Avino Silver & Gold Mines Ltd. (TSX
VENTURE:ASM)(OTCBB:ASGMF)(BERLIN:GV6)(FRANKFURT:GV6) - 


I am pleased to present a review of Avino's achievements in 2008 and outlook for
2009. With precious metals prices holding up well in the current economic
climate, we are working aggressively to bring the Avino Mine back into
operation. 


Management remains focused on the following key objectives:

1) Continue upgrading the plant and mine facilities, gearing towards bulk
sampling and production from the high-grade San Gonzalo zone;


2) Continue developing the San Gonzalo resource;

3) Aggressively investigate the mineral potential of the many unexplored but
highly-prospective areas of the Avino property.


Mill Rehabilitation Nearly Complete

We have completed extensive upgrading and rehabilitation of the mill. This work,
which was required for processing material from the San Gonzalo zone, included:


- Rehabilitation of coarse and fine ore bins, including installation of new
metal chutes and a conveyor belt;


- Rehabilitation of the 250 tpd ball mill and a bank of small flotation cells;

- Construction of a new electrical control room for the crushing system;

- Installation of tailings water reclaim pump and pipeline.

Bulk Sampling to Confirm Grade and 90% Silver Recoveries

Once we acquire and install two crushers, we will have completed the processing
circuit. We will then conduct a bulk sample, which will allow us to fine-tune
the recovery circuit. Metallurgical testing of sample material from San Gonzalo
produced recoveries of up to 90% of contained silver. The bulk sample will also
help confirm mineral grades obtained through diamond drilling. We are also
investigating potential buyers for the San Gonzalo concentrate, and samples have
been shipped to various smelters for testing. We hope to negotiate a contract
for concentrate purchase sometime in 2009.


Mining Permits in Place

All permits needed to mine the San Gonzalo zone were received in 2008. A
Reclamation Plan has been requested and stipulated in the Environmental Permit
granted by SEMARNAT (Mexico's federal department responsible for environmental
policy). The reclamation plan is now being developed for submission.


NI 43-101 Resource Calculation for San Gonzalo

Orequest Consultants completed an NI 43-101 resource calculation for San Gonzalo
in 2008, estimating the zone contained 4.75 million ounces of silver and 37,300
ounces of gold, calculated as follows (see our July 25, 2008 news release for
details):




            Ag      Au   Zinc   Lead
Tonnes     g/t     g/t      %      %
------------------------------------
444,250    332    2.61    1.5    1.0



These figures were compiled from 2007 surface drilling at San Gonzalo (January
to December 2007, 40 holes, 9,204 metres), which produced some significant
silver intersections. Details and assays are available on our website at
www.avino.com.


More Successful Drilling at San Gonzalo in 2008 

For 2008, we completed 8,983 metres (29,464 feet) of diamond drilling in 37
holes, including infill drilling at San Gonzalo. Results from this program were
not included in the above resource estimate. Overall, this program generated
excellent results and reinforced our view that San Gonzalo is becoming one of
the property's most important mineral zones. Sample assays at San Gonzalo ran
from a low of 0.016 g/t Au, and 1.6 g/t Ag to a high of 3.84 g/t Au and 1,564.4
g/t Ag. (Results from the entire 2008 program are available in news releases
dated September 17 and November 24, 2008.)


Exploration on Surrounding Claims

The 2008 drilling also identified mineralization in the Cerro San Jose, Aguila
Mexicana, Santa Ana and Mercedes zones. This program included regional mapping
and chip sampling over two square kilometres. We discovered 12 new quartz veins
on the Mercedes zone; ten new quartz veins were mapped on the El Gran, Lucero
and El Taller zones.


Prospecting and Modernization of Historical Data

Our exploration programs over the past two years have included extensive
prospecting work on the entire Avino claim block (4,364 hectares). We have
conducted IP surveys and soil sampling as well as 3-D modeling and modernization
of the project's vast historical data. This work has helped us identify new
prospects and locate a number of new mineral zones.


Exploration Proposals for 2009

Our plan for 2009 is to explore new areas of the property, expand upon
discoveries made in 2008 and follow up on the 2008 mapping and sampling. At
present, trenching and 9,000 metres (29,520 feet) of new drilling have been
proposed for up to 15 areas of the property. The proposals are now under review
by management.


Option Agreement to Explore the Eagle Property

In November of 2008 we entered into an option agreement with Mega Silver Inc.
whereby Mega Silver can earn the exclusive right and option to acquire a 100%
title and interest in Avino's Eagle property. To earn its initial 75% interest,
Mega Silver must incur exploration costs totaling $7.1 million and make cash
payments to Avino totaling $400,000 over five years. They will also issue
500,000 common shares of Mega Silver in the fourth and fifth years of the
agreement. The Eagle property is located in the historic Keno Hill silver
district, Yukon Territory. This rich mineral region has produced over 200
million ounces of silver. Details of the agreement and property history are
available in our November 11, 2008 news release.


At the fifth anniversary, and for a maximum period of the greater of 5 years
thereafter or until production occurs, the minimum annual advance royalty
payment to Avino will be $200,000 per annum. Once in production, all advance
royalty payments will be credited towards MSR's payment of 2.5% net smelter
return to Avino. MSR will have the right to purchase 1% of the Avino net smelter
return (to reduce the royalty to Avino to 1.5%) at any time for a cash payment
of $1.0 million.


Well Funded and Continuing to Invest in Growth

Avino has operated continuously in Mexico since 1968, a period in which the
Avino Mine operated for 27 years. During our long history, we have weathered a
number of difficult economies. While the current market clearly presents
challenges, our cash position of approximately C$3.3 million puts us in a strong
position for continued growth and our goal of bringing the mine back into
production. We will continue to invest aggressively in exploration and
development. 


Everyone at Avino looks forward to an exciting and successful year in 2009.

ON BEHALF OF THE BOARD

David Wolfin, President 

This release contains statements that are forward-looking statements and are
subject to various risks and uncertainties concerning the specific factors
disclosed under the heading "Risk Factors" and elsewhere in the Company's
periodic filings with Canadian securities regulators. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the obligation to
update any forward-looking statement.


This news release does not constitute an offer to sell or a solicitation of an
offer to sell any of the securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available.
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