6-K - ASM - Equibles

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, 2024

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, 2024, and to incorporate such financial information into the Company’s registration statement referenced below.

Exhibits 99.1 and 99.2 attached hereto are hereby incorporated by reference into the Company’s Registration Statement on Form F-10 (Registration Statement File number 333-270315) to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed.

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, 2024 and 2023 (Unaudited)
99.2	Management’s Discussion & 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 and contained in Exhibit 101).
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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 8, 2024	By:	/s/ Jennifer Trevitt
		Jennifer Trevitt
		Corporate Secretary
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avino_ex991.htm EXHIBIT 99.1

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024 and 2023

(Unaudited)

AVINO SILVER & GOLD MINES LTD.<br><br>Condensed Consolidated Interim Statements of Financial Position<br><br>(Expressed in thousands of US dollars - Unaudited)
	Note	March 31,<br><br>2024			December 31,<br><br>2023
---	---	---	---	---	---	---	---
ASSETS
Current assets
Cash		$	3,474		$	2,688
Amounts receivable			1,856			3,303
Amounts due from related parties	10(b)		194			167
Taxes recoverable	4		6,502			6,580
Prepaid expenses and other assets			2,077			1,971
Inventory	5		8,338			8,826
Total current assets			22,441			23,535
Exploration and evaluation assets	7		51,911			50,111
Plant, equipment and mining properties	9		52,550			53,069
Long-term investments	6		1,043			934
Other assets			699			691
Total assets		$	128,644		$	128,340
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities		$	10,713		$	11,867
Taxes payable			189			127
Current portion of finance lease obligations			1,590			1,650
Current portion of equipment loans			164			164
Total current liabilities			12,656			13,808
Finance lease obligations			1,159			1,445
Equipment loans			151			195
Reclamation provision	11		2,264			2,195
Deferred income tax liabilities			4,614			4,696
Total liabilities			20,844			22,339
EQUITY
Share capital	12		153,088			151,688
Equity reserves			10,952			11,041
Treasury shares			(97	)		(97	)
Accumulated other comprehensive loss			(5,319	)		(5,208	)
Accumulated deficit			(50,824	)		(51,423	)
Total equity			107,800			106,001
Total liabilities and equity		$	128,644		$	128,340

Commitments – Note 15

Approved by the Board of Directors on May 8, 2024.

Peter Bojtos	Director	David Wolfin	Director

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)<br><br>(Expressed in thousands of US dollars, other than per share amounts - Unaudited)
---
		Three months ended March 31,
---	---	---	---	---	---	---	---
	Note	2024			2023
Revenue from mining operations	13	$	12,393		$	9,825
Cost of sales	13		10,054			7,974
Mine operating income			2,339			1,851
Operating expenses
General and administrative expenses	12(c)(d)		1,272			1,184
Share-based payments	12		423			339
			644			328
Other items
Interest and other income			3			209
Gain (loss) on long-term investments	6		132			(319	)
Fair value adjustment on warrant liability			-			(293	)
Foreign exchange gain (loss)			80			(136	)
Finance cost			(2	)		(74	)
Accretion of reclamation provision	11		(51	)		(11	)
Interest expense			(90	)		(45	)
Income (loss) before income taxes			716			(341	)
Income taxes:
Current income tax expense			(199	)		(25	)
Deferred income tax recovery			82			14
Income tax expense			(117	)		(11	)
Net income (loss)			599			(352	)
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences			(111	)		(263	)
Total comprehensive income (loss)		$	488		$	(615	)
Earnings (loss) per share	12(e)
Basic		$	0.00		$	(0.00	)
Diluted		$	0.00		$	(0.00	)
Weighted average number of common shares outstanding	12(e)
Basic			130,027,962			118,572,700
Diluted			133,022,671			122,602,929

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Condensed Consolidated Interim Statements of Changes in Equity<br><br>(Expressed in thousands of US dollars - Unaudited)
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	Note	Number of Common Shares		Share Capital Amount			Equity Reserves			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total Equity
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Balance, January 1, 2023			118,349,090	$	145,515		$	9,852		$	(97	)	$	(5,223	)	$	(52,026	)	$	98,021
Common shares issued:
At the market issuances	12		253,700		207			-			-			-			-			207
Carrying value of RSUs exercised	12		592,667		512			(512	)		-			-			-			-
Issuance costs	12		-		(5	)		-			-			-			-			(5	)
Share-based payments	12		-		-			339			-			-			-			339
Net loss for the period			-		-			-			-			-			(352	)		(352	)
Currency translation differences			-		-			-			-			(263	)		-			(263	)
Balance, March 31, 2023			119,195,457	$	146,229		$	9,679		$	(97	)	$	(5,486	)	$	(52,378	)	$	97,947
	Note	Number of Common Shares		Share Capital Amount			Equity Reserves			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total Equity
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Balance at 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 (b)		1,886,248		926			-			-			-			-			926
Carrying value of RSUs exercised	12 (d)		585,265		512			(512	)		-			-			-			-
Issuance costs			-		(38	)		-			-			-			-			(38	)
Share-based payments	12 (c) (d)		-		-			423			-			-			-			423
Net income for the period	12 (e)		-		-			-			-			-			599			599
Currency translation differences			-		-			-			-			(111	)		-			(111	)
Balance at March 31, 2024			131,199,761	$	153,088		$	10,952		$	(97	)	$	(5,319	)	$	(50,824	)	$	107,800

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Condensed Consolidated Interim Statements of Cash Flows<br><br>(Expressed in thousands of US dollars - Unaudited)
---
		Three months ended March 31,
---	---	---	---	---	---	---	---
	Note	2024			2023
Operating Activities
Net income		$	599		$	(352	)
Adjustments for non-cash items:
Deferred income tax expense (recovery)			(82	)		(14	)
Depreciation and depletion			857			705
Accretion of reclamation provision	11		51			11
(Gain) loss on investments	6		(132	)		319
Unrealized foreign exchange gain			(88	)		(161	)
Unwinding of fair value adjustment			-			74
Fair value adjustment on warrant liability			-			293
Share-based payments			423			339
			1,628			1,214
Net change in non-cash working capital items	16		719			(766	)
Cash provided by operating activities			2,347			448
Financing Activities
Shares and units issued for cash, net of issuance costs			888			202
Lease liability payments			(452	)		(280	)
Equipment loan payments			(44	)		(88	)
Cash provided by (used in) financing activities			392			(166	)
Investing Activities
Exploration and evaluation expenditures			(1,116	)		(389	)
Additions to plant, equipment and mining properties			(851	)		(3,450	)
Acquisition of La Preciosa			-			(5,000	)
Cash provided by (used in) investing activities			(1,967	)		(8,839	)
Change in cash			772			(8,557	)
Effect of exchange rate changes on cash			14			9
Cash, beginning			2,688			11,245
Cash, ending		$	3,474		$	2,697

Supplementary Cash Flow Information (Note 16)

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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1. NATURE OF OPERATIONS

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

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

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

2. BASIS OF PRESENTATION

Statement of Compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. 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, 2023, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

These unaudited condensed consolidated interim 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 unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2023 annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.

Basis of Presentation

These unaudited condensed consolidated interim 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.

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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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.

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 unaudited condensed consolidated interim 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, 2024, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2023.

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.<br><br>(“Avino Mexico”)	98.45% direct<br><br>1.22% indirect (Promotora)<br><br>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
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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements.

3. RECENT ACCOUNTING PRONOUNCEMENTS

New and amended IFRS 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,<br><br>2024		December 31,<br><br>2023
VAT recoverable	$	2,767	$	3,231
GST recoverable		14		20
Income taxes recoverable		3,721		3,329
	$	6,502	$	6,580

5. INVENTORY

	March 31,<br><br>2024		December 31,<br><br>2023
Process material stockpiles	$	2,944	$	4,050
Concentrate inventory		3,017		2,448
Materials and supplies		2,377		2,328
	$	8,338	$	8,826

The amount of inventory recognized as an expense for the three months ended March 31, 2024 totalled $10,054 (2023 – $7,794). See Note 13 for further details.

During the three months ended March 31, 2024, the Company wrote down Nil of materials and supplies inventory due to obsolescence (year ended December 31, 2023 – $270).

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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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, 2024:

	Fair Value<br><br>December 31,		Net		Movements in foreign			Fair value adjustments			Fair Value<br><br>March 31,
	2023		Additions		exchange			for the period			2024
Talisker Resources Common Shares	$	782	$	-	$	(20	)	$	141		$	903
Silver Wolf Exploration Ltd. Common Shares		71		-		(2	)		9			78
Endurance Gold Corp. Common Shares		81		-		(1	)		(18	)		62
	$	934	$	-	$	(23	)	$	132		$	1,043

7. EXPLORATION AND EVALUATION ASSETS

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

	Avino,<br><br>Mexico			La Preciosa, Mexico			British Columbia & Yukon, Canada		Total
Balance, December 31, 2022	$	11,828		$	37,975		$	1	$	49,804
La Preciosa non-core concessions transfer		2,946			(2,946	)				-
Drilling and exploration		877			435			-		1,312
Assessments and taxes		88			(930	)		-		(842	)
Effect of movements in exchange rates		22			(122	)		-		(100	)
Option income		(63	)		-			-		(63	)
Balance, December 31, 2023	$	15,698		$	34,412		$	1	$	50,111
Costs incurred during 2024:
Drilling and exploration		81			662			-		743
Assessments and taxes		100			959			-		1,059
Effect of movements in exchange rates		(2	)		-			-		(2	)
Balance, March 31, 2024	$	15,877		$	36,033		$	1	$	51,911
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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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(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. Within the Avino Mine site area is the Company’s San Gonzalo Mine, which achieved production at levels intended by management as of October 1, 2012, and on this date accumulated exploration and evaluation costs were transferred to mining properties.

(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. (formerly Gray Rock Resources 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, 2024, and Silver Wolf is in compliance with the terms of the Option Agreement.

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

Unification La Platosa properties

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

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

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

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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(b) La Preciosa, Mexico

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc.

(c) British Columbia & Yukon, Canada

Eagle Property - Yukon

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

Minto and Olympic-Kelvin properties – British Columbia

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

As of March 31, 2024, Endurance was in compliance with all terms of the Option agreement.

8. NON-CONTROLLING INTEREST

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

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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9. PLANT, EQUIPMENT AND MINING PROPERTIES



COST
Balance at January 1, 2023
Additions / Transfers
Writedowns		)	)	)	)		)
Effect of movements in exchange rates	)					)	)
Balance at December 31, 2023
Additions / Transfers						)
Writedowns		)	)				)
Effect of movements in<br><br>exchange rates		)		)		)	)
Balance at March 31, 2024
ACCUMULATED DEPLETION AND DEPRECIATION / IMPAIRMENT
Balance at January 1, 2023
Additions / Transfers
Writedowns		)	)	)	)		)
Balance at December 31, 2023
Additions / Transfers
Balance at March 31, 2024
NET BOOK VALUE
At March 31, 2024
At December 31, 2023

All values are in US Dollars.

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AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
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Included in Buildings and construction in process above are assets under construction of $3,341 as at March 31, 2024 (December 31, 2023 - $3,166) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

As of March 31, 2024, the Company performed an evaluation of the property plant and equipment and recorded a write-down of $1 (December 31, 2023 - $144) against the carrying value of mine and mill machinery and transportation equipment due to damage and obsolescence.

As at March 31, 2024, plant, equipment and mining properties included a net carrying amount of $5,850 (December 31, 2023 - $5,832) 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<br><br>March 31,
	2024		2023
Salaries, benefits, and consulting fees	$	293	$	284
Share-based payments		387		321
	$	680	$	605

(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,<br><br>2024			December 31,<br><br>2023
Oniva International Services Corp.	$	100		$	102
Directors Fees		44			-
Silver Wolf Exploration Ltd.		(338	)		(269	)
	$	(194	)	$	(167	)

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s President and CEO and also a director, for consulting services. For the three months ended March 31, 2024, the Company paid $71 (March 31, 2023 - $71) to ICC.

(c) Other related party transactions

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.

- 12 -
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

The transactions with Oniva are summarized below:

	Three months ended<br><br>March 31,
	2024		2023
Salaries and benefits	$	254	$	245
Office and miscellaneous		133		133
	$	387	$	378

11. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at March 31, 2024, is $2,264 (December 31, 2023 – $2,195), and the undiscounted value of the obligation is $5,627 (December 31, 2023 – $5,491).

The present value of the obligation was calculated using a risk-free interest rate of 9.72% (December 31, 2023 – 9.82%) and an inflation rate of 3.88% (December 31, 2023 – 3.76%). Reclamation activities are estimated to begin in 2025 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,<br><br>2024		December 31,<br><br>2023
Balance at beginning of the period	$	2,195	$	445
Changes in estimates		-		1,615
Unwinding of discount related to continuing operations		51		49
Effect of movements in exchange rates		18		86
Balance at end of the period	$	2,264	$	2,195

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, 2024, the Company issued 1,886,248 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $926. The Company paid a 2.75% cash commission of $25 on gross proceeds, for net proceeds of $901. The Company also incurred $13 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.
	During the three months ended March 31, 2024, the Company issued 585,265 common shares upon exercise of RSUs. As a result, $512 was recorded to share capital.
(ii)	During the year ended December 31, 2023, the Company issued 9,373,825 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $5,648. The Company paid a 2.75% cash commission of $155 on gross proceeds, for net proceeds of $5,493. The Company also incurred $339 in share issuance costs related to its base shelf prospectus and prospectus supplement filings.
	During the year ended December 31, 2023, the Company issued 1,005,333 common shares upon exercise of RSUs. As a result, $1,019 was recorded to share capital.
- 13 -
---
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

(c) Stock options:

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

Continuity of stock options is as follows:


Stock options outstanding, January 1, 2023	4,256,000
Granted	2,545,000
Expired	(105,000	)
Cancelled / Forfeited	(30,000	)
Stock options outstanding, December 31, 2023	6,666,000
Granted	2,500,000
Cancelled / Forfeited	(190,000	)
Stock options outstanding, March 31, 2024	8,976,000
Stock options exercisable, March 31, 2024	6,401,000

All values are in US Dollars.

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

		Outstanding				Exercisable
Expiry Date	Price (C)	Number of Options		Weighted Average Remaining Contractual Life (Years)		Number of Options		Weighted Average Remaining Contractual Life (Years)
August 21, 2024			126,000		0.39		126,000		0.39
August 4, 2025			1,620,000		1.35		1,620,000		1.35
March 25, 2027			2,255,000		2.98		2,255,000		2.98
May 4, 2027			25,000		3.09		25,000		3.09
March 29, 2028			2,300,000		4.00		2,300,000		4.00
July 10, 2028			150,000		4.26		75,000		4.26
March 25, 2029			2,500,000		4.99		-		4.99
			8,976,000		3.49		6,401,000		2.90

All values are in US Dollars.

- 14 -
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

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

During the three months ended March 31, 2024, the Company charged $92 (three months ended March 31, 2023 - $62) to operations as share-based payments for the fair value of stock options granted.

(d) Restricted Share Units:

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

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:


RSUs outstanding, January 1, 2023	2,190,666
Granted	1,878,320
Exercised	(1,005,334	)
Cancelled / Forfeited	(68,943	)
RSUs outstanding, December 31, 2023	2,994,709
Exercised	(585,265	)
RSUs outstanding, March 31, 2024	2,409,444

All values are in US Dollars.

- 15 -
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

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

Issuance Date	Price (C)	Number of RSUs Outstanding
March 25, 2022			577,000
March 29, 2023			1,763,124
July 10, 2023			69,320
			2,409,444

All values are in US Dollars.

During the three months ended March 31, 2024, no RSUs (year ended December 31, 2023 – 1,878,320) were granted. For RSUs granted in 2023, the weighted average fair value at the measurement date was C$1.11, based on the TSX market price of the Company’s shares on the date the RSUs were granted.

During the three months ended March 31, 2024, the Company charged $331 (March 31, 2023 - $277) 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.

(e) Earnings per share:

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

	Three months ended<br><br>March 31,
	2024		2023
Net income (loss) for the period	$	599	$	(352	)
Basic weighted average number of shares outstanding		130,027,962		118,572,700
Effect of dilutive share options, warrants, and RSUs		2,994,709		4,030,229
Diluted weighted average number of shares outstanding		133,022,671		122,602,929
Basic earnings (loss) per share	$	0.00	$	(0.00	)
Diluted earnings (loss) per share	$	0.00	$	(0.00	)
- 16 -
---
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

13. REVENUE AND COST OF SALES

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

	March 31,<br><br>2024			March 31,<br><br>2023
Concentrate sales	$	12,674		$	9,992
Provisional pricing adjustments		(281	)		(167	)
	$	12,393		$	9,825

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:

	March 31,<br><br>2024		March 31,<br><br>2023
Production costs	$	9,233	$	7,304
Depreciation and depletion		821		670
	$	10,054	$	7,974

14. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses consist of the following:

	March 31,<br><br>2024		March 31,<br><br>2023
Salaries and benefits	$	396	$	395
Office and miscellaneous		381		192
Professional fees		159		239
Management and consulting fees		107		106
Investor relations		73		81
Travel and promotion		35		54
Directors fees		44		44
Regulatory and compliance fees		41		38
Depreciation		36		35
	$	1,272	$	1,184
- 17 -
---
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

15. COMMITMENTS

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,<br><br>2024		December 31,<br><br>2023
Not later than one year	$	214	$	714
Later than one year and not later than five years		1,292		1,241
Later than five years		4,146		3,965
	$	5,652	$	5,920

Office lease payments recognized as an expense during the three months ended March 31, 2024, totalled $10 (March 31, 2023 - $4).

16. SUPPLEMENTARY CASH FLOW INFORMATION

	March 31,<br><br>2024			March 31,<br><br>2023
Net change in non-cash working capital items:
Inventory	$	418		$	(1,419	)
Prepaid expenses and other assets		(106	)		(18	)
Taxes recoverable		78			(625	)
Taxes payable		62			(867	)
Accounts payable and accrued liabilities		(1,153	)		1,466
Amounts receivable		1,447			658
Amounts due to related parties		(27	)		39
	$	719		$	(766	)
	March 31,<br><br>2024		March 31,<br><br>2023
---	---	---	---	---
Other non-cash supplementary information:
Interest paid	$	64	$	42
Taxes paid		10		5
	$	74	$	47
	March 31,<br><br>2024		March 31,<br><br>2023
Non-cash investing and financing activities:
Shares acquired under terms of option agreements		-		41
Transfer of share-based payments reserve upon exercise of RSUs		512		512
Equipment acquired under finance leases and equipment loans		108		1,808
	$	620	$	2,361
- 18 -
---
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

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, 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 three (December 31, 2022 – 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 unaudited condensed consolidated interim statement of financial position. At March 31, 2024, no amounts were held as collateral.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2024, in the amount of $3,474 and current assets exceeded current liabilities by $9,785 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, 2024, are summarized as follows:

	Total		Less Than<br><br>1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,713	$	10,713	$	-	$	-
Minimum rental and lease payments		5,652		214		1,292		4,146
Equipment loans		341		184		157		-
Finance lease obligations		2,962		1,734		1,228		-
Total	$	19,668	$	12,845	$	2,677	$	4,146
- 19 -
---
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

(c) Market Risk

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.

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, 2024						December 31, 2023
	MXN			CDN			MXN			CDN
Cash	$	8,108		$	252		$	13,338		$	70
Due from related parties		5,643			-			4,558			-
Long-term investments		-			1,414			-			1,236
Reclamation bonds		-			6			-			6
Amounts receivable		3,042			20			18,644			26
Accounts payable and accrued liabilities		(78,884	)		(145	)		(95,662	)		(150	)
Due to related parties		-			(195	)		-			(135	)
Finance lease obligations		(800	)		(179	)		(1,129	)		(217	)
Net exposure		(62,891	)		1,173			(60,251	)		836
US dollar equivalent	$	(3,767	)	$	865		$	(3,567	)	$	577

Based on the net US dollar denominated asset and liability exposures as at March 31, 2024, 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, 2024, by approximately $298. The Company has not entered into any foreign currency contracts to mitigate this risk.

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, 2024, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $106.

- 20 -
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

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, 2024, a 10% change in market prices would have an impact on net earnings (loss) of approximately $105.

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.

(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, 2024:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	3,474	$	-	$	-
Amounts receivable		-		1,856		-
Long-term investments		1,043		-		-
Total financial assets	$	4,517	$	1,856	$	-

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2024 the Company’s has no Level 3 financial instruments.

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, 2024.

The Company’s revenues for the three months ended March 31, 2024 of $12,393 (March 31, 2023 - $9,825) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, and is considered to be one single reportable operating segment.

- 21 -
AVINO SILVER & GOLD MINES LTD.<br><br>Notes to the unaudited condensed consolidated interim financial statements<br><br>For the three months ended March 31, 2024, and 2023<br><br>(Expressed in thousands of US dollars, except where otherwise noted)
---

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

	March 31,<br><br>2024			March 31,<br><br>2023
Silver	$	5,036		$	3,608
Gold		3,033			3,135
Copper		5,906			4,689
Penalties, treatment costs and refining charges		(1,582	)		(1,607	)
Total revenue from mining operations	$	12,393		$	9,825

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

	March 31,<br><br>2024		March 31,<br><br>2023
Customer #1	$	8,596	$	9,225
Customer #2		3,784		600
Other customers		13		-
Total revenue from mining operations	$	12,393	$	9,825

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

	March 31,<br><br>2024		December 31,<br><br>2023
Exploration and evaluation assets - Mexico	$	51,910	$	50,110
Exploration and evaluation assets - Canada		1		1
Total exploration and evaluation assets	$	51,911	$	50,111
	March 31,<br><br>2024		December 31,<br><br>2023
---	---	---	---	---
Plant, equipment, and mining properties - Mexico	$	52,398	$	52,891
Plant, equipment, and mining properties - Canada		152		178
Total plant, equipment, and mining properties	$	52,550	$	53,069

19. SUBSEQUENT EVENTS

At-The-Market Sales – Subsequent to March 31, 2024, the Company issued 1,256,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $993.

- 22 -

avino_ex992.htm EXHIBIT 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

The following discussion and analysis of the operations, results, and financial position of Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three months ended March 31, 2024, and the Company’s audited consolidated financial statements as at and for the year ended December 31, 2023, and the notes thereto.

This Management’s Discussion and Analysis (“MD&A”) is dated May 8, 2024, and discloses specified information up to that date. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). 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 8, 2024, 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, 2024, have been conducted on the Avino Property and the La Preciosa Property.

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

1	Page

MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Operational Highlights

HIGHLIGHTS<br> <br>(Expressed in US$, unless otherwise noted)	First<br> <br>Quarter 2024		First<br> <br>Quarter 2023		Change	First<br> <br>Quarter 2024		Fourth<br> <br>Quarter 2023		Change

| Tonnes Milled | 169,575 | | 159,757 | | 6% | 169,575 | | 143,738 | | 18% |

| Silver Ounces Produced | 250,642 | | 234,338 | | 7% | 250,642 | | 224,723 | | 12% |

| Gold Ounces Produced | 1,778 | | 2,286 | | -22% | 1,778 | | 1,452 | | 22% |

| Copper Pounds Produced | 1,347,110 | | 1,397,637 | | -4% | 1,347,110 | | 1,317,793 | | 2% |

| Silver Equivalent Ounces^1^ Produced | 629,302 | | 678,247 | | -7% | 629,302 | | 558,460 | | 13% |

| Silver Equivalent Payable Ounces Sold^2^ | 610,877 | | 506,727 | | 21% | 610,877 | | 584,061 | | 5% |

| Cash Cost per Silver Equivalent Payable Ounce^1,2,3^ | $ | 14.89 | $ | 14.22 | 5% | $ | 14.89 | $ | 15.04 | -1% |

| All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce^1,2,3^ | $ | 20.23 | $ | 20.17 | -% | $ | 20.23 | $ | 21.67 | -7% |

1. 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. In Q4 2023, AgEq was calculated using metals prices of $23.23 oz Ag, $1,977 oz Au and $3.71 lb Cu. In Q1 2023, AgEq was calculated using metal prices of $22.56 per oz Ag, $1,888 per oz Au and $4.05 per lb Cu.

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. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Financial Highlights

HIGHLIGHTS<br> <br>(Expressed in 000’s of US$)	First<br> <br>Quarter 2024		First<br> <br>Quarter 2023		Change	First<br> <br>Quarter 2024		Fourth<br> <br>Quarter 2023		Change

| Revenues | $ | 12,393 | $ | 9,825 | 26% | $ | 12,393 | $ | 12,530 | -1% |

| Mine operating income | $ | 2,339 | $ | 1,851 | 26% | $ | 2,339 | $ | 2,561 | -9% |

| Net income | $ | 599 | $ | (352) | 270% | $ | 599 | $ | 563 | 6% |

| Earnings before interest, taxes and amortization (“EBITDA”)^1^ | $ | 1,713 | $ | 286 | 499% | $ | 1,713 | $ | 1,120 | 53% |

| Adjusted earnings^1^ | $ | 2,057 | $ | 1,054 | 95% | $ | 2,057 | $ | 1,972 | 4% |

| Cash provided by operating activities | $ | 2,347 | $ | 448 | 424% | $ | 2,347 | $ | 621 | 278% |

| Earnings per share – basic & diluted | $ | 0.00 | $ | (0.00) | -% | $ | 0.00 | $ | 0.00 | -% |

| Adjusted earnings per share^1^ | $ | 0.02 | $ | 0.01 | 100% | $ | 0.02 | $ | 0.02 | -% |

| Cash | $ | 3,474 | $ | 2,697 | 29% | $ | 3,474 | $ | 2,688 | 29% |

| Working capital^1^ | $ | 9,785 | $ | 5,109 | 92% | $ | 9,785 | $ | 9,727 | 1% |

1. The Company reports non-IFRS measures which include EBITDA, adjusted earnings, adjusted earnings per share, and working capital. 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 Measures section for further information and detailed reconciliations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

1^st^ Quarter 2024 Highlights

La Preciosa Update:

On February 28, 2024, the Company provided an update on recently completed and ongoing work in connection with La Preciosa. Capital costs for 2024 are expected to be between US$3.0 – US$4.0 million and will include surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia veins. Avino already has the mining equipment necessary to commence operations at La Preciosa. The application for the Environmental Permit has been submitted by the Company to the relevant authorities. A further permit application will be submitted shortly after receipt of the Environmental Permit, which is required to commence the construction of the portal, haulage ramp, and the mining of the Gloria and Abundancia veins.

On January 9, 2024, the Company announced that it had signed a long-term land-use agreement with a local community for the development of La Preciosa in Durango, Mexico. La Preciosa hosts one of the largest undeveloped primary silver resources in Mexico and is located approximately 19 kilometres from the current Avino Mine production operations.

Consistent Production at Avino:

Silver equivalent production of 629,302 ounces is within our guidance range and the Company remains on track with our targeted full year production of 2.5 to 2.8 million silver equivalent ounces.

Oxide Tailings Project

On February 5, 2024, the Company released the results of the Preliminary Prefeasibility Study (the “PSF”) prepared in accordance with National Instrument 43-101 – Standard for Disclosure for Mineral Projects with NPV US$98 million (pre-tax) and US$61 million (post-tax) at a 5% discount rate, IRR 35% (pre-tax) and 26% (post-tax), proven and probable mineral reserves of 6.7 Million tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively, nominal processing rate over a 9-year life of mine. The completion of the study is a milestone in our 5-year growth plan to become an intermediate silver producer in Mexico.

Dry Stack Tailings Facility:

With the rearrangement of our handling of tailings as a result of the completed dry-stack tailings facility, which has been in use for over a year, the prior method of wet tailings deposition is no longer in use. A tab is now available on our website that provides further information on our tailings management system, along with a video (in Spanish) from the minesite that can be viewed. In addition, a selection of short videos of the facility in operation can be viewed under Videos and Media.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Financial Results

	Three months ended<br> <br>March 31,

| | 2024 | | | 2023 | | |

| Revenue from mining operations | $ | 12,393 | | $ | 9,825 | |

| Cost of sales | | 10,054 | | | 7,974 | |

| Mine operating income | | 2,339 | | | 1,851 | | | Operating expenses: | | | | | | |

| General and administrative expenses | | 1,272 | | | 1,184 | |

| Share-based payments | | 423 | | | 339 | |

| Income before other items | | 644 | | | 328 | | | Other items: | | | | | | |

| Interest and other income (loss) | | 3 | | | 209 | |

| Gain (loss) on long-term investments | | 132 | | | (319 | ) |

| Fair value adjustment on warrant liability | | - | | | (293 | ) |

| Unrealized foreign exchange loss | | 80 | | | (136 | ) |

| Finance cost | | (2 | ) | | (74 | ) |

| Accretion of reclamation provision | | (51 | ) | | (11 | ) |

| Interest expense | | (90 | ) | | (45 | ) |

| Income (loss) before income taxes | | 716 | | | (341 | ) | | Income taxes: | | | | | | |

| Current income tax expense | | (199 | ) | | (25 | ) |

| Deferred income tax expense | | 82 | | | 14 | |

| Income tax expense | | (117 | ) | | (11 | ) |

| Net income (loss) | | 599 | | | (352 | ) | | Other comprehensive income (loss): | | | | | | |

| Currency translation differences | | (111 | ) | | (263 | ) |

| Total comprehensive income (loss) | $ | 488 | | $ | (615 | ) |

| Basic | $ | 0.00 | | $ | (0.00 | ) |

| Diluted | $ | 0.00 | | $ | (0.00 | ) |

| Weighted average number of common shares outstanding | | | | | | |

| Basic | | 130,027,962 | | | 118,572,700 | |

| Diluted | | 133,022,671 | | | 122,602,929 | |

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Revenues

The Company recognized revenues of $12.4 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to $9.8 million revenues for Q1 2023, an increase of $2.6 million.

The increase is a result of higher payable silver equivalent ounces sold in the current period of 610,877 ounces, compared to 506,727 ounces in Q1 2023, an increase of 21%.

Metal prices for revenues recognized during the period were $23.14 per ounce of silver, $2,066 per ounce of gold, and $8,384 per tonne of copper, with comparable prices for Q1 2023 were $23.29 per ounce of silver, $1,878 per ounce of gold, and $8,992 per tonne of copper.

Cost of Sales & Mine Operating Income

Cost of sales was $10.1 million, compared to $8.0 million in Q1 2023, an increase of $2.1 million. The increase is mainly attributable to a stronger Mexican peso during the current quarter, with an average of 17.01 Mexican Pesos to 1 US dollar in Q1 2024 compared to an average of 18.68 Mexican Pesos to 1 US dollar in Q1 2023, a difference of 10%. Further increases in cost of sales is partially attributable to 6% higher processed & milled tonnes in Q1 2024 compared to Q1 2023, which resulted in higher overall overhead costs despite similar ounces sold in the two comparable quarters.

Mine operating income, after depreciation and depletion, was $2.3 million, compared to $1.9 million in Q1 2023. The increase in mine operating income is a result of the items noted above, and partially due to provisional pricing adjustments described in the consolidated financial statements.

General and Administrative Expenses & Share-Based Payments

General and administrative expenses was $1.3 million, compared to $1.2 million in Q1 2023. This is in line with expectations, demonstrating another consistent quarter in managing administrative expenses.

Share-based payments was $0.4 million, compared to $0.3 million in Q1 2023, consistent with prior quarter, and as a result of the vesting of previously issued options and restricted share units.

Other Items

Other Items totaled a gain of $0.1 million for the period, a change of $0.7 million compared to a loss of $0.7 million related to other items in Q1 2023.

Unrealized gain on long-term investments was $0.1 million, a positive movement of $0.5 million compared to a loss of $0.3 million in Q1 2023. This is a direct result of fluctuations in the Company’s investment in shares of Talisker Resources, as well as the Company’s investment in shares of Silver Wolf Exploration and Endurance Gold.

Fair value adjustment on warrant liability was $Nil compared to a gain of $0.3 million in Q1 2023. The fair value adjustment on the Company’s warrant liability relates to the issuance of US dollar-denominated warrants, which are re-valued each reporting period, and the value fluctuates with changes in the US-Canadian dollar exchange rate, and in the variables used in the valuation model, such as the Company’s US share price, and expected share price volatility. All US dollar-denominated warrants expired in September 2023, thus there is no adjustment for Q1 2024.

The remaining net impact of Other Items resulted in no further gain or loss, a positive movement of $0.2 million when compared to a further loss of $0.1 million in Q1 2023.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Current and Deferred Income Taxes

Current income tax expense of $0.2 million in Q1 2024, compared to Nil in income tax expense for Q1 2023, remains fairly consistent. The movement relates primarily to movements in the calculation of the Special Mining Duty tax that applies to mining profits generated in Mexico.

Deferred income tax recovery was $0.1 million, a change of $0.1 million compared to Nil in Q1 2023. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.

Net Income/Loss

Net income was $0.6 million for the period, or $0.00 per share, compared to a net loss of $0.4 million, or $0.00 per share during Q1 2023. The changes are a result of the items noted above, which are primarily increases in revenues, cost of sales, mine operating income and movements in the fair value adjustment of the long-term investments and unrealized foreign exchange. The remain items were consistent, showing no significant variances as noted above.

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

EBITDA was $1.7 million, an increase of $1.4 million when compared to $0.3 million for Q1 2023. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, changes in interest expense and income, as well as any changes in income taxes. See Non-IFRS Measures for a reconciliation for EBITDA.

Adjusted earnings for the period was $2.1 million, an increase of $1.0 million when compared to adjusted earnings of $1.1 million in the corresponding quarter in 2023. Changes to adjusted earnings are a result of the items noted above in EBITDA, further excluding share-based payments, gains and losses related to warrants, and movements in unrealized foreign exchange. See Non-IFRS Measures for a reconciliation for adjusted earnings.

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

Cash costs per silver equivalent payable ounce was $14.89, compared to $14.22 for Q1 2023. The increase in cost per ounce is a result of higher tonnes processed in Q1 2024 when compared to Q1 2023, primarily due to lower mill recoveries in the current quarter, stemming from lower feed grades, primarily in gold. The increase is also attributable to a stronger Mexican peso during the quarter, which directly impacted labour and contractor costs.

All-in sustaining cash costs per silver equivalent payable ounce was $20.23, compared to $20.17 for Q1 2023. The increases mentioned from the items above were primarily offset by reductions in penalties, with no significant difference between the comparable quarter in sustaining capital and exploration costs.

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Avino Mine Production Highlights

Q1<br> <br>2024	Q1<br> <br>2023	Change<br> <br>%		Q1<br> <br>2024	Q4<br> <br>2023	Change<br> <br>%

| 169,595 | 159,757 | 6% | Total Mill Feed (dry tonnes) | 169,595 | 143,798 | 18% |

| 52 | 51 | 2% | Feed Grade Silver (g/t) | 52 | 56 | -7% |

| 0.47 | 0.58 | -19% | Feed Grade Gold (g/t) | 0.47 | 0.45 | 4% |

| 0.43 | 0.47 | -9% | Feed Grade Copper (%) | 0.43 | 0.49 | -12% |

| 88% | 89% | -1% | Recovery Silver (%) | 88% | 87% | 1% |

| 70% | 77% | -9% | Recovery Gold (%) | 70% | 70% | -% |

| 84% | 84% | -% | Recovery Copper (%) | 84% | 84% | -% |

| 250,642 | 234,338 | 7% | Total Silver Produced (oz) | 250,642 | 224,723 | 12% |

| 1,778 | 2,286 | -22% | Total Gold Produced (oz) | 1,778 | 1,452 | 22% |

| 1,347,110 | 1,397,637 | -4% | Total Copper Produced (lbs) | 1,347,110 | 1,317,793 | 2% |

| 629,302 | 678,247 | -7% | Total Silver Equivalent Produced (oz)^1^ | 629,302 | 558,460 | 13% |

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, Avino, is a qualified person within the context of National Instrument 43-101, and has reviewed and approved the technical data in this document.

Non – IFRS 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 cost |

| · | 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 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. There are not standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Adjusted earnings excludes share-based payments, and non-operating or recurring items such as foreign exchange gains and losses and fair value adjustments on outstanding warrants. Under IFRS, 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.

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

Expressed in 000’s of US$, unless otherwise noted	Q1 2024			Q1 2023			Q1 2024			Q4 2023

| Net income (loss) for the period | $ | 599 | | $ | (352 | ) | $ | 599 | | $ | 563 | |

| Depreciation and depletion | | 857 | | | 705 | | | 857 | | | 744 | |

| Interest income and other | | (3 | ) | | (209 | ) | | (3 | ) | | (180 | ) |

| Interest expense | | 90 | | | 45 | | | 90 | | | 106 | |

| Finance cost | | 2 | | | 74 | | | 2 | | | 1 | |

| Accretion of reclamation provision | | 51 | | | 11 | | | 51 | | | 13 | |

| Current income tax expense | | 199 | | | 26 | | | 199 | | | 118 | |

| Deferred income tax recovery | | (82 | ) | | (14 | ) | | (82 | ) | | (245 | ) |

| EBITDA | $ | 1,713 | | $ | 286 | | $ | 1,713 | | $ | 1,120 | |

| Fair value adjustment on warrant liability | | - | | | 293 | | | - | | | 1 | |

| Share-based payments | | 423 | | | 339 | | | 423 | | | 460 | |

| Write down of equipment | | 1 | | | - | | | 1 | | | 319 | |

| Foreign exchange loss (gain) | | (80 | ) | | 136 | | | (80 | ) | | 72 | |

| Adjusted earnings | $ | 2,057 | | $ | 1,054 | | $ | 2,057 | | $ | 1,972 | |

| Shares outstanding (diluted) | | 133,022,671 | | | 122,602,929 | | | 133,022,671 | | | 127,763,043 | |

| Adjusted earnings per share | $ | 0.02 | | $ | 0.01 | | $ | 0.02 | | $ | 0.02 | |

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 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 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 as issued by the IASB, and are disclosed in addition to IFRS measures.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Cash cost per payable ounce

Management believes that the Company’s ability to control the cash cost per payable silver equivalent 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.

The Company’s calculation of all-in sustaining cash costs includes sustaining capital expenditures of $306 for the three months ended March 31, 2024 (year ended December 31, 2023 - $1,041) and all of which is attributable to the Avino Mine.

To facilitate a better understanding of these measures as calculated by the Company, detailed reconciliations between the non-IFRS measures and the Company’s consolidated financial statements are provided below. The non-IFRS 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 2024 | | | Q4 2023 | | | Q3 2023 | | | Q2 2023 | | | Q1 2023 | | | Q4 2022 | | | Q3 2022 | | | Q2 2022 | | |

| Cost of sales | $ | 10,054 | | $ | 9,969 | | $ | 9,952 | | $ | 8,175 | | $ | 7,974 | | $ | 10,293 | | $ | 7,058 | | $ | 5,468 | |

| Exploration expenses | | (135 | ) | | (148 | ) | | (41 | ) | | (27 | ) | | (95 | ) | | (472 | ) | | (336 | ) | | (305 | ) |

| Write down of equipment and supplies and materials inventory | | - | | | (319 | ) | | (4 | ) | | (91 | ) | | - | | | (330 | ) | | - | | | - | |

| Depletion and depreciation | | (821 | ) | | (717 | ) | | (720 | ) | | (677 | ) | | (670 | ) | | (592 | ) | | (514 | ) | | (481 | ) |

| Cash production cost | | 9,098 | | | 8,785 | | | 9,187 | | | 7,380 | | | 7,209 | | | 8,899 | | | 6,208 | | | 4,682 | |

| Payable silver equivalent ounces sold | | 610,877 | | | 584,061 | | | 543,686 | | | 452,011 | | | 506,727 | | | 756,536 | | | 603,360 | | | 594,700 | |

| Cash cost per silver equivalent ounce | $ | 14.89 | | $ | 15.04 | | $ | 16.90 | | $ | 16.33 | | $ | 14.23 | | $ | 11.76 | | $ | 10.29 | | $ | 7.87 | |

| General and administrative expenses | | 1,695 | | | 2,080 | | | 1,907 | | | 2,338 | | | 1,523 | | | 2,094 | | | 1,553 | | | 2,218 | |

| Treatment & refining charges | | 890 | | | 978 | | | 1,001 | | | 651 | | | 709 | | | 784 | | | 568 | | | 700 | |

| Penalties | | 692 | | | 834 | | | 535 | | | 634 | | | 898 | | | 1,649 | | | 1,705 | | | 897 | |

| Sustaining capital expenditures | | 306 | | | 318 | | | 289 | | | 270 | | | 163 | | | 639 | | | 672 | | | 1,586 | |

| Exploration expenses | | 135 | | | 148 | | | 41 | | | 27 | | | 95 | | | 472 | | | 336 | | | 305 | |

| Share-based payments and G&A depreciation | | (459 | ) | | (487 | ) | | (665 | ) | | (878 | ) | | (374 | ) | | (442 | ) | | (591 | ) | | (899 | ) |

| Cash operating cost | $ | 12,357 | | $ | 12,656 | | $ | 12,295 | | $ | 10,422 | | $ | 10,223 | | $ | 14,095 | | $ | 10,451 | | $ | 9,489 | |

| AISC per silver equivalent ounce | $ | 20.23 | | $ | 21.67 | | $ | 22.61 | | $ | 23.06 | | $ | 20.17 | | $ | 18.63 | | $ | 17.32 | | $ | 15.95 | |

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

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,<br> <br>2024			December 31,<br> <br>2023

| Current assets | $ | 22,441 | | $ | 23,535 | |

| Current liabilities | | (12,656 | ) | | (13,808 | ) |

| Working capital | $ | 9,785 | | $ | 9,727 | |

Results of Operations

Summary of Quarterly Results

(000’s)	2024		2023		2023			2023		2023			2022		2022			2022

| Revenue | $ | 12,393 | $ | 12,530 | $ | 12,316 | | $ | 9,218 | $ | 9,825 | | $ | 14,649 | $ | 9,118 | | $ | 9,370 |

| Net income (loss) | | 599 | | 563 | | (803 | ) | | 1,134 | | (352 | ) | | 1,296 | | (1,129 | ) | | 2,283 |

| Earnings (loss) per share - basic | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | 0.01 | $ | 0.00 | | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 |

| Earnings (loss) per share - diluted | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | 0.01 | $ | 0.00 | | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 |

| Total Assets | $ | 128,644 | $ | 128,340 | $ | 123,493 | | $ | 120,469 | $ | 118,606 | | $ | 121,196 | $ | 118,404 | | $ | 118,092 |

During Q1 2024, revenue was consistent when compared to Q3 and Q4 2023 quarters, as a result of slightly higher realized silver and gold metal prices and higher silver equivalent ounces sold. When compared to Q4 2022, revenues were lower due to lower ounces sold. The increased revenues and ounces sold in Q4 2022 were due to better than expected grades in mining production and recoveries in the mill process, thus resulting in higher overall ounces sold.

Net income and earnings per share in Q1 2024 was positive, and in line with Q4 2023. Quarters prior to those two were inconsistent due to timing of concentrate shipments, as well as movements in non-operational items such as unrealized gain/loss on investments, as well as fair value adjustments on the Company’s warrant liability, which expired in Q3 2023. For further details see “Financial Results” section.

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

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Cash Flow

(000’s)	March 31,<br> <br>2024			March 31,<br> <br>2023

| Cash generated by operating activities | $ | 2,347 | | $ | 448 | |

| Cash generated by (used in) financing activities | | 392 | | | (166 | ) |

| Cash used in investing activities | | (1,967 | ) | | (8,839 | ) |

| Change in cash | | 772 | | | (8,557 | ) |

| Effect of exchange rate changes on cash | | 14 | | | 9 | |

| Cash, beginning of period | | 2,688 | | | 11,245 | |

| Cash, end of period | $ | 3,474 | | $ | 2,697 | |

Operating Activities

Cash generated by operating activities for the three month ended March 31, 2024, was $2.3 million, an increase of $1.9 million compared to $0.4 million used for the three months ended March 31, 2023. Cash movements from operating activities can fluctuate with changes in net income and working capital movements. In Q1 2024, cash generated from operating activities increased primarily due to higher mine operating income as a result of higher levels of production activities and ounces sold. Other movements are primarily a result of working capital changes between the two periods.

Financing Activities

Cash provided by financing activities was $0.4 million for the three months ended March 31, 2024, compared to $0.2 million used for the three months ended March 31, 2023. The movement is a result of proceeds from shares issued on the ATM, partially offset by higher payments of lease and equipment loan. During the three months ended March 31, 2024, the Company received net proceeds from issuance of shares for cash of $0.9 million (March 31, 2023 – $0.2 million). The Company also made lease and equipment loan payments totalling $0.5 million (March 31, 2023 - $0.4 million).

Investing Activities

Cash used in investing activities for the three months ended March 31, 2024, was $2.0 million compared to $8.8 million for the three months ended March 31, 2023. Cash used in investing activities included $2.0 million (March 31, 2023 - $3.8 million) spent on the acquisition of property and equipment and exploration expenditures, as well as $5.0 million related to the repayment of the promissory note associated with the acquisition of La Preciosa during the three months ended March 31, 2023, with no comparable payment in the current period.

Liquidity and Capital Resources

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

Management expects that the Company’s ongoing liquidity requirements will be funded from cash generated from current operations and from further financing, as required, in order to fund ongoing exploration activities, and meet its objectives, including ongoing advancement at the Avino Mine. 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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

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

Intended Use of Proceeds	Actual Use of Proceeds

| During 2024, the Company received net proceeds of $0.9 million in connection with a brokered at-the-market offering issued under prospectus supplements. | As of the date of this MD&A, the Company has used the funds as intended. During 2024, all funds were used for exploration and evaluation activities, the acquisition of property and equipment, and the repayments of capital equipment acquired under lease and loan. |

| During 2021, the Company received net proceeds of $18.1 million in connection with a brokered at-the-market offering issued under prospectus supplements, $0.8 million in connection with warrants exercised and $0.2 million in connection with stock options exercised. | As of the date of this MD&A, the Company has used the funds as intended. During 2021, the Company announced an increase to its exploration from 12,000 to 30,600 metres of exploration and resource drilling. As of the date of this MD&A, over 20,000 metres of the program had been completed. In supporting mining operations in Mexico, the Company acquired La Preciosa for net cash consideration of $15.3 million. During 2022, the remaining $3.8 million was used for exploration and evaluation activities, the acquisition of property and equipment, the repayment of capital equipment acquired under lease and loan. |

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

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,

| | 2024 | | 2023 | |

| Salaries, benefits, and consulting fees | $ | 293 | $ | 284 |

| Share-based payments | | 387 | | 321 |

| | $ | 680 | $ | 605 |

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

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

	March 31,<br> <br>2024			December 31,<br> <br>2023

| Oniva International Services Corp. | $ | 100 | | $ | 102 | |

| Silver Wolf Exploration Ltd. | | 44 | | | - | |

| Directors Fees | | (338 | ) | | (269 | ) |

| | $ | (194 | ) | $ | (167 | ) |

The transactions with Oniva are summarized below:

	Three months ended March 31,

| | 2024 | | 2023 | |

| Salaries and benefits | $ | 254 | $ | 245 |

| Office and miscellaneous | | 133 | | 133 |

| | $ | 387 | $ | 378 |

Financial Instruments and Risks

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

(a) Credit Risk

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with three (December 31, 2023 – 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.

(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, 2024, in the amount of $3,474 and working capital of $9,785 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of note payable and finance lease obligations are due within 12 months of the condensed consolidated interim 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, 2024, are summarized as follows:

	Total		Less Than<br> <br>1 Year		1-5 years		More Than 5 Years

| Accounts payable and accrued liabilities | $ | 10,713 | $ | 10,713 | $ | - | $ | - |

| Minimum rental and lease payments | | 5,652 | | 214 | | 1,292 | | 4,146 |

| Equipment loans | | 341 | | 184 | | 157 | | - |

| Finance lease obligations | | 2,962 | | 1,734 | | 1,228 | | - |

| Total | $ | 19,668 | $ | 12,845 | $ | 2,677 | $ | 4,146 |

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.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

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.

Foreign Currency Risk

	March 31, 2024						December 31, 2023

| | MXN | | | CDN | | | MXN | | | CDN | | |

| Cash | $ | 8,108 | | $ | 252 | | $ | 13,338 | | $ | 70 | |

| Due from related parties | | 5,643 | | | - | | | 4,558 | | | - | |

| Long-term investments | | - | | | 1,414 | | | - | | | 1,236 | |

| Reclamation bonds | | - | | | 6 | | | - | | | 6 | |

| Amounts receivable | | 3,042 | | | 20 | | | 18,644 | | | 26 | |

| Accounts payable and accrued liabilities | | (78,884 | ) | | (145 | ) | | (95,662 | ) | | (150 | ) |

| Due to related parties | | - | | | (195 | ) | | - | | | (135 | ) |

| Finance lease obligations | | (800 | ) | | (179 | ) | | (1,129 | ) | | (217 | ) |

| Net exposure | | (62,891 | ) | | 1,173 | | | (60,251 | ) | | 836 | |

| US dollar equivalent | $ | (3,767 | ) | $ | 865 | | $ | (3,567 | ) | $ | 577 | |

Price Risk

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(d) Classification of Financial Instruments

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

	Level 1		Level 2		Level 3

| Cash | $ | 3,474 | $ | - | $ | - |

| Amounts receivable | | - | | 1,856 | | - |

| Long-term investments | | 1,043 | | - | | - |

| Total financial assets | $ | 4,517 | $ | 1,856 | $ | - |

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2024, the Company’s has no Level 3 financial instruments.

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,<br> <br>2024		December 31,<br> <br>2023

| Not later than one year | $ | 214 | $ | 714 |

| Later than one year and not later than five years | | 1,292 | | 1,241 |

| Later than five years | | 4,146 | | 3,965 |

| | $ | 5,652 | $ | 5,920 |

Office lease payments recognized as an expense during the three months ended March 31, 2024, totalled $10 (March 31, 2023 - $4).

Subsequent Events

At-The-Market Sales – Subsequent to March 31, 2024, the Company issued 1,256,000 common shares in at-the-market offerings under prospectus supplement for gross proceeds of $993.

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Outstanding Share Data

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

As at May 8, 2024 the following common shares, warrants, and stock options were outstanding:

	Number of shares		Exercise price	Remaining life (years)

| Share capital | | 133,068,205 | | | - |

| Restricted Share Units (“RSUs”) | | 3,678,000 | | 0.88 – 2.90 | |

| Stock options | | 8,976,000 | C0.78 - C1.64 | 0.28 – 4.88 | |

| Fully diluted | | 145,722,205 | | | |

All values are in US Dollars.

The following are details of outstanding stock options as at March 31, 2024 and May 8, 2024:

Expiry Date	Exercise Price Per Share	Number of Shares Remaining Subject to Options<br> <br>(March 31, 2024)	Number of Shares Remaining Subject to Options<br> <br>(May 8, 2024)

| August 21, 2024 | C$0.79 | 126,000 | 126,000 |

| August 4, 2025 | C$1.64 | 1,620,000 | 1,620,000 |

| March 25, 2027 | C$1.20 | 2,255,000 | 2,255,000 |

| May 4, 2027 | C$0.92 | 25,000 | 25,000 |

| March 29, 2028 | C$1.12 | 2,300,000 | 2,300,000 |

| July 10, 2028 | C$1.12 | 150,000 | 150,000 |

| March 25, 2029 | C$0.78 | 2,500,000 | 2,500,000 |

| Total: | | 8,976,000 | 8,976,000 |

The following are details of outstanding RSUs as at March 31, 2024 and May 8, 2024:

Expiry Date	Number of Shares Remaining Subject to RSUs<br> <br>(March 31, 2024)	Number of Shares Remaining Subject to RSUs<br> <br>(May 8, 2024)

| March 25, 2025 | 577,000 | 577,000 |

| March 29, 2026 | 1,832,444 | 1,220,000 |

| April 1, 2027 | - | 1,881,000 |

| Total: | 2,409,444 | 3,678,000 |

Recent Accounting Pronouncements

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

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MANAGEMENT’S DISCUSSION AND ANALYSIS<br> <br>FOR THE THREE MONTHS ENDED MARCH 31, 2024

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the three months ended March 31, 2024, 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 unaudited condensed consolidated interim financial statements for the three months ended March 31, 2024, is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.avino.com.

Cautionary Statement

This MD&A is based on a review of the Company’s operations, financial position and plans for the future based on facts and circumstances as of May 8, 2024. 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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