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| AVINO SILVER & GOLD MINES LTD.                     |
|--------------------------------------------------------|
| (Exact name of Registrant as specified in its charter) |

| Not Applicable      |   | Not Applicable                            |
|---------------------|--------|-------------------------------------------|
| Title of Each Class |   | Name of Each Exchange on Which Registered |

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|  Large Accelerated File   o | Accelerated Filer   o |  Non-Accelerated Filer   þ |
|-------------------------------------------------|--------------------------------------|-----------------------------------------------------|

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| Introduction                                                                                               |                                                                         |   | 4      |   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|--------|--------|--------|
| Currency                                                                                                   |                                                                         |   | 4      |   |
| Forward-looking Statements                                                                                 |                                                                         |   | 4      |   |
| Cautionary Note to United States Investors Concerning Estimate of Measured and Indicated Mineral Resources |                                                                         |   | 4      |   |
| Glossary of Mining Terms                                                                                   |                                                                         |   | 5      |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Part I                                                                                                     |                                                                         |   |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Item 1.                                                                                                    | Identity of Directors, Senior Management and Advisors                        |   |   | 8      |   |
| Item 2                                                                                                     | Offer Statistics and Expected Timetable                                      |   |   | 8      |   |
| Item 3.                                                                                               | Key Information                                                              |   |   | 8      |   |
| Item 4.                                                                                               | Information on the Company                                                   |   |   | 15     |   |
| Item 5                                                                                                     | Operating and Financial Review and Prospects                                 |   |   | 47     |   |
| Item 6.                                                                                                    | Directors, Senior Management and Employees                                   |   |   | 51     |   |
| Item 7.                                                                                                    | Major Shareholders and Related Party Transactions                            |   |   | 62     |   |
| Item 8.                                                                                               | Financial Information                                                        |   |   | 63     |   |
| Item 9.                                                                                               | The Offer and Listing                                                        |   |   | 64     |   |
| Item 10.                                                                                                   | Additional Information                                                       |   |   | 65     |   |
| Item 11.                                                                                                   | Quantitative and Qualitative Disclosures About Market Risk                   |   |   | 70     |   |
| Item 12.                                                                                              | Description of Securities Other than Equity Securities                       |   |   | 70     |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Part II                                                                                                    |                                                                         |   |   |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Item 13.                                                                                                   | Defaults, Dividend Arrearages and Delinquencies                              |   |   | 71     |   |
| Item 14.                                                                                              | Material Modifications to the Rights of Security Holders and Use of Proceeds |   |   | 71     |   |
| Item 15T.                                                                                             | Controls and Procedures                                                      |   |   | 71     |   |
| Item 16A.                                                                                             | Audit Committee Financial Expert                                             |   |   | 72     |   |
| Item 16B.                                                                                             | Code of Ethics                                                               |   |   | 72     |   |
| Item 16C.                                                                                             | Principal Accountant Fees and Services                                       |   |   | 73     |   |
| Item 16D.                                                                                                  | Exemptions from the Listing Standards for Audit Committees                   |   |   | 73     |   |
| Item 16E.                                                                                             | Purchases of Equity Securities by the Issuer and Affiliated Purchasers       |   |   | 73     |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Part III                                                                                                   |                                                                         |   |   |   |
|                                                                                                       |                                                                         |   |   |   |   |
| Item 17.                                                                                                   | Financial Statements                                                         |   |   | 74     |   |
| Item 18.                                                                                                   | Financial Statements                                                         |   |   | 74     |   |
| Item 19.                                                                                              | Exhibits                                                                     |   |   | 74     |   |

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| agglomeration           | Cementing crushed or ground rock particles together into larger pieces, usually to make them easier to handle; used frequently in heap-leaching operations.                                                                                                                                                                                                                                                                        |
|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| anomalous               | A value, or values, in which the amplitude is statistically between that of a low contrast anomaly and a high contrast anomaly in a given data set.                                                                                                                                                                                                                                                                                |
| anomaly                 | Any concentration of metal noticeably above or below the average background concentration.                                                                                                                                                                                                                                                                                                                                         |
| assay                   | An analysis to determine the presence, absence or quantity of one or more components.                                                                                                                                                                                                                                                                                                                                              |
| breccia                 | A rock in which angular fragments are surrounded by a mass of finer-grained material.                                                                                                                                                                                                                                                                                                                                              |
| Cretaceous              | The geologic period extending from 135 million to 65 million years ago.                                                                                                                                                                                                                                                                                                                                                            |
| cubic meters or m3      | A metric measurement of volume, being a cube one meter in length on each side.                                                                                                                                                                                                                                                                                                                                                     |
| cyanidation             | A method of extracting exposed gold or silver grains from crushed or ground ore by dissolving it in a weak cyanide solution.                                                                                                                                                                                                                                                                                                       |
| Diamond drill           | A rotary type of rock drill that cuts a core of rock that is recovered in long cylindrical sections, two centimeters or more in diameter.                                                                                                                                                                                                                                                                                          |
| fault                   | A fracture in a rock where there has been displacement of the two sides.                                                                                                                                                                                                                                                                                                                                                           |
| grade                   | The concentration of each ore metal in a rock sample, usually given as weight percent. Where extremely low concentrations are involved, the concentration may be given in grams per tonne (g/t or gpt) or ounces per ton (oz/t). The grade of an ore deposit is calculated, often using sophisticated statistical procedures, as an average of the grades of a very large number of samples collected from throughout the deposit. |
| heap leaching           | A process whereby valuable metals, usually gold and silver, are leached from a heap, or pad, of crushed ore by leaching solutions percolating down through the heap and collected from a sloping, impermeable liner below the pad.                                                                                                                                                                                                 |
| hectare or ha           | An area totaling 10,000 square meters.                                                                                                                                                                                                                                                                                                                                                                                             |
| highly anomalous        | An anomaly which is 50 to 100 times average background, i.e. it is statistically much greater in amplitude.                                                                                                                                                                                                                                                                                                                        |
| lp induced polarization | A method of ground geophysics surveying employing an electrical current to determine indications of mineralization, also referred to as “IP”.                                                                                                                                                                                                                                                                          |
| laterite                | A residual product of rock decay that is red in colour and has a high content in the oxides of iron and hydroxide of aluminum.                                                                                                                                                                                                                                                                                                     |

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| mineral reserve                                       | The economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of the reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined. Mineral resources are sub-divided in order of increasing confidence into “probable” and “proven” mineral reserves. A probable mineral reserve has a lower level of confidence than a proven mineral reserve. The term “mineral reserve” does not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.                                    |
|-------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| mineral resource                                      | The estimated quantity and grade of mineralization that is of potential economic merit. A resource estimate does not require specific mining, metallurgical, environmental, price and cost data, but the nature and continuity or mineralization must be understood. Mineral resources are sub-divided in order of increasing geological confidence into “inferred”, “indicated”, and “measured” categories. An inferred mineral resource has a lower level of confidence than that applied to an indicated mineral resource. An indicated mineral resource has a higher level of confidence than an inferred mineral resource, but has a lower level of confidence than a measured mineral resource. A mineral resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the earth’s crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction. |
| mineralization                                        | Usually implies minerals of value occurring in rocks.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| net smelter or NSR Royalty                            | Payment of a percentage of net mining profits after deducting applicable smelter charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| NQ                                                    | Denotes a definition of drill size of approximately 2-1/2 inches.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| oxide                                                 | A compound of oxygen and some other element.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ore                                                   | A natural aggregate of one or more minerals which may be mined and sold at a profit, or from which some part may be profitably separated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| outcrop                                               | An exposure of rock at the earth’s surface.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| possible or inferred ore                              | Term used to describe ore where the mineralization is believed to exist on the basis of some geological information, but the size, shape, grade, and tonnage are a matter of speculation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| prefeasibility study andpreliminary feasibility study | Each means a comprehensive study of the viability of a mineral project that has advanced to a stage where mining method, in the case of underground mining, or the pit configuration, in the case of open pit mining, has been established, and which, if an effective method of mineral processing has been determined, includes a financial analysis based on reasonable assumptions of technical, engineering, operating and economic factors, and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve.                                                                                                                                                                                                                                                                                                                                                  |
| probable mineral reserve                              | The economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least a prefeasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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| proven mineral reserve | The economically mineable part of a measured mineral resource demonstrated by at least a prefeasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified. The term should be restricted to that part of the deposit where production planning is taking place and for which any variation in the estimate would not significantly affect potential economic viability. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| quartz                 | Silica or SiO2, a common constituent of veins, especially those containing gold and silver mineralization.                                                                                                                                                                                                                                                                                                                                                                                                                             |
| tailings               | Material rejected from a mill after most of the recoverable valuable minerals have been extracted.                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ton                    | Imperial measurement of weight equivalent to 2,000 pounds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| tonne                  | Metric measurement of weight equivalent to 2,205 pounds (1,000 kg)                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| TPD                    | Tonnes per day.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| trench                 | A long, narrow excavation dug through overburden, or blasted out of rock, to expose a vein or ore structure.                                                                                                                                                                                                                                                                                                                                                                                                                           |
| tonne                  | Metric measurement of weight equivalent to 1,000 kilograms (or 2,204.6 pounds).                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| veins                  | The mineral deposits that are found filling openings in rocks created by faults or replacing rocks on either side of faults.                                                                                                                                                                                                                                                                                                                                                                                                           |

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1

  

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| Canadian GAAP                                                 |   |                     |       |
|---------------------------------------------------------------|--------|--------------------------|------------|
|                                                     |   | Years Ended December 31, |       |   |  Eleven Months Ended December 31, |   |   | Years Ended January 31, |   |
|                                                          |   | 2009                     |       |   | 2008 |   |   | 2007 |   |   | 2007 |   |   | 2006 |   |
| Summary of Operations:                                        |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                       |   | $                        | -          |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Interest Income                                               |   |                     | 68,224     |   |   |   | 146,386 |   |   |   | 359,339 |   |   |   | 430,231 |   |   |   | 46,082 |   |
| Expenses                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and administrative                                  |   |                     | 669,178    |   |   |   | 1,575,913 |   |   |   | 868,527 |   |   |   | 4,014,734 |   |   |   | 1,416,797 |   |
| Write-down of mineral properties                              |   |                     | 608,118    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 103,342 |   |
| Equity losses in Cia Minera Mexicana de Avino, S.A. de C.V.   |   |                     | -          |   |   |   | - |   |   |   | - |   |   |   | 33,581 |   |   |   | 342,596 |   |
| Litigation settlement                                         |   |                     | -          |   |   |   | 2,785 |   |   |   | (759,302 | ) |   |   | - |   |   |   | - |   |
| Misappropriation loss                                         |   |                     | -          |   |   |   | - |   |   |   | (86,155 | ) |   |   | - |   |   |   |   |   |
| Mineral property option revenue                               |   |                     | -          |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Write-down of investment                                      |   |                     | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 217,000 |   |
| Site assessment of Cia Minera Mexicana de Avino, S.A. de C.V. |   |                     | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 355,921 |   |
| Future income tax benefit (expense)                           |   |                     | 239,562    |   |   |   | (98,653 | ) |   |   | 501,083 |   |   |   | - |   |   |   | 19,750 |   |
| Net loss                                                      |   |                     | (987,759   | ) |   |   | (1,538,876 | ) |   |   | (885,863 | ) |   |   | (3,648,539 | ) |   |   | (2,369,724 | ) |
| Loss per share                                                |   |                     | (0.05      | ) |   |   | (0.07 | ) |   |   | (0.04 | ) |   |   | (0.20 | ) |   |   | (0.22 | ) |
|                                                          |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding                 |   |                     | 20,584,727 |   |   |   | 20,584,727 |   |   |   | 20,584,727 |   |   |   | 18,385,007 |   |   |   | 10,965,718 |   |

|                                        |   | As at December 31, |       |   | As at January 31, |   |
|---------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                        |   | 2009               |       |   | 2008              |   |   | 2007 |   |   | 2007 |   |   | 2006 |   |
|     Balance Sheet Data: |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |
| Total assets                                |   | $                  | 19,206,278 |   |              | $      | 20,126,230 |   |   | $ | 21,190,940 |   |   |   | 23,295,039 |   |   | $ | 3,901,160 |   |
| Cash and cash equivalents                   |   |               | 2,829,605  |   |              |   | 3,575,241 |   |   |   | 6,342,481 |   |   |   | 11,045,106 |   |   |   | 3,067,011 |   |
| Total liabilities                           |   |               | 2,241,179  |   |              |   | 2,508,776 |   |   |   | 2,532,414 |   |   |   | 3,789,083 |   |   |   | 586,714 |   |
| Shareholders’ equity                  |   |               | 16,965,099 |   |              |   | 17,617,454 |   |   |   | 18,658,526 |   |   |   | 19,505,956 |   |   |   | 3,314,446 |   |

| United States GAAP                        |   |  Years Ended December 31, |       |   |  Eleven Months EndedDecember 31, |   |       |   Years Ended January 31, |   |
|-------------------------------------------|--------|--------------------------------|------------|--------|---------------------------------------|--------|------------|--------------------------------|--------|
|                                      |   | 2009                           |       |   | 2008                                  |   |       | 2007                           |   |   | 2007 |   |   | 2006 |   |
|     Summary of Operations: |   |                           |       |   |                                  |   |       |                           |   |   |   |   |   |   |   |
| Net loss per Canadian GAAP                |   | $                              | (987,759   | )      |                                  | $      | (1,538,876 | )                              |   | $ | (885,863 | ) |   | $ | (3,684,539 | ) |   | $ | (2,369,724 | ) |
| Adjustments                               |   |                           | (95,108    | )      |                                  |   | (1,851,231 | )                              |   |   | (2,833,433 | ) |   |   | (10,277,556 | ) |   |   | (74,147 | ) |
| Net loss per US GAAP                      |   |                           | (1,082,867 | )      |                                  |   | (3,390,107 | )                              |   |   | (3,719,296 | ) |   |   | (13,962,095 | ) |   |   | (2,443,871 | ) |
| Loss  per share per US GAAP     |   |                           | (0.05      | )      |                                  |   | (0.17      | )                              |   |   | (0.18 | ) |   |   | (0.76 | ) |   |   | (0.22 | ) |

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|                             |   | As at December 31, |        |   | As at January 31, |   |
|----------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                             |   | 2009               |        |   | 2008              |   |   | 2007 |   |   | 2007 |   |   | 2006 |   |
| Balance Sheet Data:              |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |
| Total assets under Canadian GAAP |   |               | 19,206,278  |   |              |   | 20,126,230 |   |   |   | 21,190,940 |   |   |   | 23,295,039 |   |   |   | 3,901,160 |   |
| Adjustments                      |   |               | (14,573,506 | )      |              |   | (14,861,524 | ) |   |   | (13,096,805 | ) |   |   | (10,747,339 | ) |   |   | (260,955 | ) |
| Total assets under US GAAP       |   |               | 4,632,772   |   |              |   | 5,264,706 |   |   |   | 8,094,135 |   |   |   | 12,547,700 |   |   |   | 3,640,205 |   |
|                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total equity under Canadian GAAP |   |               | 16,965,099  |   |              |   | 17,617,454 |   |   |   | 18,658,526 |   |   |   | 19,505,956 |   |   |   | 3,314,446 |   |
| Adjustments                      |   |               | (12,879,499 | )      |              |   | (12,927,955 | ) |   |   | (11,261,889 | ) |   |   | (10,747,339 | ) |   |   | (260,955 | ) |
| Total equity under US GAAP       |   |               | 4,085,600   |   |              |   | 4,689,499 |   |   |   | 7,396,637 |   |   |   | 8,758,617 |   |   |   | 3,053,491 |   |

| Year Ended |   | Average |   | Period End |   | High   |   | Low    |
|------------|--------|---------|--------|------------|--------|--------|--------|--------|
| 2006       |   | 1.2061  |   | 1.1436     |   | 1.2703 |   | 1.1436 |
| 2007       |   | 1.1357  |   | 1.1792     |   | 1.1824 |   | 1.0989 |
| 2007 II    |   | 1.0651  |   | 0.9913     |   | 1.1853 |   | 0.9170 |
| 2008       |   | 1.0660  |   | 1.2246     |   | 1.2969 |   | 0.9719 |
| 2009       |   | 1.1420  |   | 1.0466     |   | 1.3000 |   | 1.0292 |

| Month         |   | High   |   |   | Low    |   |
|---------------|--------|--------|--------|--------|--------|--------|
| January 2010  |   |   | 1.0657 |   |   |   | 1.0251 |   |
| February 2010 |   |   | 1.0734 |   |   |   | 1.0420 |   |
| March 2010    |   |   | 1.0421 |   |   |   | 1.0113 |   |
| April 2010    |   |   | 1.0201 |   |   |   | 0.9961 |   |
| May 2010      |   |   | 1.0778 |   |   |   | 1.0116 |   |
| June 2010     |   |   | 1.0606 |   |   |   | 1.0199 |   |

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| ● |     political instability and violence; |
|---------|-------------------------------------------------------------|

| ·   |     war and civil disturbances; |
|--------------------|-----------------------------------------------------|

| ·   |     expropriation or nationalization; |
|--------------------|-----------------------------------------------------------|

| ·   |     changing fiscal regimes; |
|--------------------|--------------------------------------------------|

| ·   |     fluctuations in currency exchange rates; |
|--------------------|------------------------------------------------------------------|

| ·   |     high rates of inflation; |
|--------------------|--------------------------------------------------|

| ·   |     underdeveloped industrial and economic infrastructure; |
|--------------------|--------------------------------------------------------------------------------|

| ·   |     changes in the regulatory environment governing mineral properties; and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   |     unenforceability of contractual rights, |
|--------------------|-----------------------------------------------------------------|

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| Vein or Structure                  | From (m) | To (m) | Down Hole Lengths (m) | Au (g/t) | Ag (g/t) | Pb(%)   | Zn(%)   |
|------------------------------------|----------|--------|-----------------------|----------|----------|---------|---------|
| Hole SG-07-01                      |     |   |                  |     |     |    |    |
| Santiago Vein                      | 147.0    | 149.7  | 2.70                  | 1.19     | 227      | > 1% | > 1% |
| San Gonzalo Vein Hanging Wall Zone | 357.3    | 362.15 | 4.85                  | 0.64     | 343.2    | 0.36%   | 0.63%   |
| San Gonzalo Vein Foot Wall Zone    | 372.65   | 375.05 | 2.4                   | 2.41     | 712.4    | 0.5%    | 0.13%   |
| Hole SG-07-02                      |     |   |                  |     |     |    |    |
| San Gonzalo Vein Hanging Wall Zone | 214.65   | 219.10 | 4.45                  | 6.11     | 583.8    | 1.4     | 2.54    |
| San Gonzalo Vein Foot Wall Zone    | 252.65   | 256.00 | 3.35                  | 6.91     | 21.1     | 1.55    | 2.33    |
| Hole SG-07-03                      |     |   |                  |     |     |    |    |
| San Gonzalo Vein                   | 187.45   | 188.70 | 1.25                  | 3.57     | 341      | 0.6     | 0.87    |
| Hole SG-07-04                      |     |   |                  |     |     |    |    |
| Santiago Vein                      | 18.55    | 25.00  | 6.45                  | 0.21     | 364      | NS      | NS      |
| (includes)                         | 20.85    | 21.9   | 1.05                  | 0.29     | 990      | 0.21    | NS      |
|                               | 21.90    | 22.8   | 0.90                  | 0.49     | 433      | 0.16    | NS      |
| Cross Vein                         | 31.00    | 34.05  | 3.05                  | 0.18     | 86       | 0.17    | NS      |
| San Gonzalo HW                     | 248.15   | 249.25 | 1.10                  | 0.43     | 58       | 0.25    | 0.26    |
| FW                                 | 258.75   | 259.00 | 0.25                  | 2.66     | 114      | 4.8     | 4.22    |
| Hole SG-07-05                      |     |   |                  |     |     |    |    |
| Santiago Vein                      | 28.70    | 31.80  | 3.10                  | 0.49     | 201      | NS      | NS      |
| Includes                           | 31.10    | 31.80  | 0.70                  | 1.54     | 272      | NS      | NS      |
| Hole SG-07-06                      |     |   |                  |     |     |    |    |
| Santiago Vein                      | 24.80    | 28.30  | 3.50                  | 0.40     | 226      | NS      | NS      |
| Cross Vein                         | 280.65   | 280.90 | 0.25                  | 0.50     | 2,120    | 7.82    | NS      |
| San Gonzalo Vein                   | 367.35   | 371.5  | 3.85                  | 0.10     | 11       | NS      | NS      |
| Hole SG-07-07                      |     |   |                  |     |     |    |    |
| San Gonzalo Vein                   | 247.75   | 250.35 | 2.60                  | 2.85     | 351      | 1.04    | 0.66    |

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| From   |   |   | To     |   |   | Metres |   |   | Au g/t |   |   | Ag g/t |   |   | Cu ppm |    |   | Pb ppm |   |   | Zn ppm |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| 165.65 |   |   |   | 166.40 |   |   |   | 0.75   |   |   |   | 22.902 |   |   |   | 1,609.6 |   |   |   | 840    |   |   |   | 2,106 |   |   |   | 3,692 |   |
| 166.40 |   |   |   | 167.05 |   |   |   | 0.65   |   |   |   | 8.366  |   |   |   | 898.0   |   |   |   | 262    |   |   |   | 974 |   |   |   | 2,266 |   |
| 167.05 |   |   |   | 167.75 |   |   |   | 0.70   |   |   |   | 13.508 |   |   |   | 427.6   |   |   |   | 261    |   |   |   | 1,188 |   |   |   | 1,282 |   |
| 167.75 |   |   |   | 168.55 |   |   |   | 0.80   |   |   |   | 1.890  |   |   |   | 283.6   |   |   |   | 1,169  |   |   |   | 9,356 |   |   |   | 4,652 |   |
| 168.55 |   |   |   | 169.45 |   |   |   | 0.90   |   |   |   | 2.792  |   |   |   | 194.4   |   |   |   | 293    |   |   |   | 427 |   |   |   | 723 |   |

| From   |   |   | To     |   |   | Metres |   |   | Au g/t |   |   | Ag g/t |   |   | Cu ppm |   |   | Pb ppm |   |   | Zn ppm |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| 147.45 |   |   |   | 148.45 |   |   |   | 1.00   |   |   |   | 0.550  |   |   |   | 91.5   |   |   |   | 3,199  |   |   |   | 2,205 |   |   |   | 2,436 |   |
| 148.45 |   |   |   | 149.05 |   |   |   | 0.60   |   |   |   | 0.155  |   |   |   | 77.9   |   |   |   | 326    |   |   |   | 724 |   |   |   | 7,039 |   |
| 149.05 |   |   |   | 149.70 |   |   |   | 0.65   |   |   |   | 1.209  |   |   |   | 150.8  |   |   |   | 192    |   |   |   | 1,284 |   |   |   | 1,670 |   |
| 149.70 |   |   |   | 150.70 |   |   |   | 1.00   |   |   |   | 0.778  |   |   |   | 500.6  |   |   |   | 264    |   |   |   | 1.779 |   |   |   | 3,037 |   |
| 150.70 |   |   |   | 151.50 |   |   |   | 0.80   |   |   |   | 3.153  |   |   |   | 238.9  |   |   |   | 1,910  |   |   |   | 11,000 |   |   |   | 10,700 |   |
| 151.50 |   |   |   | 152.20 |   |   |   | 0.70   |   |   |   | 0.822  |   |   |   | 121.3  |   |   |   | 241    |   |   |   | 922 |   |   |   | 4,552 |   |
| 152.20 |   |   |   | 153.00 |   |   |   | 0.80   |   |   |   | 1.057  |   |   |   | 44.5   |   |   |   | 91     |   |   |   | 783 |   |   |   | 1,730 |   |

----

| SG-07-32                       (Bearing 215                                - Dip 70 - Length 390.2m)  Intersection 392.50 – 397.75m (5.25m), 0.49 g/t gold 54 g/t silver (0.01oz/t gold, 1.57oz/t silver). Detailed intersections:  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | To | Metres | Description | Aug/t | Au oz/t | Ag g/t | Ag oz/t | Cu ppm | Pb ppm | Zn ppm |
| 392.50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 393.20 | 0.70 | Hanging wall vein | 2.1490 | 0.06 | 192.8 | 5.62 | 710 | 1484 | 1153 |
| 393.20                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 394.60 | 1.40 | Strong silicif and quartz veining. San Gonzalo System | 0.1230 | 0.004 | 24.1 | 0.70 | 176 | 393 | 1081 |
| 394.60                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 396.20 | 1.60 | “ | 0.1400 | 0.004 | 7.7 | 0.22 | 59 | 148 | 522 |
| 396.20                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 397.75 | 1.55 | San Gonzalo Vein System | 0.4190 | 0.01 | 65.9 | 0.92 | 116 | 528 | 919 |

----

| SG-07-33                      (Bearing 209 - Dip 45 - Length 130.60m)Intersection 116.15 – 123.60m (7.45m), 0.69 g/t gold, 127.6 g/t silver (0.02 oz/t gold, 3.722 oz/t silver). Detailed intersections:  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                                                                    | To | Metres | Description | Aug/t | Au oz/t | Agg/t | Agoz/t | Cuppm | Pbppm | Zn ppm |
| 116.15                                                                                                                                                                                                                                                                                                                                  | 117.15 | 1.00 | San Gonzalo vein | 0.283 | 0.01 | 264.3 | 7.71 | 361 | 8295 | 25100 |
| 117.15                                                                                                                                                                                                                                                                                                                                  | 118.40 | 1.25 | San Gonzalo vein | 0.337 | 0.01 | 205.5 | 5.99 | 659 | 7934 | 32900 |
| 118.40                                                                                                                                                                                                                                                                                                                                  | 119.55 | 1.15 | San Gonzalo vein | 0.934 | 0.03 | 90.4 | 2.64 | 475 | 10000 | 39300 |
| 119.55                                                                                                                                                                                                                                                                                                                                  | 120.50 | 0.95 | San Gonzalo vein | 0.168 | 0.005 | 76.1 | 2.22 | 193 | 2418 | 7965 |
| 120.50                                                                                                                                                                                                                                                                                                                                  | 121.85 | 1.35 | San Gonzalo vein | 1.996 | 0.06 | 126.8 | 3.70 | 878 | 31400 | 17400 |
| 121.85                                                                                                                                                                                                                                                                                                                                  | 122.70 | 0.85 | San Gonzalo vein | 0.378 | 0.01 | 60.8 | 1.77 | 954 | 17700 | 61800 |
| 122.70                                                                                                                                                                                                                                                                                                                                  | 123.60 | 0.90 | San Gonzalo vein | 0.115 | 0.003 | 33.8 | 0.99 | 192 | 1495 | 1573 |

| Holes SG-07-34, 35 and 36 were drilled on the south west side of the San Gonzalo ore zone. They define the edge of the ore zone. They intersected only narrow low grade gold silver mineralization as follows: SG-07-34                      (Bearing 215 - Dip 45 - Length 100m)  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                                                                                                                                       | To | Metres | Description | Au g/t | Au oz/t | Ag g/t | Ag oz/t | Cu ppm | Pb ppm | Zn ppm |
| 161.50                                                                                                                                                                                                                                                                                                                                                                                                     | 162.60 | 1.10 | San Gonzalo vein | 0.258 | 0.008 | 28.0 | 0.82 | 60 | 129 | 231 |
| 162.60                                                                                                                                                                                                                                                                                                                                                                                                     | 163.95 | 1.35 | Silicif tuff | 0.072 | 0.002 | 6.8 | 0.20 | 9 | 42 | 285 |
| 163.95                                                                                                                                                                                                                                                                                                                                                                                                     | 165.02 | 1.10 | Quartz veining | 0.050 | 0.001 | 7.0 | 0.20 | 26 | 43 | 220 |
| 165.05                                                                                                                                                                                                                                                                                                                                                                                                     | 166.20 | 1.15 | Quartz veining | 0.066 | 0.002 | 5.1 | 0.15 | 22 | 43 | 355 |
| 166.20                                                                                                                                                                                                                                                                                                                                                                                                     | 167.30 | 1.10 | San Gonzalo vein | 0.058 | 0.002 | 19.7 | 0.57 | 24 | 58 | 822 |

| SG-07-35                      (Bearing 209 - Dip 45 - Length 272.15m)  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                      | To | Metres | Description | Aug/t | Auoz/t | Agg/t | Agoz/t | Cu ppm | Pbppm | Znppm |
| 195.40                                                                                                                                                                                    | 196.05 | 0.65 | San Gonzalo vein | 2.254 |   | >200 |   | 194 | 947 | 1397 |

----

| SG-07-36                      (Bearing 215 - Dip 45 - Length 102.15m)  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                      | To | Metres | Description | Aug/t | Au oz/t | Agg/t | Agoz/t | Cuppm | Pb ppm | Zn ppm |
| 65.30                                                                                                                                                                                     | 65.65 | 0.35 | San Gonzalo vein | <0.005 | 0.000 | 6.0 | 0.17 | 13 | 60 | 520 |
| 78.05                                                                                                                                                                                     | 78.80 | 0.75 | Los Angeles vein | 0.030 | 0.001 | 12.1 | 0.35 | 13 | 29 | 428 |
| 78.80                                                                                                                                                                                     | 80.45 | 1.65 | Silicif tuff | 0.010 | 0.000 | 3.8 | 0.11 | 103 | 95 | 456 |
| 80.45                                                                                                                                                                                     | 81.95 | 1.50 | Los Angeles vein | 0.105 | 0.003 | 19.5 | 0.57 | 73 | 144 | 281 |

| SG-07-37                      (Bearing 219 - Dip 53 - Length 154.35m) Intersection 145.45 – 147.55 (2.10mts), 0.16 g/t gold, 146 g/t silver (0.005 oz/t gold, 4.26 oz/t silver). Detailed intersections:  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                                                                         | To | Metres | Description | Au g/t | Auoz/t | Agg/t | Agoz/t | Cu ppm | Pb ppm | Zn ppm |
| 145.45                                                                                                                                                                                                                                                                                                                                       | 146.55 | 1.10 | San Gonzalo vein | 0.210 | 0.006 | 220.7 | 6.44 | 104 | 698 | 2554 |
| 146.55                                                                                                                                                                                                                                                                                                                                       | 147.55 | 1.00 | San Gonzalo vein | 0.108 | 0.003 | 63.6 | 1.85 | 68 | 670 | 1257 |

| SG-07-38                      (Bearing 221 - Dip 66.5 - Length 214.15m)  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                        | To | Metres | Description | Au g/t | Auoz/t | Agg/t | Agoz/t | Cu ppm | Pb ppm | Zn ppm |
| 168.65                                                                                                                                                                                      | 170.00 | 1.35 | S Gonzalo Vein. Ox-milky wh qtz vein | 0.716 | 0.021 | 88.2 | 2.57 | 231 | 1278 | 2217 |

| SG-07-39                      (Bearing 220 - Dip 73 - Length 128.05m)  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                      | To | Metres | Description | Au g/t | Auoz/t | Agg/t | Agoz/t | Cu ppm | Pb ppm | Zn ppm |
| 76.50                                                                                                                                                                                     | 77.00 | 0.50 | San Gonzalo vein | 0.286 | 0.008 | 25.5 | 0.74 | 61 | 943 | 918 |
| 77.00                                                                                                                                                                                     | 77.80 | 0.80 | San Gonzalo vein | 0.192 | 0.006 | 66.5 | 1.94 | 118 | 324 | 357 |
| 77.80                                                                                                                                                                                     | 78.60 | 0.80 | San Gonzalo vein | 0.082 | 0.002 | 58.5 | 1.71 | 142 | 1001 | 1032 |

----

| SG-07-40                      (Bearing 230 – Dip 74 – Length 516.05m) Detailed intersections:  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                               | To | Metres | Description | Au g/t | Au oz/t | Agg/t | Ag oz/t | Cuppm | Pbppm | Znppm |
| 33.20                                                                                                                                                                                                                              | 33.70 | 0.50 | Santiago vein | 5.966 | 0.174 | 2851.9 | 83.18 | 576 | 748 | 1558 |
| 255.65                                                                                                                                                                                                                             | 256.75 | 1.10 | Qtz veining w/chalcopyrite | 0.030 | 0.001 | 212.6 | 6.20 | 6115 | 1386 | 2887 |
| 275.90                                                                                                                                                                                                                             | 276.45 | 0.55 | Quartz veinlet w/sulfides | 0.059 | 0.002 | 390.0 | 11.37 | 978 | 17000 | 364 |
| 382.90                                                                                                                                                                                                                             | 383.25 | 0.35 | Quartz veinlet w/sulfides. Along core axe | 1.926 | 0.056 | 208.7 | 6.09 | 331 | 270 | 307 |
| 500.25                                                                                                                                                                                                                             | 501.65 | 1.40 | San Gonzalo vein | 0.075 | 0.002 | 14.1 | 0.41 | 71 | 263 | 833 |
| 501.65                                                                                                                                                                                                                             | 502.45 | 0.80 | San Gonzalo vein | 0.015 | 0.000 | 3.1 | 0.09 | 25 | 49 | 81 |

| ET-07-01                       (Bearing 001                                - Dip 69 - Length 298.6m)Total Avino vein intersection: 216.35 – 293.65m (77.3m) Significant intersection: 284.90 – 290.0m (5.1m), 0.055 g/t gold, 114 g/t silver (0.002oz/t gold, 3.32oz/ton silver), 8385 ppm copper. Detailed intersections:  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | To | Metres | Description | Aug/t | Au oz/t | Agg/t | Ag oz/t | Cuppm |
| 284.90                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 285.85 | 0.95 | Avino vein. Silicified quartz with diss cpy-py-specularite | 0.068 | 0.002 | 201.7 | 5.88 | 3149 |
| 285.85                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 286.80 | 0.95 | Avino vein. Silicified quartz with diss cpy-py-specularite | 0.025 | 0.001 | 35.4 | 1.03 | 969 |
| 286.80                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 287.00 | 0.20 | Avino vein. Silicified quartz with diss cpy-py-specularite | 0.226 | 0.007 | 808.8 | 23.59 | 100200 |
| 287.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 288.50 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite | 0.045 | 0.001 | 27.3 | 0.80 | 2540 |
| 288.50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 290.00 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite | 0.052 | 0.002 | 101.6 | 2.96 | 10000 |

| ET-07-02                      (Bearing 358 - Dip 75 - Length 311.9m)Intersected Avino vein: 243.45 – 300.7m (57.25m)No significant assays. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ET-07-03                      (Bearing 336 – Dip 71 – Length 349.5m) Intersected Avino vein: 280.75 – 331.75m (51.0m) Significant intersections:  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                             | To | Metres | Description | Aug/t | Au oz/t | Agg/t | Agoz/t | Cu ppm |
| 280.75                                                                                                                                                                                                                                                                                           | 282.25 | 1.50 | Avino vein. Oxidized material | 7.680 | 0.224 | 121.9 | 3.56 | 6048 |
| 282.25                                                                                                                                                                                                                                                                                           | 283.75 | 1.50 | Avino vein. Oxidized material | 6.034 | 0.176 | 196.3 | 5.73 | 5034 |
| 283.75                                                                                                                                                                                                                                                                                           | 285.25 | 1.50 | Avino vein. Oxidized material | 1.692 | 0.049 | 69.9 | 2.04 | 10400 |
| 285.25                                                                                                                                                                                                                                                                                           | 286.75 | 1.50 | Avino vein. Oxidized material | 13.988 | 0.408 | 295.3 | 8.61 | 19600 |
| 286.75                                                                                                                                                                                                                                                                                           | 288.25 | 1.50 | Avino vein. Oxidized material | 4.731 | 0.138 | 104.7 | 3.05 | 16100 |
| 288.25                                                                                                                                                                                                                                                                                           | 289.75 | 1.50 | Avino vein. Oxidized material | 2.158 | 0.063 | 103.7 | 3.02 | 3948 |
| 289.75                                                                                                                                                                                                                                                                                           | 291.25 | 1.50 | Avino vein. Oxidized material | 0.158 | 0.005 | 31.5 | 0.92 | 3789 |
| 291.25                                                                                                                                                                                                                                                                                           | 292.75 | 1.50 | Avino vein. Oxidized material | 2.411 | 0.070 | 60.0 | 1.75 | 2683 |
| 292.75                                                                                                                                                                                                                                                                                           | 294.25 | 1.50 | Avino vein. Oxidized material | 2.733 | 0.080 | 27.5 | 0.80 | 2793 |
| 294.25                                                                                                                                                                                                                                                                                           | 295.75 | 1.50 | Avino vein. Oxidized material | 0.548 | 0.016 | 89.6 | 2.61 | 7268 |
| 295.75                                                                                                                                                                                                                                                                                           | 297.25 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite. | 3.086 | 0.090 | 161.8 | 4.72 | 5934 |
| 297.25                                                                                                                                                                                                                                                                                           | 298.75 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite. | 7.954 | 0.232 | 75.7 | 2.21 | 1476 |
| 298.75                                                                                                                                                                                                                                                                                           | 300.25 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite. | 2.265 | 0.066 | 97.0 | 2.83 | 10500 |
| 300.25                                                                                                                                                                                                                                                                                           | 301.75 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite. | 1.057 | 0.031 | 60.4 | 1.76 | 1486 |
| 301.75                                                                                                                                                                                                                                                                                           | 303.25 | 1.50 | Avino vein. Silicified quartz with diss cpy-py-specularite. | 1.911 | 0.056 | 42.0 | 1.22 | 3258 |

| ET-07-04                      (Bearing 331 – Dip 56 – Length 318.7m)Intersected Avino vein: 271.45 – 304.45m (33.0m) Significant intersections:  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| From                                                                                                                                                                                                                                                                                       | To | Metres | Description | Aug/t | Au oz/t | Agg/t | Agoz/t | Cu ppm |
| 271.45                                                                                                                                                                                                                                                                                     | 272.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.155 | 0.005 | 44.1 | 1.29 | 3618 |
| 272.95                                                                                                                                                                                                                                                                                     | 274.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.397 | 0.012 | 106.1 | 3.09 | 2842 |
| 274.45                                                                                                                                                                                                                                                                                     | 275.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 1.080 | 0.031 | 76.1 | 2.22 | 3862 |
| 275.95                                                                                                                                                                                                                                                                                     | 277.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 1.314 | 0.038 | 126.9 | 3.70 | 4010 |
| 277.45                                                                                                                                                                                                                                                                                     | 278.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.874 | 0.025 | 53.0 | 1.55 | 381 |
| 278.95                                                                                                                                                                                                                                                                                     | 280.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.534 | 0.016 | 61.4 | 1.79 | 675 |
| 280.45                                                                                                                                                                                                                                                                                     | 281.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.436 | 0.013 | 97.3 | 2.84 | 2649 |
| 287.95                                                                                                                                                                                                                                                                                     | 289.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.250 | 0.007 | 63.5 | 1.85 | 7555 |
| 289.45                                                                                                                                                                                                                                                                                     | 290.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.101 | 0.003 | 31.4 | 0.92 | 5156 |
| 290.95                                                                                                                                                                                                                                                                                     | 292.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 1.115 | 0.033 | 138.6 | 4.04 | 3558 |
| 292.45                                                                                                                                                                                                                                                                                     | 293.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.151 | 0.004 | 86.3 | 2.52 | 4162 |
| 293.95                                                                                                                                                                                                                                                                                     | 295.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.161 | 0.005 | 34.9 | 1.02 | 3521 |
| 295.45                                                                                                                                                                                                                                                                                     | 296.95 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.568 | 0.017 | 41.6 | 1.21 | 5047 |
| 296.95                                                                                                                                                                                                                                                                                     | 298.45 | 1.50 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.115 | 0.003 | 29.1 | 0.85 | 10000 |
| 298.45                                                                                                                                                                                                                                                                                     | 300.10 | 1.65 | Avino vein. Wh qtz veining w/ fine grain diss cpy-py | 0.080 | 0.002 | 29.8 | 0.87 | 8408 |

----

| From   | To     | Metres | Description                                              | Aug/t | Au oz/t | Agg/t | Agoz/t | Cu ppm |
|--------|--------|--------|----------------------------------------------------------|-------|---------|-------|--------|--------|
| 301.95 | 303.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 1.152 | 0.034   | 83.0  | 2.42   | 1971   |
| 303.45 | 304.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 1.483 | 0.043   | 26.7  | 0.78   | 683    |
| 304.95 | 306.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 2.119 | 0.062   | 36.9  | 1.08   | 2030   |
| 312.45 | 312.95 | 0.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 1.752 | 0.051   | 10.7  | 0.31   | 533    |
| 312.95 | 315.45 | 2.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 1.015 | 0.030   | 119.7 | 3.49   | 1268   |
| 315.45 | 316.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.195 | 0.006   | 204.2 | 5.96   | 8565   |
| 316.95 | 318.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.075 | 0.002   | 123.6 | 3.60   | 2212   |
| 319.95 | 321.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.155 | 0.005   | 86.2  | 2.51   | 20300  |
| 321.45 | 322.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.120 | 0.003   | 30.4  | 0.89   | 13000  |
| 322.95 | 324.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.115 | 0.003   | 45.2  | 1.32   | 15400  |
| 324.45 | 325.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.075 | 0.002   | 40.2  | 1.17   | 18400  |
| 325.95 | 327.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.070 | 0.002   | 27.5  | 0.80   | 10200  |
| 327.45 | 328.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.050 | 0.001   | 48.1  | 1.40   | 17500  |
| 328.95 | 330.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.053 | 0.002   | 38.2  | 1.11   | 16700  |
| 330.45 | 331.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.095 | 0.003   | 61.9  | 1.81   | 20200  |
| 331.95 | 333.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.144 | 0.004   | 75.2  | 2.19   | 18900  |
| 333.45 | 334.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.130 | 0.004   | 45.7  | 1.33   | 15800  |
| 337.95 | 339.45 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.328 | 0.010   | 69.0  | 2.01   | 12200  |
| 339.45 | 340.95 | 1.50   | Avino vein. Wh qtz stkwk-veining w/diss f.g. cpy+py+spec | 0.236 | 0.007   | 41.0  | 1.20   | 12200  |

| From   | To     | Metres | Description                                                       | Aug/t | Au oz/t | Agg/t | Agoz/t | Cu ppm |
|--------|--------|--------|-------------------------------------------------------------------|-------|---------|-------|--------|--------|
| 289.00 | 290.50 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.950 | 0.028   | 228.9 | 6.68   | 23200  |
| 298.00 | 299.50 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.165 | 0.005   | 72.3  | 2.11   | 14800  |
| 299.50 | 301.00 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.485 | 0.014   | 54.6  | 1.59   | 8401   |
| 301.00 | 302.50 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.090 | 0.003   | 40.8  | 1.19   | 11500  |
| 302.50 | 304.00 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.147 | 0.004   | 55.6  | 1.62   | 14400  |
| 304.00 | 305.50 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.093 | 0.003   | 55.8  | 1.63   | 8321   |
| 305.50 | 307.00 | 1.50   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 1.590 | 0.046   | 90.4  | 2.64   | 15100  |
| 307.00 | 308.60 | 1.60   | Avino vein. Wh qtz stockwork veining textures w’diss py-cpy | 0.150 | 0.004   | 73.8  | 2.15   | 8729   |
| 308.60 | 310.10 | 1.50   | Intrusive rock. Wh qtz veining w/cpy                              | 0.040 | 0.001   | 54.6  | 1.59   | 5962   |
| 310.10 | 311.60 | 1.50   | Intrusive rock. Wh qtz veining w/cpy                              | 0.075 | 0.002   | 98.0  | 2.86   | 6217   |
| 311.60 | 313.10 | 1.50   | Intrusive rock. Wh qtz veining w/cpy                              | 0.075 | 0.002   | 81.9  | 2.39   | 10800  |
| 313.10 | 314.60 | 1.50   | Intrusive rock. Wh qtz veining w/cpy                              | 0.040 | 0.001   | 97.9  | 2.86   | 7765   |

----

| From   | To     | Metres | Description                                                   | Aug/t | Au oz/t | Agg/t | Agoz/t | Cu ppm |
|--------|--------|--------|---------------------------------------------------------------|-------|---------|-------|--------|--------|
| 272.30 | 273.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.615 | 0.018   | 80.6  | 2.35   | 2199   |
| 273.80 | 275.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.148 | 0.004   | 160.9 | 4.69   | 20500  |
| 275.30 | 276.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.118 | 0.003   | 203.5 | 5.94   | 19700  |
| 276.80 | 278.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.280 | 0.008   | 172.8 | 5.04   | 17800  |
| 278.30 | 279.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.368 | 0.011   | 441.4 | 12.87  | 24600  |
| 279.80 | 281.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.220 | 0.006   | 327.0 | 9.54   | 12600  |
| 281.30 | 282.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.081 | 0.002   | 110.8 | 3.23   | 3002   |
| 282.80 | 284.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.065 | 0.002   | 184.6 | 5.38   | 3317   |
| 284.30 | 285.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.070 | 0.002   | 89.2  | 2.60   | 8786   |
| 285.80 | 287.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.070 | 0.002   | 209.3 | 6.10   | 54400  |
| 287.30 | 288.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.035 | 0.001   | 32.8  | 0.96   | 13200  |
| 288.80 | 290.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.047 | 0.001   | 76.1  | 2.22   | 29300  |
| 290.30 | 291.80 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.126 | 0.004   | 339.7 | 9.91   | 44300  |
| 291.80 | 293.30 | 1.50   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.060 | 0.002   | 20.8  | 0.61   | 6361   |
| 293.30 | 295.15 | 1.85   | Avino vein. Wh qtz veining w/moderate diss cpy and strong py. | 0.202 | 0.006   | 166.9 | 4.87   | 55500  |

| From   | To     | Metres | Description                      | Aug/t | Au oz/t | Agg/t | Ag oz/t | Cu ppm |
|--------|--------|--------|----------------------------------|-------|---------|-------|---------|--------|
| 355.85 | 357.35 | 1.50   | Avino vein. Moderate diss cpy-py | 0.111 | 0.003   | 257.5 | 7.51    | 6959   |
| 357.35 | 359.15 | 1.80   | Avino vein. Moderate diss cpy-py | 0.125 | 0.004   | 170.0 | 4.96    | 9341   |

| From   | To     | Metres | Description                          | Aug/t | Au oz/t | Agg/t | Ag oz/t | Cu ppm |
|--------|--------|--------|--------------------------------------|-------|---------|-------|---------|--------|
| 290.80 | 292.30 | 1.50   | Avino vein with massive chalcopyrite | 0.040 | 0.001   | 101.9 | 2.97    | 12100  |
| 292.30 | 293.80 | 1.50   | Avino vein with massive chalcopyrite | 0.160 | 0.005   | 23.7  | 0.69    | 11500  |
| 295.30 | 296.80 | 1.50   | Avino vein with massive chalcopyrite | 0.146 | 0.004   | 32.3  | 0.94    | 11200  |
| 299.80 | 301.30 | 1.50   | Avino vein with massive chalcopyrite | 0.070 | 0.002   | 51.2  | 1.49    | 6327   |
| 301.30 | 302.80 | 1.50   | Avino vein with massive chalcopyrite | 0.360 | 0.010   | 40.4  | 1.18    | 14600  |
| 302.80 | 304.30 | 1.50   | Avino vein with massive chalcopyrite | 0.015 | 0.000   | 18.1  | 0.53    | 8029   |
| 304.30 | 305.80 | 1.50   | Avino vein with massive chalcopyrite | 0.020 | 0.001   | 28.2  | 0.82    | 8475   |

----

| From   | To     | Metres | Description                      | Au g/t | Au oz/t | Ag g/t | Agoz/t | Cu ppm |
|--------|--------|--------|----------------------------------|--------|---------|--------|--------|--------|
| 257.30 | 258.80 | 1.50   | Avino quartz vein with sulphides | 0.160  | 0.005   | 85.3   | 2.49   | 15700  |
| 258.80 | 260.30 | 1.50   | Avino quartz vein with sulphides | 0.080  | 0.002   | 86.6   | 2.53   | 23400  |
| 260.30 | 261.80 | 1.50   | Avino quartz vein with sulphides | 0.125  | 0.004   | 27.7   | 0.81   | 14100  |
| 261.80 | 263.30 | 1.50   | Avino quartz vein with sulphides | 0.101  | 0.003   | 21.8   | 0.64   | 15400  |
| 263.30 | 264.80 | 1.50   | Avino quartz vein with sulphides | 0.098  | 0.003   | 20.3   | 0.59   | 13500  |
| 266.30 | 267.80 | 1.50   | Avino quartz vein with sulphides | 0.574  | 0.017   | 43.4   | 1.27   | 6613   |
| 267.80 | 269.30 | 1.50   | Avino quartz vein with sulphides | 0.457  | 0.013   | 39.8   | 1.16   | 4211   |
| 269.30 | 270.80 | 1.50   | Avino quartz vein with sulphides | 0.089  | 0.003   | 19.3   | 0.56   | 15200  |
| 282.80 | 284.30 | 1.50   | Avino quartz vein with sulphides | 0.020  | 0.001   | 9.3    | 0.27   | 16000  |
| 284.30 | 285.80 | 1.50   | Avino quartz vein with sulphides | 0.010  | 0.000   | 10.2   | 0.30   | 19300  |
| 285.80 | 287.30 | 1.50   | Avino quartz vein with sulphides | 0.035  | 0.001   | 27.0   | 0.79   | 31600  |
| 287.30 | 288.80 | 1.50   | Avino quartz vein with sulphides | 0.070  | 0.002   | 37.4   | 1.09   | 21500  |
| 288.80 | 290.30 | 1.50   | Avino quartz vein with sulphides | 0.049  | 0.001   | 27.1   | 0.79   | 34200  |
| 290.30 | 291.80 | 1.50   | Avino quartz vein with sulphides | 0.065  | 0.002   | 51.3   | 1.50   | 72600  |
| 291.80 | 293.30 | 1.50   | Avino quartz vein with sulphides | 0.020  | 0.001   | 14.8   | 0.43   | 33300  |
| 293.30 | 294.80 | 1.50   | Avino quartz vein with sulphides | 0.335  | 0.010   | 28.8   | 0.84   | 15000  |
| 294.80 | 295.80 | 1.00   | Avino quartz vein with sulphides | 0.035  | 0.001   | 23.2   | 0.68   | 17200  |
| 295.80 | 297.30 | 1.50   | Avino quartz vein with sulphides | 1.310  | 0.038   | 37.9   | 1.11   | 16100  |
| 297.30 | 299.10 | 1.80   | Avino quartz vein with sulphides | 0.510  | 0.015   | 51.5   | 1.50   | 7570   |

----

| From(m) | To(m)  | Length(m) | Au(g/t) | Ag(g/t) | Cu(ppm) | Pb(ppm) | Zn(ppm) |
|---------|--------|-----------|---------|---------|---------|---------|---------|
| 143.05  | 144.40 | 1.35      | 1.330   | 168.6   | 309     | 530     | 3598    |
| 144.40  | 145.80 | 1.40      | 0.930   | 142.1   | 131     | 560     | 1540    |

| From(m) | To(m)  | Length(m) | Au(g/t) | Ag(g/t) | Cu(ppm) | Pb(ppm) | Zn(ppm) |
|---------|--------|-----------|---------|---------|---------|---------|---------|
| 257.50  | 258.05 | .55       | .420    | 150.2   | 318     | 2832    | 5393    |
| 258.05  | 258.70 | .65       | 3.840   | 1564.4  | 264     | 13100   | 13900   |
| 258.70  | 259.10 | .40       | 0.075   | 68.1    | 79      | 266     | 502     |
|    |   |      |    |    |    |    |    |
| 263.05  | 263.75 | .70       | 10.765  | 1275.6  | 7394    | 106000  | 146000  |
| 263.75  | 263.95 | .20       | 0.115   | 62.3    | 364     | 4916    | 31000   |
| 263.95  | 264.70 | .75       | 2.606   | 587.4   | 4327    | 76200   | 200000  |
| 264.70  | 265.30 | .60       | 7.337   | 224.1   | 2363    | 146000  | 355000  |
| 264.30  | 266.05 | .75       | 22.560  | 204.2   | 917     | 80000   | 126000  |

| From(m) | To(m)  | Length(m) | Au(g/t) | Ag(g/t) | Cu(ppm) | Pb(ppm) | Zn(ppm) |
|---------|--------|-----------|---------|---------|---------|---------|---------|
| 195.05  | 195.90 | .85       | .221    | 189.4   | 155     | 238     | 438     |
| 195.90  | 196.80 | .90       | .100    | 19.1    | 139     | 155     | 384     |
| 196.80  | 197.90 | 1.10      | .245    | 82,6    | 738     | 14400   | 34000   |
| 197.90  | 199.10 | 1.20      | .905    | 42.1    | 467     | 13800   | 46500   |
| 199.10  | 200.10 | 1.00      | 1.046   | 77.1    | 1552    | 3977    |    |

----

| From(m) | To(m)  | Length(m) | Au(g/t) | Ag(g/t) | Cu(ppm) | Pb(ppm) | Zn(ppm) |
|---------|--------|-----------|---------|---------|---------|---------|---------|
| 205.10  | 206.15 | 1.05      | 0.309   | 85.4    | 1092    | 4672    | 4835    |
| 206.15  | 207.15 | 1.00      | 0.259   | 132.7   | 3278    | 6780    | 1116    |
| 207.15  | 207.80 | .65       | 0.600   | 277.4   | 1017    | 1979    | 1020    |
| 207.80  | 208.40 | .60       | 0.243   | 159.4   | 693     | 786     | 693     |

| From(m) | To(m)  | Length(m) | Description                         | g/t   | ppm  |
|---------|--------|-----------|-------------------------------------|-------|------|
| Au      | Ag     | Cu        | Pb                                  | Zn    |
| 321.40  | 322.00 | 0.60      | Andesite volcanic with quartz veins | 0.016 | 1.6  | 33 | 126 | 423 |
| 322.00  | 322.85 | 0.65      | 0.215                               | 74.1  | 409  | 11500 | 2725 |
| 322.85  | 323.70 | 0.85      | 0.195                               | 75.2  | 389  | 2665 | 3405 |
| 323.70  | 324.10 | 0.40      | 0.109                               | 221.0 | 3668 | 65000 | 3569 |
| 324.10  | 324.90 | 0.80      | San Gonzalo vein with quartz brecci | 0.925 | 55.0 | 264 | 6449 | 3610 |
| 324.90  | 325.70 | 0.80      | 0.457                               | 223.5 | 729  | 15500 | 4012 |
| 325.70  | 327.00 | 1.30      | 0.288                               | 31.8  | 483  | 2241 | 2408 |

----

| From(m) | To(m)  | Length(m) | Description      | g/t   | ppm  |
|---------|--------|-----------|------------------|-------|------|
| Au      | Ag     | Cu        | Pb               | Zn    |
| 261.25  | 261.75 | 0.50      | San Gonzalo Vein | 0.802 | 81.0 | 145 | 754 | 1251 |
| 261.75  | 262.75 | 1.00      | 0.331            | 61.4  | 234  | 1014 | 2002 |
| 262.75  | 263.15 | 0.40      | 0.040            | 11.2  | 39   | 109 | 353 |
| 263.15  | 263.70 | 0.55      | 0.990            | 85.0  | 119  | 396 | 794 |
| 263.70  | 264.60 | 0.90      | 0.424            | 49.7  | 208  | 440 | 702 |

| From(m) | To(m)  | Length(m) | Description  | g/t     | ppm |
|---------|--------|-----------|--------------|---------|-----|
| Au      | Ag     | Cu        | Pb           | Zn      |
| 437.75  | 438.50 | 0.75      | Breccia Zone | 0.030   | 0.1 | 5 | 33 | 32 |
| 438.50  | 438.90 | 0.40      | <0.005    | <0.1 | 6   | 22 | 76 |
| 438.90  | 439.55 | 0.65      | 0.015        | <0.1 | 7   | 18 | 65 |
| 439.55  | 440.35 | 0.80      | 0.010        | <0.1 | 8   | 14 | 30 |

| From(m) | To(m)  | Length(m) | Description                                   | g/t   | ppm   |
|---------|--------|-----------|-----------------------------------------------|-------|-------|
| Au      | Ag     | Cu        | Pb                                            | Zn    |
| 214.05  | 214.85 | 0.80      |  San Gonzalo vein with Sulphide Minerals | 0.729 | 204.0 | 2944 | 21400 | 17600 |
| 214.85  | 215.95 | 1.10      | 0.523                                         | 95.0  | 1189  | 5264 | 6417 |
| 215.95  | 216.80 | 0.65      | 0.335                                         | 47.5  | 398   | 1486 | 2918 |
| 216.80  | 218.00 | 1.20      | 0.360                                         | 87.3  | 1960  | 5342 | 7772 |
| 218.00  | 218.85 | 0.85      | 3.228                                         | 758.9 | 3731  | 18500 | 19000 |
| 218.85  | 219.70 | 0.85      | 0.402                                         | 316.1 | 7094  | 17500 | 14800 |

----

| From(m) | To(m)  | Length(m) | Description | g/t   | ppm |
|---------|--------|-----------|-------------|-------|-----|
| Au      | Ag     | Cu        | Pb          | Zn    |
| 196.90  | 198.40 | 1.50      | Avino Vein  | 0.322 | 3.6 | 259 | 149 | 719 |
| 198.40  | 199.90 | 1.50      | 0.020       | 7.8   | 97  | 68 | 554 |
| 199.90  | 201.40 | 1.50      | 0.054       | 5.2   | 331 | 180 | 665 |
| 201.40  | 202.90 | 1.50      | <0.005   | 2.4   | 306 | 45 | 2079 |
| 202.90  | 204.40 | 1.50      | 0.090       | 1.6   | 271 | 54 | 5950 |
| 204.40  | 205.90 | 1.50      | 0.005       | 0.6   | 456 | 25 | 2784 |
| 205.90  | 207.40 | 1.50      | <0.005   | 0.8   | 168 | 16 | 4381 |
| 207.40  | 208.90 | 1.50      | <0.005   | 0.8   | 229 | 18 | 2361 |
| 208.90  | 210.40 | 1.50      | 0.040       | 1.3   | 178 | 34 | 3494 |
| 210.40  | 211.90 | 1.50      | 0.015       | 0.3   | 320 | 23 | 2502 |
| 211.90  | 213.40 | 1.50      | 0.005       | 3.0   | 621 | 29 | 3957 |

| From(m) | To(m)  | Length(m) | Description | g/t   | ppm  |
|---------|--------|-----------|-------------|-------|------|
| Au      | Ag     | Cu        | Pb          | Zn    |
| 189.75  | 191.25 | 1.50      | Avino Vein  | 2.635 | 19.4 | 692 | 724 | 817 |
| 191.25  | 192.75 | 1.50      | 3.225       | 12.0  | 113  | 95 | 612 |
| 192.75  | 194.25 | 1.50      | 2.080       | 27.7  | 224  | 125 | 595 |
| 194.25  | 195.75 | 1.50      | <0.005   | 40.5  | 1734 | 454 | 847 |
| 195.75  | 197.25 | 1.50      | <0.005   | 3.4   | 28   | 184 | 1074 |
| 197.25  | 198.75 | 1.50      | <0.005   | 4.0   | 42   | 168 | 690 |
| 198.75  | 200.25 | 1.50      | <0.005   | 4.9   | 201  | 352 | 1042 |
| 200.25  | 201.75 | 1.50      | <0.005   | 10.6  | 276  | 162 | 670 |
| 201.75  | 203.25 | 1.50      | 0.035       | 20.3  | 68   | 320 | 1091 |
| 203.25  | 204.75 | 1.50      | <0.005   | 12.7  | 228  | 413 | 871 |
| 204.75  | 206.25 | 1.50      | <0.005   | 32.2  | 751  | 317 | 530 |
| 206.25  | 207.75 | 1.50      | <0.005   | 8.5   | 1200 | 83 | 410 |
| 207.75  | 209.25 | 1.50      | <0.005   | 10.3  | 957  | 134 | 660 |
| 209.25  | 210.75 | 1.50      | <0.005   | 25.5  | 1180 | 185 | 522 |
| 210.75  | 212.25 | 1.50      | <0.005   | 22.9  | 2220 | 423 | 3806 |
| 212.25  | 213.50 | 1.25      | <0.005   | 36.9  | 400  | 473 | 2021 |

----

| From(m)       | To(m)       | Length(m)       | Description       | g/t       | ppm       |
|---------------|-------------|-----------------|-------------------|-----------|-----------|
| Au            | Ag          | Cu              | Pb                | Zn        |
| 79.75         | 80.40       | 0.65            | Breccia Zone      | 0.020     | 14.7      | 409 | 40 | 2080 |
| 80.40         | 81.90       | 1.50            | 1.396             | 48.0      | 2641      | 148 | 435 |
| 81.90         | 83.20       | 1.30            | 6.720             | 174.4     | 2456      | 327 | 21 |
| 83.20         | 84.50       | 1.30            | 3.703             | 96.4      | 1815      | 818 | 94 |
| 214.55        | 216.05      | 1.50            | Main Avino Vein   | 0.135     | 21.2      | 315 | 241 | 217 |
| 216.05        | 217.55      | 1.50            | 0.109             | 40.6      | 257       | 618 | 318 |
| 217.55        | 219.05      | 1.50            | 3.017             | 113.2     | 5264      | 177 | 123 |
| 219.05        | 220.55      | 1.50            | 0.096             | 7.9       | 1528      | 298 | 330 |
| 220.55        | 222.05      | 1.50            | 0.025             | 8.8       | 405       | 253 | 275 |
| 222.05        | 223.66      | 1.50            | 0.128             | 11.9      | 520       | 687 | 391 |
| 223.56        | 225.05      | 1.50            | 0.049             | 9.6       | 1592      | 5318 | 570 |
| 225.05        | 226.55      | 1.50            | 0.105             | 8.4       | 631       | 331 | 750 |
| 226.55        | 228.05      | 1.50            | 0.084             | 21.1      | 432       | 167 | 487 |
| 226.05        | 229.55      | 1.50            | 0.100             | 21.7      | 517       | 1910 | 584 |
| 229.55        | 231.05      | 1.50            | 0.723             | 82.3      | 484       | 4282 | 3006 |
| 231.05        | 232.55      | 1.50            | 1.310             | 94.9      | 3753      | 565 | 674 |
|  From(m) |  To(m) |  Length(m) |  Description |  g/t |  ppm |
| Au            | Ag          | Cu              | Pb                | Zn        |
| 232.55        | 234.05      | 1.50            | Main Avino Vein   | 1.890     | 58.4      | 574 | 474 | 619 |
| 234.05        | 235.55      | 1.50            | 1.658             | 69.1      | 1117      | 412 | 687 |
| 235.55        | 237.05      | 1.50            | 2.756             | 53.0      | 2590      | 396 | 711 |
| 237.05        | 238.55      | 1.50            | 1.065             | 28.7      | 1816      | 280 | 410 |
| 238.55        | 240.05      | 1.50            | 0.219             | 66.5      | 1263      | 916 | 416 |
| 240.05        | 241.55      | 1.50            | 0.185             | 45.3      | 369       | 191 | 424 |
| 241.55        | 243.05      | 1.50            | 0.167             | 42.0      | 1220      | 482 | 438 |
| 243.05        | 244.55      | 1.50            | 0.382             | 48.1      | 8097      | 525 | 2111 |
| 244.55        | 246.05      | 1.50            | 0.648             | 60.7      | 1638      | 766 | 716 |
| 246.05        | 247.55      | 1.50            | 0.506             | 49.7      | 1311      | 549 | 415 |
| 247.55        | 249.05      | 1.50            | 0.125             | 39.7      | 1343      | 911 | 475 |
| 249.05        | 250.55      | 1.50            | 0.160             | 78.1      | 3430      | 790 | 737 |
| 250.55        | 252.05      | 1.50            | 0.135             | 92.9      | 3617      | 551 | 506 |
| 252.05        | 253.55      | 1.50            | 0.130             | 44.4      | 5739      | 351 | 603 |
| 253.55        | 255.05      | 1.50            | 0.070             | 42.6      | 3395      | 796 | 357 |
| 255.05        | 256.55      | 1.50            | 0.045             | 30.0      | 2971      | 365 | 374 |
| 256.55        | 257.85      | 1.30            | 0.025             | 31.4      | 5772      | 1510 | 686 |

----

| From(m) | To(m)  | Length(m) | Description     | g/t   | ppm   |
|---------|--------|-----------|-----------------|-------|-------|
| Au      | Ag     | Cu        | Pb              | Zn    |
| 321.00  | 322.50 | 1.50      | Main Avino Vein | 0.501 | 34.2  | 2378 | 264 | 426 |
| 322.50  | 324.00 | 1.50      | 1.146           | 71.0  | 3147  | 421 | 496 |
| 324.00  | 325.50 | 1.50      | 0.904           | 55.2  | 4652  | 230 | 288 |
| 325.50  | 327.00 | 1.50      | 0.262           | 54.9  | 1395  | 230 | 236 |
| 327.00  | 328.50 | 1.50      | 2.174           | 165.0 | 8408  | 509 | 286 |
| 328.50  | 330.00 | 1.50      | 0.173           | 101.9 | 7194  | 8582 | 3727 |
| 330.00  | 331.50 | 1.50      | 0.053           | 56.0  | 4926  | 5923 | 18300 |
| 331.50  | 333.00 | 1.50      | 0.095           | 54.9  | 4081  | 2559 | 561 |
| 333.00  | 334.50 | 1.50      | 0.080           | 23.1  | 1089  | 1199 | 301 |
| 334.50  | 336.00 | 1.50      | 0.052           | 56.6  | 11000 | 536 | 597 |
| 336.00  | 337.50 | 1.50      | 0.030           | 49.7  | 10900 | 170 | 618 |
| 337.50  | 339.00 | 1.50      | 0.032           | 156.6 | 14700 | 395 | 853 |
| 339.00  | 340.00 | 1.00      | 0.025           | 48.4  | 6149  | 174 | 595 |
| 340.00  | 341.10 | 1.10      | 0.064           | 161.8 | 8252  | 2170 | 1765 |

| From(m) | To(m)  | Length(m) | Description     | g/t   | ppm   |
|---------|--------|-----------|-----------------|-------|-------|
| Au      | Ag     | Cu        | Pb              | Zn    |
| 290.95  | 292.30 | 1.35      | Main Avino Vein | 0.172 | 16.7  | 533 | 3964 | 643 |
| 292.30  | 293.35 | 1.05      | 0.096           | 0.5   | 581   | 5078 | 2842 |
| 293.35  | 294.85 | 1.50      | 0.379           | 30.8  | 2116  | 8000 | 559 |
| 294.85  | 296.35 | 1.50      | 0.050           | 12.3  | 2654  | 7063 | 582 |
| 296.35  | 297.60 | 1.25      | 0.568           | 67.3  | 3564  | 3688 | 164 |
| 297.60  | 299.10 | 1.50      | 0.062           | 42.4  | 5360  | 1771 | 688 |
| 299.10  | 300.60 | 1.50      | 0.020           | 31.8  | 14900 | 896 | 3473 |
| 300.60  | 301.70 | 1.10      | 0.060           | 34.4  | 11300 | 282 | 1743 |
| 301.70  | 302.70 | 1.00      | 0.130           | 44.2  | 10000 | 469 | 1265 |

----

| From(m) | To(m)  | Length(m) | Description     | g/t   | ppm  |
|---------|--------|-----------|-----------------|-------|------|
| Au      | Ag     | Cu        | Pb              | Zn    |
| 237.60  | 238.25 | 0.65      | Main Avino Vein | 0.140 | 74.2 | 3526 | 7260 | 909 |
| 238.25  | 239.75 | 1.50      | 0.065           | 22.4  | 2260 | 344 | 383 |
| 239.75  | 241.25 | 1.50      | 0.020           | 8.7   | 883  | 43 | 528 |
| 241.25  | 242.75 | 1.50      | 0.115           | 10.1  | 2249 | 374 | 1981 |
| 242.75  | 244.25 | 1.50      | 0.045           | 8.7   | 2641 | 40 | 631 |
| 244.25  | 245.75 | 1.50      | 0.105           | 14.4  | 3472 | 87 | 651 |
| 245.75  | 247.25 | 1.50      | 0.072           | 17.1  | 4780 | 41 | 876 |
| 247.25  | 248.75 | 1.50      | 0.053           | 20.5  | 6107 | 100 | 950 |
| 248.75  | 250.25 | 1.50      | 0.100           | 11.0  | 4619 | 191 | 1044 |
| 250.25  | 251.75 | 1.50      | 0.120           | 10.4  | 4869 | 282 | 784 |
| 251.75  | 253.25 | 1.50      | 0.035           | 4.0   | 1261 | 45 | 662 |
| 253.25  | 254.75 | 1.50      | 0.163           | 14.9  | 2553 | 78 | 835 |
| 254.75  | 256.25 | 1.50      | 0.045           | 25.4  | 6483 | 95 | 734 |
| 256.25  | 257.75 | 1.70      | 0.015           | 12.0  | 5544 | 40 | 871 |
| 257.75  | 259.25 | 1.50      | 0.025           | 39.8  | 5758 | 217 | 521 |
| 259.25  | 260.75 | 1.50      | 0.025           | 20.6  | 6136 | 89 | 465 |
| 260.75  | 262.25 | 1.50      | 0.015           | 10.5  | 3202 | 74 | 327 |
| 262.25  | 263.75 | 1.50      | 0.059           | 24.0  | 3670 | 105 | 533 |

----

| 263.75 | 265.25 | 1.50 |   Main Avino Vein  | 0.049 | 28.7 | 3252 | 183 | 718 |
|--------|--------|------|------------------------------|-------|------|------|-----|-----|
| 265.25 | 266.75 | 1.50 | 0.053                        | 14.2  | 6129 | 112  | 584 |
| 266.75 | 268.25 | 1.50 | 0.156                        | 47.3  | 7192 | 217  | 399 |
| 268.25 | 269.75 | 1.50 | 0.102                        | 19.8  | 3342 | 125  | 326 |
| 269.75 | 271.25 | 1.50 | 0.030                        | 9.1   | 4101 | 38   | 414 |
| 271.25 | 272.75 | 1.50 | 0.010                        | 9.3   | 2611 | 94   | 455 |
| 272.75 | 274.25 | 1.50 | 0.020                        | 7.9   | 3355 | 41   | 391 |
| 274.25 | 275.75 | 1.50 | 0.020                        | 16.5  | 4405 | 58   | 496 |
| 275.75 | 277.25 | 1.50 | 0.076                        | 82.7  | 4570 | 422  | 979 |
| 277.25 | 278.75 | 1.50 | 0.084                        | 58.4  | 5545 | 956  | 593 |
| 278.75 | 280.25 | 1.50 | 0.010                        | 16.6  | 5749 | 74   | 659 |
| 280.25 | 281.75 | 1.50 | 0.020                        | 18.7  | 4592 | 68   | 575 |
| 281.75 | 283.25 | 1.50 | 0.015                        | 16.1  | 4219 | 74   | 651 |
| 283.25 | 284.75 | 1.50 | 0.038                        | 23.6  | 3526 | 7260 | 909 |

| 284.75 | 286.25 | 1.50 |    Main Avino Vein  | <0.005 | 6.7   | 2841 | 22   | 1225 |
|--------|--------|------|------------------------------------|-----------|-------|------|------|------|
| 286.25 | 287.75 | 1.50 | 0.092                              | 49.4      | 25700 | 44   | 2712 |
| 287.75 | 288.70 | 0.95 | 0.105                              | 62.5      | 27200 | 57   | 2669 |

----

| From(m) | To(m)  | Length(m) | Description     | g/t   | ppm  |
|---------|--------|-----------|-----------------|-------|------|
| Au      | Ag     | Cu        | Pb              | Zn    |
| 192.95  | 194.45 | 1.50      | Main Avino Vein | 1.456 | 4.6  | 318 | 57 | 508 |
| 194.45  | 195.95 | 1.50      | 0.431           | 4.4   | 329  | 256 | 502 |
| 195.95  | 197.10 | 1.15      | 0.325           | 13.5  | 1523 | 2446 | 3813 |
| 197.10  | 198.60 | 1.50      | 0.100           | 2.5   | 133  | 355 | 1688 |
| 198.60  | 199.70 | 1.10      | 0.048           | 4.4   | 101  | 36 | 1206 |
| 199.70  | 200.80 | 1.10      | 0.046           | 5.7   | 69   | 72 | 896 |
| 200.80  | 201.75 | 0.95      | 0.203           | 27.2  | 120  | 301 | 627 |
| 201.75  | 203.25 | 1.50      | 0.030           | 6.5   | 431  | 43 | 1048 |

----

----

| EAGLE VEIN – HISTORIC REPORTED DRILLING (YTG MinFile 105M 021)  |
|----------------------------------------------------------------------------|
| Year                                                                       | Operator | Reported Structure | Reported Intercept(m) | Silver g/t | Lead % | Zinc % |
| 1964                                                                       | Jersey Yukon Mines Ltd. | Branch Vein | 2.1 | 1,885.7 | 12.8 | 4.2 |
|                                                                       |   | Main Vein (parallel intercepts) | 0.15 | 7,624.9 | 1.2 |   |
|                                                                       |   |   | 0.4 | 682.3 | 11.6 |   |
| 1978/79                                                                    | Teck Corporation | Main Vein (DDH JB3) | 1.5 | 366.6 | 5.4 | 6.8 |

| EAGLE PROPERTY - DIAMOND DRILL RESULTS SUMMARY  |
|------------------------------------------------------|
| Hole Number                                          | Intercept | Analytical Results* |
| Target                                               | Drill Section | From(m) | To(m) | Width (m) | Au(ppb) | Ag(g/t) | Pb(ppm) | Zn(ppm) | In(g/t) |
| D09EE-01                                             | Eagle Vein | L40+00E |   | 328.6 | 332.7 | 4.1 | 16 | 15.1 | 554 | 1.16% | 11.3 |
|                                                 | 346.3 | 352.5 | 6.2 | 425 | 12.2 | 489 | 1.86% | 22.9 |
| Incl.                                                | 351.0 | 352.5 | 1.5 | 1263 | 15.7 | 138 | 797 | 0.1 |
| D09EE-02                                             | Eagle Vein | L40+00E |   | 272.9 | 296.6 | 23.7 | 60 | 47.1 | 3750 | 3.85% | 37.1 |
| Incl.                                                | 272.9 | 274.2 | 1.3 | 312 | 284.3 | 3.16% | 7.11% | 57.9 |
| Incl.                                                | 283.7 | 284.8 | 1.1 | 222 | 110.8 | 1.90% | 12.01% | 89.4 |
| Incl.                                                | 288.3 | 296.0 | 7.7 | 46 | 20.9 | 1008 | 4.89% | 65.8 |
| D09EE-03                                             | Eagle / McLeod | L33+50E |   | 267.7 | 268.4 | 0.7 | 8 | 29.4 | 3120 | 5262 | n/a |
| D09EE-04                                             | McLeod Fault | n/a |   | - | - | - | No significant results. |
| D09EE-10                                             | Eagle Vein | L39+00E |   | 305.1 | 305.9 | 0.8 | 160 | 28.1 | 0.35% | 3.23% | n/a |
| D09EE-11                                             | Eagle Vein | L42+00E |   | 232.7 | 241.1 | 8.4 | 181 | 10.3 | 668 | 1.09% | n/a |
| Incl.                                                | 232.7 | 234.1 | 1.4 | 934 | 18.6 | 482 | 2.53% | n/a |
|                                                 | 244.5 | 265.5 | 19.0 | 58 | 29.1 | 2805 | 2.79% | n/a |
| Incl.                                                | 252.5 | 254.5 | 2.0 | 112 | 145.0 | 1.03% | 3.17% | 20.3 |
| And                                                  | 262.8 | 264.6 | 1.8 | 230 | 31.9 | 626 | 18.52% | 285.4 |

----

----

----

----

----

----

----

----

----

----

|                          |   | Payment due by period |      |
|-------------------------------|--------|-----------------------|-----------|
|                          |   | Total                 |      |   | <1 year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More than 5 years |   |
| Drilling Contract             |   | $                     | 46,768    |   |   | $ | 46,768 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Future Income Tax Liabilities |   |                  | 1,694,007 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,694,007 |   |
| Total                         |   | $                     | 1,740,775 |   |   | $ | 46,768 |   |   |   | - |   |   |   | - |   |   | $ | 1,694,007 |   |

----

----

| Name and Present Position with the Company |   | Principal Occupation                                                                                                                                                                                                                                                                                        |   | Director/Officer Since |
|--------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                       |   |                                                                                                                                                                                                                                                                                                        |   |                   |
| Michael BaybakDirector                     |   | A business consultant.                                                                                                                                                                                                                                                                                      |   | June 1990              |
|                                       |   |                                                                                                                                                                                                                                                                                                        |   |                   |
| Gary RobertsonDirector                     |   | Certified Financial Planner, Director of Bralorne Gold Mines Ltd., Coral Gold Resources Ltd., Levon Resources Ltd., Mill Bay Ventures Inc. and Sage Gold Inc.                                                                                                                                               |   | August 2005            |
|                                       |   |                                                                                                                                                                                                                                                                                                        |   |                   |
| David Wolfin(1)Director/President/CEO      |   | Director and VP Finance of Berkley Resources Inc., Director and VP Finance of Bralorne Gold Mines Ltd., Director and VP Finance, of Levon Resources Ltd., President and Director of Coral Gold Resources Ltd. and Gray Rock Resources Ltd. and Director of Mill Bay Ventures Ltd. and Cresval Capital Corp. |   | October 1995           |
|                                       |   |                                                                                                                                                                                                                                                                                                        |   |                   |
| Dorothy ChinCorporate Secretary            |   | Corporate Secretary of Bralorne Gold Mines Ltd., Coral Gold Resources Ltd., Gray Rock Resources Ltd., and Levon Resources Ltd.; formerly Corporate Secretary of Mill Bay Ventures Inc. and Dentonia Resources Ltd.                                                                                          |   | September 2008         |
|                                       |   |                                                                                                                                                                                                                                                                                                        |   |                   |
| Lisa SharpChief Financial Officer          |   | Chief Financial Officer of Bralorne Gold Mines Ltd., Coral Gold Resources Ltd., Gray Rock Resources Ltd., Levon Resources Ltd., Mill Bay Ventures Inc. and Venerable Ventures Ltd.                                                                                                                          |   | June 2008              |

----

| 1)   | Compensation Discussion and Analysis |
|----------------|--------------------------------------|

| Compensation Element   |   | Description                                                                                                                                    |   | Compensation Objectives                                          |
|------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                   |   |                                                                                                                                           |   |                                                             |
| Annual Base Salary     |   | Salary is market-competitive, fixed level of compensation                                                                                      |   | Retain qualified leaders, motivate strong business performance.  |
|                   |   |                                                                                                                                           |   |                                                             |
| Incentive Bonuses      |   | Cash payment to add variable component to compensation                                                                                         |   | Based on corporate and individual performances of key personnel. |
|                   |   |                                                                                                                                           |   |                                                             |
| Incentive Stock Option |   | Equity grants are made in the form of stock options.  The amount of grant will be dependent on individual and corporate performance. |   | Retain qualified leaders, motivate strong business performance.  |

----

| 2)   | Summary Compensation Table |
|----------------|----------------------------|

|      Name and principal position |       Year |      Salary($) |    Share-based awards($) |    Option-based awards($) (*) |  Non-equity incentive plan compensation($) |     Pension value($) |     All other compensation($) |     Total compensation($) |
|-----------------------------------------------------------|------------------------------------------|-----------------------------------------|-----------------------------------------|----------------------------------------------|-------------------------------------------------|------------------------------------------|---------------------------------------------------|-----------------------------------------------|
| Annual incentive plans                                    | Long-term incentive plans                |
| David Wolfin(1) President, CEO and Director               | 2009                                     | $96,000                                 | NIL                                     | NIL                                          | NIL                                             | NIL                                      | NIL                                               | NIL                                           | $96,000 |
| Louis Wolfin(1)Former CEO and Director                    | 2009                                     | NIL                                     | NIL                                     | NIL                                          | NIL                                             | NIL                                      | NIL                                               | NIL                                           | NIL |
| Lisa SharpCFO                                             | 2009                                     | $19,800                                 | NIL                                     | NIL                                          | NIL                                             | NIL                                      | NIL                                               | NIL                                           | $19,800 |

----

| 3)   | Incentive Plan Awards |
|----------------|-----------------------|

|                                        | Option-based Awards                                    | Share-based Awards       |
|---------------------------------------------|--------------------------------------------------------|--------------------------|
| Name                                        | Number of securities underlying unexercised options(#) | Option exercise price($) | Option expiration date | Value of unexercised in-the-money options($)(1) | Number of shares or units of shares that have not vested(#) | Market or payout value of share-based awards that have not vested($)(1) |
| David Wolfin(2) President, CEO and Director | 100,000200,00065,000                                   | $0.75$0.75$0.75          | April 5, 2010April 26, 2011Feb. 27, 2013 | Nil | Nil | Nil |
| Louis Wolfin(2)Former CEO and Director      | 100,000180,00065,000                                   | $0.75$0.75$0.75          | April 5, 2010April 26, 2011Feb. 27, 2013 | Nil | Nil | Nil |
| Lisa SharpCFO                               | 50,000                                                 | $0.75                    | Sept. 22, 2014 | Nil | Nil | Nil |

----

| (1)   | No value was attributed to unexercised options that were out of the money on December 31, 2009. |
|-----------------|-------------------------------------------------------------------------------------------------|

| (2)   | On June 24, 2010 Louis Wolfin resigned as CEO and David Wolfin was appointed President and CEO. |
|-----------------|-------------------------------------------------------------------------------------------------|

| Name                                       | Option-based awards – Value vested during the year ($) (1) | Share-based awards – Value vested during the year($) | Non-equity incentive plan compensation – Value earned during the year ($) |
|--------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------|---------------------------------------------------------------------------------|
| David Wolfin(2)President, CEO and Director | Nil                                                              | Nil                                                        | Nil                                                                             |
| Louis Wolfin(2)Former CEO and Director     | Nil                                                              | Nil                                                        | Nil                                                                             |
| Lisa SharpCFO                              | Nil                                                              | Nil                                                        | Nil                                                                             |

| (1)   | No value was attributed to unexercised vested options that were out of the money on December 31, 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (2)   | On June 24, 2010 Louis Wolfin resigned as CEO and David Wolfin was appointed President and CEO. |
|-----------------|-------------------------------------------------------------------------------------------------|

| 4)   | Pension Plan Benefits |
|----------------|-----------------------|

| 5)   | Termination and Change of Control Benefits |
|----------------|--------------------------------------------|

----

|  6) | Director Compensation |
|----------|-----------------------|

|    Name |  Fees earned($) | Share-based awards($) | Option-based awards($)(1) | Non-equity incentive plan compensation($) |  Pension value($) |  All other compensation($) |   Total($) |
|------------------------|----------------------|-----------------------|---------------------------|-------------------------------------------|------------------------|---------------------------------|----------------------|
| Lloyd Andrews(2)*      | $6,000               | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | $6,000               |
| Michael Baybak*        | $3,000               | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | $3,000               |
| Gary Robertson*        | $6,000               | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | $6,000               |
| David Wolfin(3)        | NIL                  | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | NIL                  |
| Louis Wolfin(4)        | Nil                  | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | Nil                  |
| Victor Chevillon(5)    | Nil                  | NIL                   | NIL                       | NIL                                       | NIL                    | NIL                             | Nil                  |

----

----

| ·       | its relationship with and expectation of the external auditors, including the establishment of the independence of the external auditor and the approval of any non-audit mandates of the external auditor; |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | determination of which non-audit services the external auditor is prohibited from providing; |
|--------------------------------------------|----------------------------------------------------------------------------------------------|

| ·       | the engagement, evaluation, remuneration, and termination of the external auditors; |
|--------------------------------------------|-------------------------------------------------------------------------------------|

| ·       | appropriate funding for the payment of the auditor’s compensation and for any advisors retained by the audit committee; |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·       | its relationship with and expectation of the internal auditor; |
|--------------------------------------------|----------------------------------------------------------------|

| ·       | its oversight of internal control; |
|--------------------------------------------|------------------------------------|

| ·       | disclosure of financial and related information; and |
|--------------------------------------------|------------------------------------------------------|

| ·       | any other matter that the audit committee feels is important to its mandate or that which the board chooses to delegate to it. |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|

----

| Name of Beneficial Owner |   | Number of Shares |    |   | Percent |   |
|--------------------------|--------|------------------|---------|--------|---------|--------|
| Lloyd Andrews(1)         |   |             | 16,500  |   |    |   | * |   |
| Michael Baybak           |   |             | 2,400   |   |    |   | * |   |
| Gary Robertson           |   |             | 20,800  |   |    |   | * |   |
| David Wolfin             |   |             | 102,584 |   |    |   | * |   |
| Louis Wolfin(2)          |   |             | 4,345   |   |    |   | * |   |
| Lisa Sharp               |   | Nil              |    |   |    | N/A    |   |
| Victor Chevillon(3)      |   | Nil              |    |   |    | N/A    |   |

----

|                                         | No. of Shares            |   | Date of Grant                                             |   | Exercise Price       |   | Expiration Date                                           |
|----------------------------------------------|--------------------------|--------|-----------------------------------------------------------|--------|----------------------|--------|-----------------------------------------------------------|
|                                         |                     |   |                                                      |   |                 |   |                                                      |
| David WolfinPresident, CEO and Director      | 200,00065,00015,000      |   | April 26, 2006Feb. 27, 2008January 14, 2010               |   | $0.75$0.75$0.81      |   | April 26, 2011Feb. 27, 2013January 14, 2015               |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
|  Louis Wolfin Former CEO & Director | 180,00065,00015,000      |   | April 26, 2006Feb. 27, 2008January 14, 2010               |   | $0.75$0.75$0.81      |   | April 26, 2011Feb. 27, 2013January 14, 2015               |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
| Lisa SharpCFO                                | 50,000                   |   | Sept. 22, 2009                                            |   | $0.75                |   | Sept. 22, 2014                                            |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
|  Michael BaybakDirector                 | 100,00025,00015,000      |   | April 26, 2006Feb. 27, 2008January 14, 2010               |   | $0.75$0.75$0.81      |   | April 26, 2011Feb. 27, 2013January 14, 2015               |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
|  Gary RobertsonDirector                 | 30,00050,00025,00015,000 |   | Sept. 26, 2005April 26, 2006Feb. 27, 2008January 14, 2010 |   | $0.75$0.75$0.75$0.81 |   | Sept. 26, 2010April 26, 2011Feb. 27, 2013January 14, 2015 |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
| Victor ChevillonFormer Director              |  Nil                |   |  N/A                                                 |   |  N/A            |   |  N/A                                                 |
|                                         |                     |   |                                                      |   |                 |   |                                                      |
| Lloyd AndrewsFormer Director                 | 30,00050,00025,00015,000 |   | Sept. 26, 2005April 26, 2006Feb. 27, 2008January 14, 2010 |   | $0.75$0.75$0.75$0.81 |   | Sept. 26, 2010April 26, 2011Feb. 27, 2013January 14, 2015 |

----

|   | i) | $148,754 (2008 - $188,158; 2007-II - $153,733) for administrative expenses (rent, salaries, office supplies and other miscellaneous disbursements) to Oniva International Services Corp (“Oniva”), a private company beneficially owned by the Company and a number of other public companies related through common directors; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | $96,000 (2008 - $96,000; 2007-II - $88,000) to a private company controlled by a director for management fees; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | iii) | $30,000 (2008 - $30,000; 2007-II - $27,500) to a private company controlled by a director of a related company for consulting fees; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | $10,344 (2008 - $34,698; 2007-II - $36,100) to a private company controlled by a director for geological consulting services; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | v) | $4,331 (2008 - $16,789; 2007-II - $Nil) to a private company controlled by a director of a related company for geological consulting services; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vi) | $Nil (2008 - $Nil; 2007-II - $40,513) for investor relations services to National Media Associates, a business significantly influenced by a director of the Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vii) viii) | $Nil (2008 - $Nil; 2007-II - $65,577) in drilling expenses to ABC Drilling Services Inc., a private drilling company owned by Oniva; $15,000 (2008 - $15,000; 2007-II - $13,750) to directors for fees. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| The amounts due to related parties consist of $145,120 (2008 - $145,011) due to Oniva; $18,000 (2008 - $9,000) due to Directors for Directors fees; $Nil (2008 - $16,789) due to a Director of a related company for geological services; $1,054 (2008 - $Nil) due to a Director for geological services; and $516 (2008 - $Nil) due to a private company controlled by a Director for an expense reimbursement. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| All related party transactions are recorded at the value agreed upon by the Company and the related party. The amounts due from and due to related parties are non-interest bearing, non-secured and with no stated terms of repayment. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | Audit Report of Independent Registered Public Accounting Firm; |
|--------------------------------------------|----------------------------------------------------------------|

| ·       | Consolidated Balance Sheets as at December 31, 2009 and December 31, 2008; |
|--------------------------------------------|----------------------------------------------------------------------------|

| ·       | Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2009, December 31, 2008 and  the eleven months ended December 31, 2007; |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2009, December 31, 2008 and the eleven months ended December 31, 2007; |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | Consolidated Statements of Cash Flows for the years ended December 31, 2009, December  31,2008 and the eleven months ended December 31, 2007; and |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·       | Notes to the Consolidated Financial Statements for the years ended December 31, 2009, December 31, 2008 and the eleven months ended December 31, 2007. |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   | TSX-V(Canadian Dollars) |       |   | OTCBB(United States Dollars) |   |
|----------------------------------------|--------|-------------------------|------------|--------|------------------------------|--------|
| Last Six Months                        |   | High                    |       |   | Low                          |   |   | High |   |   | Low |   |
| June 2010                              |   |                    | 0.86       |   |                         |   | 0.70 |   |   |   | 0.85 |   |   |   | 0.67 |   |
| May 2010                               |   |                    | 0.86       |   |                         |   | 0.66 |   |   |   | 0.81 |   |   |   | 0.63 |   |
| April 2010                             |   |                    | 0.83       |   |                         |   | 0.66 |   |   |   | 0.88 |   |   |   | 0.66 |   |
| March 2010                             |   |                    | 0.81       |   |                         |   | 0.65 |   |   |   | 0.78 |   |   |   | 0.65 |   |
| February 2010                          |   |                    | 0.80       |   |                         |   | 0.66 |   |   |   | 0.76 |   |   |   | 0.64 |   |
| January 2010                           |   |                    | 0.88       |   |                         |   | 0.68 |   |   |   | 0.85 |   |   |   | 0.64 |   |
| 2009                                   |   | High                    |       |   | Low                          |   |   | High |   |   | Low |   |
| Fourth Quarter ended December 31, 2009 |   |                    | 0.99       |   |                         |   | 0.57 |   |   |   | 0.95 |   |   |   | 0.52 |   |
| Third Quarter ended September 30, 2009 |   |                    | 0.71       |   |                         |   | 0.49 |   |   |   | 0.69 |   |   |   | 0.44 |   |
| Second Quarter ended June 30, 2009     |   |                    | 0.82       |   |                         |   | 0.38 |   |   |   | 0.75 |   |   |   | 0.30 |   |
| First Quarter ended March 31, 2009     |   |                    | 0.83       |   |                         |   | 0.50 |   |   |   | 0.70 |   |   |   | 0.50 |   |
|                                   |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| 2008                                   |   | High                    |       |   | Low                          |   |   | High |   |   | Low |   |
| Fourth Quarter ended December 31, 2008 |   |                    | 0.99       |   |                         |   | 0.18 |   |   |   | 0.95 |   |   |   | 0.20 |   |
| Third Quarter ended September 30, 2008 |   |                    | 1.38       |   |                         |   | 0.77 |   |   |   | 1.50 |   |   |   | 0.65 |   |
| Second Quarter ended June 30, 2008     |   |                    | 1.70       |   |                         |   | 1.34 |   |   |   | 1.69 |   |   |   | 1.30 |   |
| First Quarter ended March 31, 2008     |   |                    | 1.74       |   |                         |   | 1.55 |   |   |   | 1.79 |   |   |   | 1.40 |   |
|                                   |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Last Five Fiscal Years                 |   | High                    |       |   | Low                          |   |   | High |   |   | Low |   |
| 2009                                   |   |                    | 0.99       |   |                         |   | 0.38 |   |   |   | 0.95 |   |   |   | 0.30 |   |
|     2008                |   |                    | 1.78       |   |                         |   | 0.18 |   |   |   | 1.79 |   |   |   | 0.20 |   |
| 2007(1)                                |   |                    |  2.75 |   |                         |   | 1.46 |   |   |   | 2.42 |   |   |   | 1.44 |   |
| 2007(2)                                |   |                    | 4.48       |   |                         |   | 1.50 |   |   |   | 4.00 |   |   |   | 1.32 |   |
| 2006                                   |   |                    | 2.29       |   |                         |   | 1.11 |   |   |   | 2.01 |   |   |   | 0.87 |   |

----

----

----

----

|   | 1. | Distributions made by the Company during a taxable year to a United States Investor who owns shares in the Company that are an “excess distribution” (defined generally as the excess of the amount received with respect to the shares in any taxable year over 125% of the average received in the shorter of either the three previous years or such United States Investor’s holding period before the taxable year) must be allocated ratably to each day of such shareholder’s holding period.  The amount allocated to the current taxable year and to years when the corporation was not a PFIC must be included as ordinary income in the shareholder’s gross income for the year of distribution.  The remainder is not included in gross income but the shareholder must pay a deferred tax on that portion.  The deferred tax amount, in general, is the amount of tax that would have been owed if the allocated amount had been included in income in the earlier year, plus interest.  The interest charge is at the rate applicable to deficiencies in income taxes. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The entire amount of any gain realized upon the sale or other disposition of the shares will be treated as an excess distribution made in the year of sale or other disposition and as a consequence will be treated as ordinary income and, to the extent allocated to years prior to the year of sale or disposition, will be subject to the interest charge described above. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|  Exhibit Number |   | Name                                                                        |
|----------------------|--------|-----------------------------------------------------------------------------|
|  1.1       |   | Memorandum of Avino Silver & Gold Mines Ltd.*                           |
|  1.2       |   | Articles of Avino Silver & Gold Mines Ltd.*                             |
|  4.1       |   | Share Purchase Agreement dated March 22, 2004*                              |
|  8.1       |   | List of Subsidiaries                                                        |
|  12.1           |   | Certification of the Principal Executive Officer                            |
|  12.2      |   | Certification of the Principal Financial Officer                            |
|  13.1           |   | Certificate under the Sarbanes-Oxley Act of the Principal Executive Officer |
|  13.2      |   | Certificate under the Sarbanes-Oxley Act of the Principal Financial Officer |

----

----

----

----

----

----

----

|                                        |   | December 31, |        |   | December 31, |   |
|---------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                                        |   | 2009         |        |   | 2008         |   |
|                                        |   |         |        |   |         |   |
| ASSETS                                      |   |         |        |   |         |   |
| Current                                     |   |         |        |   |         |   |
| Cash and cash equivalents                   |   | $            | 2,829,605   |   |         | $      | 3,575,241 |   |
| Interest receivable                         |   |         | 146         |   |         |   | 2,939 |   |
| Sales tax recoverable (Note 9)              |   |         | 88,725      |   |         |   | 387,007 |   |
| Prepaid expenses and other assets           |   |         | 49,614      |   |         |   | 11,487 |   |
|                                        |   |         | 2,968,090   |   |         |   | 3,976,674 |   |
|                                        |   |         |        |   |         |   |   |   |
| Property, Plant & Equipment (Note 6)    |   |         | 1,455,146   |   |         |   | 1,176,013 |   |
| Reclamation Bonds                           |   |         | 5,500       |   |         |   | 5,500 |   |
| Mineral Properties (Note 7)                 |   |         | 14,573,506  |   |         |   | 14,861,524 |   |
| Investments in Related Companies (Note 8)   |   |         | 204,036     |   |         |   | 106,519 |   |
|                                        |   | $            | 19,206,278  |   |         | $      | 20,126,230 |   |
|                                        |   |         |        |   |         |   |   |   |
| LIABILITIES                                 |   |         |        |   |         |   |   |   |
| Current                                     |   |         |        |   |         |   |   |   |
| Accounts payable and accrued liabilities    |   | $            | 382,482     |   |         | $      | 404,407 |   |
| Amounts due to related parties (Note 12(a)) |   |         | 164,690     |   |         |   | 170,800 |   |
|                                        |   |         | 547,172     |   |         |   | 575,207 |   |
|                                        |   |         |        |   |         |   |   |   |
| Future income tax liability                 |   |         | 1,694,007   |   |         |   | 1,933,569 |   |
|                                        |   |         | 2,241,179   |   |         |   | 2,508,776 |   |
| SHAREHOLDERS' EQUITY                        |   |         |        |   |         |   |   |   |
| Share Capital (Note 10)                     |   |         | 33,112,072  |   |         |   | 33,112,072 |   |
| Contributed Surplus                         |   |         | 8,131,629   |   |         |   | 7,893,742 |   |
| Treasury Shares (14,180 Shares, at cost)    |   |         | (101,869    | )      |         |   | (101,869 | ) |
|                                        |   |         | 41,141,832  |   |         |   | 40,903,945 |   |
|                                        |   |         |        |   |         |   |   |   |
| Accumulated other comprehensive loss        |   |         | (6,049      | )      |         |   | (103,566 | ) |
| Deficit                                     |   |         | (24,170,684 | )      |         |   | (23,182,925 | ) |
|                                        |   |         | (24,176,733 | )      |         |   | (23,286,491 | ) |
|                                        |   |         | 16,965,099  |   |         |   | 17,617,454 |   |
|                                        |   | $            | 19,206,278  |   |         | $      | 20,126,230 |   |

| “Louis Wolfin”                      Director  | “David Wolfin”                  Director          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                |   | Year ended2009 |       |   | Year ended2008 |   |       | (Note 2)Eleven-months ended2007 |   |
|---------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|------------|---------------------------------|--------|
|                                                                |   |           |       |   |           |   |       |                            |   |
| Operating and Administrative Expenses                               |   |           |       |   |           |   |       |                            |   |
| Amortization                                                        |   | $              | 2,328      |   |           | $      | 2,869      |                            |   | $ | 2,046 |   |
| General exploration                                                 |   |           | 294        |   |           |   | 8,823      |                            |   |   | 18,636 |   |
| Investor relations                                                  |   |           | 90,031     |   |           |   | 193,192    |                            |   |   | 263,192 |   |
| Management fees                                                     |   |           | 96,000     |   |           |   | 96,000     |                            |   |   | 88,000 |   |
| Office and miscellaneous                                            |   |           | 104,548    |   |           |   | 121,353    |                            |   |   | 141,843 |   |
| Professional fees                                                   |   |           | 183,911    |   |           |   | 179,299    |                            |   |   | 196,555 |   |
| Regulatory and compliance fees                                      |   |           | 24,540     |   |           |   | 25,821     |                            |   |   | 21,175 |   |
| Salaries and benefits                                               |   |           | 82,160     |   |           |   | 109,354    |                            |   |   | 73,610 |   |
| Sales tax (recovery) write-down (Note 9)                            |   |           | (181,456   | )      |           |   | 213,652    |                            |   |   | - |   |
| Stock-based compensation (Note 11)                                  |   |           | 237,887    |   |           |   | 585,800    |                            |   |   | - |   |
| Travel and promotion                                                |   |           | 28,935     |   |           |   | 39,750     |                            |   |   | 63,470 |   |
|                                                                |   |           | 669,178    |   |           |   | 1,575,913  |                            |   |   | 868,527 |   |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| Other Income (Expenses)                                             |   |           |       |   |           |   |       |                            |   |   |   |   |
| Interest income                                                     |   |           | 68,224     |   |           |   | 146,386    |                            |   |   | 359,339 |   |
| Foreign exchange loss                                               |   |           | (18,249    | )      |           |   | (38,481    | )                               |   |   | (32,301 | ) |
| Impairment of mineral properties (Note 7)                           |   |           | (608,118   | )      |           |   | -          |                            |   |   | - |   |
| Litigation settlement (Note 19)                                     |   |           | -          |   |           |   | 2,785      |                            |   |   | (759,302 | ) |
| Mineral property option revenue (Note 7)                            |   |           | -          |   |           |   | 25,000     |                            |   |   | - |   |
| Misappropriation loss (Note 20)                                     |   |           | -          |   |           |   | -          |                            |   |   | (86,155 | ) |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| LOSS BEFORE INCOME TAX                                              |   |           | (1,227,321 | )      |           |   | (1,440,223 | )                               |   |   | (1,386,946 | ) |
| Future income tax recovery (expense) (Note 17)                      |   |           | 239,562    |   |           |   | (98,653    | )                               |   |   | 501,083 |   |
| NET LOSS                                                            |   |           | (987,759   | )      |           |   | (1,538,876 | )                               |   |   | (885,863 | ) |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| Other Comprehensive Income (Loss)                                   |   |           |       |   |           |   |       |                            |   |   |   |   |
| Unrealized gain (loss) on investments in related companies (Note 8) |   |           | 97,517     |   |           |   | (108,196   | )                               |   |   | (12,487 | ) |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| COMPREHENSIVE LOSS                                                  |   | $              | (890,242   | )      |           | $      | (1,647,072 | )                               |   | $ | (898,350 | ) |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| Loss per Share - Basic and Diluted                                  |   | $              | (0.05      | )      |           | $      | (0.07      | )                               |   | $ | (0.04 | ) |
|                                                                |   |           |       |   |           |   |       |                            |   |   |   |   |
| Weighted Average Number of Shares Outstanding                       |   |           | 20,584,727 |   |           |   | 20,584,727 |                            |   |   | 20,584,727 |   |

----

|                                                  |   | Number of Common Shares |       |   | Share Capital |   |       | Share Subscriptions Receivable |   |   | Treasury Shares |   |   | Contributed Surplus |     |   | Deficit |   |      | Accumulated Other Comprehensive Income (Loss) |   |   | Total Shareholders’ Equity |   |
|-------------------------------------------------------|--------|-------------------------|------------|--------|---------------|--------|------------|--------------------------------|--------|--------|-----------------|--------|--------|---------------------|----------|--------|---------|--------|-----------|-----------------------------------------------|--------|--------|----------------------------------|--------|
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |
| Balance, January 31, 2007                             |   |                    | 20,584,727 |   |          | $      | 33,112,072 |                           |   | $      | (5,940          | )      |   | $                   | (101,869 | )      |    | $      | 7,259,879 |                                          |   | $      | (20,758,186                      | )      |   | $ | - |   |   | $ | 19,505,956 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Transitional adjustment for fair value of investments |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                |     |   |    |   | -         |                                          |   |   | -                                |   |   |   | 17,117 |   |   |   | 17,117 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Shares issued for proceeds receivable                 |   |                    | -          |   |          |   | -          |                           |   |   | 5,940           |   |   |                | -        |   |    |   | -         |                                          |   |   | -                                |   |   |   | - |   |   |   | 5,940 |   |
| Net loss for the period                               |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | (885,863                         | )      |   |   | - |   |   |   | (885,863 | ) |
| Unrealized loss on investments                        |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | -                                |   |   |   | (12,487 | ) |   |   | (12,487 | ) |
| Stock-based compensation (Note 11)                    |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | 27,863    |                                          |   |   | -                                |   |   |   | - |   |   |   | 27,863 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                            |   |                    | 20,584,727 |   |          |   | 33,112,072 |                           |   |   | -               |   |   |                | (101,869 | )      |    |   | 7,287,742 |                                          |   |   | (21,644,049                      | )      |   |   | 4,630 |   |   |   | 18,658,526 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                 |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | (1,538,876                       | )      |   |   | - |   |   |   | (1,538,876 | ) |
| Unrealized loss on investments                        |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | -                                |   |   |   | (108,196 | ) |   |   | (108,196 | ) |
| Stock-based compensation (Note 11)                    |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | 606,000   |                                          |   |   | -                                |   |   |   | - |   |   |   | 606,000 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                            |   |                    | 20,584,727 |   |          |   | 33,112,072 |                           |   |   | -               |   |   |                | (101,869 | )      |    |   | 7,893,742 |                                          |   |   | (23,182,925                      | )      |   |   | (103,566 | ) |   |   | 17,617,454 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                 |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | (987,759                         | )      |   |   | - |   |   |   | (987,759 | ) |
| Unrealized loss on investments                        |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | -         |                                          |   |   | -                                |   |   |   | 97,517 |   |   |   | 97,517 |   |
| Stock-based compensation (Note 11)                    |   |                    | -          |   |          |   | -          |                           |   |   | -               |   |   |                | -        |   |    |   | 237,887   |                                          |   |   | -                                |   |   |   | - |   |   |   | 237,887 |   |
|                                                  |   |                    |       |   |          |   |       |                           |   |   |            |   |   |                |     |   |    |   |      |                                          |   |   |                             |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                            |   |                    | 20,584,727 |   |          | $      | 33,112,072 |                           |   | $      | -               |   |   | $                   | (101,869 | )      |    | $      | 8,131,629 |                                          |   | $      | (24,170,684                      | )      |   | $ | (6,049 | ) |   | $ | 16,965,099 |   |

----

|                                                    |   | Year endedDecember 31, 2009 |      |   | Year endedDecember 31, 2008 |   |       | (Note 2)Eleven-months ended December 31, 2007 |   |
|---------------------------------------------------------|--------|-----------------------------|-----------|--------|-----------------------------|--------|------------|-----------------------------------------------|--------|
|                                                    |   |                        |      |   |                        |   |       |                                          |   |
| CASH PROVIDED BY (USED IN):                             |   |                        |      |   |                        |   |       |                                          |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |
| OPERATING ACTIVITIES                                    |   |                        |      |   |                        |   |       |                                          |   |
| Net loss                                                |   | $                           | (987,759  | )      |                        | $      | (1,538,876 | )                                             |   | $ | (885,863 | ) |
| Adjustments for non-cash items:                         |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Amortization                                            |   |                        | 2,328     |   |                        |   | 2,869      |                                          |   |   | 2,046 |   |
| Sales tax write-down provision                          |   |                        | 8,873     |   |                        |   | 213,652    |                                          |   |   | - |   |
| Stock-based compensation                                |   |                        | 237,887   |   |                        |   | 585,800    |                                          |   |   | - |   |
| Stock-based compensation included in investor relations |   |                        | -         |   |                        |   | 20,200     |                                          |   |   | 27,863 |   |
| Impairment of mineral properties                        |   |                        | 608,118   |   |                        |   | -          |                                          |   |   | - |   |
| Future income tax expense (recovery)                    |   |                        | (239,562  | )      |                        |   | 98,653     |                                          |   |   | (501,083 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
|                                                    |   |                        | (370,115  | )      |                        |   | (617,702   | )                                             |   |   | (1,357,037 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Net change in non-cash working capital (Note 13)        |   |                        | 226,040   |   |                        |   | (291,327   | )                                             |   |   | (987,164 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
|                                                    |   |                        | (144,075  | )      |                        |   | (909,029   | )                                             |   |   | (2,344,201 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| FINANCING ACTIVITIES                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Collection of share subscriptions receivable            |   |                        | -         |   |                        |   | -          |                                          |   |   | 5,940 |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| INVESTING ACTIVITIES                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Mineral property exploration expenditures               |   |                        | (320,100  | )      |                        |   | (1,764,719 | )                                             |   |   | (2,292,156 | ) |
| Property, plant and equipment purchases                 |   |                        | (281,461  | )      |                        |   | (93,492    | )                                             |   |   | (72,208 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
|                                                    |   |                        | (601,561  | )      |                        |   | (1,858,211 | )                                             |   |   | (2,364,364 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Decrease in cash and cash equivalents                   |   |                        | (745,636  | )      |                        |   | (2,767,240 | )                                             |   |   | (4,702,625 | ) |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| CASH AND CASH EQUIVALENTS, Beginning                    |   |                        | 3,575,241 |   |                        |   | 6,342,481  |                                          |   |   | 11,045,106 |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| CASH AND CASH EQUIVALENTS, Ending                       |   | $                           | 2,829,605 |   |                        | $      | 3,575,241  |                                          |   | $ | 6,342,481 |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
|                                                    |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| SUPPLEMENTARY CASH FLOW DISCLOSURES                     |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Cash paid for:                                          |   |                        |      |   |                        |   |       |                                          |   |   |   |   |
| Interest expense                                        |   | $                           | -         |   |                        | $      | -          |                                          |   | $ | 87 |   |
| Income taxes                                            |   |                        | -         |   |                        |   | -          |                                          |   |   | - |   |

----

| i)   | Basis of presentation These consolidated financial statements have been prepared in Canadian Dollars in accordance with Canadian GAAP and include the accounts of the Company and its Mexican subsidiaries. A summary of the differences between accounting principles generally accepted in Canada and those generally accepted in the United States is contained in Note 23. All significant inter-company balances and transactions have been eliminated on consolidation. The Company’s Mexican subsidiaries are Oniva Silver and Gold Mines S.A., (“Oniva Silver”) which is wholly-owned, Promotora Avino, S.A. De C.V. (“Promotora”) in which the Company has a direct 79.09% ownership, and Compania Minera Mexicana de Avino, S.A. de C.V. (“Cia Minera”) in which the Company has a 96.60% direct ownership and an additional 2.68% indirect effective ownership held through Promotora. The ownership interests in Cia Minera combine for an effective 99.28% held by the Company as at December 31, 2009 (2008 - 89.35%) (see Note 4). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| i)  | Basis of presentation (continued) These consolidated financial statements include the net assets and operations of the Promotora and Cia Minera subsidiaries on a consolidated basis beginning from July 17, 2006 onward. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)   | Cash and cash equivalents The Company considers all highly liquid instruments with original maturities of three months or less on the date of purchase to be cash equivalents. Cash equivalents are carried at cost, plus accrued interest, which approximates fair market value. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii)   | Property, plant and equipment Property, plant and equipment is stated at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the assets on the declining balance basis at the following annual rates: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Office equipment, furniture and fixtures |   |   | 20 | % |
|------------------------------------------|--------|--------|----|---|
| Computer equipment                       |   |   | 30 | % |

| iv)   | Mineral properties, deferred exploration and development expenditures The Company follows CICA Accounting Guideline 11, Enterprises in the Development Stage. Mineral property acquisition, exploration and development costs are deferred until the property to which they relate is placed into production, sold, allowed to lapse or abandoned. Mineral property acquisition costs include the cash consideration and the fair value of common shares issued for mineral property interests based on the observed trading price of the shares. Mineral exploration costs such as field labour and consultants, geology and assaying, and mining claims are capitalized and carried at cost until the properties to which they relate are placed into production, sold or management determines a permanent impairment in value. Development costs incurred to access ore bodies identified in the current mining plan will be expensed as incurred after production has commenced. Development costs necessary to extend a mine beyond those areas identified in the current mining plan and which are incurred to access additional reserves are deferred until the incremental reserves are mined. Mineral properties and development costs, including the mineral acquisition and direct mineral exploration costs relating to the current mining plan, will be depleted and amortized using the units-of-production method over the estimated life of the ore body based on proven and probable reserves once commercial production commences. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| v)   | Investments Investments in shares of public companies traded on an active market over which Avino does not have control or exercises significant influence are classified as available-for-sale and accounted for at fair market value, based upon quoted market share prices at the consolidated balance sheet date. Unrealized gains or losses on these investments are recorded as other comprehensive income or loss, unless a decline in value is considered to be other than temporary. Purchases and sales of investments are measured on a settlement date basis. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi)   | Translation of foreign currencies and foreign subsidiaries The Company’s integrated Mexican foreign subsidiaries are financially and operationally dependent on the Company. The Company uses the temporal method to translate the accounts of its integrated foreign operations into Canadian dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at rates in effect during the period, except for amortization, which is translated on the same basis as the related assets. The resulting exchange gains or losses are recognized in income. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii)   | Comprehensive loss Effective February 1, 2007 comprehensive loss is comprised of the sum of the net loss and other comprehensive income or loss which includes unrealized gains or losses from changes in the fair market value of available-for-sale investments, changes in the fair market value of derivative instruments designated as cash flow hedges and currency translation adjustments on self-sustaining foreign operations. The Company does not have any derivative instruments or self-sustaining foreign operations and currently the Company’s other comprehensive income (loss) is comprised only of changes in the fair value of the Company’s available-for-sale investments. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii)   | Financial |
|-------------------|-----------|

----

| viii)   | Financial instruments (continued) |
|-------------------|-----------------------------------|

| ix)   | Use of estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Significant areas requiring the use of estimates relate to the recoverability or valuation of sales taxes recoverable, property, plant, equipment, and mineral properties, the valuation of asset retirement obligations, useful lives for amortization, recognition and disclosure of future income tax assets and liabilities, and stock-based compensation. Actual results could differ from those estimates. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| x)   | Income taxes The Company follows the asset and liability method of accounting for income taxes. Future income tax assets and liabilities are determined based on temporary differences between the accounting and taxes bases for existing assets and liabilities, and are measured using the tax rates expected to apply when these differences reverse. A valuation allowance is recorded against any future income tax asset if it is more likely than not that the asset will not be realized. The Company follows CICA Emerging Issues Committee Abstract 146 Flow-Through Shares. Canadian tax legislation permits a company to issue securities referred to as flow-through shares whereby the Company assigns the tax deductions arising from the related resource expenditures, to the shareholders. When resource expenditures are renounced to the investors and the Company has reasonable assurance that the expenditures will be completed, a future income tax liability is recognized for the net tax effect of the deductions renounced, and share capital is reduced. If the Company has sufficient unrecognized tax losses carried forward or other unrecognized future income tax assets to offset all or part of this future income tax liability, a portion of such unrecognized future income tax assets is recorded as a future income tax recovery up to the amount of the future income tax liability that would otherwise be recognized. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xi)   | Stock-based compensation The Company recognizes stock-based compensation expense for the estimated fair value of stock-based payments. Compensation costs attributable to stock options or similar equity instruments granted to employees are measured at the fair value at the grant date using the Black-Scholes option pricing model, and are expensed over the expected vesting period. Transactions in which goods or services are received from non-employees in exchange for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Consideration received on the exercise of stock options is recorded as share capital with a corresponding reduction in the contributed surplus related to the options exercised. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii)   | Loss per share Basic loss per share is calculated using the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated giving effect to the potential dilution that would occur if securities or other contracts to issue common shares were exercised or converted to common shares using the treasury method. The treasury method assumes that proceeds received from the exercise of stock options and warrants are used to repurchase common shares at the prevailing market rate. Stock options and warrants are dilutive when the average market prices of the common shares during the year exceed the exercise prices of the options and warrants. For the years ended December 31, 2009, December 31, 2008 and the eleven months ended December 31, 2007, the existence of warrants and options affects the calculation of loss per share on a fully diluted basis. As the affect of this dilution is to reduce the reported loss per share (anti-dilutive), fully diluted loss per share information has not been shown. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiii)   | Asset retirement obligations The Company recognizes the fair value of its liability for asset retirement obligations (“ARO”), including site restoration costs in the period in which such liabilities are incurred and can be reasonably estimated. Upon recognition of an ARO, the site restoration costs are capitalized as a part of the mineral property. In periods subsequent to initial measurement, the ARO is adjusted for both the passage of time and revisions to the original estimates. If the obligation is settled for other than the carrying amount of the liability, a gain or loss on the settlement is recognized. The Company estimated its site restoration costs as at December 31, 2009 to be $nil (2008 - $nil) as significant disturbance of sites giving rise to restoration obligations has not yet occurred. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xiv)   | Impairment of long-lived assets The recoverability of long-lived assets, which includes property, plant, equipment, and mineral properties is assessed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability is based on factors such as future asset utilization and the future undiscounted cash flows expected to result from the use or sale of the related assets. An impairment loss is recognized when the carrying amount of an asset that is held and used exceeds the projected undiscounted future net cash flows expected from its use and disposal less costs to sell, and is measured as the amount by which the carrying amount of the asset exceeds its fair value, which is measured based on discounted cash flows when quoted market prices are not available. Impairment in the carrying value of non-producing mineral properties may occur when one of the following conditions exists: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xv)   | New Accounting Standards Effective January 1, 2009, the Company adopted the following new accounting standards issued by the Canadian Institute of Chartered Accountants (“CICA”). These accounting policy changes were adopted on a prospective basis with no restatement of prior period consolidated financial statements: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | CICA Section 3064 Goodwill and Intangible Assets replaces Section 3062 Goodwill and Intangible Assets, and Section 3450 Research and Development Costs, which also resulted in amendments to related guidance contained in AcG-11 Enterprises in the Development Stage and Section 1000 Financial Statement Concepts. This new standard establishes standards for the recognition, measurement, presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets by profit orientated enterprises. The adoption of this standard had no impact on the Company’s consolidated financial statements for fiscal 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Emerging Issues Committee Abstracts (“EIC”) 173 Credit Risk and the Fair Value of Financial Assets and Financial Liabilities provides guidance on how to take into account an entity’s own credit risk and the credit risk of the counterparty when determining the fair value of financial assets and financial liabilities, including derivative instruments. The adoption of this standard had no impact on the Company’s consolidated financial statements for fiscal 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | EIC 174 Mining Exploration Costs provides guidance related to the measurement of exploration costs and the conditions that a mining enterprise should consider when determining the need to perform an impairment review of such costs. The adoption of this standard had no impact on the Company’s consolidated financial statements for fiscal 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d)   | Amendments to CICA Section 3862 Financial Instruments – Disclosures. These amendments are applicable to the Company’s annual financial statements, requiring additional disclosure about fair value measurements of financial instruments and enhanced liquidity disclosure requirements for publically accountable enterprises. The disclosures required by these new standards are included in Note 18. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xvi)   | Recent Accounting Pronouncements |
|------------------|----------------------------------|

| (a)   | In February 2008, the CICA announced that Canadian GAAP for publicly accountable enterprises will be replaced by International Financial Reporting Standards (“IFRS”) for interim and annual financial statements for fiscal years beginning on or after January 1, 2011. The standard also requires that comparative figures for 2010 be based on IFRS. The Company is currently in the planning stages to identify the impact of adopting IFRS on its financial statements and will continue to invest in training and necessary resources to complete the conversion. The Company continues to monitor and assess the impact of convergence of Canadian GAAP and IFRS. The Company anticipates implementation of these standards in its first quarter of 2011 and is currently evaluating the impact of their adoption on its consolidated financial statements. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | CICA Section 1582 Business Combinations, which replaces Section 1581, Business Combinations; CICA Section 1601 Consolidated Financial Statement and Section 1602 Non-Controlling Interests, which replace Section 1600, Consolidated Financial Statements. These new standards are based on the International Financial Reporting Standard 3, Business Combinations. These new standards replace the existing guidance on business combination and consolidated financial statements. These new standards require that most assets acquired and liabilities assumed, including contingent liabilities, to be measured at fair value and all acquisition costs to be expensed. These new standards also require non-controlling interests to be recognized as a separate component of equity and net earnings to be calculated without a deduction for non-controlling interests. The objective of these new standards is to harmonize Canadian accounting for business combinations with the International and United States accounting standards. The new standards are to be applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2011, with earlier application permitted. This standard is effective for the Company for interim and annual financial statements beginning on January 1, 2011. The Company has not yet determined the impact of the adoption of this change on its consolidated financial statements. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | Cost   |      |   | Accumulated Amortization |   |   | 2009Net Book Value |   |   | 2008Net Book Value |   |
|-------------------------------------------|--------|--------|-----------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
| Office equipment, furniture and fixtures  |   | $      | 5,512     |   |                     | $      | 4,557  |               |   | $      | 955                |   |   | $ | 1,194 |   |
| Computer equipment                        |   |   | 27,642    |   |                     |   | 6,587  |               |   |   | 21,055             |   |   |   | 22,928 |   |
| Mine mill, machinery and processing plant |   |   | 1,387,082 |   |                     |   | -      |               |   |   | 1,387,082          |   |   |   | 1,105,621 |   |
| Mine facilities and equipment             |   |   | 48,416    |   |                     |   | 2,362  |               |   |   | 46,054             |   |   |   | 46,270 |   |
|                                      |   | $      | 1,468,652 |   |                     | $      | 13,506 |               |   | $      | 1,455,146          |   |   | $ | 1,176,013 |   |

----

|                                                     |   |    |       |   | British  |   |     |   |   |   |   |   |
|----------------------------------------------------------|--------|---------|------------|--------|----------|--------|----------|--------|--------|--------|--------|--------|
|                                                     |   | Durango |       |   | Columbia |   |     | Yukon  |   |   |   |   |
|                                                     |   | Mexico  |       |   | Canada   |   |     | Canada |   |   | Total  |   |
|                                                     |   |    |       |   |     |   |     |   |   |   |   |   |
| Balance, December 31, 2007                               |   | $       | 12,489,137 |   |     | $      | 607,667  |   |   | $      | 1      |   |   | $ | 13,096,805 |   |
|                                                     |   |    |       |   |     |   |     |   |   |   |   |   |   |   |   |   |
| Exploration costs incurred   during year: |   |    |       |   |     |   |     |   |   |   |   |   |   |   |   |   |
| Assays                                                   |   |    | 98,442     |   |     |   | 67       |   |   |   | 303    |   |   |   | 98,812 |   |
| Assessment and taxes                                     |   |    | 60,565     |   |     |   | -        |   |   |   | -      |   |   |   | 60,565 |   |
| Drilling                                                 |   |    | 1,276,941  |   |     |   | -        |   |   |   | -      |   |   |   | 1,276,941 |   |
| Geological                                               |   |    | 326,564    |   |     |   | 387      |   |   |   | 1,450  |   |   |   | 328,401 |   |
| Balance, December 31, 2008                               |   | $       | 14,251,649 |   |     | $      | 608,121  |   |   | $      | 1,754  |   |   | $ | 14,861,524 |   |
|                                                     |   |    |       |   |     |   |     |   |   |   |   |   |   |   |   |   |
| Exploration costs incurred   during year: |   |    |       |   |     |   |     |   |   |   |   |   |   |   |   |   |
| Assays                                                   |   |    | 9,480      |   |     |   | -        |   |   |   | -      |   |   |   | 9,480 |   |
| Assessment and taxes                                     |   |    | 40,948     |   |     |   | -        |   |   |   | -      |   |   |   | 40,948 |   |
| Drilling                                                 |   |    | 156,612    |   |     |   | -        |   |   |   | -      |   |   |   | 156,612 |   |
| Geological                                               |   |    | 143,149    |   |     |   | -        |   |   |   | -      |   |   |   | 143,149 |   |
| Sale of concentrate                                      |   |    | (30,089    | )      |     |   | -        |   |   |   | -      |   |   |   | (30,089 | ) |
| Impairment of mineral properties                         |   |    | -          |   |     |   | (608,118 | )      |   |   | -      |   |   |   | (608,118 | ) |
|                                                     |   |    |       |   |     |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                               |   | $       | 14,571,749 |   |     | $      | 3        |   |   | $      | 1,754  |   |   | $ | 14,573,506 |   |

----

| (i)   | Aumax property In 2003 the Company acquired a 100% interest in six Crown granted mineral claims, located in the Lillooet Mining Division of British Columbia, Canada by issuing 200,000 common shares at a price of $0.50 per share and paying $4,000 in cash for total consideration of $104,000. During the January 31, 2007 year end these mineral claims were converted into one claim encompassing all of the original claims. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Minto property The Company has a 100% interest in eight Crown granted mineral claims, eight reverted Crown granted mineral claims and one located mineral claim, situated in the Lillooet Mining Division of British Columbia. During the January 31, 2007 year end these mineral claims were converted into one claim encompassing all of the original claims. The property was written down to a nominal value of $1 in fiscal 2002. The Company recommenced exploration of the property in fiscal 2006 and costs incurred since then have been deferred. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Olympic-Kelvin property The Company has a 100% interest in 20 reverted Crown granted mineral claims, one located mineral claim and three fractions located in the Lillooet Mining Division of British Columbia. The property was written down entirely in fiscal 2002. During the January 31, 2007 year end these original mineral claims and fractions were converted into six claims encompassing all of the original claims. The Company recommenced exploration of the property in fiscal 2004 and costs incurred since then have been deferred. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | Yukon, Canada In 2003 the Company acquired a 100% interest in 14 quartz leases, located in the Mayo Mining Division of the Yukon, Canada by issuing 200,000 common shares at a price of $0.50 per share for total consideration of $100,000. The property was written down to a nominal value of $1 in fiscal 2006 by a charge to operations of $103,242. On November 12, 2008 and amended April 1, 2009, the Company entered into an option agreement with Mega Silver Inc. (“Mega Silver”), whereby Mega Silver can earn the excusive right and option to acquire a 100% title and interest in the Eagle Property located in the Yukon Territory. To earn a 75% interest in the Eagle Property, Mega Silver must: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •      | Take the property into production, subject to a 2.5% Net Smelter Return, pay the Company $200,000, and $200,000 on or before each yearly anniversary of the production decision until the later of the fifth anniversary or the date of commercial production commences. |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   |   |    |   | Accumulated    |   |    | Fair   |   |   | Fair    |   |
|---------------------------------------------|--------|--------|---------|--------|----------------|--------|---------|--------|--------|--------|---------|--------|
|                                        |   |   |    |   | Unrealized     |   |    | Value  |   |   | Value   |   |
|                                        |   | Cost   |    |   | Gains (Losses) |   |    | 2009   |   |   | 2008    |   |
|                                        |   |   |    |   |           |   |    |   |   |   |    |   |
| (a) Bralorne Gold Mines Ltd.                |   | $      | 205,848 |   |           | $      | (62,529 | )      |   | $      | 143,319 |   |   | $ | 89,574 |   |
| (b) Levon Resources Ltd.                    |   |   | 4,236   |   |           |   | 56,480  |   |   |   | 60,716  |   |   |   | 16,944 |   |
| (c) Oniva InternationalServices Corporation |   |   | 1       |   |           |   | -       |   |   |   | 1       |   |   |   | 1 |   |
|                                        |   |   |    |   |           |   |    |   |   |   |    |   |   |   |   |   |
|                                        |   | $      | 210,085 |   |           | $      | (6,049  | )      |   | $      | 204,036 |   |   | $ | 106,519 |   |

----

|                    |   | 2009   |   |   | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
|                    |   |   |   |   |   |   |
| VAT recoverable         |   | $      | 92,706 |   |   | $      | 679,315 |   |
| Write-down provision    |   |   | (8,873 | )      |   |   | (302,632 | ) |
|                    |   |   |   |   |   |   |   |   |
| VAT net carrying amount |   |   | 83,833 |   |   |   | 376,683 |   |
| GST recoverable         |   |   | 4,892  |   |   |   | 10,324 |   |
|                    |   |   |   |   |   |   |   |   |
| Sales tax recoverable   |   | $      | 88,725 |   |   | $      | 387,007 |   |
|                    |   |   |   |   |   |   |   |   |

----

| (a)   | Authorized:   Unlimited common shares without par value |
|-----------------|------------------------------------------------------------------------|

| (b)   | Warrants During the year ended December 31, 2009 there were no warrants issued, exercised or expired. On February 29, 2008, the TSX Venture Exchange approved the extension of the expiry date for the warrants expiring on March 20, 2008. The new expiry date for these warrants is March 20, 2009. On February 26, 2009, the TSX Venture Exchange granted approval to further extend these warrants to March 20, 2010. Details of share purchase warrants outstanding as of December 31, 2009 and 2008 are: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Expiry Date  |   | Exercise Price |   |   | WarrantsOutstanding |   |
|--------------------|--------|----------------|--------|--------|---------------------|--------|
|               |   |           |   |   |                |   |
| March 20, 2010 (i) |   | $              | 2.50   |   |                |   | 2,498,750 |   |

| (c)   | Stock options The Company has a stock option plan under which it may grant stock options 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 regular employees and persons providing investor-relation or consulting services up to a limit of 5% and 2% respectively of 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-relation or consulting services, which vest over a period of one year. The option price must be greater or equal to the discounted market price on the grant date and the option term cannot exceed five years from the grant date. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | Underlying Shares |      |   | Weighted Average Exercised Price |   |
|----------------------------------------------|--------|-------------------|-----------|--------|----------------------------------|--------|
|                                         |   |              |      |   |                             |   |
| Stock options outstanding, December 31, 2007 |   |              | 1,451,300 |   |                             | $      | 3.23 |   |
|    Granted                    |   |              | 600,000   |   |                             | $      | 1.65 |   |
|    Expired or cancelled       |   |              | (196,800  | )      |                             | $      | 1.97 |   |
|                                         |   |              |      |   |                             |   |   |   |
| Stock options outstanding, December 31, 2008 |   |              | 1,854,500 |   |                             | $      | 2.85 |   |
|    Granted                    |   |              | 160,000   |   |                             | $      | 0.75 |   |
|    Expired or cancelled       |   |              | (195,000  | )      |                             | $      | 2.49 |   |
|                                         |   |              |      |   |                             |   |   |   |
| Stock options outstanding, December 31, 2009 |   |              | 1,819,500 |   |                             | $      | 0.88 | * |

| Expiry Date        |   | Exercise Price |   |   | 2009Stock Options Outstanding |   |      | 2008Stock Options Outstanding |   |
|--------------------|--------|----------------|--------|--------|-------------------------------|--------|-----------|-------------------------------|--------|
|               |   |           |   |   |                          |   |      |                          |   |
| April 5, 2010      |   | $              | 1.35   | **     |                          |   | 42,500    |                          |   |   | 262,000 |   |
| April 5, 2010      |   | $              | 0.75   | **     |                          |   | 219,500   |                          |   |   | - |   |
| September 26, 2010 |   | $              | 1.35   |   |                          |   | -         |                          |   |   | 52,500 |   |
| September 26, 2010 |   | $              | 0.75   | *      |                          |   | 52,500    |                          |   |   | - |   |
| March 15, 2011     |   | $              | 2.72   |   |                          |   | -         |                          |   |   | 120,000 |   |
| April 26, 2011     |   | $              | 3.99   |   |                          |   | 60,000    |                          |   |   | 940,000 |   |
| April 26, 2011     |   | $              | 0.75   | *      |                          |   | 865,000   |                          |   |   | - |   |
| February 26, 2013  |   | $              | 1.65   |   |                          |   | 10,000    |                          |   |   | - |   |
| February 26, 2013  |   | $              | 0.75   | *      |                          |   | 410,000   |                          |   |   | 480,000 |   |
| September 22, 2014 |   | $              | 0.75   |   |                          |   | 160,000   |                          |   |   | - |   |
|               |   |           |   |   |                          |   |      |                          |   |   |   |   |
|               |   |           |   |   |                          |   | 1,819,500 |                          |   |   | 1,854,500 |   |

----

|                                      |   | Year EndedDecember 31, 2009 |    |   | Year EndedDecember 31,2008 |   |    | Period EndedDecember 31,2007 |   |
|-------------------------------------------|--------|-----------------------------|---------|--------|----------------------------|--------|---------|------------------------------|--------|
| Weighted average assumptions:             |   |                        |    |   |                       |   |    |                         |   |
|  Risk-free interest rate             |   |                        | 1.38    | %      |                       |   | 3.32    | %                            |   |   | – |   |
|  Expected dividend yield             |   |                        | – |   |                       |   | – |                         |   |   | – |   |
|  Expected option life (years)        |   |                        | 2.27    |   |                       |   | 5       |                         |   |   | – |   |
|  Expected stock price volatility     |   |                        | 94.84   | %      |                       |   | 78.23   | %                            |   |   | – |   |
| Weighted average fair value at grant date |   | $                           | 0.16    |   |                       | $      | 1.01    |                         |   |   | – |   |

----

|                               |   | December 31, 2009 |    |   | December 31, 2008 |   |
|------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Directors                          |   | $                 | 18,000  |   |              | $      | 9,000 |   |
| Chevillon Exploration              |   |              | -       |   |              |   | 16,789 |   |
| Frobisher Securities Ltd.          |   |              | 516     |   |              |   | - |   |
| Oniva International Services Corp. |   |              | 145,120 |   |              |   | 145,011 |   |
| Sampson Engineering Inc.           |   |              | 1,054   |   |              |   | - |   |
|                               |   | $                 | 164,690 |   |              | $      | 170,800 |   |

| (b) | The Company recorded the following amounts for management and consulting services provided by the following companies: |
|-----|------------------------------------------------------------------------------------------------------------------------|

|                    |   | Year EndedDecember 31, 2009 |    |   | Year EndedDecember 31, 2008 |   |    | Period EndedDecember 31, 2007 |   |
|-------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|---------|-------------------------------|--------|
|                    |   |                        |    |   |                        |   |    |                          |   |
| Intermark Capital Corp  |   | $                           | 96,000  |   |                        | $      | 96,000  |                          |   | $ | 88,000 |   |
| Wear Wolfin Design Ltd. |   |                        | 30,000  |   |                        |   | 30,000  |                          |   |   | 27,500 |   |
|                    |   | $                           | 126,000 |   |                        | $      | 126,000 |                          |   | $ | 115,500 |   |

|                             |   | Year EndedDecember 31, 2009 |   |   | Year EndedDecember 31, 2008 |   |   | Period EndedDecember 31, 2007 |   |
|----------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------|--------|
|                             |   |                        |   |   |                        |   |   |                          |   |
| ABC Drilling Services Inc.       |   | $                           | -      |   |                        | $      | -      |                          |   | $ | 65,577 |   |
| Chevillon Exploration Consulting |   |                        | 4,331  |   |                        |   | 16,789 |                          |   |   | - |   |
| Sampson Engineering Inc.         |   |                        | 10,344 |   |                        |   | 34,698 |                          |   |   | 36,100 |   |
| National Media Associates        |   |                        | -      |   |                        |   | -      |                          |   |   | 40,513 |   |
|                             |   | $                           | 14,675 |   |                        | $      | 51,487 |                          |   | $ | 142,190 |   |

| (d) | The Company recorded the following amounts for administrative services and expenses provided by Oniva International Services Corp.: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Year EndedDecember 31, 2008 |    |   | Year EndedDecember 31, 2008 |   |    | Period EndedDecember 31, 2007 |   |
|--------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|---------|-------------------------------|--------|
|                     |   |                        |    |   |                        |   |    |                          |   |
| Salaries and benefits    |   | $                           | 81,841  |   |                        | $      | 109,354 |                          |   | $ | 72,365 |   |
| Office and miscellaneous |   |                        | 66,913  |   |                        |   | 78,804  |                          |   |   | 81,368 |   |
|                     |   |                        |    |   |                        |   |    |                          |   |   |   |   |
|                     |   | $                           | 148,754 |   |                        | $      | 188,158 |                          |   | $ | 153,733 |   |

----

|                                                      |   | 2009   |    |   | 2008   |   |     | 2007   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|
| Net change in non-cash working capital items:             |   |   |    |   |   |   |     |   |   |
| Interest receivable                                       |   | $      | 2,793   |   |   | $      | 16,244   |   |   | $ | 18,996 |   |
| Sales taxes recoverable                                   |   |   | 289,409 |   |   |   | (206,110 | )      |   |   | (338,069 | ) |
| Prepaid expenses                                          |   |   | (38,127 | )      |   |   | 20,830   |   |   |   | 21,725 |   |
| Due from related parties                                  |   |   | -       |   |   |   | -        |   |   |   | 65,770 |   |
| Accounts payable and   accrued liabilities |   |   | (21,925 | )      |   |   | (116,303 | )      |   |   | (790,850 | ) |
| Due to related parties                                    |   |   | (6,110  | )      |   |   | (5,988   | )      |   |   | 35,264 |   |
|                                                      |   | $      | 226,040 |   |   | $      | (291,327 | )      |   | $ | (987,164 | ) |

|   |   | Amount |    |
|--------|--------|--------|---------|
|   |   |   |    |
| 2010   |   | $      | 152,869 |   |
| 2011   |   |   | 11,297  |   |
| 2012   |   |   | 11,297  |   |
| 2013   |   |   | 11,297  |   |
| 2014   |   |   | 11,297  |   |
|   |   | $      | 198,057 |   |

----

|                                                                                      |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|-------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                      |   |   |     |   |   |   |     |   |   |
| Statutory rate                                                                            |   |   | 30.00    | %      |   |   | 31.00    | %      |   |   | 34.12 | % |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Income taxes recovered at the Canadian statutory rate                                     |   | $      | 368,196  |   |   | $      | 446,469  |   |   | $ | 473,225 |   |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Less permanent differences:                                                               |   |   |     |   |   |   |     |   |   |   |   |   |
|      Stock-based compensation                                    |   |   | (71,366  | )      |   |   | (181,598 | )      |   |   | – |   |
|      Investor relations expense for stock options granted        |   |   | -        |   |   |   | (6,262   | )      |   |   | (9,507 | ) |
|      Reduction for effect of lower Mexican tax rates             |   |   | 1,394    |   |   |   | (7,160   | )      |   |   | (64,829 | ) |
|      Other non-tax deductible expenses                           |   |   | (363     | )      |   |   | (762     | )      |   |   | (1,574 | ) |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Effect of temporary differences:                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
|       Share issuance costs                                  |   |   | -        |   |   |   | 51,071   |   |   |   | 71,239 |   |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Non-capital losses expired                                                                |   |   | (271,284 | )      |   |   |     |   |   |   |   |   |
| Change in enacted rates                                                                   |   |   | (206,652 | )      |   |   |     |   |   |   |   |   |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Valuation allowance on benefit of tax loss                                                |   |   | 180,075  |   |   |   | (301,758 | )      |   |   | (468,554 | ) |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Benefit of Mexican tax losses recognized on reduction of future income tax liability |   |   | 239,694  |   |   |   | (98,653  | )      |   |   | 501,083 |   |
|                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Income tax recovery recognized in the year                                                |   | $      | 239,694  |   |   | $      | (98,653  | )      |   | $ | 501,083 |   |

----

|                                                                                                                                                                  |   | 2009   |       |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                                                                  |   |   |       |   |   |   |
| Expected tax recovery rate                                                                                                                                            |   |   | 26         | %      |   |   | 27 | % |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Non-capital tax losses carried forward                                                                                                                                |   | $      | 1,141,325  |   |   | $      | 1,219,963 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Capital losses carried forward                                                                                                                                        |   |   | 191,387    |   |   |   | 323,886 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Canadian exploration expenses, Canadian development expenses and foreign exploration, and development expenses in excess of book value of Canadian mineral properties |   |   | 540,234    |   |   |   | 441,491 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Share issuance costs                                                                                                                                                  |   |   | 42,833     |   |   |   | 88,963 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Tax basis of investments in related companies in excess of book value                                                                                                 |   |   | 28,210     |   |   |   | 47,740 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Undeducted capital cost allowance in excess of book value of Canadian equipment                                                                                       |   |   | 54,225     |   |   |   | 56,246 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Future income tax assets                                                                                                                                              |   |   | 1,998,214  |   |   |   | 2,178,289 |   |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Less: valuation allowance                                                                                                                                             |   |   | (1,998,214 | )      |   |   | (2,178,289 | ) |
|                                                                                                                                                                  |   |   |       |   |   |   |   |   |
| Net tax assets                                                                                                                                                        |   | $      | –    |   |   | $      | – |   |

|                                                     |   | 2009   |       |   | 2008   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                     |   |   |       |   |   |   |
| Mexican statutory rate                                   |   |   | 28         | %      |   |   | 28 | % |
|                                                     |   |   |       |   |   |   |   |   |
| Book value of mineral properties in excess of tax bases  |   | $      | 3,472,175  |   |   | $      | 3,382,547 |   |
| Book value of plant and equipment in excess of tax bases |   |   | 333,676    |   |   |   | 275,092 |   |
| Less: Mexican tax losses carried forward                 |   |   | (2,111,844 | )      |   |   | (1,724,070 | ) |
|                                                     |   |   |       |   |   |   |   |   |
| Future income tax liability                              |   | $      | 1,674,007  |   |   | $      | 1,933,569 |   |

----

| Year of Expiry |   | Canada |      |   | Mexico |   |
|----------------|--------|--------|-----------|--------|--------|--------|
|           |   |   |      |   |   |   |
| 2010           |   | $      | 343,690   |   |   | $      | 1,373,853 |   |
| 2014           |   |   | 568,450   |   |   |   | – |   |
| 2016           |   |   | –   |   |   |   | 3,623,246 |   |
| 2017           |   |   | –   |   |   |   | 1,502,459 |   |
| 2018           |   |   | –   |   |   |   | 1,042,742 |   |
| 2025           |   |   | 799,044   |   |   |   | – |   |
| 2026           |   |   | 646,331   |   |   |   | – |   |
| 2027           |   |   | 643,498   |   |   |   | – |   |
| 2028           |   |   | 774,118   |   |   |   | – |   |
| 2029           |   |   | 614,579   |   |   |   | – |   |
|           |   |   |      |   |   |   |   |   |
|           |   | $      | 4,389,710 |   |   | $      | 7,542,300 |   |

| (a)   | Classification |
|-----------------|----------------|

|                              |   | 2009   |      |   | 2008   |   |
|-----------------------------------|--------|--------|-----------|--------|--------|--------|
|                              |   |   |      |   |   |   |
| Held for trading (i)              |   | $      | 2,829,751 |   |   | $      | 3,578,180 |   |
| Available for sale (ii)           |   |   | 204,036   |   |   |   | 106,519 |   |
| Other financial liabilities (iii) |   |   | 547,172   |   |   |   | 575,207 |   |

| (i)      | Cash and cash equivalents and interest receivable |
|-----------------------------------|---------------------------------------------------|

| (ii)      | Investments in related companies |
|------------------------------------|----------------------------------|

| (iii)      | Accounts payable and amounts due to related parties |
|-------------------------------------|-----------------------------------------------------|

----

|                             |   |    |      |   |    |   |   |    |   |   | Total  |   |
|----------------------------------|--------|---------|-----------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
|                             |   | Level 1 |      |   | Level 2 |   |   | Level 3 |   |   | 2009   |   |
|                             |   |    |      |   |    |   |   |    |   |   |   |   |
| Cash and cash equivalents        |   | $       | 2,829,605 |   |    | $      | -      |    |   | $      | -      |   |   | $ | 2,829,605 |   |
| Investments in related companies |   |    | 204,036   |   |    |   | -      |    |   |   | -      |   |   |   | 204,036 |   |
|                             |   | $       | 3,033,641 |   |    | $      | -      |    |   | $      | -      |   |   | $ | 3,033,641 |   |

| (c)   | Interest rate risk |
|-----------------|--------------------|

| (d)   | Foreign exchange rate risk |
|-----------------|----------------------------|

| (e)   | Credit risk |
|-----------------|-------------|

| (f)   | Liquidity risk |
|-----------------|----------------|

----

| (g)   | Market risk |
|-----------------|-------------|

| (h)   | Sensitivity analysis |
|-----------------|----------------------|

----

|                                                                          |   | 2009   |            |   | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|--------|
| Balance sheets                                                                |   |   |            |   |   |   |
| Total assets under Canadian GAAP                                              |   | $      | 19,206,278      |   |   | $      | 20,126,230 |   |
| Deferred exploration expenditures and mineral property acquisition costs (ii) |   |   | (14,573,506     | )      |   |   | (14,861,524 | ) |
| Total assets under US GAAP                                                    |   | $      |  4,632,772 |   |   | $      |  5,264,706 |   |
|                                                                          |   |   |            |   |   |   |   |   |
| Total liabilities under Canadian GAAP                                         |   | $      | 2,241,179       |   |   | $      | 2,508,776 |   |
| Future income taxes related to mineral properties (ii)                        |   |   | (1,694,007      | )      |   |   | (1,933,569 | ) |
| Total liabilities under US GAAP                                               |   | $      | 547,172         |   |   | $      | 575,207 |   |
|                                                                          |   |   |            |   |   |   |   |   |
| Total shareholders’ equity under Canadian GAAP                          |   | $      | 16,965,099      |   |   | $      | 17,617,454 |   |
| Future income taxes related to mineral properties (ii)                        |   |   | 1,694,007       |   |   |   | 1,933,569 |   |
| Deferred exploration expenditures (ii)                                        |   |   | (14,573,506     | )      |   |   | (14,861,524 | ) |
| Total shareholders’ equity under US GAAP                                |   | $      | 4,085,600       |   |   | $      | 4,689,499 |   |

|                                                  |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Consolidated statements of operations                 |   |   |       |   |   |   |       |   |   |
| Loss for year under Canadian GAAP                     |   | $      | (987,759   | )      |   | $      | (1,538,876 | )      |   | $ | (885,863 | ) |
| Future income taxes related to mineral properties (i) |   |   | (239,562   | )      |   |   | 98,653     |   |   |   | (501,083 | ) |
| Current period exploration costs (i)                  |   |   | (320,100   | )      |   |   | (1,764,719 | )      |   |   | (2,332,350 | ) |
| Addback of impairment in mineral properties           |   |   | 608,118    |   |   |   | -          |   |   |   | - |   |
| Stock based compensation expense (ii)                 |   |   | (143,564   | )      |   |   | (185,165   | )      |   |   | - |   |
| Net loss for the year under US GAAP (ii)              |   | $      | (1,082,867 | )      |   | $      | (3,390,107 | )      |   | $ | (3,719,296 | ) |
| Loss per share under US GAAP - basic and diluted      |   | $      | (0.05      | )      |   | $      | (0.17      | )      |   | $ | (0.18 | ) |

----

|                                                             |   | 2009   |     |   | 2008   |   |       | 2007   |   |
|------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|------------|--------|--------|
| Statements of cash flows                                         |   |   |     |   |   |   |       |   |   |
| Cash flows used in operating activities under Canadian GAAP      |   | $      | (144,075 | )      |   | $      | (909,029   | )      |   | $ | (2,344,201 | ) |
| Mineral properties expenditures (ii)                             |   |   | (320,100 | )      |   |   | (1,764,719 | )      |   |   | (2,292,156 | ) |
| Cash flows used in operating activities under US GAAP       |   | $      | (464,175 | )      |   | $      | (2,673,748 | )      |   | $ | (4,636,357 | ) |
|                                                             |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash flows used in investing activities under Canadian GAAP |   | $      | (601,561 | )      |   | $      | (1,858,211 | )      |   | $ | (2,364,364 | ) |
| Mineral properties expenditures (ii)                             |   |   | 320,100  |   |   |   | 1,764,719  |   |   |   | 2,292,156 |   |
| Cash flows used in investing activities under US GAAP       |   | $      | (281,461 | )      |   | $      | (93,492    | )      |   | $ | (72,208 | ) |

| i)   | Mineral properties and deferred exploration expenditures Canadian GAAP permits the deferral of costs for the acquisition of mineral properties and exploration expenditures subject to periodic assessments for impairment. US GAAP requires that mineral exploration costs relating to unproven mineral properties be expensed.  Under US GAAP the acquisition costs of mineral properties are initially capitalized with an assessment for impairment under ASC 360 performed at each reporting period. For US GAAP cash flow statement purposes, mineral property exploration expenditures would be shown under operating activities rather than investing activities. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)  | Stock-based compensation Under ASC 718 US GAAP requires the recognition of a stock-based compensation expense associated with the extension of the expiry date of outstanding warrants whereas Canadian GAAP has no clear guidance on non-service orientated equity awards. The Company has calculated this expense using the Black-Scholes option pricing model with the following assumptions for the fair value of the original warrants at the date of amendment and the fair value of the amended warrants at the date of the amendment respectively: risk-free interest rates 1.27% (2008 - 3.05%), dividend yield of nil and nil, volatility of 104% and 155% (2008 –26.61% and 44.12%) and an expected life of 0.06 years and 1.06 years (2008 - 0.05 years and 1.05 years). |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii)  | Recent adopted accounting standards In June 2009, FASB issued Accounting Standards Codification (“ASC”) Topic 105, Generally Accepted Accounting Principles. ASC Topic 105 establishes the FASB Accounting Standards Codification (“Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with US GAAP for the Securities and Exchange Commission (“SEC”) registrants. All guidance contained in the Codification carries an equal level of authority. The Codification supersedes all existing non-SEC accounting and reporting standards. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. The FASB will instead issue new standards in the form of Accounting Standards Updates (“ASU”). The FASB will not consider ASUs as authoritative in their own right and ASUs will serve only to update the Codification, provide background information about the guidance and provide the basis for conclusions on changes in Codification. These changes and the Codification itself do not change US GAAP. The adoption of these changes has only impacted the manner in which new accounting guidance under US GAAP is referenced and otherwise did not affect the Company’s consolidated financial statements. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| iii)  | Recent adopted accounting standards (continued) In May 2009, the FASB issued ASC 855-10-05, Subsequent Events (formerly SFAS No. 165) which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The new guidance defines two types of subsequent events: “recognized subsequent events” and “non-recognized subsequent events”. Recognized subsequent events provide additional evidence about conditions that existed at the balance sheet date and must be reflected in the Company’s financial statements. Non-recognized subsequent events provide evidence about conditions that arouse after the balance sheet date and are not reflected in the financial statements of a company. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In March 2008, the FASB issued ASC 815-10-15 Derivatives and Hedging (formerly SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities – an amendment to FASB Statement No. 133). ASC 815-10-15 is intended to improve financial standards for derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows. Entities are required to provide enhanced disclosures about: (a) how and why an entity uses derivative instruments; (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations; and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal years beginning after November 15, 2008, with early adoption encouraged. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In December 2007, the FASB issued ASC 810-10, Non-Controlling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51, (formerly SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51. ASC 810-10 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The adoption of this statement did not have a material impact on the Company's consolidated financial statements. In December 2007, the FASB issued ASC 805 Business Combinations (formerly SFAS No. 141(R)) that establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree. The statement also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. ASC 805 applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The adoption of this statement did not have a material impact on the Company's consolidated financial statements. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| iv)  | Recently issued accounting pronouncements In June 2009, the Financial Accounting Standards Board (“FASB”) issued amendment to ASC 820 Fair Value Measurements and Disclosures (formerly SFAS 166 Accounting for Transfers of Financial Assets, which amends FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishing of Liabilities) significantly changing how companies account for transfers of financial assets. The standard provides revised guidance in a number of areas including the elimination of qualifying special purpose entity concept, the introduction of new “participating interest” definition that must be met for transfers of portions of financial assets to be eligible for sale accounting, clarification and amendments to the derecognition criteria for a transfer to be accounted for as a sale when beneficial interests are received by the transferor, and extensive new disclosures. The provisions are to be applied to transfers of financial assets occurring in years beginning after November 15, 2009. The adoption of this standard is not expected to have a material impact on the Company’s future reported financial position or results of operations. In June 2009, the FASB issued an amendment to ASC 810 Consolidation (formerly SFAS 167, Amendments to FASB Interpretation No. 46 (R), which amends the consolidation guidance for variable interest entities (“VIE”) under FIN 46(R), Consolidation of Variable Interest Entities). The changes include the elimination of the exemption for qualifying special purpose entities and a new approach for determining who should consolidate a variable interest entity. In addition, changes to when it is necessary to reassess who should consolidate a variable interest entity have also been made. In determining the primary beneficiary, or entity required to consolidate a VIE, quantitative analysis of who absorbs the majority of the VIEs expected losses or receives a majority of the VIEs expected residual returns or both is no longer required. Under the amendment, an entity is required to assess whether its variable interest or interests in an entity give it a controlling financial interest in the VIE, which involves more qualitative analysis. Additional disclosures will be required under the amendment to provide more transparent information regarding an entity’s involvement with a VIE. The provisions are to be applied to transfers of financial assets occurring in years beginning after November 15, 2009. The adoption of this standard is not expected to have a material impact on the Company’s future reported financial position or results of operations. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                | AVINO SILVER & GOLD MINES LTD. |                                |
|---------------------|------------------------------------|-------------------------------------|
|                |                               |                                |   |
| Date: July 14, 2010 | By:                                | /s/ David Wolfin               |   |
|                |                               | Name: David Wolfin             |   |
|                |                               | Title: Chief Executive Officer |   |
|                |                               |                                |   |

----

|  Exhibit Number |   | Name                                                                        |
|----------------------|--------|-----------------------------------------------------------------------------|
|  1.1       |   | Memorandum of Avino Silver & Gold Mines Ltd.*                           |
|  1.2       |   | Articles of Avino Silver & Gold Mines Ltd.*                             |
|  4.1       |   | Share Purchase Agreement dated March 22, 2004*                              |
|  8.1       |   | List of Subsidiaries                                                        |
|  12.1           |   | Certification of the Principal Executive Officer                            |
|  12.2      |   | Certification of the Principal Financial Officer                            |
|  13.1           |   | Certificate under the Sarbanes-Oxley Act of the Principal Executive Officer |
|  13.2      |   | Certificate under the Sarbanes-Oxley Act of the Principal Financial Officer |

----