ASM Avino Silver And Gold Mines Ltd (delisted)

Avino Silver & Gold Mines Ltd. ("Avino" or the "Company") (TSX
VENTURE:ASM)(OTCBB:ASGMF)(BERLIN:GV6)(FRANKFURT:GV6) is pleased to present an
update on its progress at the Avino Mine property near Durango in north-central
Mexico. As one of the few Canadian mining companies that have been active in
Mexico since the 1970s, we understand the importance of a long term outlook.
Avino is currently planning to re-establish small scale production at our mine
on a test basis. This represents a very exciting time for the Company and we
have been working on many fronts as part of our commitment to re-establish full
commercial production.


Last year we reported on the success of exploration efforts at the San Gonzalo
discovery area where a significant high grade mineralization was outlined. We
believe that this discovery area has the potential to support profitable mining
under the current market conditions. We have initiated a plan to test this
potential and are working towards commencing a 10,000 tonne bulk sampling
program at San Gonzalo. A number of permits are required before this operation
can commence and we have submitted applications to gain all permitting
approvals. We anticipate that these permits will be granted.


We will hire a contractor for the underground development work, and for
extraction and transportation of the bulk sample material. We are reviewing a
number of qualified mining contractors and will be selecting a company that we
believe can operate the program within a reasonable cost base. Our mill and
recovery plant has been on care and maintenance since we halted operations in
late 2001 and remains in excellent condition. In order to manage the small scale
test mining plan we are refurbishing part of the processing circuit to
accommodate 250 tonnes per day from San Gonzalo. Work is currently underway to
ensure the plant will be able to run efficiently on this tonnage basis. We are
fortunate that some of the personnel who were working with us in the past have
now been hired to operate the plant. We believe this will lead a more rapid
progression through the learning curve and ultimately contribute to improved
economic performance.


As we reported earlier this year, our metallurgical testing of sample material
from San Gonzalo suggests that the mineralization will respond very favorably
within conventional processing at our mill, and up to 90% of the contained
silver may be recovered in concentrates that are produced. Of greater importance
is the information that will be gained from running this new mineralization
through our processing under real world operating conditions. If we achieve
positive results from this program, we can then work to complete development
that will enable larger scale production to commence. This will include
extending underground infrastructure from our main mine workings to the San
Gonzalo zone, which would enable larger production volumes to be mined. We can
also refurbish the entire recovery plant to run under optimum conditions and
sustain full scale production with the best possible efficiency. The permitting
application process allows for ongoing operations to continue after the test
mining phase has been completed. Our program is thus geared towards establishing
long term production.


At the main Avino mine workings we are investigating the options available to
restart commercial production. Ground water in the mine workings will need to be
pumped out and treated. A new disposal and treatment facility will be needed for
the tailings that will be generated from commercial production at the mill.
Permitting and environmental approvals will be required. These important
considerations are all part of the process that must be in place before we
resume full scale production and thus we are dealing with the planning now to
lay the framework for our operations in the future.


We also remain focused on our objective to advance exploration towards the
delineation of new resources that can sustain operations for many more years. We
have recently completed geophysical work and soil sampling across most of the
property area we control. This has outlined several new targets. Exploration
drilling is ongoing, with one contract drill that has been deployed at a number
of targets. We own a second drill rig and have completely refurbished it. Once
drilling supplies are on hand we plan to use our rig to increase our exploration
efforts and complete infill drilling both at San Gonzalo and the main Avino
vein.


Preparation of a NI43-101 compliant resource calculation is underway by an
independent consultant to interpret the data from our work at San Gonzalo.
Results will be announced and posted on our website at www.avino.com once
received.


We are also pleased to report that our financial position remains very strong,
with about $5 million on hand in the treasury. The Company has no risk exposure
to asset backed commercial paper, and all of our money is held in cash and short
term treasury notes.


Avino is uniquely positioned among the many emerging producers in Mexico.
Through our majority ownership in the Avino Mine and recovery plant and
surrounding property holdings, our shareholders have leverage to the strong
metals markets that are currently in effect. We remain committed to our strategy
to return to profitable mining operations and are very excited about the
opportunity to build this company into a significant producer of precious and
base metals. As we advance towards accomplishing our goals, we will ensure that
our conduct is consistent with our high standards for environmental
responsibility, supporting the local community as beneficiaries for our
continued success and for sustainable growth and strong returns for all of our
shareholders.


Founded in 1968, Avino has established a long record of mining and exploration.
The Company's focus is the acquisition and aggressive exploration of top silver
prospects throughout North America. Avino remains well funded.


ON BEHALF OF THE BOARD

David Wolfin, President

This press release contains "forward-looking statements". Forward-looking
statements express, as at the time of this press release, the Company's plans,
forecasts, projections, expectations or beliefs as to future events and results.
Forward-looking statements involve a number of risks and uncertainties, and
there can be no assurance that such statements will prove to be accurate.
Therefore, actual results and future events could differ materially from those
anticipated in such statements.

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