Continued Drilling At La Preciosa Delivers High-Grade Intercepts

The news release dated January 26, 2026, reports assay results from six drill holes (totaling 1,400 meters) of a 3,500-meter program at the La Preciosa project in Durango, Mexico. The drilling intersected the La Gloria and Abundancia veins, returning silver grades "significantly higher than the average grade in our current mineral resource." Notable intercepts include 5.44 meters (true width not stated) grading 0.37 g/t gold (with silver grades implied to be high, though not fully quantified in the provided JSON) in the La Gloria vein. The CEO, David Wolfin, stated the significant widths encountered have the company "reconsidering our selected underground production mining method, which has the potential for larger tonnage per blast and lower mining costs." He also noted these holes will be excluded from the upcoming Q1 2026 mineral resource and reserve update due to data cut-off timing but expects to encounter these high grades during ongoing development mining.

The news is materially positive for the following reasons: - Grade Confirmation and Upside: The results consistently exceed the current resource average grade, reinforcing the high-grade potential of the La Gloria and Abundancia veins. This de-risks the geological model and supports higher-grade feed as mining progresses. - Operational Implications: The CEO's commentary on potentially revising the mining method to increase tonnage per blast and lower costs indicates a direct, positive impact on future operating economics. This could lead to improved margins and project NPV. - Project De-risking: As La Preciosa is now in production (with material processed in Q4 2025), continued positive drill results confirm the resource in areas slated for near-term mining, reducing operational uncertainty. - Context with History: This release continues a consistent trend of high-grade drill results from La Preciosa (e.g., August and October 2025), validating the company's acquisition and development strategy. It is incremental but material as it directly pertains to the cost structure and resource quality of a key growth asset.

However, the impact is tempered slightly as the data will not be included in the imminent resource update, pushing the formal economic impact to a later date.

Avino Silver & Gold Mines Ltd. is a Canadian-based precious metals producer with operations in Durango, Mexico. Its strategy is to transform from a single-asset producer to a multi-asset mid-tier producer. - Flagship Avino Mine: A producing underground silver-gold-copper mine with a 2,500 tonne-per-day mill complex. The ET (Elena Tolosa) area is the current focus, with the vein system open at depth and along strike. - La Preciosa Project: A high-grade silver-gold development project located 20 km from the Avino mill. Acquired in 2024, it entered development in 2025, with first development material processed at the Avino mill in Q4 2025. It is the key near-term growth driver, with the potential to significantly increase silver production. - Oxide Tailings Project: A prefeasibility study completed in early 2024 showed positive economics for reprocessing historical tailings.