities	(14,830)	(15,534)
Working capital	$ 31,339	$ 25,235

Results of Operations - Summary of Quarterly Results

(000’s)	2025		2024		2024		2024		2024		2023		2023			2023
Quarter ended	Mar 31 Q1		Dec 31 Q4		Sep 30 Q3		Jun 30 Q2		Mar 31 Q1		Dec 31 Q4		Sep 30 Q3			Jun 30 Q2
Revenue	$	18,836	$	24,382	$	14,616	$	14,787	$	12,393	$	12,530	$	12,316		$	9,218
Net income (loss)		5,617		5,092		1,169		1,240		599		563		(803	)		1,134
Earnings (loss) per share - basic	$	0.04	$	0.04	$	0.01	$	0.01	$	0.00	$	0.00	$	(0.01	)	$	0.01
Earnings (loss) per share - diluted	$	0.04	$	0.03	$	0.01	$	0.01	$	0.00	$	0.00	$	(0.01	)	$	0.01
Total Assets	$	157,693	$	148,711	$	135,366	$	133,702	$	128,644	$	128,340	$	123,493		$	120,469

During Q1 2025, revenue was lower than prior quarter mainly due to lower silver equivalent ounces sold. When compared to quarters prior to Q4 2024, revenues were higher as a result of higher realized metal prices.

Net income and earnings per share in Q1 2025 were positive. The current quarter was in line with the prior quarter and had increased earnings compared with Q3 2024 and prior quarters, mainly due to better metal realized prices, volume sold and lower costs due to cost management and positive movements between the USD and Mexican Peso exchange rates. For further details see “Financial Results” section.

Total assets continue to increase overall when compared to previous quarters, as 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.

Cash Flow

	March 31, 2025			March 31, 2024
Cash generated by operating activities	$	758		$	2,347
Cash generated by financing activities		350			392
Cash used in investing activities		(1,796	)		(1,967	)
Change in cash		(688	)		772
Effect of exchange rate changes on cash		(2	)		14
Cash, beginning of period		27,317			2,688
Cash, end of period	$	26,627		$	3,474

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Operating Activities

Cash generated by operating activities for the three months ended March 31, 2025, was $0.8 million, a decrease of $1.5 million compared to $2.3 million generated for the three months ended March 31, 2024. Cash movements from operating activities can fluctuate with changes in net income and working capital movements. In Q1 2025, cash generated from operating activities decreased primarily a result of working capital changes between the two periods, as cash generated from operating activities prior to working capital movements in the quarter was $7.4 million, compared to $1.6 million in Q1 2024.

Financing Activities

Cash generated by financing activities was $0.4 million for the three months ended March 31, 2025, compared to $0.4 million generated for the three months ended March 31, 2024. 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 three months ended March 31, 2025, the Company received net proceeds from issuance of shares for cash and from options exercise of $0.8 million (March 31, 2024 – $0.9 million). The Company also made lease and equipment loan payments totaling $0.5 million (March 31, 2024 - $0.5 million).

Investing Activities

Cash used in investing activities for the three months ended March 31, 2025, was $1.8 million compared to $2.0 million for the three months ended March 31, 2024. Cash used in investing activities included $1.8 million (March 31, 2024 - $2.0 million) spent on the acquisition of property and equipment and exploration expenditures.

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

Since the at-the-market (“ATM”) sales agreement was initiated in Q2 2023, the Company received net proceeds of $17.9 million in connection with a brokered offering. Proceeds from the ATM were intended for exploration and evaluation activities focused at La Preciosa, sustaining capital and development activities at the Avino Mine, including equipment lease and loan payments, and general working capital purposes.

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

During this period, all funds were used for exploration and evaluation activities, the acquisition of sustaining capital equipment and development of the Avino Mine and the repayments of capital equipment acquired under lease and loan. Remaining funds have remained in treasury for further acquisitions or investments into the existing operations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements other than those disclosed in 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 is as follows:

	Three months ended March 31,
	2025		2024
Salaries, benefits, and consulting fees	$	576	$	293
Share-based payments		288		387
	$	864	$	680

(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:

	March 31, 2025			December 31, 2024
Oniva International Services Corp.	$	97		$	95
Silver Wolf Exploration Ltd.		(243	)		(113	)
	$	(146	)	$	(18	)

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

The transactions with Oniva are summarized below:

	Three months ended March 31,
	2025		2024
Salaries and benefits	$	311	$	254
Office and miscellaneous		134		133
	$	445	$	387

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

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 two (December 31, 2024 – two) 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 THREE MONTHS ENDED MARCH 31, 2025

(b) Liquidity Risk

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2025, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,067	$	10,067	$	-	$	-
Derivative liability		70		70		-		-
Equipment loans		709		366		343		-
Finance lease obligations		4,787		2,443		2,344		-
Total	$	15,633	$	12,946	$	2,687	$	-

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 THREE MONTHS ENDED MARCH 31, 2025

Foreign Currency Risk

	March 31, 2025						December 31, 2024
	MXN			CDN			MXN			CDN
Cash	$	4,029		$	725		$	13,989		$	396
Due from related parties		4,928			-			2,287			-
Long-term investments		-			2,379			-			1,742
Reclamation bonds		-			6			-			6
Amounts receivable		4,307			127			3,599			24
Accounts payable and accrued liabilities		(57,559	)		(701	)		(65,989	)		(46	)
Due to related parties		-			(139	)		-			(136	)
Finance lease obligations		(1,749	)		(514	)		(2,031	)		(549	)
Net exposure		(46,044	)		1,883			(48,145	)		1,437
US dollar equivalent	$	(2,256	)	$	1,309		$	(2,349	)	$	998

Based on the net US dollar denominated asset and liability exposures as at March 31, 2025, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2025, by approximately $107 (December 31, 2024 - $144). The Company has entered into certain foreign currency contracts to mitigate this risk. and during the three ended March 31, 2025, recorded a derivative liability of $70 (December 31, 2024 - $475).

Price Risk

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

(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 March 31, 2025:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	26,627	$	-	$	-
Amounts receivable		-		5,874		-
Due from related parties		146		-		-
Long-term investments		1,635		-		57
Total financial assets	$	28,408	$	5,874	$	57

Financial liabilities
Derivative liability		-		-		(70	)
Total financial liabilities	$	-	$	-	$	(70	)

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	)

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Commitments

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:

March 31, 2025			December 31, 2024
Not later than one year	$	172	$	180
Later than one year and not later than five years		1,476		1,052
Later than five years		2,890		3,312
	$	4,538	$	4,544

Office lease payments recognized as an expense during the three months ended March 31, 2025, totaled $8 (March 31, 2024 - $10).

Subsequent Events

At-The-Market Sales – Subsequent to March 31, 2025, the Company issued 2,000,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $4,192.

Share Issuance – Subsequent to March 31, 2025, the Company issued 973,307 common shares as a result of the vesting conditions of RSUs exercised.

RSU & Option Grant – Subsequent to March 31, 2025, the Company granted 2,397,000 incentive stock options and 1,476,000 RSUs to its directors, officers, employees and consultants. The stock options are exercisable for up to five years at a price of C$2.11 per share and will be vested in stages over a 12-month period with no more than 1/4 of the options vesting in any three-month period from the date of the grant. The RSUs will be vested at the rate of 1/3 annually for a period of three years from the date of grant, until fully vested. The stock options and the RSUs are non-transferable.

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Outstanding Share Data

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

As at May 13, 2025 the following common shares, warrants, and stock options were outstanding:

	Number of shares	Exercise price	Remaining life (years)
Share capital	144,766,319	-	-
Restricted Share Units (“RSUs”)	3,265,000	-	0.88 – 2.91
Stock options	9,148,250	C$0.78 - C$1.64	0.23 – 4.91
Fully diluted	157,179,569

The following are details of outstanding stock options as at March 31, 2025 and May 13, 2025:

Expiry Date	Exercise Price Per Share	Number of Shares Remaining Subject to Options (March 31, 2025)	Number of Shares Remaining Subject to Options (May 13, 2025)
August 4, 2025	C$1.64	970,000	960,000
March 25, 2027	C$1.20	1,835,000	1,835,000
March 29, 2028	C$1.12	1,870,000	1,845,000
July 10, 2028	C$1.12	150,000	150,000
March 25, 2029	C$0.78	2,023,750	1,961,250
April 9, 2030	C$2.11	-	2,397,000
Total:		6,848,750	9,148,250

The following are details of outstanding RSUs as at March 31, 2025 and May 13, 2025:

Expiry Date	Number of Shares Remaining Subject to RSUs (March 31, 2025)	Number of Shares Remaining Subject to RSUs (May 13, 2025)
March 25, 2025	75,000	556,539
March 29, 2026	1,174,288	1,174,288
April 1, 2027	1,810,041	1,810,041
April 9, 2028	-	1,476,000
Total:	3,059,329	3,265,000

Recent Accounting Pronouncements

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

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, and by the Canadian Securities Administrators) that occurred during the three months ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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 most recently file AIF and the condensed consolidated interim financial statements for the three months ended March 31, 2025, 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 May 13, 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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